Line Instructions for Form 1040NR

Table of Contents

Name and Address

Individuals.   Enter your name, street address, city or town, and country on the appropriate lines. Include an apartment number after the street address, if applicable. Check the box for “Individual.

Estates and trusts.    Enter the name of the estate or trust and check the box for “Estate or Trust.” You must include different information for estates and trusts that are engaged in a trade or business in the United States.

Not engaged in a trade or business.

Attach a statement to Form 1040NR with your name, title, address, and the names and addresses of any U.S. grantors and beneficiaries.

Engaged in a trade or business in the United States.

Attach a statement to Form 1040NR with your name, title, address, and the names and addresses of all beneficiaries.

P.O. box.   Enter your box number only if your post office does not deliver mail to your home.

Foreign address.   If you have a foreign address, enter the city name on the appropriate line. Do not enter any other information on that line, but also complete the spaces below that line.

Country name.

Do not abbreviate the country name. Enter the name in uppercase letters in English. Follow the country's practice for entering the postal code and the name of the province, county, or state.

Address change.   If you plan to move after filing your return, use Form 8822, Change of Address, to notify the IRS of your new address.

Name change.   If you changed your name because of marriage, divorce, etc., and your identifying number is a social security number, be sure to report the change to the Social Security Administration (SSA) before filing your return. This prevents delays in processing your return and issuing refunds. It also safeguards your future social security benefits. See Social security number (SSN), later, for how to contact the SSA.

Death of a taxpayer.   See Death of a Taxpayer under General Information, later.

Identifying Number

An incorrect or missing identifying number can increase your tax, reduce your refund, or delay your refund.

Social security number (SSN).   If you are an individual, in most cases you are required to enter your SSN. If you do not have an SSN but are eligible to get one, you should apply for it. Get Form SS-5, Application for a Social Security Card, online at www.socialsecurity.gov, from your local Social Security Administration (SSA) office, or by calling the SSA at 1-800-772-1213 (TTY 1-800-325-0778).

  Fill in Form SS-5 and bring it to your local SSA office in person, along with original documentation showing your age, identity, immigration status, and authority to work in the United States. If you are an F-1 or M-1 student, you also must show your Form I-20. If you are a J-1 exchange visitor, you also must show your Form DS-2019. It usually takes about 2 weeks to get an SSN once the SSA has all the evidence and information it needs.

  Check that both the name and SSN on your Forms W-2, 1040NR, and 1099 agree with your social security card. If they do not, certain deductions and credits on your Form 1040NR may be reduced or disallowed and you may not receive credit for your social security earnings. If your Form W-2 shows an incorrect SSN or name, notify your employer or the form-issuing agent as soon as possible to make sure your earnings are credited to your social security record. If the name or SSN on your social security card is incorrect, call the SSA at 1-800-772-1213 (TTY 1-800-325-0778).

IRS individual taxpayer identification number (ITIN).   If you do not have and are not eligible to get an SSN, you must enter your ITIN whenever an SSN is requested on your tax return. If you are required to include another person's SSN on your return and that person does not have and cannot get an SSN, enter that person's ITIN.

  For details on how to apply for an ITIN, see Form W-7, Application for IRS Individual Taxpayer Identification Number, and its instructions. Get Form W-7 online at IRS.gov. Enter "ITIN" in the search box. It takes 6 to 10 weeks to get an ITIN.

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 years. This applies to any ITIN regardless of when it was issued. The IRS will not begin deactivating ITINs until 2016.

Note.

An ITIN is for tax use only. It does not entitle you to social security benefits or change your employment or immigration status under U.S. law.

Employer identification number (EIN).   If you are filing Form 1040NR for an estate or trust, enter the EIN of the estate or trust. If the entity does not have an EIN, you must apply for one by filing Form SS-4, Application for Employer Identification Number. For details on how to get an EIN, see Form SS-4 and its instructions. Form SS-4 is available at IRS.gov. Enter “SS-4” in the search box.

Filing Status

The amount of your tax depends on your filing status. Before you decide which box to check, read the following explanations.

Were You Single or Married?

Single.   You can check the box on line 1 or line 2 if any of the following was true on December 31, 2014.
  • You were never married.

  • You were legally separated under a decree of divorce or separate maintenance. But if, at the end of 2014, your divorce was not final, you are considered married and cannot check the box on line 1 or line 2.

  • You were widowed before January 1, 2014, and did not remarry before the end of 2014. But if you have a dependent child, you may be able  
    to use the qualifying widow(er) filing status. See the instructions for line 6, later.

  • You meet the tests described under Married persons who live apart, later.

Married.   If you were married on December 31, 2014, consider yourself married for the whole year, even if you did not live with your spouse at the end of 2014.

  If your spouse died in 2014, consider yourself married to that spouse for the whole year, unless you remarried in 2014.

Same-sex marriage.   For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. The term “spouse” includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not considered a marriage under state (or foreign) law are not considered married for federal tax purposes. For more details, see Pub. 501.

U.S. national.   A U.S. national is an individual who, although not a U.S. citizen, owes his or her allegiance to the United States. U.S. nationals include American Samoans and Northern Mariana Islanders who chose to become U.S. nationals instead of U.S. citizens.

Married persons who live apart.   Some married persons who have a child and who do not live with their spouse can file as single. If you meet all five of the following tests and you are a married resident of Canada or Mexico, or you are a married U.S. national, check the box on line 1. If you meet the following tests and you are a married resident of South Korea, check the box on line 2.
  1. You file a separate return from your spouse.

  2. You paid over half the cost of keeping up your home for 2014.

  3. You lived apart from your spouse for the last 6 months of 2014. Temporary absences for special circumstances, such as for business, medical care, school, or military service, count as time lived in the home.

  4. Your home was the main home of your child, stepchild, or foster child for more than half of 2014. Temporary absences by you or the child for special circumstances, such as school, vacation, business, or medical care, count as time the child lived in the home. If the child was born or died in 2014, you still can file as single as long as the home was that child's main home for the part of the year he or she was alive in 2014.

  5. You can claim a dependency exemption for the child or could claim the child except that the child's other parent claims him or her as a dependent under the rules for children of divorced or separated parents. See Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent.

Adopted child.

An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

Foster child.

A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction.

Line 3 or line 4—Married resident.   If you checked the box on line 3 or line 4, you must enter your spouse's first and last name and identifying number in the space provided.

  You cannot check the box on line 3 or line 4 if your spouse does not have an SSN or an ITIN. If your spouse is not eligible to apply for an SSN, he or she must apply for an ITIN.

  
If your spouse is a nonresident alien, is not being claimed as an exemption, and does not have an identifying number (SSN or ITIN), enter “NRA” in the space for Spouse's identifying number. Do not leave the space blank. If you have applied for an SSN or ITIN, enter “Applied for.

Line 6—Qualifying widow(er) with dependent child.   You can check the box on line 6 if all of the following apply.
  1. You were a resident of Canada, Mexico, or South Korea or were a U.S. national.

  2. Your spouse died in 2012 or 2013 and you did not remarry before the end of 2014.

  3. You have a child or stepchild you can claim as a dependent on line 7c. This does not include a foster child.

  4. This child lived in your home for all of 2014. Temporary absences by you or the child for special circumstances, such as school, vacation, business, or medical care, count as time lived in the home.

    A child is considered to have lived with you for all of 2014 if the child was born or died in 2014 and your home was the child's home for the entire time he or she was alive.

  5. You paid over half the cost of keeping up your home. To find out what is included in the cost of keeping up a home, see Pub. 501.

  6. You were a resident alien or U.S. citizen the year your spouse died. This refers to your actual status, not the election that some nonresident aliens can make to be taxed as U.S. residents.

  7. You could have filed a joint return with your spouse the year he or she died, even if you did not actually do so.

Adopted child.

An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

Exemptions

Exemptions for estates and trusts are described in the instructions for line 40, later.

Only U.S. nationals, residents of Canada, Mexico, and South Korea, and residents of India who were students or business apprentices may claim an exemption for a spouse or a dependent

Line 7b—Spouse.   If you checked filing status box 3 or 4, you can take an exemption for your spouse only if your spouse had no gross income for U.S. tax purposes and cannot be claimed as a dependent on another U.S. taxpayer's return (you can do this even if your spouse died in 2014).

  If you checked filing status box 4, do not check line 7b if your spouse did not live with you in the United States at any time during 2014. If you were a resident of South Korea or India, see chapter 5 of Pub. 519.

Line 7c—Dependents.    You can take an exemption for each of your dependents. If you have more than four dependents, include a statement showing the required information.

  If you were a U.S. national or a resident of Canada or Mexico, you can claim an exemption for a child or other dependent on the same terms as U.S. citizens. If you were a resident of South Korea or India, see chapter 5 of Pub. 519.

  In general, a dependent is a qualifying child or a qualifying relative. Three exceptions apply.
  • An individual who is a dependent of a taxpayer is treated as having no dependents.

  • An individual who files a joint return is not a dependent if the individual files a joint return, unless the joint return is filed only to claim a refund of estimated or withheld taxes.

  • An individual claimed as a dependent must be a citizen, national, or resident of the United States, or a resident of Canada or Mexico.

Qualifying child.

A qualifying child for purposes of the dependency exemption is a child who meets the following requirements.

  • The child is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew).

  • The child was one of the following.

    1. Under age 19 at the end of 2014 and younger than you (or your spouse if filing jointly).

    2. Under age 24 at the end of 2014, a full-time student, and younger than you (or your spouse if filing jointly).

    3. Any age and permanently and totally disabled at any time during the year.

  • The child lived with you for more than half of 2014.

