> Conclusion: If I file a 1040-NR and receive a W-2, it doesn’t automatically mean it is a “U.S.
> source” of income. Therefore, “that individual” can decide whether or not he wants to “treat as > effectively connected” the amount reported by inclusion in line 1a of the 1040-NR.
— I think that, in order to logically conclude that "that individual can decide" and for completeness, we need to state that (1) items reported on W2 are not partitioned by the payor into something like "U.S." or "non-U.S. sources" and (2) payor's characterization is not necessarily equivalent to recipient's characterization. [For (2), compare with 26 CFR 1.61-2 (on wages) and the legal maxim "Whatever money is paid, is paid according to the direction or intention of the payer; whatever money is received, is received according to that of the recipient." 2 Vern. 606; Broom, Max. 810. ]
This is incredible. So they remove “U.S. National” from the choices on the form itself and divulge another almost larger clue as to the reality of the term “taxable income”. Why do you believe they are doing this? Maybe with the possible removing of said tax on the horizon, they want to see who’s paying attention?
N.B. Since 2022, line 1a of 1040-NR also 'casually' says "Total amount from Form(s) W-2", which is the 'total' matching 1040's line+schedule 1.
Thanks for commenting.
> Conclusion: If I file a 1040-NR and receive a W-2, it doesn’t automatically mean it is a “U.S.
> source” of income. Therefore, “that individual” can decide whether or not he wants to “treat as > effectively connected” the amount reported by inclusion in line 1a of the 1040-NR.
— I think that, in order to logically conclude that "that individual can decide" and for completeness, we need to state that (1) items reported on W2 are not partitioned by the payor into something like "U.S." or "non-U.S. sources" and (2) payor's characterization is not necessarily equivalent to recipient's characterization. [For (2), compare with 26 CFR 1.61-2 (on wages) and the legal maxim "Whatever money is paid, is paid according to the direction or intention of the payer; whatever money is received, is received according to that of the recipient." 2 Vern. 606; Broom, Max. 810. ]
This is incredible. So they remove “U.S. National” from the choices on the form itself and divulge another almost larger clue as to the reality of the term “taxable income”. Why do you believe they are doing this? Maybe with the possible removing of said tax on the horizon, they want to see who’s paying attention?