Certain foreign government-related individuals who qualify as an Exempt Individual are NOT subject to United States income tax.
Foreign government-related individual
A foreign government-related individual is an individual (or a member of the individual's immediate family) who is temporarily present in the United States:
- As a full-time employee of an international organization,
- By reason of diplomatic status, or
- By reason of a visa (other than a visa that grants lawful permanent residence) that the Secretary of the Treasury determines represents full-time diplomatic or consular status.
Note: Generally, if you are present in the United States under an “A” or “G” class visa you are considered a foreign government-related individual (with full-time diplomatic or consular status). None of your days count for purposes of the substantial presence test.
Household staff exception. If you are present in the United States under an “A-3” or “G-5” visa as a personal employee, attendant, or domestic worker for either a foreign government or international organization official you are not considered a foreign government-related individual and must count all your days of presence in the United States for purposes of the substantial presence test.
An international organization is any public international organization that the President of the United States has designated by Executive Order as being entitled to the privileges, exemptions, and immunities provided for in the International Organizations Act. An individual is a full-time employee if his or her work schedule meets the organization's standard full-time work schedule.
Employees of a Foreign Government
An individual is considered to have full-time diplomatic or consular status if he or she:
- Has been accredited by a foreign government that is recognized by the United States,
Intends to engage primarily in official activities for that foreign government while in the United States, and
Has been recognized by the President, Secretary of State, or a consular officer as being entitled to that status.
Members of the Immediate Family
Members of the immediate family include the individual's spouse and unmarried children (whether by blood or adoption) but only if the spouse's or unmarried children's visa statuses are derived from and are dependent on the exempt individual's visa classification. Unmarried children are included only if they:
- Are under 21 years of age,
- Reside regularly in the exempt individual's household, and
- Are not members of another household.
The immediate family of an exempt individual does not include attendants, servants, or personal employees.