What is the difference in taxable income between individuals classified as resident and nonresident aliens for tax purposes?
Resident aliens are taxed just like U.S. citizens and are subject to U.S. tax on their worldwide income. Nonresident aliens are taxed on a slightly higher scale for wages and may be subject to a flat rate of tax on other kinds of payments (such as scholarships). However, nonresident aliens are taxed on their U.S. source income only.
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