What is Form 1040-NR: US Non-Resident Alien Income Tax Return?
Form 1040-NR may be required if a non-resident alien operates in the United States during the tax year or otherwise earns income from a U.S. source throughout the year. A version of an IRS income tax return. The form must also be submitted by a representative of the deceased who would have had to submit the 1040-NR, and a representative of the real estate or trust that would have to submit the form.
Some non-resident foreigners will pay taxes as a result of filling out Form 1040-NR, but many foreigners will be responsible for the amount of tax withheld when paid. , Get a refund.
Filling out Form 1040-NR is especially important for non-residents planning to re-enter the United States. If you want to change your visa requirements, you will need to prove that you have filed the required tax returns.
- Form 1040-NR is often required for non-resident aliens engaged in trade or business in the United States or earning income from US sources of income.
- In most cases, non-resident aliens are non-US citizens who do not pass either the green card test or the substantive residence test.
- Form 1040-NR cannot be submitted as an electronic file. It must be filled out, signed and mailed to the appropriate address.
Who needs Form 1040-NR: US Non-Resident Alien Income Tax Return?
You must submit Form 1040-NR if any of the following apply:
- You were a non-resident alien who engaged in trade or business in the United States during the tax year (even if you do not have income from that trade or business).
- You were a non-resident foreigner who was not engaged in trade or business in the United States during the tax year, but generated income from the US sources listed on lines 1-12 of Schedule NEC and you Some of the US taxes owed by the company were not withheld. That income.
- You will have to pay special taxes such as an alternative minimum tax (AMT) and household employment tax.
- I received a handout from a Health Savings Account (HSA), Archer Medical Savings Account (MSA), or Medicare Advantage MSA.
- The total net income from self-employment is at least $ 400, and I live in a country where the United States has a social security agreement.
- You are the personal representative of the deceased who would have been asked to submit a form.
- You represent a property or trust for which you must submit Form 1040-NR.
All pages of Form 1040-NR are available on the IRS website.
Special considerations when submitting Form 1040-NR
Who is considered a non-resident alien?
In general, non-US citizens are considered non-resident aliens if they do not meet either the green card test or the substantial presence test for the tax year in question.
Green card test
If you were a legal US permanent resident at any point during the tax year, you will pass the Green Card Test and make up a resident alien. Generally, if the Alien Registration Card (Green Card) is issued by the United States Citizenship and Immigration Services (USCIS) or its predecessor, the Immigration and Naturalization Service (INS), you are a legal permanent resident. Unless the designation is revoked by USCIS or waived by administrative or judicial proceedings, you are considered to have status of residence.
Substantial presence test
Substantial presence tests determine residence status based on the tax year in question and the length of stay in the United States for the previous two years.
To pass the test, non-citizens must pass both the 31-day and 183-day tests to be considered a resident alien.
- If you stayed in the United States for at least 31 days during the tax year, you will pass the 31-day test.
- If the answers in lines 1, 2, and 3 below add up to at least 183, then the 183 day test is acceptable.
- US tax year days x1 = _____ days
- First previous year’s days in the US x1 / 3 = _____ days
- 2nd day of the previous year in the US x1 / 6 = _____ days
There are certain limited exceptions that meet either of these two tests and may remain non-resident aliens. This is the case, for example, if you qualify as a resident of a country that has an income tax treaty with the United States and claim that the treaty results in lower US tax obligations.
Can I also submit Form 1040?
Forms 1040 and 1040N-R are not mutually exclusive. In other words, in the same calendar year, you may be considered a resident and non-resident of the United States for tax purposes. It is called a “double taxpayer”.
For example, a person who is classified as a non-resident alien at the beginning of the tax year and becomes a resident alien later in the year must submit Form 1040 labeled “Dual Status Return”. Form 1040-NR is attached as a schedule labeled “Dual Status Statement”.
Persons in the opposite situation, that is, resident aliens who became non-resident at the beginning of the tax year, are required to submit Form 1040NR labeled “Dual Status Return”. They submit Form 1040 as a schedule labeled “Dual Status Statement”.
Can I submit Form 1040-NR as an electronic file?
Form 1040NR cannot be submitted as an electronic file. Taxpayers must fill out and sign the form and mail it to the form’s address.