  • The child did not provide over half of his or her own support for 2014.

  • The child is not filing a joint return for 2014 or is filing a joint return for 2014 only to claim a refund of estimated or withheld taxes.

Qualifying relative.

A qualifying relative for purposes of the dependency exemption is a person who meets the following requirements.

  • The person was not a qualifying child of any taxpayer for 2014.

  • The person is one of the following.

    1. Your son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild).

    2. Your brother, sister, half brother, half sister, or a son or daughter of any of them (for example, your niece or nephew).

    3. Your father, mother, or an ancestor or sibling of either of them (for example, your grandmother, grandfather, aunt, or uncle).

    4. Your stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.

    5. Any other person (other than your spouse) who lived with you for all of 2014 as a member of your household if your relationship did not violate local law.

  • The person had gross income of less than $3,950 in 2014.

  • You provided over half of the person’s support in 2014.

  
For special rules and additional information in applying the definitions of a qualifying child and qualifying relative, see Exemptions for Dependents in Pub. 501.

Children who did not live with you due to divorce or separation.

If you checked filing status box 1 or 3 and are claiming a child who did not live with you as a dependent under the special rule for children of divorced or separated parents or parents who live apart during the last six months of the year, include with your return a copy of the custodial parent's signed release of claim to exemption. The release may be on Form 8332 or may be a substantially similar statement whose only purpose is to release a claim to exemption for the child. The release must be unconditional.

If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to include certain pages from the decree or agreement instead of Form 8332. See Form 8332 for details.

  
You must include the required information even if you filed it with your return in an earlier year.

Release of exemption revoked.

A custodial parent who has revoked his or her previous release of a claim to exemption for a child must include a copy of the revocation with his or her return. For details, see Form 8332.

Other dependent children.

Include the total number of children who did not live with you for reasons other than divorce or separation on the line labeled “Dependents on 7c not entered above.

Line 7c, column (2).

You must enter each dependent's identifying number (SSN, ITIN, or ATIN). Otherwise, at the time we process your return, we may disallow the exemption claimed for the dependent and reduce or disallow any other tax benefits (such as the child tax credit) based on the child's status as your dependent.

For details on how your dependent can get an identifying number, see Identifying Number, earlier.

If your dependent child was born and died in 2014 and you do not have an identifying number for the child, enter “Died” in column (2) and attach a copy of the child's birth certificate, death certificate, or hospital records. The document must show the child was born alive.

Adoption taxpayer identification numbers (ATINs).

If you have a dependent who was placed with you for legal adoption and you do not know his or her SSN, you must get an ATIN for the dependent from the IRS. See Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions, for details. If the dependent is not a U.S. citizen or resident alien, apply for an ITIN instead, using Form W-7. See IRS individual taxpayer identification number (ITIN), earlier.

Line 7c, column (4).

Check the box in this column if your dependent is a qualifying child for the child tax credit (defined next). If you have at least one qualifying child, you may be able to take the child tax credit on line 49 and the additional child tax credit on line 64.

Qualifying child for child tax credit.

A qualifying child for purposes of the child tax credit is a qualifying child for purposes of the dependency exemption except that the child must meet the following requirements.

  • The child was under age 17 at the end of 2014.

  • The child was a U.S. citizen, a U.S. national, or a U.S. resident alien.

Rounding Off to Whole Dollars

You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.

If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.

Income Effectively Connected With U.S. Trade or Business

The instructions for this section assume you have decided that the income involved is effectively connected with a U.S. trade or business in which you were engaged. But your decision may not be easy. Interest, for example, may be effectively connected with a U.S. trade or business, it may not be, or it may be tax-exempt. The tax status of income also depends on its source. Under some circumstances, items of income from foreign sources are treated as effectively connected with a U.S. trade or business. Other items are reportable as effectively connected or not effectively connected with a U.S. trade or business, depending on how you elect to treat them.

Line 8—Wages, salaries, tips, etc.   Enter the total of your effectively connected wages, salaries, tips, etc. Only U.S. source income is included on line 8 as effectively connected wages. For most people, the amount to enter on this line should be shown in box 1 of their Form(s) W-2.

  
Do not include on line 8 amounts exempted under a tax treaty. Instead, include these amounts on line 22 and complete item L of Schedule OI on page 5 of Form 1040NR.

Services performed partly within and partly without the United States.

If you performed services as an employee both inside and outside the United States, you must allocate your compensation between U.S. and non-U.S. sources.

Compensation (other than certain fringe benefits) generally is sourced on a time basis. To figure your U.S. source income, divide the number of days you performed labor or personal services within the United States by the total number of days you performed labor or personal services within and without the United States. Multiply the result by your total compensation (other than certain fringe benefits).

Fringe benefits.

Certain fringe benefits (such as housing and educational expenses) are sourced on a geographic basis. The source of the fringe benefit compensation generally is your principal place of work. The amount of the fringe benefit compensation must be reasonable and you must keep records that are adequate to support the fringe benefit compensation.

You may be able to use an alternative method to determine the source of your compensation and/or fringe benefits if the alternative method more properly determines the source of the compensation.

For 2014, if your total compensation (including fringe benefits) is $250,000 or more and you allocate your compensation using an alternative method, check the “Yes” boxes in item K of Schedule OI on page 5. Also attach to Form 1040NR a statement that contains the following information.

  1. The specific compensation or the specific fringe benefit for which an alternative method is used.

  2. For each such item, the alternative method used to allocate the source of the compensation.

  3. For each such item, a computation showing how the alternative allocation was computed.

  4. A comparison of the dollar amount of the compensation sourced within and outside the United States under both the alternative method and the time or geographical method for determining the source.

You must keep documentation showing why the alternative method more properly determines the source of the compensation.

Other types of income.

The following types of income also must be included in the total on line 8.

  • All wages received as a household employee for which you did not receive a Form W-2 because an employer paid you less than $1,900 in 2014. Also, enter “HSH” and the total amount not reported on Form(s) W-2 on the dotted line next to line 8.

  • Tip income you did not report to your employer. This should include any allocated tips shown in box 8 on your Form(s) W-2 unless you can prove that your unreported tips are less than the amount in box 8. Allocated tips are not included as income in box 1. See Pub. 531, Reporting Tip Income, for more details.

    Also include the value of any noncash tips you received, such as tickets, passes, or other items of value. Although you do not report these noncash tips to your employer, you must report them on line 8.

    You may owe social security and Medicare tax on unreported tips. See the instructions for line 56, later.

  • Dependent care benefits, which should be shown in box 10 of your Form(s) W-2. But first complete Form 2441, Child and Dependent Care Expenses, to see if you can exclude part or all of the benefits.

  • Employer-provided adoption benefits, which should be shown in box 12 of your Form(s) W-2 with code T. But see the Instructions for Form 8839, Qualified Adoption Expenses, to find out if you can exclude part or all of the benefits. You also may be able to exclude amounts if you adopted a child with special needs and the adoption became final in 2014.

  • Excess salary deferrals. The amount deferred should be shown in box 12 of your Form W-2, and the “Retirement plan” box in box 13 should be checked. If the total amount you deferred for 2014 under all plans was more than $17,500 (excluding catch-up contributions as explained below), include the excess on line 8. This limit is (a) $12,000 if you have only SIMPLE plans, or (b) $20,500 for section 403(b) plans if you qualify for the 15-year rule in chapter 4 of Pub. 571. Although designated Roth contributions are subject to this limit, do not include the excess attributable to such contributions on line 8. They already are included as income in box 1 of your Form W-2.

    A higher limit may apply to participants in section 457(b) deferred compensation plans for the 3 years before retirement age. Contact your plan administrator for more information.

    If you were age 50 or older at the end of 2014, your employer may have allowed an additional deferral (catch-up contributions) of up to $5,500 ($2,500 for section 401(k)(11) and SIMPLE plans). This additional deferral amount is not subject to the overall limit on elective deferrals.

    You cannot deduct the amount deferred. It is not included as income in box 1 of your Form W-2.

  • Disability pensions shown on Form 1042-S or Form 1099-R if you have not reached the minimum retirement age set by your employer. Disability pensions received after you reach minimum retirement age and other payments shown on Form 1042-S or Form 1099-R (other than payments from an IRA*) are reported on lines 17a and 17b. Payments from an IRA are reported on lines 16a and 16b.

  • Corrective distributions from a retirement plan shown on Form 1042-S or Form 1099-R of excess salary deferrals and excess contributions (plus earnings). But do not include distributions from an IRA* on line 8. Instead, report distributions from an IRA on lines 16a and 16b.

    *This includes a Roth, SEP, or SIMPLE IRA.

  • Wages from Form 8919, line 6.

Missing or incorrect Form W-2.

Your employer is required to provide or send Form W-2 to you no later than February 2, 2015. If you do not receive it by early February, ask your employer for it. Even if you do not get a Form W-2, you still must report your earnings on line 8. If you lose your Form W-2 or it is incorrect, ask your employer for a new one.

Line 9a—Taxable interest.   Report on line 9a all of your taxable interest income from assets effectively connected with a U.S. trade or business.

  If you received interest not effectively connected with a U.S. trade or business, report it on Schedule NEC, page 4, unless it is tax exempt under a treaty and the withholding agent did not withhold tax on the payment. If the interest is tax exempt under a treaty, include the tax exempt amount on line 22 and complete item L of Schedule OI on page 5.

  If the interest is tax exempt under a treaty but the withholding agent withheld tax, report the interest on Schedule NEC, line 2. Use column d and show 0% for the appropriate rate of tax.

