Me and my family are immigrants. We bought a house & have some money in our bank accounts. All the money that we have in US are from foreign money transfer from my father's work in my country. But no one in my family works in US. So we don't pay tax. Is it legal that we don't pay tax until now? We don't file any tax return too.
Another question is, what if we rent out some rooms in our house for some small income, do we have to pay tax for that?
Although it looks as if you properly labeled this question to post to the tax law section of Avvo, it ended up in the immigration section. You may wish to repost it and take the word "immigrant" out of the subject line. (Maybe use just "tax questions" or something like that.)
Ms. Doerrie's answer to your question is general in nature, as not all facts and circumstances relating to the specific person(s) and situations involved are known to her. Ms. Doerrie recommends consulting with an immigration attorney regarding your specific facts and circumstances prior to making any legal decision or submitting any form or application. This response does not create an attorney/client relationship.
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If you have United States source income you will be required to file income tax returns and pay taxes on the income. Money that was transferred from your father would not be income. If you rent out rooms the income you derive from this activity is taxable and would require you to file income tax returns in the United States. it your be a good idea for you to hire a tax professional to prepare these return for you since you are not familiar with our system of taxation.
Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.
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I agree with Attorney Lively. The income you receive from rent, is taxable income and must be reported to federal, state and perhaps municipal agencies. The tax laws are complex and must be adhered to. You should seek help preparing these documents.
I hope this helps.
Steven A. Leahy
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
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