Form 1040-NR

Form 1040-NR (U.S. Nonresident Alien Income Tax Return) is an IRS tax form used by nonresident aliens to report income earned from U.S. sources and calculate federal income tax liability. This form is specifically designed for individuals who are not U.S. citizens or residents but have income effectively connected with a U.S. trade or business, or other U.S. source income subject to tax reporting requirements.

You must file Form 1040-NR if you’re a nonresident alien engaged in a trade or business in the United States during the tax year, have U.S. source income on which tax was not fully withheld at the source, want to claim a refund of overwithheld or overpaid tax, or want to claim tax treaty benefits. Nonresident aliens include foreign nationals who don’t meet the substantial presence test (generally present in the U.S. fewer than 183 days over a three-year period) or don’t hold a green card.

Form 1040-NR differs significantly from Form 1040 for U.S. residents. Nonresident aliens are only taxed on income from U.S. sources and income effectively connected with a U.S. business, not worldwide income. They cannot claim the standard deduction (except for students from India and certain other countries with tax treaties) and have limited itemized deductions. Nonresident aliens also cannot use filing statuses like married filing jointly or head of household, and their tax rates and brackets differ from residents.

Income reported on Form 1040-NR includes wages for services performed in the United States, business income effectively connected with U.S. operations, rental income from U.S. property, dividends from U.S. corporations, interest from U.S. sources, capital gains from U.S. property sales, scholarships and fellowships, and prizes and awards. Some income may be subject to flat 30% withholding rates, while other income is taxed at graduated rates.

The filing deadline for Form 1040-NR depends on whether you’re an employee. Nonresident alien employees must file by April 15th, while others generally have until June 15th. Foreign students, scholars, teachers, and researchers on F, J, M, or Q visas often face additional reporting requirements using Form 8843 to explain their presence in the United States.