Question

Explain the difference between residential status and incidence of tax

Answer 1

A non-resident alien is an individual who has not passed the green card test or the substantial presence test. ... Resident aliens are taxed on all income as if they were a citizen of the United States, but a nonresidentalien is subject to taxation only under specific circumstances.

Answer 2

Residential status:

Residential status is a term coined under the Income Tax Act and has nothing to do with nationality or domicile of a person.

Incidence of tax:

Incidence of tax is a term of economics for accepting the division of a tax burden between stakeholders, e.g. buyers and sellers or producers and consumers.  

Tax incidence can also be linked to the price elasticity of supply and demand.

Hope it helped...