Hi

I'm a bit confused about the instructions given by the IRS on taxation of Dual Status aliens:

Taxation of Dual-Status Aliens


There is a section that says:

"For The Part of The Year You are a Nonresident Alien:

For the part of the year you are a nonresident alien, you are taxed on income from U.S. sources only."


But then later on it says under the section "Effectively and Not Effectively Connected Income":

"..... Income that is not connected with a trade or business in the United States for your period of nonresidence is subject to the flat 30% rate or lower treaty rate."


Isn't this a contradiction of what was said in the earlier section?



Any help would be greatly appreciated
Thanks,
Sam

U.S. source income that is effective connected is taxed at graduated rates and is after certain deductions. U.S. source income that is not effectively connected is generally subject to a flat 30% rate on gross income.

Thanks for the response. It's really the US source income that is taxed at 30%. It wasn't very clear in the IRS document. Thanks again.