The conversation between human and AI assistant.
If a non resident alien invests in a US investment partnership (aka, hedge fund) how does the federal taxation work?
Okay, so how is effectively connected income taxed for non resident aliens?
Non resident aliens' effectively connected income is taxed at the same rates as US citizens and residents. They must file a US tax return and pay federal income tax on their share of partnership income. In addition, the partnership may withhold tax on the income that's distributed to the non resident alien partner.