Instructions for  
Form 1040NR - Introductory Material


Table of Contents

Future developments.

For information about any additional changes to the 2014 tax law or any other developments affecting Form 1040NR or its instructions, go to www.irs.gov/form1040nr.

What's New

Premium tax credit.    You may be eligible to claim the premium tax credit if you, your spouse, or a dependent enrolled in health insurance through the Health Insurance Marketplace. See the instructions for line 65 and Form 8962 for more information.

Advance payments of the premium tax credit.   Advance payments of the premium tax credit may have been made to the health insurer to help pay for the insurance coverage of you, your spouse, or your dependent. If advance payments of the premium tax credit were made, you must file a 2014 tax return and Form 8962. If you enrolled someone who is not claimed as a dependent on your tax return or for more information, see the instructions for Form 8962.

Form 1095-A.   If you, your spouse, or a dependent enrolled in health insurance through the Marketplace, you should have received Form(s) 1095-A. If you receive Form(s) 1095-A for 2014, save it. It will help you figure your premium tax credit. If you did not receive a Form 1095-A, contact the Marketplace.

Medicaid waiver payments.   If you received certain payments under a Medicaid waiver program for caring for someone who lives in your home with you, you may be able to exclude these payments from your income. See the instructions for line 21.

  If you reported these payments on your return for 2013 or an earlier year, see www.irs.gov/Individuals/Certain-Medicaid-Waiver-Payments-May-Be-Excludable-From-Income. You may want to file Form 1040X to amend that prior year return.

Personal exemption amount increased for certain taxpayers.   Your personal exemption amount is increased to $3,950. But the amount is reduced if your adjusted gross income (AGI) is more than:
  • $152,525 if married (box 3, 4, or 5 on page 1 of Form 1040NR),

  • $254,200 if single (box 1 or 2 on page 1 of Form 1040NR), or

  • $305,050 if qualifying widow(er) (box 6 on page 1 of Form 1040NR).

See the instructions for line 40 for more details.

Limitation on itemized deductions.    You may not be able to deduct all your itemized deductions if your AGI is more than:
  • $152,525 if married (box 3, 4, or 5 on page 1 of Form 1040NR),

  • $254,200 if single (box 1 or 2 on page 1 of Form 1040NR), or

  • $305,050 if qualifying widow(er) (box 6 on page 1 of Form 1040NR).

See the instructions for line 38 and Schedule A for more details.

Section 67(e) regulations.   For 2014, the proposed regulations for section 67(e) clarify which costs, such as investment advisory and bundled fiduciary fees, incurred by estates and nongrantor trusts are and are not exempt from the 2% floor for miscellaneous itemized deductions. Notice 2011-37 (available at www.irs.gov/irb/2011-20_IRB/ar08.html) extends the existing interim guidance under the proposed regulations for section 67(e) providing that taxpayers will not be required to determine the portion of a bundled fiduciary fee that is subject to the 2% floor.

Note.

The final regulations under section 67(e) have been issued (available at www.irs.gov/irb/2014-22_IRB/ar05.html). However, the effective date of the regulations has been amended to apply to tax years beginning after December 31, 2014.

Direct deposit.   To combat fraud and identity theft, the number of refunds that can be directly deposited to a single financial account or prepaid debit card is now limited to three a year. After this limit is exceeded, paper checks will be sent instead.

Direct Pay.   The best way to pay your taxes is with IRS Direct Pay. It's the safe, easy, and free way to pay from your checking or savings account in one online session. Just click "Pay Your Tax Bill" on IRS.gov.

New uniform policy regarding ITINs.    Your ITIN will expire if you do not use it on a U.S. income tax return for any year during a period of 5 consecutive tax years. Once your ITIN expires, you must reapply using Form W-7. This new policy applies to any ITIN regardless of when it was issued. The IRS will not begin deactivating ITINs until 2016.


More Online Instructions