Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Form 1078

What it is:

Form 1078 is only for people who became resident aliens before 2001. In our example, that means John Doe would've filed a W-9 after 2001. Regardless, John's income is subject to U.S. taxes and may be subject to taxes in his home country as well. Nonresident aliens use Form 1040NR.

How it works (Example):

Let's say John Doe was born in Canada but moved to New York in 1999. He is a resident alien. He files a Form 1078 with the IRS, which makes his income in 1999 subject to taxes in the United States. John is still a Canadian citizen, but the Form 1078 is required because he has a work visa or a work permit.

Why it Matters:

A Form 1078 is an IRS form used to claim U.S. residency for tax purposes.

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...