General Instructions

Items to Note

Form 1040NR-EZ.   You may be able to use Form 1040NR-EZ if your only income from U.S. sources is wages, salaries, tips, refunds of state and local income taxes, and scholarship or fellowship grants. For more details, see Form 1040NR-EZ and its instructions.

Special rules for former U.S. citizens and former U.S. long-term residents.   If you renounced your U.S. citizenship or terminated your long-term resident status, you may be subject to special rules. Different rules apply based on the date you renounced your citizenship or terminated your long-term residency in the United States. See Special Rules for Former U.S. Citizens and Former U.S. Long-Term Residents (Expatriates), later.

Self-employment tax.   You must pay self-employment tax on your self-employment income if an international social security agreement in effect between your country of tax residence and the United States provides that you are covered under the U.S. social security system. Enter the tax on line 54. See the instructions for line 54 for additional information. Enter the deductible part of your self-employment tax on line 27. Attach Schedule SE (Form 1040). See the Instructions for Schedule SE (Form 1040) for additional information.

Social security or Medicare taxes withheld in error.   If you are a foreign student on an F1, J1, M, or Q visa, and social security or Medicare taxes were withheld on your wages in error, you may want to file Form 843, Claim for Refund and Request for Abatement, to request a refund of these taxes. For more information, see Refund of Taxes Withheld in Error in chapter 8 of Pub. 519, U.S. Tax Guide for Aliens.

Other reporting requirements.   You also may have to file other forms, including the following:
  • Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b).

  • Form 8840, Closer Connection Exception Statement for Aliens.

  • Form 8843, Statement for Exempt Individuals and Individuals With a Medical Condition.

  • Form 8938, Statement of Specified Foreign Financial Assets.

   For more information, and to see if you must file one of these forms, see chapter 1 of Pub. 519.

Additional Information

If you need more information, our free publications may help you. Pub. 519 will be the most important, but the following publications also may help.

Pub. 501 Exemptions, Standard Deduction, and Filing Information
Pub. 525 Taxable and Nontaxable Income
Pub. 529 Miscellaneous Deductions
Pub. 597 Information on the United States—Canada Income Tax Treaty
Pub. 901 U.S. Tax Treaties
Pub. 910 IRS Guide to Free Tax Services (includes a list of all publications)

These free publications and the forms and schedules you will need are available from the Internal Revenue Service. You can download them at IRS.gov. Also see Quick and Easy Access to Tax Help and Tax Forms and Publications, later, for other ways to get them (as well as information on receiving IRS assistance in completing the forms).

Resident Alien or Nonresident Alien

If you are not a citizen of the United States, specific rules apply to determine if you are a resident alien or a nonresident alien for tax purposes. Generally, you are considered a resident alien if you meet either the green card test or the substantial presence test for 2013. (These tests are explained in Green Card Test and Substantial Presence Test, later.) Even if you do not meet either of these tests, you may be able to choose to be treated as a U.S. resident for part of 2013. See First-Year Choice in chapter 1 of Pub. 519 for details.

Generally, you are considered a nonresident alien for the year if you are not a U.S. resident under either of these tests. However, even if you are a U.S. resident under one of these tests, you still may be considered a nonresident alien if you qualify as a resident of a treaty country within the meaning of an income tax treaty between the United States and that country and elect to be treated as a resident of that country. You can download the complete text of most U.S. tax treaties at IRS.gov. Enter “tax treaties” in the search box at the top of the page, and click on "United States Income Tax Treaties - A to Z." Technical explanations for many of those treaties are also available at that site.

For more details on resident and nonresident status, the tests for residence, and the exceptions to them, see chapter 1 of Pub. 519.

Green Card Test

You are a resident for tax purposes if you were a lawful permanent resident (immigrant) of the United States at any time during 2013 and you took no steps to be treated as a resident of a foreign country under an income tax treaty. (However, see Dual-Status Taxpayers, later.) In most cases, you are a lawful permanent resident if the U.S. Citizenship and Immigration Services (USCIS) (or its predecessor organization, INS) has issued you an alien registration card, also known as a green card.

If you surrender your green card, your status as a resident for tax purposes will change as of the date you surrender your green card if all of the following are true.