  See Pub. 901 for a quick reference guide to the provisions of U.S. tax treaties.

   Interest from a U.S. bank, savings and loan association, credit union, or similar institution, and from certain deposits with U.S. insurance companies, is tax exempt to a nonresident alien if it is not effectively connected with a U.S. trade or business.

  Interest credited in 2014 on deposits that you could not withdraw because of the bankruptcy or insolvency of the financial institution may not have to be included in your 2014 income.

  See Pub. 550 for more details.

Line 9b—Tax-exempt interest.   Certain types of interest income from investments in state and municipal bonds and similar instruments are not taxed by the United States. If you received such tax-exempt interest income, report the amount on line 9b. Your tax-exempt interest should be shown in box 8 of Form 1099-INT. Enter the total on line 9b. Also include on line 9b any exempt-interest dividends from a mutual fund or other regulated investment company. This amount should be shown in box 10 of Form 1099-DIV.

  Do not include interest earned on your IRA, health savings account, Archer or Medicare Advantage MSA, or Coverdell education savings account. Also, do not include interest from a U.S. bank, savings and loan association, credit union, or similar institution (or from certain deposits with U.S. insurance companies) that is exempt from tax under a tax treaty or under section 871(i) because the interest is not effectively connected with a U.S. trade or business.

Line 10a—Ordinary dividends.   Each payer should send you a Form 1099-DIV. Enter your total ordinary dividends from assets effectively connected with a U.S. trade or business on line 10a. This amount should be shown in box 1a of Form(s) 1099-DIV.

Capital gain distributions.

If you received any capital gain distributions, see the instructions for line 14, later.

Nondividend distributions.

Some distributions are a return of your cost (or other basis). They will not be taxed until you recover your cost (or other basis). You must reduce your cost (or other basis) by these distributions. After you get back all of your cost (or other basis), you must report these distributions as capital gains on Form 8949.

See chapter 1 of Pub. 550 for more details.

  
Dividends on insurance policies are a partial return of the premiums you paid. Do not report them as dividends. Include them in income on line 21 only if they exceed the total of all net premiums you paid for the contract.

Line 10b—Qualified dividends.   Enter your total qualified dividends on line 10b. Qualified dividends also are included in the ordinary dividend total required to be shown on line 10a. Qualified dividends are eligible for a lower tax rate than other ordinary income. Generally, these dividends are shown in box 1b of your Form(s) 1099-DIV.

  See chapter 1 of Pub. 550 for the definition of qualified dividends if you received dividends not reported on Form 1099-DIV.

Exception.

Some dividends may be reported as qualified dividends in box 1b of Form 1099-DIV but are not qualified dividends. These dividends include:

  • Dividends you received as a nominee. See chapter 1 of Pub. 550.

  • Dividends you received on any share of stock that you held for less than 61 days during the 121-day period that began 60 days before the ex-dividend date. The ex-dividend date is the first date following the declaration of a dividend on which the purchaser of a stock is not entitled to receive the next dividend payment. When counting the number of days you held the stock, include the day you disposed of the stock but not the day you acquired it. See the examples that follow. Also, when counting the number of days you held the stock, you cannot count certain days during which your risk of loss was diminished. See chapter 1 of Pub. 550 for more details.

  • Dividends attributable to periods totaling more than 366 days that you received on any share of preferred stock held for less than 91 days during the 181-day period that began 90 days before the ex-dividend date. When counting the number of days you held the stock, you cannot count certain days during which your risk of loss was diminished. See chapter 1 of Pub. 550 for more details. Preferred dividends attributable to periods totaling less than 367 days are subject to the 61-day holding period rule, just described.

  • Dividends on any share of stock to the extent that you are under an obligation (including a short sale) to make related payments with respect to positions in substantially similar or related property.

  • Payments in lieu of dividends, but only if you know or have reason to know that the payments are not qualified dividends.

Example 1.

You bought 5,000 shares of XYZ Corp. common stock on July 8, 2014. XYZ Corp. paid a cash dividend of 10 cents per share. The ex-dividend date was July 16, 2014. Your Form 1099-DIV from XYZ Corp. shows $500 in box 1a (ordinary dividends) and in box 1b (qualified dividends). However, you sold the 5,000 shares on August 11, 2014. You held your shares of XYZ Corp. for only 34 days of the 121-day period (from July 9, 2014, through August 11, 2014). The 121-day period began on May 17, 2014 (60 days before the ex-dividend date), and ended on September 14, 2014. You have no qualified dividends from XYZ Corp. because you held the XYZ stock for less than 61 days.

Example 2.

The facts are the same as in Example 1 except that you bought the stock on July 15, 2014 (the day before the ex-dividend date), and you sold the stock on September 16, 2014. You held the stock for 63 days (from July 16, 2014, through September 16, 2014). The $500 of qualified dividends shown in box 1b of Form 1099-DIV are all qualified dividends because you held the stock for 61 days of the 121-day period (from July 16, 2014, through September 14, 2014).

Example 3.

You bought 10,000 shares of ABC Mutual Fund common stock on July 8, 2014. ABC Mutual Fund paid a cash dividend of 10 cents a share. The ex-dividend date was July 16, 2014. The ABC Mutual Fund advises you that the portion of the dividend eligible to be treated as qualified dividends equals 2 cents per share. Your Form 1099-DIV from ABC Mutual Fund shows total ordinary dividends of $1,000 and qualified dividends of $200. However, you sold the 10,000 shares on August 11, 2014. You have no qualified dividends from ABC Mutual Fund because you held the ABC Mutual Fund stock for less than 61 days.

  
Use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet, whichever applies, to figure your tax. See the instructions for line 42 for details.

Line 11—Taxable refunds, credits, or offsets of state and local income taxes.   If you received a refund, credit, or offset of state or local income taxes in 2014, you may be required to report this amount. If you did not receive a Form 1099-G, check with the government agency that made the payments to you. Your 2014 Form 1099-G may have been made available to you only in an electronic format, and you will need to get instructions from the agency to retrieve this document. Report any taxable refund you received even if you did not receive Form 1099-G.

  If you chose to apply part or all of the refund to your 2014 estimated state or local income tax, the amount applied is treated as received in 2014.

  
None of your refund is taxable if, in the year you paid the tax, you did not itemize deductions on Schedule A. If you were a student or business apprentice from India in 2013 and you claimed the standard deduction on your 2013 tax return, none of your refund is taxable. See Students and business apprentices from India in chapter 5 of Pub. 519. If none of your refund is taxable, leave line 11 blank.

  For details on how to figure the amount you must report as income, see Recoveries in Pub. 525.

Line 12—Scholarship and fellowship grants.   If you received a scholarship or fellowship, part or all of it may be taxable.

  If you were a degree candidate, the amounts you used for expenses other than tuition and course-related expenses (fees, books, supplies, and equipment) are generally taxable. For example, amounts used for room, board, and travel are generally taxable.

  If you were not a degree candidate, the full amount of the scholarship or fellowship is generally taxable. Also, amounts received in the form of a scholarship or fellowship that are payment for teaching, research, or other services are generally taxable as wages even if the services were required to get the grant.

  If the grant was reported on Form(s) 1042-S, you generally must include the amount shown in box 2 of Form(s) 1042-S on line 12. However, if any or all of that amount is exempt by treaty, do not include the treaty-exempt amount on line 12. Instead, include the treaty-exempt amount on line 22 and complete item L of Schedule OI on page 5 of Form 1040NR.

  Attach any Form(s) 1042-S you received from the college or institution. If you did not receive a Form 1042-S, attach a statement from the college or institution (on their letterhead) showing the details of the grant.

  For more information about scholarships and fellowships in general, see chapter 1 of Pub. 970.

Example 1.

You are a citizen of a country that does not have an income tax treaty in force with the United States. You are a candidate for a degree at ABC University (located in the United States). You are receiving a full scholarship from ABC University. The total amounts you received from ABC University during 2014 are as follows.

  Tuition and fees $25,000  
  Books, supplies, and equipment 1,000  
  Room and board 9,000  
    $35,000  

The Form 1042-S you received from ABC University for 2014 shows $9,000 in box 2 and $1,260 (14% of $9,000) in box 10.

Note.

Box 2 shows only $9,000 because withholding agents (such as ABC University) are not required to report section 117 amounts (tuition, fees, books, supplies, and equipment) on Form 1042-S.

  When completing Form 1040NR: 
  • Enter on line 12 the $9,000 shown in box 2 of Form 1042-S.

  • Enter $0 on line 31. Because 
    section 117 amounts (tuition, fees, books, supplies, and equipment) were not included in box 2 of your Form 1042-S (and are not included on line 12 of Form 1040NR), you cannot exclude any of the section 117 amounts on line 31.

  • Include on line 62d the $1,260 shown in box 10 of Form 1042-S.

Example 2.

The facts are the same as in Example 1 except that you are a citizen of a country that has an income tax treaty in force with the United States that includes a provision that exempts scholarship income and you were a resident of that country immediately before leaving for the United States to attend ABC University. Also, assume that, under the terms of the tax treaty, all of your scholarship income is exempt from tax because ABC University is a nonprofit educational organization.

Note.

Many tax treaties do not permit an exemption from tax on scholarship or fellowship grant income unless the income is from sources outside the United States. If you are a resident of a treaty country, you must know the terms of the tax treaty between the United States and the treaty country to claim treaty benefits on Form 1040NR. See the instructions for item L, Schedule OI, later, for details.

  When completing Form 1040NR:
  • Enter $0 on line 12. The $9,000 reported to you in box 2 of Form 1042-S is reported on line 22 (not line 12).

