Table of Contents
-
Was under age 18 at the end of 2008,
-
Was age 18 at the end of 2008 and did not have earned income that was more than half of the child's support, or
-
Was a full-time student over age 18 and under age 24 at the end of 2008 and did not have earned income that was more than half of the child's support.
-
Suspended limits for certain personal casualty losses and cash contributions.
-
An additional exemption amount if you provided housing for a person displaced by the Midwestern storms, tornadoes, or flooding.
-
An election to use your 2007 earned income to figure your 2008 additional child tax credit.
-
An increased charitable standard mileage rate for using your vehicle for volunteer work related to the Midwestern storms, tornadoes, or flooding.
-
Special rules for time and support tests for people who were temporarily relocated because of the Midwestern storms, tornadoes, or flooding.
-
Special rules for withdrawals and loans from IRAs and other qualified retirement plans.
-
Your qualifying child must be younger than you.
-
A child cannot be your qualifying child if he or she files a joint return, unless the return was filed only as a claim for refund.
-
If the parents of a child can claim the child as a qualifying child but no parent so claims the child, no one else can claim the child as a qualifying child unless that person's AGI is higher than the highest AGI of any parent of the child.
-
Your child is a qualifying child for purposes of the child tax credit only if you can and do claim an exemption for him or her.
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. 525 | Taxable and Nontaxable Income |
| Pub. 529 | Miscellaneous Deductions |
| Pub. 552 | Recordkeeping for Individuals |
| Pub. 597 | Information on the United States-Canada Income Tax Treaty |
| Pub. 901 | U.S. Tax Treaties |
| Pub. 910 | 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 from the IRS website at www.irs.gov. Also see Taxpayer Assistance on page 31 for other ways to get them (as well as information on receiving IRS assistance in completing the forms).
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 2008. (These tests are explained below.) 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 2008. See First-Year Choice in Pub. 519 for details.
You generally 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 the tax treaty between the United States and that country. You can download the complete text of most U.S. tax treaties at www.irs.gov. 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 Pub. 519.
You are a resident for tax purposes if you were a lawful permanent resident (immigrant) of the United States at any time during 2008 and you took no steps to be treated as a resident of a foreign country under a tax treaty. For more details, see Pub. 519.
You are considered a U.S. resident if you meet the substantial presence test for 2008. You meet this test if you were physically present in the United States for at least:
-
31 days during 2008, and
-
183 days during the period 2008, 2007, and 2006, counting all the days of physical presence in 2008, but only the number of days of presence in 2007 and only the number of days in 2006.
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 of 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 below).
-
Foreign government-related individual,
-
Teacher or trainee,
-
Student, or
-
Professional athlete who is temporarily in the United States to compete in a charitable sports event.
Note.
See Pub. 519 for more details regarding days of presence in the United States for the substantial presence test.
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 2008,
-
Establish that during 2008 you had a tax home in a foreign country, and
-
Establish that during 2008 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 Pub. 519 for more information.
File Form 1040NR if any of the following four conditions applies to you.
-
You were a nonresident alien engaged in a trade or business in the United States during 2008. You must file even if:
-
You have no income from a trade or business conducted in the United States,
-
You have no U.S. source income, or
-
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 2008, do not complete the schedules for Form 1040NR. Instead, attach a list of the kinds of exclusions you claim and the amount of each.
-
-
You were a nonresident alien not engaged in a trade or business in the United States during 2008 and:
-
You received income from U.S. sources that is reportable on lines 75a through 84, and
-
Not all of the U.S. tax that you owe was withheld from that income.
-
-
You represent a deceased person who would have had to file Form 1040NR.
-
You represent an estate or trust that has to file Form 1040NR.
You do not need to file Form 1040NR if:
-
Your only U.S. trade or business was the performance of personal services, and
-
Your wages were less than $3,500; and
-
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
-
-
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 lines 8 through 21 on page 1 of Form 1040NR and on lines 75a through 84 on page 4 of Form 1040NR).
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.
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.
Note.
Note.
Note.
If the regular due date for filing falls on a Saturday, Sunday, or legal holiday, file by the next business day.
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, DHL Next Day 10:30 am, DHL Next Day 12:00 pm, DHL Next Day 3:00 pm, and DHL 2nd 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.
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 item to an IRS P.O. box address.
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 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 2008. If you file a separate return, use Form 1040 or Form 1040A. Your worldwide income for the whole year must be included whether you file a joint or separate return.
Nonresident aliens who make this election may forfeit the right to claim benefits otherwise available under a U.S. tax treaty. For more details, see the specific treaty.
Note.
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. You may become a nonresident alien when you leave if, after leaving (or after your last day of lawful permanent residency if you met the green card test) 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, and, during the next calendar year, you are not a U.S. resident under either the green card test or the substantial presence test. See Pub. 519.
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. File your return and statement with the Department of the Treasury; Internal Revenue Service Center; Austin, TX 73301-0215 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. File your return and statement with the Department of the Treasury; Internal Revenue Service Center; Austin, TX 73301-0215 U.S.A.
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 taxable whether you received it while a nonresident alien or a resident alien.
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 Schedules A&B (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 in the total on Form 1040, line 61. To the left of line 61 enter “Tax from Form 1040NR” and the amount.
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 41, and the tax on the noneffectively connected income on line 52.
| 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, lines 58, 65, 66a, 66b, 67a, and 67b) in the column to the right of line 62 and identify and include in the amount on line 62. | |
| When filing Form 1040NR, show the total tax withheld on lines 58, 65, 66a, 66b, 67a, and 67b. Enter the amount from the attached statement (Form 1040, line 62) in the column to the right of line 58 and identify and include in the amount on line 58. | |
| 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 71. Identify the payment in the area to the left of the entry. |
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.
You must divide your income for the tax year into the following three categories.
-
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.
-
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 page 4 of Form 1040NR. Pub. 519 describes this income more fully.
Note.
-
Income exempt from U.S. tax. Complete items L and/or M on page 5 of Form 1040NR and, if applicable, line 22 on page 1.
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. See section 897 and its regulations.
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 the instructions for line 42 that begin on page 18.
See Pub. 519 for more details.
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 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 in your statement:
-
That you are making the election.
-
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.
-
The extent of your ownership in the real property.
-
A description of any substantial improvements to the property.
-
Your income from the property.
-
The dates you owned the property.
-
Whether the election is under section 871(d) or a tax treaty.
-
Details of any previous elections and revocations of the real property election.
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 Pub. 519.
The expatriation tax provisions provide alternative tax regimes for certain nonresident aliens who lost U.S. citizenship or terminated U.S. long-term resident status. Different rules apply to nonresident aliens who lost U.S. citizenship or terminated U.S. long-term resident status during the following periods.
-
Before June 4, 2004.
-
After June 3, 2004, and before June 17, 2008.
-
After June 16, 2008.
For a detailed discussion of these rules, including how to figure your tax, see Pub. 519.
| More Online Instructions |