  1. You mail a letter to the USCIS stating your intent to surrender your green card.

  2. You send this letter by certified mail, return receipt requested (or the foreign equivalent).

  3. You have proof that the letter was received by the USCIS.

Keep a copy of the letter and the proof that the letter was received.

Until you have proof your letter was received, you remain a resident for tax purposes even if the USCIS would not recognize the validity of your green card because it is more than ten years old or because you have been absent from the United States for a period of time.

For more details, including special rules that apply if you give up your green card after holding it in at least 8 of the prior 15 years, see chapter 1 of Pub. 519.

Substantial Presence Test

You are considered a U.S. resident if you meet the substantial presence test for 2013. You meet this test if you were physically present in the United States for at least:

  1. 31 days during 2013, and

  2. 183 days during the period 2013, 2012, and 2011, using the following chart.

(a) (b) (c) (d)
Year Days of physical presence Multiplier Testing days (multiply (b) times (c))
2013   1.000  
2012   .333  
2011   .167  
Total testing days (add column (d))  

Generally, you are treated as present in the United States on any day that you are physically present in the country at any time during the day. However, there are exceptions to this rule. In general, do not count the following as days of presence in the United States for the substantial presence test.

  • Days you commute to work in the United States from a residence in Canada or Mexico if you regularly commute from Canada or Mexico.

  • Days you are in the United States for less than 24 hours when you are in transit between two places outside the United States.

  • Days you are in the United States as a crew member of a foreign vessel.

  • Days you intend, but are unable, to leave the United States because of a medical condition that arose while you were in the United States.

  • Days you are an exempt individual (defined next).

You may need to file Form 8843 to exclude days of presence in the United States for the substantial presence test. For more information on the requirements, see Form 8843 in chapter 1 of Pub. 519.

Exempt individual.    For these purposes, an exempt individual is generally an individual who is a:
  • Foreign government-related individual;

  • Teacher or trainee who is temporarily present under a “J” or “Q” visa;

  • Student who is temporarily present under an “F,” “J,” “M,” or “Q” visa; or

  • Professional athlete who is temporarily in the United States to compete in a charitable sports event.

    Note.

    Alien individuals with “Q” visas are treated as either students, teachers, or trainees and, as such, are exempt individuals for purposes of the substantial presence test if they otherwise qualify. “Q” visas are issued to aliens participating in certain international cultural exchange programs.

    See chapter 1 of Pub. 519 for more details regarding days of presence in the United States for the substantial presence test.

Closer Connection to Foreign Country

Even though you otherwise would meet the substantial presence test, you can be treated as a nonresident alien if you:

  • Were present in the United States for fewer than 183 days during 2013,

  • Establish that during 2013 you had a tax home in a foreign country, and

  • Establish that during 2013 you had a closer connection to one foreign country in which you had a tax home than to the United States unless you had a closer connection to two foreign countries.

See chapter 1 of Pub. 519 for more information.

Closer connection exception for foreign students.   If you are a foreign student in the United States, and you have met the substantial presence test, you still may be able to claim you are a nonresident alien. You must meet both of the following requirements.
  1. You establish that you do not intend to reside permanently in the United States. The facts and circumstances of your situation are considered to determine if you do not intend to reside permanently in the United States. The facts and circumstances include the following.

    1. Whether you have taken any steps to change your U.S. immigration status to lawful permanent resident.

    2. During your stay in the United States, whether you have maintained a closer connection with a foreign country than with the United States.

  2. You have substantially complied with your visa requirements.

  You must file a fully completed Form 8840 with the IRS to claim the closer connection exception. See Form 8840 in chapter 1 of Pub. 519.

You cannot use the closer connection exception to remain a nonresident alien indefinitely. You must have in mind an estimated departure date from the United States in the near future.

Who Must File

File Form 1040NR if any of the following four conditions applies to you.

  1. You were a nonresident alien engaged in a trade or business in the United States during 2013. You must file even if:

    1. You have no income from a trade or business conducted in the United States,

    2. You have no U.S. source income, or

    3. Your income is exempt from U.S. tax under a tax treaty or any section of the Internal Revenue Code.

    However, if you have no gross income for 2013, do not complete the schedules for Form 1040NR. Instead, attach a list of the kinds of exclusions you claim and the amount of each.

    Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax. In most cases, it includes only income from U.S. sources. Gross income includes gains, but not losses, from asset transactions. Gross income from a business means, for example, the amount on Schedule C (Form 1040), line 7; or Schedule F (Form 1040), line 9. But, in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C (Form 1040), line 7; or Schedule F (Form 1040), line 9.

  2. You were a nonresident alien not engaged in a trade or business in the United States during 2013 and:

    1. You received income from U.S. sources that is reportable on Schedule NEC, lines 1 through 12, and

    2. Not all of the U.S. tax that you owe was withheld from that income.

  3. You represent a deceased person who would have had to file Form 1040NR.

  4. You represent an estate or trust that has to file Form 1040NR.

Other situations when you must file.   You must file a return for 2013 if you owe any special taxes, including any of the following.
  • Alternative minimum tax.

  • Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account.

    If you are filing a return only because you owe this tax, you can file Form 5329 by itself.

  • Household employment taxes.

    If you are filing a return only because you owe this tax, you can file Schedule H (Form 1040) by itself.

  • Social security and Medicare tax on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes.

  • Recapture of first-time homebuyer credit. See the instructions for line 58b.

  • Write-in taxes or recapture taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts. See the instructions for line 59.

  You also must file a return if you received HSA, Archer MSA, or Medicare Advantage MSA distributions.

  You also must file a return if you had net earnings from self-employment of at least $400 and you are a resident of a country with whom the United States has an international social security agreement. See the instructions for line 54.

Exceptions.

You do not need to file Form 1040NR if:

  1. Your only U.S. trade or business was the performance of personal services; and

    1. Your wages were less than $3,900; and

    2. You have no other need to file a return to claim a refund of overwithheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty; or

  2. You were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa, and you have no income that is subject to tax under section 871 (that is, the income items listed on page 1 of Form 1040NR, lines 8 through 21, and on page 4, Schedule NEC, lines 1 through 12).

  3. You were a partner in a U.S. partnership that was not engaged in a trade or business in the United States during 2013 and your Schedule K-1 (Form 1065) includes only income from U.S. sources that you must report on Schedule NEC, lines 1 through 12.

If the partnership withholds taxes on this income in 2014 and the tax withheld and reported on line 9 of Form 1042-S is more or less than the tax due on the income, you will need to file Form 1040NR for 2014 to pay the underwithheld tax or claim a refund of the overwithheld tax.

Even if you do not otherwise have to file a return, you should file one to get a refund of any federal income tax withheld. You also should file if you are engaged in a U.S. trade or business and are eligible for any of the following credits.

  • Additional child tax credit.

  • Credit for federal tax on fuels.

  • Health coverage tax credit.

See Pub. 501 for more details, and if you do not have to file but received a Form 1099-B (or substitute statement).

Exception for certain children under age 19 or full-time students.   If your child was under age 19 at the end of 2013 or was a full-time student under age 24 at the end of 2013, had income only from interest and dividends that are effectively connected with a U.S. trade or business, and that income totaled less than $10,000, you can elect to report your child's income on your return. To do so, use Form 8814. If you make this election, your child does not have to file a return. For details, including the conditions for children under age 24, see Form 8814.

   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. Do not use Form 8814 for such a child.

Filing a deceased person's return.   The personal representative must file the return for a deceased person who was required to file a return for 2013. A personal representative can be an executor, administrator, or anyone who is in charge of the deceased person's property.

Filing for an estate or trust.   If you are filing Form 1040NR for a nonresident alien estate or trust, change the form to reflect the provisions of Subchapter J, Chapter 1, of the Internal Revenue Code. You may find it helpful to refer to Form 1041 and its instructions.

  
If you are filing Form 1040NR for a foreign trust, you may have to file Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner, on or before March 17, 2014. For more information, see the Instructions for Form 3520-A.

Simplified Procedure for Claiming Certain Refunds

You can use this procedure only if you meet all of the following conditions for the tax year.

  • You were a nonresident alien.