  • Enter $9,000 on line 22.

  • Enter $0 on line 31. Because none of the $9,000 reported to you in box 2 of Form 1042-S is included in your income, you cannot exclude it on 
    line 31.

  • Include on line 62d any withholding shown in box 10 of Form 1042-S.

  • Provide all the required information in item L, Schedule OI, on page 5 of Form 1040NR.

Line 13—Business income or (loss).   If you operated a business or practiced your profession as a sole proprietor, report your effectively connected income and expenses on Schedule C or Schedule C-EZ (Form 1040).

  Include any income you received as a dealer in stocks, securities, and commodities through your U.S. office. If you dealt in these items through an independent agent, such as a U.S. broker, custodian, or commissioned agent, your income may not be considered effectively connected with a U.S. business.

  

Note.

For more information on tax provisions that apply to a small business, see Pub. 334, Tax Guide for Small Business.

Line 14—Capital gain or (loss).   If you had effectively connected capital gains or losses, you must complete and attach Form 8949 and Schedule D (Form 1040). But see the Exceptions.

  Gains and losses from disposing of U.S. real property interests are reported on Schedule D (Form 1040) and included on line 14 of Form 1040NR. See Dispositions of U.S. Real Property Interests, earlier.

Exception 1.

You do not have to file Form 8949 or Schedule D (Form 1040) if both of the following apply.

  1. You have no capital losses, and your only capital gains are capital gain distributions from Form(s) 1099-DIV, box 2a (or substitute statements).

  2. None of the Form(s) 1099-DIV (or substitute statements) have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain).

Exception 2.

You must file Schedule D (Form 1040), but generally do not have to file Form 8949, if Exception 1 does not apply and your only capital gains and losses are:

  • Capital gain distributions;

  • A capital loss carryover from 2013;

  • A gain from Form 2439 or 6252 or Part I of Form 4797;

  • A gain or loss from Form 4684, 6781, or 8824;

  • A gain or loss from a partnership, S corporation, estate, or trust; or

  • Gains and losses from transactions for which you received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS and for which you do not need to make any adjustments in column (g) of Form 8949 or enter any codes in column (f) of Form 8949.

If Exception 1 applies, enter your total effectively connected capital gain distributions (from box 2a of Form(s) 1099-DIV) on line 14 and check the box on that line. If you received capital gain distributions as a nominee (that is, they were paid to you but actually belong to someone else), report on line 14 only the amount that belongs to you. Include a statement showing the full amount you received and the amount you received as a nominee.

  See chapter 1 of Pub. 550 for filing requirements for Forms 1099-DIV and 1096.

  
If you do not have to file Schedule D (Form 1040), use the Qualified Dividends and Capital Gain Tax Worksheet in the line 42 instructions to figure your tax.

Line 15—Other gains or (losses).   If you sold or exchanged assets used in a U.S. trade or business, see the Instructions for Form 4797.

Lines 16a and 16b—IRA distributions.   You should receive a Form 1099-R showing the total amount of any distribution from your individual retirement arrangement (IRA) before income tax or other deductions were withheld. This amount should be shown in box 1 of Form 1099-R.

  Unless otherwise noted in the line 16a and 16b instructions, an IRA includes a traditional IRA, Roth IRA, simplified employee pension (SEP) IRA, and a savings incentive match plan for employees (SIMPLE) IRA. Except as provided in the following exceptions, leave line 16a blank and enter the total distribution (from Form 1099-R, box 1) on line 16b.

Exception 1.

Enter the total distribution on line 16a if you rolled over part or all of the distribution from one:

  • IRA to another IRA of the same type (for example, from one traditional IRA to another traditional IRA),

  • SEP or SIMPLE IRA to a traditional IRA, or

  • IRA to a qualified plan other than an IRA.

Also, enter “Rollover” next to line 16b. If the total distribution was rolled over in a qualified rollover, enter -0- on line 16b. If the total distribution was not rolled over in a qualified rollover, enter the part not rolled over on line 16b unless Exception 2 applies to the part not rolled over. Generally, a qualified rollover must be made within 60 days after the day you received the distribution. For more details on rollovers, see Can You Move Retirement Plan Assets? in chapter 1 of Pub. 590-A, Contributions to Individual Retirement Arrangements (IRAs) and Pub. 590-B, Distributions from Individual Retirement Arrangements (IRAs).

If you rolled over the distribution into a qualified plan other than an IRA or you made the rollover in 2015, include a statement explaining what you did.

Exception 2.

If any of the following apply, enter the total distribution on line 16a and see Form 8606 and its instructions to figure the amount to enter on line 16b. 

  1. You received a distribution from an IRA (other than a Roth IRA) and you made nondeductible contributions to any of your traditional or SEP IRAs for 2014 or an earlier year. If you made nondeductible contributions to these IRAs for 2014, also see How Much Can You Deduct? in chapter 1 of Pub. 590-A.

  2. You received a distribution from a Roth IRA. But if either (a) or (b) below applies, enter -0- on line 16b; you do not have to see Form 8606 or its instructions.

    1. Distribution code T is shown in box 7 of Form 1099-R and you made a contribution (including a conversion) to a Roth IRA for 2009 or an earlier year.

    2. Distribution code Q is shown in box 7 of Form 1099-R.

  3. You converted part or all of a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2014.

  4. You had a 2013 or 2014 IRA contribution returned to you, with the related earnings or less any loss, by the due date (including extensions) of your tax return for that year.

  5. You made excess contributions to your IRA for an earlier year and had them returned to you in 2014.

  6. You recharacterized part or all of a contribution to a Roth IRA as a traditional IRA contribution, or vice versa.

Exception 3.

If the distribution is a qualified charitable distribution (QCD), enter the total distribution on line 16a. If the total amount distributed is a QCD, enter -0- on line 16b. If only part of the distribution is a QCD, enter the part that is not a QCD on line 16b unless Exception 2 applies to that part. Enter QCD next to line 16b.

A QCD is a distribution made directly by the trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions (with certain exceptions). You must have been at least age 70½ when the distribution was made. Generally, your total QCDs for the year cannot be more than $100,000. (On a joint return, your spouse can also have a QCD of up to $100,000.)

The amount of the QCD is limited to the amount that would otherwise be included in your income. If your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income. See Pub. 590-A for details.

You cannot claim a charitable contribution deduction for any QCD not included in your income.

Exception 4.

If the distribution is a health savings account (HSA) funding distribution (HFD), enter the total distribution on line 16a. If the total amount distributed is an HFD and you elect to exclude it from income, enter -0- on line 16b. If only part of the distribution is an HFD and you elect to exclude that part from income, enter the part that is not an HFD on line 16b unless Exception 2 applies to that part. Enter “HFD” next to line 16b.

An HFD is a distribution made directly by the trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to your HSA. If eligible, you generally can elect to exclude an HFD from your income once in your lifetime. You cannot exclude more than the limit on HSA contributions or more than the amount that otherwise would be included in your income. If your IRA includes nondeductible contributions, the HFD is first considered to be paid out of otherwise taxable income.

See Pub. 969 for more details.

The amount of an HFD reduces the amount you can contribute to your HSA for the year. If you fail to maintain eligibility for an HSA for the 12 months following the month of the HFD, you may have to report the HFD as income and pay an additional tax. See Form 8889, Part III.

More than one exception applies.

If more than one exception applies, include a statement showing the amount of each exception, instead of making an entry next to line 16b. For example: “Line 16b–$1,000 Rollover and $500 HFD.” But you do not need to attach a statement if only Exception 2 and one other exception apply.

More than one distribution.

If you received more than one distribution, figure the taxable amount of each distribution and enter the total of the taxable amounts on line 16b. Enter the total amount of those distributions on line 16a.

  
You may have to pay an additional tax if: (a) you received an early distribution from your IRA and the total was not rolled over, or (b) you were born before July 1, 1943, and received less than the minimum required distribution from your traditional, SEP, and SIMPLE IRAs. See the instructions for line 57, later, for details.

More information.

For more information about IRAs, see Pub. 590-A and Pub. 590-B.

Lines 17a and 17b—Pensions and annuities.   Use line 17a to report certain pension distributions. Use line 17b to report the taxable portion of those pension distributions.

  You should receive a Form 1042-S or 1099-R showing the total amount of your pension and annuity payments before income tax or other deductions were withheld. This amount should be shown in box 1 of Form 1099-R or in box 2 of Form 1042-S. Pension and annuity payments include distributions from 401(k), 403(b), and governmental 457(b) plans. Rollovers and lump-sum distributions are explained later.

  Report the part of any distribution that is effectively connected with the conduct of a trade or business in the United States on lines 17a and 17b. In general, the gross amount of any distribution that is not effectively connected income is subject to 30% withholding (unless reduced or eliminated by treaty). Report this income on Schedule NEC, line 7.

  Do not include the following payments on lines 17a and 17b. Instead, report them on line 8.

  
  • Disability pensions received before you reach the minimum retirement age set by your employer.

  • Corrective distributions (including any earnings) of excess salary deferrals or excess contributions to retirement plans. The plan must advise you of the year(s) the distributions are includible in income.

  
Attach Form 1042-S or 1099-R to Form 1040NR if any federal income tax was withheld.

Effectively connected pension distributions.

If you performed services in the United States while you were a nonresident alien, your income generally is effectively connected with a U.S. trade or business. (See section 864 for details and exceptions.)

If you worked in the United States after December 31, 1986, the part of each pension distribution that is attributable to the services you performed after 1986 is income that is effectively connected with a U.S. trade or business.

Example.

