Sylvester is a U.S. citizen living in Canada working as a computer programmer for Excel Designs, Inc., a U.S. company.
I.Sylvester is a nonresident alien for U.S. tax purposes.
II.If Sylvester earns $10,000 for a consulting job in London, this income will be subject to U.S. tax.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Sylvester is a U.S. citizen living in Canada working as a computer programmer for Excel Designs, Inc., a U.S. company.
I.Sylvester is a nonresident alien for U.S. tax purposes.
II.If Sylvester earns $10,000 for a consulting job in London, this income will be subject to U.S. tax.
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A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Sylvester is a U.S. citizen, so he is not a nonresident alien for U.S. tax purposes. However, as a U.S. citizen, he is subject to U.S. tax on his worldwide income, including the $10,000 earned in London.

Sylvester Is a U