  • You were not engaged in a trade or business in the United States at any time.

  • You had no income that was effectively connected with the conduct of a U.S. trade or business.

  • Your U.S. income tax liability was fully satisfied through withholding of tax at source.

  • You are filing Form 1040NR solely to claim a refund of U.S. tax withheld at source.

Example.

John is a nonresident alien individual. The only U.S. source income he received during the year was dividend income from U.S. stocks. The dividend income was reported to him on Form(s) 1042-S. On one of the dividend payments, the withholding agent incorrectly withheld at a rate of 30% (instead of 15%). John is eligible to use the simplified procedure.

If you meet all of the conditions listed earlier for the tax year, complete Form 1040NR as follows.

Page 1.   Enter your name, identifying number (defined in Identifying Number, later), and all address information requested at the top of page 1. If your income is not exempt from tax by treaty, leave the rest of page 1 blank. If your income is exempt from tax by treaty, enter the exempt income on line 22 and leave the rest of page 1 blank.

Page 4—Schedule NEC, lines 1a through 12.   Enter the amounts of gross income you received from dividends, interest, royalties, pensions, annuities, and other income. If any income you received was subject to backup withholding or withholding at source, you must include all gross income of that type that you received. The amount of each type of income should be shown in the column under the appropriate U.S. tax rate, if any, that applies to that type of income in your particular circumstances.

  If you are entitled to a reduced rate of, or exemption from, withholding on the income pursuant to a tax treaty, the appropriate rate of U.S. tax is the same as the treaty rate. Use column (d) if the appropriate tax rate is other than 30%, 15%, or 10%, including 0%.

Example.

Mary is a nonresident alien individual. The only U.S. source income she received during the year was as follows.

  • 4 dividend payments.

  • 12 interest payments.

  All payments were reported to Mary on Form(s) 1042-S. On one of the dividend payments, the withholding agent incorrectly withheld at a rate of 30% (instead of 15%). There were no other withholding discrepancies. Mary must report all four dividend payments. She is not required to report any of the interest payments.

Note.

Payments of gross proceeds from the sale of securities or regulated futures contracts are generally exempt from U.S. tax. If you received such payments and they were subjected to backup withholding, specify the type of payment on line 12 and show the amount in column (d).

   Lines 13 through 15. Complete these lines as instructed on the form.

Page 5—Schedule OI.   You must answer all questions. For item L, identify the country, tax treaty article(s) under which you are applying for a refund of tax, and the amount of exempt income in the current year. Also attach Form 8833 if required.

Note.

If you are claiming a reduced rate of, or exemption from, tax based on a tax treaty, you generally must be a resident of the particular treaty country within the meaning of the treaty and you cannot have a permanent establishment or fixed base in the United States. See Pub. 901 for more information on tax treaties.

Page 2—lines 53 and 60.   Enter on line 53 the tax on income not effectively connected with a U.S. trade or business from page 4, Schedule NEC, line 15. Enter your total income tax liability on line 60. 
 
Line 61a. Enter the total amount of U.S. tax withheld from Form(s) 1099. 
 
Line 61d. Enter the total amount of U.S. tax withheld on income not effectively connected with a U.S. trade or business from Form(s) 1042-S. 
 
Line 69. Add lines 61a through 68. This is the total tax you have paid. 
 
Lines 70 and 71a. Enter the difference between line 60 and line 69. This is your total refund.

  You can have the refund deposited into more than one account. See Lines 71a through 71e—Amount refunded to you, later, for more details.

   Line 71e. You may be able to have your refund check mailed to an address that is not shown on page 1. See Line 71e, later, for more details.

   Signature. You must sign and date your tax return. See Sign Your Return, later.

Documentation.   You must attach acceptable proof of the withholding for which you are claiming a refund. If you are claiming a refund of backup withholding tax based on your status as a nonresident alien, you must attach a copy of the Form 1099 that shows the income and the amount of backup withholding. If you are claiming a refund of U.S. tax withheld at source, you must attach a copy of the Form 1042-S that shows the income and the amount of U.S. tax withheld. Attach the forms to the left margin of page 1.