You worked in the United States from January 1, 1980, through December 31, 1989 (10 years). You now receive monthly pension payments from your former U.S. employer's pension plan. 70% of each payment is attributable to services you performed during 1980 through 1986 (7 years) and 30% of each payment is attributable to services you performed during 1987 through 1989 (3 years). Include 30% of each pension payment in the total amount that you report on line 17a. Include 70% of each payment in the total amount that you report in the appropriate column on Schedule NEC, line 7.

In most cases, the effectively connected pension distribution will be fully taxable in the United States, so you must enter it on line 17b. However, in some situations, you can report a lower amount on line 17b. The most common situations are where:

  • All or a part of your pension payment is exempt from U.S. tax,

  • A part of your pension payment is attributable to after-tax contributions to the pension plan, or

  • The payment is rolled over to another retirement plan.

See chapter 3 of Pub. 519; Pub. 575, Pension and Annuity Income; orPub. 939, General Rule for Pensions and Annuities, for more information.

Fully taxable pensions and annuities.

Your payments are fully taxable if (a) you did not contribute to the cost (see Cost, later) of your pension or annuity, or (b) you got your entire cost back tax free before 2014. If your pension or annuity is fully taxable, enter the total pension or annuity payments on line 17b; do not make an entry on line 17a.

If you received a Form RRB-1099-R, see General Information in Pub. 575 to find out how to report your benefits.

Partially taxable pensions and annuities.

Enter the total pension or annuity payments on line 17a. If your Form 1042-S or Form 1099-R does not show the taxable amount, you must use the General Rule explained in Pub. 939 to figure the taxable part to enter on line 17b. But if your annuity starting date (defined later) was after July 1, 1986, see Simplified method, later, to find out if you must use that method to figure the taxable part.

You can ask the IRS to figure the taxable part for you for a $1,000 fee. For details, see Pub. 939.

If your Form 1099-R shows a taxable amount, you can report that amount on line 17b. But you may be able to report a lower taxable amount by using the General Rule or the Simplified Method. If you received Form 1042-S, you must figure the taxable part by using the General Rule or the Simplified Method.

Simplified method.

You must use the Simplified Method if (a) your annuity starting date (defined later) was after July 1, 1986, and you used this method last year to figure the taxable part, or (b) your annuity starting date was after November 18, 1996, and both of the following apply.

  • The payments are from a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity.

  • On your annuity starting date, either you were under age 75 or the number of years of guaranteed payments was fewer than five. See Taxation of Periodic Payments in Pub. 575 for the definition of guaranteed payments.

If you must use the Simplified Method, complete the Simplified Method Worksheet—Lines 17a and 17b to figure the taxable part of your pension or annuity. See Taxation of Periodic Payments in Pub. 575 for more details on the Simplified Method.

Annuity starting date.

Your annuity starting date is the later of the first day of the first period for which you received a payment or the date the plan's obligations became fixed.

Age (or combined ages) at annuity starting date.

If you are the retiree, use your age on the annuity starting date. If you are the survivor of a retiree, use the retiree's age on his or her annuity starting date. But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, use your combined ages on the annuity starting date.

  See Survivors and Beneficiaries in Pub. 575 if you are the beneficiary of an employee who died, or if there is more than one beneficiary and you need to figure each beneficiary's taxable amount.

Cost.

Your cost is generally your net investment in the plan as of the annuity starting date. It does not include pre-tax contributions. Your net investment should be shown in box 9b of Form 1099-R for the first year you received payments from the plan. You must figure your net investment if you received Form 1042-S.

Rollovers.

Generally, a qualified rollover is a tax-free distribution of cash or other assets from one retirement plan that is contributed to another plan within 60 days of receiving the distribution. However, a qualified rollover to a Roth IRA or a designated Roth account generally is not a tax-free distribution. Use lines 17a and 17b to report a qualified rollover, including a direct rollover, from one qualified employer's plan to another or to an IRA or SEP.

Enter on line 17a the distribution from box 1 of Form 1099-R or box 2 of Form 1042-S. From this amount, subtract any contributions (usually shown in box 5 of Form 1099-R or figured by you if you received Form 1042-S) that were taxable to you when made. From that result, subtract the amount of the qualified rollover. Enter the remaining amount on line 17b. If the remaining amount is zero and you have no other distribution to report on line 17b, enter zero on line 17b. Also, enter "Rollover" next to line 17b.

See Rollovers in Pub. 575 for more details, including special rules that apply to rollovers from designated Roth accounts, partial rollovers of property, and distributions under qualified domestic relations orders.

Lump-sum distributions.

If you received a lump-sum distribution from a profit-sharing or retirement plan, your Form 1099-R should have the “Total distribution” box in box 2b checked. You need to figure this on your own if you received Form 1042-S. You may owe an additional tax if you received an early distribution from a qualified retirement plan and the total amount was not rolled over in a qualified rollover. For details, see the instructions for line 57, later.

Enter the total distribution on line 17a and the taxable part on line 17b. For details, see Taxation of Nonperiodic Payments in Pub. 575.

If you or the plan participant was born before January 2, 1936, you could pay less tax on the distribution. See Form 4972.

Simplified Method Worksheet—Lines 17a and 17b

Before you begin:

If you are the beneficiary of a deceased employee or former employee who died before August 21, 1996, include any death benefit exclusion that you are entitled to (up to $5,000) in the amount entered on line 2 below.

More than one pension or annuity. If you had more than one partially taxable pension or annuity, figure the taxable part of each separately. Enter the total of the taxable parts on Form 1040NR, line 17b. Enter the total pension or annuity payments received in 2014 on Form 1040NR, line 17a.
1. Enter the total pension or annuity payments received in 2014. Also, enter this amount on Form 1040NR, line 17a 1.  
2. Enter your cost in the plan at the annuity starting date 2.      
  Note. If you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Otherwise, go to line 3.        
3. Enter the appropriate number from Table 1 below. But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below 3.      
4. Divide line 2 by the number on line 3 4.      
5. Multiply line 4 by the number of months for which this year's payments were made. If your annuity starting date was before 1987, skip lines 6 and 7 and enter this amount on line 8. Otherwise, go to line 6 5.      
6. Enter the amount, if any, recovered tax free in years after 1986. If you completed this worksheet last year, enter the amount from line 10 of last year's worksheet 6.      
7. Subtract line 6 from line 2 7.      
8. Enter the smaller of line 5 or line 7 8.  
9. Taxable amount. Subtract line 8 from line 1. Enter the result, but not less than zero. Also, enter this amount on Form 1040NR, line 17b. If your Form 1042-S or Form 1099-R shows a larger amount, use the amount on this line instead of the amount from Form 1042-S or Form 1099-R 9.  
10. Was your annuity starting date before 1987?          
 
Yes.
Do not complete the rest of this worksheet.
         
 
No. 
Add lines 6 and 8. This is the amount you have recovered tax free through 2014. You will need this number if you need to fill out this worksheet next year. 10.  
11. Balance of cost to be recovered. Subtract line 10 from line 2. If zero or less, you will not have to complete this worksheet next year. The payments you receive next year will generally be fully taxable. 11.  
Table 1 for Line 3 Above
IF the age at annuity starting  
date (see Age (or combined ages) at annuity starting date) was . . .
AND your annuity starting date was—
      before November 19, 1996,  
enter on line 3.....
  after November 18, 1996,  
enter on line 3.....
55 or under   300   360
56–60   260   310
61–65   240   260
66–70   170   210
71 or older   120   160
Table 2 for Line 3 Above
IF the combined ages at annuity  
starting date (see Age (or combined ages) at annuity starting date) were . . .
      THEN enter on line 3 . . .
110 or under         410
111–120         360
121–130         310
131–140         260
141 or older         210
Line 18—Rental real estate, royalties, partnerships, trusts, etc.   Report income or loss from rental real estate, royalties, partnerships, estates, trusts, and residual interests in real estate mortgage investment conduits (REMICs) on line 18. Use Schedule E (Form 1040) to figure the amount to enter on line 18 and attach Schedule E (Form 1040) to your return. For more information, see the Instructions for Schedule E (Form 1040).

  
If you are electing to treat income from real property located in the United States as effectively connected with a U.S. trade or business, see Income You Can Elect To Treat as Effectively Connected With a U.S. Trade or Business, earlier, for more details on the election statement you must attach. If you do not make the election, report rental income on Schedule NEC, line 6. See Income from Real Property in chapter 4 of Pub. 519 for more details.

Line 19—Farm income or (loss).   Report farm income and expenses on line 19. Use Schedule F (Form 1040) to figure the amount to enter on line 19 and attach Schedule F (Form 1040) to your return. For more information, see the Instructions for Schedule F (Form 1040). Also see Pub. 225, Farmer's Tax Guide, for samples of filled-in forms and schedules and a list of important dates that apply to farmers.

Line 20—Unemployment compensation.   You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you in 2014. Report this amount on line 20. However, if you made contributions to a governmental unemployment compensation program or to a governmental paid family leave program and you are not itemizing deductions, reduce the amount you report on line 20 by those contributions. If you are itemizing deductions, see the Form 1099-G instructions.

  If you received an overpayment of unemployment compensation in 2014 and you repaid any of it in 2014, subtract the amount you repaid from the total amount you received. Enter the result on line 20. Also, enter “Repaid” and the amount you repaid on the dotted line next to line 20. If, in 2014, you repaid unemployment compensation that you included in gross income in an earlier year, you can deduct the amount repaid on Schedule A (Form 1040NR), line 9. But if you repaid more than $3,000, see Repayments in Pub. 525 for details on how to report the repayment.

Line 21—Other income.   Use line 21 to report any other income effectively connected with your U.S. business that is not reported elsewhere on your return or other schedules. List the type and amount of income. If necessary, include a statement showing the required information. For more details, see Miscellaneous Income in Pub. 525.

  Examples of income to report on line 21 include the following.

Taxable distributions from a Coverdell education savings account (ESA) or a qualified tuition program (QTP).

Distributions from these accounts may be taxable if (a) they are more than the qualified higher education expenses of the designated beneficiary in 2014, and (b) they were not included in a qualified rollover. See chapters 7 and 8 in Pub. 970.

Nontaxable distributions from these accounts, including rollovers, do not have to be reported on Form 1040NR.

You may have to pay an additional tax if you received a taxable distribution from a Coverdell ESA or a QTP. See the Instructions for Form 5329.

Taxable distributions from a health savings account (HSA) or an Archer MSA.

Distributions from these accounts may be taxable if (a) they are more than the unreimbursed qualified medical expenses of the account beneficiary or account holder in 2014, and (b) they were not included in a qualified rollover. See Pub. 969.

You may have to pay an additional tax if you received a taxable distribution from an HSA or an Archer MSA. See the Instructions for Form 8889 for HSAs or the Instructions for Form 8853 for Archer MSAs.

Amounts deemed to be income from an HSA because you did not remain an eligible individual during the testing period.

See Form 8889, Part III.

Alternative trade adjustment assistance (ATAA) or reemployment trade adjustment assistance (RTAA) payments.

These payments should be shown in box 5 of Form 1099-G.

Recapture of a charitable contribution deduction relating to the contribution of a fractional interest in tangible personal property.

See Fractional Interest in Tangible Personal Property in Pub. 526, Charitable Contributions. Interest and an additional 10% tax apply to the amount of the recapture. See the instructions for line 60, later.

Recapture of a charitable contribution deduction if the charitable organization disposes of the donated property within 3 years of the contribution.

See Recapture if no exempt use in Pub. 526.

Canceled debts.

These amounts may be shown in box 2 of Form 1099-C or Form 1042-S. However, part or all of your income from the cancellation of debt may be nontaxable. See Pub. 4681 or go to IRS.gov and enter “canceled debt” or “foreclosure” in the search box.

Taxable part of disaster relief payments.

See Miscellaneous Income in Pub. 525 to figure the taxable part, if any. If any of your disaster relief payment is taxable, attach a statement showing the total payment received and how you figured the taxable part.

Income that is not effectively connected.

Report other income on Schedule NEC if it is not effectively connected with a U.S. trade or business.

Net operating loss (NOL) deduction.

Include on line 21 any NOL deduction from an earlier year. Subtract it from any income on line 21 and enter the result. If the result is less than zero, enter it in parentheses. On the dotted line next to line 21, enter “NOL” and show the amount of the deduction in parentheses. See Pub. 536 for details.

Medicaid waiver payments to care provider.

Certain Medicaid waiver payments you received for caring for someone living in your home with you may be nontaxable. If these payments were incorrectly reported to you in box 1 of Form(s) W-2, and you cannot get a corrected Form W-2, include the amount on line 8. On line 21, subtract the nontaxable amount of the payments from any income on line 21 and enter the result. If the result is less than zero, enter it in parentheses. Enter “Notice 2014-7” and the nontaxable amount on the dotted line next to line 21. For more information about these payments, see Pub. 525.

Line 22—Treaty-exempt income.   Report on line 22 the total of all your income that is exempt from tax by an income tax treaty, including both effectively connected income and not effectively connected income. Do not include this exempt income on line 23. You must complete item L of Schedule OI on page 5 of Form 1040NR to report income that is exempt from U.S. tax.

Adjusted Gross Income

Line 24—Educator expenses.   If you were an eligible educator in 2014, you can deduct on line 24 up to $250 of qualified expenses you paid in 2014. You may be able to deduct expenses that are more than the $250 limit on Schedule A (Form 1040NR), line 7. An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year.

  Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. An ordinary expense is one that is common and accepted in your educational field. A necessary expense is one that is helpful and appropriate for your profession as an educator. An expense does not have to be required to be considered necessary.

  Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education.

  You must reduce your qualified expenses by the following amounts.
  • Excludable U.S. series EE and I savings bond interest from Form 8815.

  • Nontaxable qualified tuition program earnings or distributions.

  • Any nontaxable distribution of Coverdell education savings account earnings.

  • Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2.

  For more details, see Deductions Subject to the 2% Limit in Pub. 529.

Line 25—Health savings account (HSA) deduction.   You may be able to take this deduction if contributions (other than employer contributions, rollovers, and qualified HSA funding distributions from an IRA) were made to your HSA for 2014. See Form 8889.

Line 26—Moving expenses.   Employees and self-employed persons (including partners) can deduct certain moving expenses. The move must be in connection with employment that generates effectively connected income.

  If you moved in connection with your job or business or started a new job, you may be able to take this deduction. But your new workplace must be at least 50 miles farther from your old home than your old home was from your old workplace. If you had no former workplace, your new workplace must be at least 50 miles from your old home. The deduction generally is limited to moves to or within the United States or its possessions. If you meet these requirements, see Pub. 521. Use Form 3903 to figure the amount to enter on this line.

Line 27—Deductible part of self-employment tax.   If you were self-employed and owe self-employment tax, fill in Schedule SE (Form 1040) to figure the amount of your deduction. If you completed Section A of Schedule SE, the deductible part of your self-employment tax is on line 6. If you completed Section B of Schedule SE, it is on line 13.

Line 28—Self-employed SEP, SIMPLE, and qualified plans.   If you were self-employed or a partner, you may be able to take this deduction. See Pub. 560, Retirement Plans for Small Business; or, if you were a minister, Pub. 517, Social Security and Other Information for Members of the Clergy and Religious Workers.

Line 29—Self-employed health insurance deduction.   You may be able to deduct the amount you paid for health insurance for yourself, your spouse, and your dependents. The insurance also can cover your child who was under age 27 at the end of 2014, even if the child was not your dependent. A child includes your son, daughter, stepchild, adopted child, or foster child (defined in the line 7c instructions).

  One of the following statements must be true.
  • You were self-employed and had a net profit for the year reported on Schedule C, C-EZ, or F.

  • You were a partner with net earnings from self-employment.

  • You used one of the optional methods to figure your net earnings from self-employment on Schedule SE (Form 1040).

  The insurance plan must be established under your business. Your personal services must have been a material income-producing factor in the business. If you are filing Schedule C, C-EZ, or F (Form 1040), the policy can be either in your name or in the name of the business.

  If you are a partner, the policy can be either in your name or in the name of the partnership. Either you can pay the premiums yourself or your partnership can pay them and report them as guaranteed payments. If the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premiums as guaranteed payments.

  But if you were also eligible to participate in any subsidized health plan maintained by your or your spouse's employer for any month or part of a month in 2014, amounts paid for health insurance coverage for that month cannot be used to figure the deduction. Also, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2014, do not use amounts paid for coverage for that month to figure the deduction.

Example.

If you were eligible to participate in a subsidized health plan maintained by your spouse's employer from September 30 through December 31, you cannot use amounts paid for health insurance coverage for September through December to figure your deduction.

  If you qualify to take the deduction, use the Self-Employed Health Insurance Deduction Worksheet to figure the amount you can deduct.

Exceptions.

Use Worksheet 6-A in chapter 6 of Pub. 535 instead of the Self-Employed Health Insurance Deduction Worksheet in these instructions to figure your deduction if either of the following applies.

  • You had more than one source of income subject to self-employment tax.

  • You are using amounts paid for qualified long-term care insurance to figure the deduction.

Use Pub. 974 instead of the worksheet in these instructions if the insurance plan established, or considered to be established, under your business was obtained through the Health Insurance Marketplace and you are claiming the premium tax credit.

Self-Employed Health Insurance Deduction Worksheet—Line 29

Before you begin:

  • Be sure you have read the Exception in the instructions for this line to see if you can use this worksheet instead of Pub. 535, Business Expenses, to figure your deduction.

1. Enter the total amount paid in 2014 for health insurance coverage established under your business for 2014 for you, your spouse, and your dependents. Your insurance can also cover your child who was under age 27 at the end of 2014, even if the child was not your dependent. But do not include amounts for any month you were eligible to participate in an employer-sponsored health plan (explained in the instructions for this line) 1.  
2. Enter your net profit* and any other earned income** from the business under which the insurance plan is established, minus any deductions on Form 1040NR, lines 27 and 28. Do not include Conservation Reserve Program payments exempt from self-employment tax 2.  
3. Self-employed health insurance deduction. Enter the smaller of line 1 or line 2 here and on Form 1040NR, line 29 3.  
 
*If you used either optional method to figure your net earnings from self-employment, do not enter your net profit. Instead, enter the amount from Schedule SE (Form 1040), Section B, line 4b.
**Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. However, it does not include capital gain income.
Line 30—Penalty on early withdrawal of savings.   The Form 1099-INT or Form 1099-OID you received will show the amount of any penalty you were charged.

Line 31—Scholarship and fellowship grants excluded.   If you received a scholarship or fellowship grant and were a degree candidate, enter amounts used for tuition and course-related expenses (fees, books, supplies, and equipment), but only to the extent the amounts are included on line 12. See the examples in the instructions forline 12.

Line 32—IRA deduction.   If you made contributions to a traditional individual retirement arrangement (IRA) for 2014, you may be able to take an IRA deduction. But you must have had earned income to do so. If you were self-employed, earned income is generally your net earnings from self-employment if your personal services were a material income-producing factor. See How Much Can You Deduct? in chapter 1 of Pub. 590-A for more details.