Additional Information

Portfolio interest.   If you are claiming a refund of U.S. tax withheld from portfolio interest, include a description of the relevant debt obligation, including the name of the issuer, CUSIP number (if any), interest rate, and the date the debt was issued.

  
Interest payments on foreign bearer obligations (bonds not issued in registered format and held by nonuse holders) issued on or after March 19, 2012, are not eligible for the portfolio interest exception to withholding. For more information, see Interest in Pub. 519 and Pub. 515.

Withholding on distributions.   If you are claiming an exemption from withholding on a distribution from a U.S. corporation with respect to its stock because the corporation had insufficient earnings and profits to support dividend treatment, you must attach a statement that identifies the distributing corporation and provides the basis for the claim.

  If you are claiming an exemption from withholding on a distribution from a mutual fund or real estate investment trust (REIT) with respect to its stock because the distribution was designated as long-term capital gain or a nondividend distribution, you must attach a statement that identifies the mutual fund or REIT and provides the basis for the claim.

  If you are claiming an exemption from withholding on a distribution from a U.S. corporation with respect to its stock because, in your particular circumstances, the transaction qualifies as a redemption of stock under section 302, you must attach a statement that describes the transaction and presents the facts necessary to establish that the payment was a complete redemption, a disproportionate redemption, or not essentially equivalent to a dividend.

When To File

Individuals.   If you were an employee and received wages subject to U.S. income tax withholding, file Form 1040NR by the 15th day of the 4th month after your tax year ends. A return for the 2013 calendar year is due by April 15, 2014.

  If you file after this date, you may have to pay interest and penalties. See Interest and Penalties, later.

  If you did not receive wages as an employee subject to U.S. income tax withholding, file Form 1040NR by the 15th day of the 6th month after your tax year ends. A return for the 2013 calendar year is due by June 16, 2014.

Estates and trusts.   If you file for a nonresident alien estate or trust that has an office in the United States, file the return by the 15th day of the 4th month after the tax year ends. If you file for a nonresident alien estate or trust that does not have an office in the United States, file the return by the 15th day of the 6th month after the tax year ends.

Note.

If the due date for filing falls on a Saturday, Sunday, or legal holiday, file by the next business day.

Extension of time to file.   If you cannot file your return by the due date, file Form 4868 to get an automatic 6-month extension of time to file. You must file Form 4868 by the regular due date of the return.

An automatic 6-month extension to file does not extend the time to pay your tax. If you do not pay your tax by the original due date of your return, you will owe interest on the unpaid tax and may owe penalties. See Form 4868. 
 
 
 

Where To File

Individuals.   Mail Form 1040NR to:

Department of the Treasury 
Internal Revenue Service  
Austin, TX 73301-0215  
U.S.A.

 

  If enclosing a payment, mail Form 1040NR to:

Internal Revenue Service  
P.O. Box 1303  
Charlotte, NC 28201-1303  
U.S.A.

Estates and trusts.   Mail Form 1040NR to:

Department of the Treasury 
Internal Revenue Service  
Cincinnati, OH 45999-0048  
U.S.A. 

  If enclosing a payment, mail Form 1040NR to:

Internal Revenue Service  
P.O. Box 1303  
Charlotte, NC 28201-1303  
U.S.A.

Private Delivery Services

You can use certain private delivery services designated by the IRS to meet the “timely mailing as timely filing/paying” rule for tax returns and payments. These private delivery services include only the following.

  • DHL Express (DHL): DHL Same Day Service.

  • Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First.

  • United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

For the IRS mailing address to use if you are using a private delivery service, go to IRS.gov and enter “private delivery service” in the search box.

The private delivery service can tell you how to get written proof of the mailing date.

Private delivery services cannot deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any items to an IRS P.O. box address.

Election To Be Taxed as a Resident Alien

You can elect to be taxed as a U.S. resident for the whole year if all of the following apply.

  • You were married.

  • Your spouse was a U.S. citizen or resident alien on the last day of the tax year.

  • You file a joint return for the year of the election using Form 1040, 1040A, or 1040EZ.

To make this election, you must attach the statement described in Nonresident Spouse Treated as a Resident in chapter 1 of Pub. 519 to your return. Do not use Form 1040NR.