  A statement should be sent to you by June 1, 2015, that shows all contributions to your traditional IRA for 2014.

  
If you made any nondeductible contributions to a traditional IRA for 2014, you must report them on Form 8606.

  Use the IRA Deduction Worksheet to figure the amount, if any, of your IRA deduction. But read the following 9-item list before you fill in the worksheet.
  1. If you were age 70½ or older at the end of 2014, you cannot deduct any contributions made to your traditional IRA for 2014 or treat them as nondeductible contributions.

  2. You cannot deduct contributions to a Roth IRA. But you may be able to take the retirement savings contributions credit (saver's credit). See the instructions for line 48.

  3. You cannot deduct elective deferrals to a 401(k) plan, 403(b) plan, section 457 plan, SIMPLE plan, or the federal Thrift Savings Plan. These amounts are not included as income in box 1 of your Form W-2. But you may be able to take the retirement savings contributions credit. See the instructions for line 48.

  4. If you made contributions to your IRA in 2014 that you deducted for 2013, do not include them in the worksheet.

  5. If you received income from a nonqualified deferred compensation plan or nongovernmental section 457 plan that is included in box 1 of your Form W-2, or in box 7 of Form 1099-MISC, do not include that income on line 8 of the worksheet. The income should be shown in (a) box 11 of your Form W-2, (b) box 12 of your Form W-2 with code Z, or (c) box 15b of Form 1099-MISC. If it is not, contact your employer or the payer for the amount of the income.

  6. You cannot deduct contributions to your spouse's IRA.

  7. Do not include qualified rollover contributions in figuring your deduction. Instead, see the instructions for lines 16a and 16b.

  8. Do not include trustees' fees that were billed separately and paid by you for your IRA. These fees can be deducted only as an itemized deduction on Schedule A.

  9. If the total of your IRA deduction on line 32 plus any nondeductible contribution to your traditional IRAs shown on Form 8606 is less than your total traditional IRA contributions for 2014, see How Much Can Be Contributed? in chapter 1 of Pub. 590-A for special rules.

  
By April 1 of the year after the year in which you turn  
age 70½, you must start taking minimum required distributions from your traditional IRA. If you do not, you may have to pay a 50% additional tax on the amount that should have been distributed. For details, including how to figure the minimum required distribution, seeWhen Must You Withdraw Assets? in chapter 1 of Pub. 590-B.

Were you covered by a retirement plan?

If you were covered by a retirement plan (qualified pension, profit-sharing (including 401(k)), annuity, SEP, SIMPLE, etc.) at work or through self-employment, your IRA deduction may be reduced or eliminated. But you still can make contributions to an IRA even if you cannot deduct them. In any case, the income earned on your IRA contributions is not taxed until it is paid to you.

The “Retirement plan” box in box 13 of Form W-2 should be checked if you were covered by a plan at work even if you were not vested in the plan. You also are covered by a plan if you were self-employed and had a SEP, SIMPLE, or qualified retirement plan.

If you were covered by a retirement plan and you file Form 8815 or you exclude employer-provided adoption benefits, see How Much Can You Deduct? in chapter 1 of Pub. 590-A to figure the amount, if any, of your IRA deduction.

Special rule for married individuals.

If you checked filing status box 3, 4, or 5, and you were not covered by a retirement plan but your spouse was, you are considered covered by a plan unless you lived apart from your spouse for all of 2014.

See chapter 1 of Pub. 590-A for more details.

You may be able to take the retirement savings contributions credit. See the line 48 instructions.

IRA Deduction Worksheet—Line 32

Before you begin:

  • Be sure you have read the 9-item list in the instructions for this line. You may not be able to use this worksheet.

  • Figure any write-in adjustments to be entered on the dotted line next to line 35 (see the instructions for line 35, later). 

  • If you checked filing status box 3, 4, or 5, and you lived apart from your spouse for all of 2014, enter “D” on the dotted line next to Form 1040NR, line 32. If you do not, you may get a math error notice from the IRS.

If you were age 70½ or older at the end of 2014, you cannot deduct any contributions made to your traditional IRA or treat them as nondeductible contributions. Do not complete this worksheet for anyone age 70½ or older at the end of 2014. 
1.   Were you covered by a retirement plan (see Were you covered by a retirement plan) ?
Yes
No
   
  Next. If you checked “No” on line 1, skip lines 2 through 6, enter the applicable amount below on line 7, and go to line 8.
  • $5,500, if under age 50 at the end of 2014.

  • $6,500, if age 50 or older but under age 70½ at the end of 2014.

Otherwise, go to line 2.
           
     
2.   Enter the amount shown below that applies to you.            
 
  • Single or you checked filing status box 3, 4, or 5 and you lived apart 
    from your spouse for all of 2014, enter $70,000

  • Qualifying widow(er), enter $116,000

  2.        
 
  • You checked filing status box 3, 4, or 5 and you lived with your spouse at 
    any time in 2014, enter $10,000

         
     
3.   Enter the amount from Form 1040NR, line 23 3.            
     
4.   Enter the total of the amounts from Form 1040NR, lines 24 through 31, plus any write-in adjustments you entered on the dotted line next to line 35 4.            
     
5.   Subtract line 4 from line 3. 5.        
     
6.   Is the amount on line 5 less than the amount on line 2?          
 
No.
None of your IRA contributions are deductible. For details on nondeductible IRA contributions, see Form 8606.          
 
Yes.
Subtract line 5 from line 2. Follow the instruction below that applies to you.          
      • If single, or you checked filing status box 3, 4, or 5, and the result is $10,000 or more, enter the applicable amount below on line 7 and go to line 8. 
i. $5,500, if under age 50 at the end of 2014. 
ii. $6,500, if age 50 or older but under age 70½ at the end of 2014.
           
       
If the result is less than $10,000, go to line 7.
  6.        
       
• If qualifying widow(er), and the result is $20,000 or more, enter the applicable amount below on line 7 and go to line 8. 
i. $5,500, if under age 50 at the end of 2014. 
ii. $6,500 if age 50 or older but under age 70½ at the end of 2014.
           
       
If the result is less than $10,000, go to line 7.
           
 

IRA Deduction Worksheet—Line 32 Continued from the previous page

           
7.   Multiply line 6 by the percentage below that applies to you. If the result is not a multiple of $10, increase it to the next multiple of $10 (for example, increase $490.30 to $500). If the result is $200 or more, enter the result. But if it is less than $200, enter $200.            
    • Single or you checked filing status box 3, 4, or 5, multiply by 55% (.55) (or by 65% (.65) if you are age 50 or older at the end of 2014)            
    • Qualifying widow(er), multiply by 27.5% (.275) (or by 32.5% (.325) if you are age 50 or older at the end of 2014). But if you checked "No" on line 1, then multiply by 55% (.55) (or by 65% (.65) if age 50 or older at the end of 2014)    
7.
       
     
8.   Enter the total of your wages, salaries, tips, etc. Generally, this is the amount reported in box 1 of Form W-2. Exceptions are explained earlier in these instructions for line 32. 8.              
       
9.   Enter the earned income you received as a self-employed individual or a partner. Generally, this is your net earnings from self-employment if your personal services were a material income-producing factor, minus any deductions on Form 1040NR, lines 27 and 28. If zero or less, enter -0-. For more details, see Pub. 590-A 9.              
     
10.   Add lines 8 and 9 10.              
     
11.   Enter traditional IRA contributions made, or that will be made by April 15, 2015, for 2014 to your IRA 11.        
     
12.   Enter the smallest of line 7, 10, or 11. This is the most you can deduct. Enter this amount on Form 1040NR, line 32. Or, if you want, you can deduct a smaller amount and treat the rest as a nondeductible contribution (see Form 8606) 12.        
             
Line 33—Student loan interest deduction.   You can take this deduction only if all of the following apply.
  • You paid interest in 2014 on a qualified student loan (explained later).

  • You checked filing status box 1, 2, or 6.

  • Your modified AGI is less than $80,000. Use lines 2 through 4 of the Student Loan Interest Deduction Worksheet—Line 33 to figure your modified AGI.

  • You are not claimed as a dependent on someone else's (such as your parent's) 2014 tax return.

  Use the Student Loan Interest Deduction Worksheet—Line 33 to figure your student loan interest deduction.

Qualified student loan.

A qualified student loan is any loan you took out to pay the qualified higher education expenses for any of the following individuals who was an eligible student.

  1. Yourself or your spouse.

  2. Any person who was your dependent when the loan was taken out.

  3. Any person you could have claimed as a dependent for the year the loan was taken out except that:

    1. The person filed a joint return,

    2. The person had gross income that was equal to or more than the exemption amount for that year ($3,950 for 2014), or

    3. You could be claimed as a dependent on someone else's return.

However, a loan is not a qualified student loan if (a) any of the proceeds were used for other purposes, or (b) the loan was from either a related person or a person who borrowed the proceeds under a qualified employer plan or a contract purchased under such a plan.

Qualified higher education expenses. Qualified higher education expenses generally include tuition, fees, room and board, and related expenses such as books and supplies. The expenses must be for education in a degree, certificate, or similar program at an eligible educational institution. An eligible educational institution includes most colleges, universities, and certain vocational schools.

For more details about this deduction, see chapter 4 of Pub. 970.

Student Loan Interest Deduction Worksheet—Line 33

Before you begin:

  • Figure any write-in adjustments to be entered on the dotted line next to line 35 (see the instructions for line 35).