Your worldwide income for the whole year must be included and will be taxed under U.S. tax laws. You must agree to keep the records, books, and other information needed to figure the tax. If you made the election in an earlier year, you can file a joint return or separate return for 2013. If you file a separate return, use Form 1040 or Form 1040A. You must include your worldwide income for the whole year whether you file a joint or separate return.

If you make this election, you may forfeit the right to claim benefits otherwise available under a U.S. tax treaty. For more information about the benefits that otherwise might be available, see the specific treaty.

Dual-Status Taxpayers

If you elect to be taxed as a resident alien (discussed in Election To Be Taxed as a Resident Alien, earlier), the special instructions and restrictions discussed here do not apply.

Dual-Status Tax Year

A dual-status year is one in which you change status between nonresident and resident alien. Different U.S. income tax rules apply to each status.

Most dual-status years are the years of arrival or departure. Before you arrive in the United States, you are a nonresident alien. After you arrive, you may or may not be a resident, depending on the circumstances.

If you become a U.S. resident, you stay a resident until you leave the United States or are no longer a lawful permanent resident of the U.S. You may become a nonresident alien when you leave if you meet both of the following conditions.

  • After leaving (or after your last day of lawful permanent residency if you met the green card test, defined earlier) and for the remainder of the calendar year of your departure, you have a closer connection to a foreign country than to the United States.

  • During the next calendar year, you are not a U.S. resident under either the green card test or the substantial presence test, defined earlier.

See chapter 1 of Pub. 519 for more information.

What and Where to File for a Dual-Status Year

If you were a U.S. resident on the last day of the tax year, file Form 1040. Enter “Dual-Status Return” across the top and attach a statement showing your income for the part of the year you were a nonresident. You can use Form 1040NR as the statement; enter “Dual-Status Statement” across the top. Do not sign Form 1040NR. Mail your return and statement to:

Department of the Treasury 
Internal Revenue Service  
Austin, TX 73301-0215  
U.S.A. 

If enclosing a payment, mail your return to:

Internal Revenue Service  
P.O. Box 1303  
Charlotte, NC 28201-1303  
U.S.A.

If you were a nonresident on the last day of the tax year, file Form 1040NR. Enter “Dual-Status Return” across the top and attach a statement showing your income for the part of the year you were a U.S. resident. You can use Form 1040 as the statement; enter “Dual-Status Statement” across the top. Do not sign Form 1040. Mail your return and statement to:

Department of the Treasury 
Internal Revenue Service  
Austin, TX 73301-0215  
U.S.A.

If enclosing a payment, mail your return to:

Internal Revenue Service  
P.O. Box 1303  
Charlotte, NC 28201-1303  
U.S.A.

Statements.   Any statement you file with your return must show your name, address, and identifying number (defined in Identifying Number, later).

  Former U.S. long-term residents are required to file Form 8854, Initial and Annual Expatriation Statement, with their dual-status return for the last year of U.S. residency. To determine if you are a former U.S. long-term resident, see Expatriation Tax, in chapter 4 of Pub. 519.

Income Subject to Tax for Dual-Status Year

As a dual-status taxpayer not filing a joint return, you are taxed on income from all sources for the part of the year you were a resident alien. Generally, you are taxed on income only from U.S. sources for the part of the year you were a nonresident alien. However, all income effectively connected with the conduct of a trade or business in the United States is taxable.

Income you received as a dual-status taxpayer from sources outside the United States while a resident alien is taxable even if you became a nonresident alien after receiving it and before the close of the tax year. Conversely, income you received from sources outside the United States while a nonresident alien is not taxable in most cases even if you became a resident alien after receiving it and before the close of the tax year. Income from U.S. sources is generally taxable whether you received it while a nonresident alien or a resident alien (unless specifically exempt under the Internal Revenue Code or a tax treaty provision).

Restrictions for Dual-Status Taxpayers

Standard deduction.   You cannot take the standard deduction even for the part of the year you were a resident alien.

Head of household.   You cannot use the Head of household Tax Table column or Section D of the Tax Computation Worksheet in the Instructions for Form 1040.

Joint return.   You cannot file a joint return unless you elect to be taxed as a resident alien (see Election To Be Taxed as a Resident Alien, earlier) instead of a dual-status taxpayer.

Tax rates.   If you were married and a nonresident of the United States for all or part of the tax year and you do not make the election discussed earlier to be taxed as a resident alien, you must use the Married filing separately column in the Tax Table or Section C of the Tax Computation Worksheet to figure your tax on income effectively connected with a U.S. trade or business. If you were married, you cannot use the Single Tax Table column or Section A of the Tax Computation Worksheet.

Deduction for exemptions.   As a dual-status taxpayer, you usually will be entitled to your own personal exemption. Subject to the general rules for qualification, you are allowed exemptions for your spouse and dependents in figuring taxable income for the part of the year you were a resident alien. The amount you can claim for these exemptions is limited to your taxable income (determined without regard to exemptions) for the part of the year you were a resident alien. You cannot use exemptions (other than your own) to reduce taxable income to below zero for that period.

  Special rules apply for exemptions for the part of the year a dual-status taxpayer is a nonresident alien if the taxpayer is a resident of Canada, Mexico, or South Korea; a U.S. national (defined later); or a student or business apprentice from India.

  See chapter 5 of Pub. 519 for more information.

Tax credits.   You cannot take the earned income credit, the credit for the elderly or disabled, or any education credit unless you elect to be taxed as a resident alien (see Election To Be Taxed as a Resident Alien, earlier) instead of a dual-status taxpayer.

  See chapter 6 of Pub. 519 for information on other credits.

How To Figure Tax for a Dual-Status Year

When you figure your U.S. tax for a dual-status year, you are subject to different rules for the part of the year you were a resident and the part of the year you were a nonresident.

All income for the period of residence and all income that is effectively connected with a trade or business in the United States for the period of nonresidence, after allowable deductions, is combined and taxed at the same rates that apply to U.S. citizens and residents. For the period of residence, allowable deductions include all deductions on Schedule A of Form 1040, including medical expenses, real property taxes, and certain interest.

See the Instructions for Schedule A (Form 1040).

Income that is not effectively connected with a trade or business in the United States for the period of nonresidence is subject to the flat 30% rate or lower treaty rate. No deductions are allowed against this income.

If you were a resident alien on the last day of the tax year and you are filing Form 1040, include the tax on the noneffectively connected income on Form 1040, line 60. Enter “Tax from Form 1040NR” as the code on the space provided.

If you are filing Form 1040NR, enter the tax from the Tax Table, Tax Computation Worksheet, Qualified Dividends and Capital Gain Tax Worksheet, Schedule D Tax Worksheet, Schedule J (Form 1040), or Form 8615 on Form 1040NR, line 42, and the tax on the noneffectively connected income on line 53.

Credit for taxes paid.   You are allowed a credit against your U.S. income tax liability for certain taxes you paid, or are considered to have paid, or that were withheld from your income. These include:
  1. Tax withheld from wages earned in the United States and taxes withheld at the source from various items of income from U.S. sources other than wages. This includes U.S. tax withheld on dispositions of U.S. real property interests.

    • When filing Form 1040, show the total tax withheld on line 62. Enter amounts from the attached statement (Form 1040NR, line 61a through 61d) in the column to the right of line 62 and identify and include them in the amount on line 62.

    • When filing Form 1040NR, show the total tax withheld on lines 61a through 61d. Enter the amount from the attached statement (Form 1040, line 62) in the column to the right of line 61a, and identify and include it in the amount on line 61a.

  2. Estimated tax paid with Form 1040-ES or Form 1040-ES (NR).

  3. Tax paid with Form 1040-C at the time of departure from the United States. When filing Form 1040, include the tax paid with Form 1040-C with the total payments on line 72. Identify the payment in the area to the left of the entry.

How To Report Income on Form 1040NR

Community Income

If either you or your spouse (or both you and your spouse) were nonresident aliens at any time during the tax year and you had community income during the year, treat the community income according to the applicable community property laws except as follows.

  • Earned income of a spouse, other than trade or business income or partnership distributive share income. The spouse whose services produced the income must report it on his or her separate return.

  • Trade or business income, other than partnership distributive share income. Treat this income as received by the spouse carrying on the trade or business and report it on that spouse's return.

  • Partnership distributive share income (or loss). Treat this income (or loss) as received by the spouse who is the partner and report it on that spouse's return.

  • Income derived from the separate property of one spouse that is not earned income, trade or business income, or partnership distributive share income. The spouse with the separate property must report this income on his or her separate return.

See Pub. 555, Community Property, for more details.

Kinds of Income

You must divide your income for the tax year into the following three categories.

  1. Income effectively connected with a U.S. trade or business. This income is taxed at the same rates that apply to U.S. citizens and residents. Report this income on page 1 of Form 1040NR. Pub. 519 describes this income in greater detail.

  2. U.S. income not effectively connected with a U.S. trade or business. This income is taxed at 30% unless a treaty between your country and the United States has set a lower rate that applies to you. Report this income on Schedule NEC on page 4 of Form 1040NR. Pub. 519 describes this income in greater detail.

    Note.

    Use line 57 to report the 4% tax on U.S. source gross transportation income.

  3. Income exempt from U.S. tax. If the income is exempt from tax by treaty, complete item L of Schedule OI on page 5 of Form 1040NR and line 22 on page 1.

Dispositions of U.S. Real Property Interests

Gain or loss on the disposition of a U.S. real property interest (see Pub. 519 for definition) is taxed as if the gain or loss were effectively connected with the conduct of a U.S. trade or business.

Report gains and losses on the disposition of U.S. real property interests on Schedule D (Form 1040) and Form 1040NR, line 14. Also, net gains may be subject to the alternative minimum tax. See Line 43—Alternative minimum tax, later. See Real Property Gain or Loss in chapter 4 of Pub 519 for more information.

Income You Can Elect To Treat as Effectively Connected With a U.S. Trade or Business

You can elect to treat some items of income as effectively connected with a U.S. trade or business. The election applies to all income from real property located in the United States and held for the production of income and to all income from any interest in such property. This includes:

  • Gains from the sale or exchange of such property or an interest therein,

  • Gains on the disposal of timber, coal, or iron ore with a retained economic interest,

  • Rents from real estate, or

  • Rents and royalties from mines, oil or gas wells, or other natural resources.

The election does not apply to dispositions of U.S. real property interests, discussed earlier.

To make the election, attach a statement to your return for the year of the election. Include the following items in your statement.

  1. That you are making the election.

  2. A complete list of all of your real property, or any interest in real property, located in the United States (including location). Give the legal identification of U.S. timber, coal, or iron ore in which you have an interest.

  3. The extent of your ownership in the real property.

  4. A description of any substantial improvements to the property.

  5. Your income from the property.

  6. The dates you owned the property.

  7. Whether the election is under section 871(d) or a tax treaty.

  8. Details of any previous elections and revocations of the real property election.

Foreign Income Taxed by the United States

You may be required to report some income from foreign sources on your U.S. return if it is effectively connected with a U.S. trade or business. For this foreign income to be treated as effectively connected with a U.S. trade or business, you must have an office or other fixed place of business in the United States to which the income can be attributed. For more information, including a list of the types of foreign source income that must be treated as effectively connected with a U.S. trade or business, see chapter 4 of Pub. 519.

Special Rules for Former U.S. Citizens and Former U.S. Long-Term Residents (Expatriates)

The expatriation tax provisions apply to certain U.S. citizens who have lost their citizenship and long-term residents who have ended their residency. You are a former U.S. long-term resident if you were a lawful permanent resident of the United States (green-card holder) in at least 8 of the last 15 tax years ending with the year your residency ends.

Different expatriation tax rules apply to individuals based on the date of expatriation. The dates are:

  • Before June 4, 2004;

  • After June 3, 2004, and before June 17, 2008; and

  • After June 16, 2008.

For more information on the expatriation tax provisions, see Expatriation Tax in chapter 4 of Pub. 519; the Instructions for Form 8854; and Notice 2009-85 (for expatriation after June 16, 2008), 2009-45 I.R.B. 598, available at www.irs.gov/irb/2009-45_IRB/ar10.html.


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