1. Enter the total interest you paid in 2014 on qualified student loans (see Qualified student loan). Do not enter more than $2,500 1.  
2. Enter the amount from Form 1040NR, line 23 2.    
3. Enter the total of the amounts from Form 1040NR, lines 24 through 32, plus any write-in adjustments you entered on the dotted line next to line 35 3.      
4. Subtract line 3 from line 2 4.      
5. Is line 4 more than $65,000?      
  No. Skip lines 5 and 6, enter -0- on line 7, and go to line 8.        
  Yes. Subtract $65,000 from line 4 5.      
6. Divide line 5 by $15,000. Enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000 6. .
7. Multiply line 1 by line 6 7.
8. Student loan interest deduction. Subtract line 7 from line 1. Enter the result here and on Form 1040NR, line 33. Do not include this amount in figuring any other deduction on your return (such as on Schedule A (Form 1040NR), Schedule C (Form 1040), Schedule E (Form 1040), etc.) 8.  
Line 34—Domestic production activities deduction.   You may be able to deduct up to 9% of your qualified production activities income from the following activities.
  1. Construction of real property performed in the United States.

  2. Engineering or architectural services performed in the United States for construction of real property in the United States.

  3. Any lease, rental, license, sale, exchange, or other disposition of:

    1. Tangible personal property, computer software, and sound recordings that you manufactured, produced, grew, or extracted in whole or in significant part in the United States;

    2. Any qualified film you produced; or

    3. Electricity, natural gas, or potable water you produced in the United States.

  Your deduction may be reduced if you had oil-related qualified production activities income.

  The deduction does not apply to income derived from:
  • The sale of food and beverages you prepared at a retail establishment;

  • Property you leased, licensed, or rented for use by any related person;

  • The transmission or distribution of electricity, natural gas, or potable water; or

  • The lease, rental, license, sale, exchange, or other disposition of land.

  For details, see Form 8903 and its instructions.

Line 35.   Include in the total on line 35 any of the following write-in adjustments that are related to your effectively connected income. To find out if you can take the deduction, see the form or publication indicated. On the dotted line next to line 35, enter the amount of your deduction and identify it as indicated.
  • Archer MSA deduction (see Form 8853). Identify as “MSA.

  • Performing-arts-related expenses (see Form 2106 or 2106-EZ). Identify as “QPA.

  • Reforestation amortization and expenses (see Pub. 535). Identify as “RFST.

  • Repayment of supplemental unemployment benefits under the Trade Act of 1974 (see Pub. 525). Identify as “Sub-Pay TRA.

  • Contributions to section 501(c)(18)(D) pension plans (see Pub. 525). Identify as “501(c)(18)(D).

  • Contributions by certain chaplains to section 403(b) plans (see Pub. 517). Identify as “403(b).

  • Attorney fees and court costs for actions involving certain unlawful discrimination claims, but only to the extent of effectively connected gross income from such actions (see Pub. 525). Identify as “UDC.

  • Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations, up to the amount of the award includible in your gross income. Identify as “WBF.

Line 36—Adjusted gross income.   If line 36 is less than zero, you may have a net operating loss that you can carry to another tax year. See Form 1045 and its instructions for details.

Tax Computation on Income Effectively Connected With a U.S. Trade or Business

Line 38—Itemized deductions.   Enter the total itemized deductions from line 15 of Schedule A on page 3 of the form. However, your deduction may be limited if your adjusted gross income is above a certain amount depending on your filing status. See the instructions for Schedule A, line 15, for more details.

  
Residents of India who were students or business apprentices may be able to take the standard deduction instead of their itemized deductions. See chapter 5 of Pub. 519 for details.

Line 40—Deduction for exemptions.    You can claim exemptions only to the extent of your income that is effectively connected with a U.S. trade or business.

Individuals.

Multiply $3,950 by the total number of exemptions entered on line 7d. But use the Deduction for Exemptions Worksheet—Line 40 to figure the amount, if any, to enter on line 40 if your AGI from line 37 is more than:

  • $305,050 if you checked box 6 on page 1 of Form 1040NR,

  • $254,200 if you checked box 1 or 2 on page 1 of Form 1040NR, or

  • $152,525 if you checked box 3, 4, or 5 on page 1 of Form 1040NR.

If you were a resident of South Korea, you must figure the exemptions for your spouse and children according to the proportion your U.S. effectively connected income bears to your total income. See chapter 5 of Pub. 519 for more details.

Estates.

Enter $600 on line 40.

Trusts.

If you are filing for a trust whose governing instrument requires it to distribute all of its income currently, enter $300 on line 40.

If you are filing for a qualified disability trust (defined in section 642(b)(2)(C)(ii)), enter $3,950 on line 40. However, if the trust's modified AGI is more than $254,200, then fill out the Deduction for Exemptions Worksheet—Line 40 to determine the amount to enter on this line. You figure the trust's modified AGI by applying section 67(e) without regard to section 642(b). See How to figure AGI for estates and trusts in the Instructions for Form 1041, line 15c. When those line instructions refer to the trust's exemption, use zero.

If you are filing for any other trust, enter $100 on line 40.

Deduction for Exemptions Worksheet—Line 40

See the instructions for line 40, earlier.

Caution:

If you are filing for a qualified disability trust (see Trusts, earlier), use this worksheet only if the trust's modified AGI* is more than $254,200. Also, skip line 1, enter $3,950 on line 2, enter the trust's modified AGI on line 3, and enter $254,200 on line 4.

1. Is the amount on Form 1040NR, line 37, more than the amount shown on line 4 below for your filing status?  
No.
Multiply $3,950 by the total number of exemptions claimed on Form 1040NR, line 7d, and enter the result on Form 1040NR, line 40.  
Yes. Go to line 2.
2. Multiply $3,950 by the total number of exemptions claimed on Form 1040NR, line 7d 2.  
3. Enter the amount from Form 1040NR, line 37 3.      
4. Enter the amount shown below for the filing status box you checked on page 1 of Form 1040NR:
  • Box 1 or 2, enter $254,200

  • Box 3, 4, or 5, enter $152,525

  • Box 6, enter $305,050

4.      
5. Subtract line 4 from line 3. If the result is more than $122,500 ($61,250 if you checked filing status box 3, 4, or 5),
. You cannot take a deduction for exemptions.
5.      
6. Divide line 5 by $2,500 ($1,250 if you checked filing status box 3, 4, or 5). If the result is not a whole number, increase it to the next higher whole number (for example, increase 0.0004 to 1) 6.      
7. Multiply line 6 by 2% (.02) and enter the result as a decimal 7.  
8. Multiply line 2 by line 7 8.  
9. Deduction for exemptions. Subtract line 8 from line 2. Enter the result here and on Form 1040NR, line 40. 9.  
*Figure the trust's modified AGI by applying section 67(e) without regard to section 642(b).
Line 42—Tax.   Include in the total on line 42 all of the following taxes that apply. 
  • Tax on your taxable income. Figure the tax using one of the methods described here.

  • Tax from Form 8814 (relating to the election to report child's interest or dividends). Check the appropriate box.

  • Tax from Form 4972 (relating to lump-sum distributions). Check the appropriate box.

Tax Table or Tax Computation Worksheet.   If you are filing for an estate or trust, use the Tax Rate Schedules, later.

Individuals.   If your taxable income (line 41) is less than $100,000, you must use the Tax Table, later in the instructions, to figure your tax. Be sure you use the correct column. If you checked filing status box 3, 4, or 5, you must use the Married filing separately column. If your taxable income is $100,000 or more, use the Tax Computation Worksheet after the Tax Table.

  However, do not use the Tax Table, Tax Computation Worksheet, or Tax Rate Schedules to figure your tax if any of the following applies.
  • You are required to figure your tax using Form 8615, the Schedule D Tax Worksheet, or the Qualified Dividends and Capital Gain Tax Worksheet.

  • You use Schedule J (Form 1040) (for farming or fishing income) to figure your tax.

Form 8615.   You generally must use Form 8615 to figure the tax for any child who had more than $2,000 of unearned income, such as taxable interest, ordinary dividends, or capital gains (including capital gain distributions), that is effectively connected with a U.S. trade or business, and who:
  1. Was under age 18 at the end of 2014,

  2. Was age 18 at the end of 2014 and did not have earned income that was more than half of the child's support, or

  3. Was a full-time student at least age 19 but under age 24 at the end of 2014 and did not have earned income that was more than half of the child's support.

But if the child files a joint return for 2014 or if neither of the child's parents was alive at the end of 2014, do not use Form 8615 to figure the child's tax.

  A child born on January 1, 1997, is considered to be age 18 at the end of 2014; a child born on January 1, 1996, is considered to be age 19 at the end of 2014; a child born on January 1, 1991, is considered to be age 24 at the end of 2014.

Schedule D Tax Worksheet.    If you have to file Schedule D (Form 1040), and line 18 or 19 of Schedule D is more than zero, use the Schedule D Tax Worksheet in the Instructions for Schedule D to figure the amount to enter on Form 1040NR, line 42.

Qualified Dividends and Capital Gain Tax Worksheet.   Use the Qualified Dividends and Capital Gain Tax Worksheet, later, to figure your tax if any of the following applies.
  • You reported qualified dividends on Form 1040NR, line 10b.

  • You do not have to file Schedule D (Form 1040) and you reported capital gain distributions on Form 1040NR, line 14.

  • You are filing Schedule D (Form 1040) and Schedule D, lines 15 and 16, are both more than zero.

Qualified Dividends and Capital Gain Tax Worksheet—Line 42

Before you begin:

  • See the instructions for Qualified Dividends and Capital Gain Tax Worksheet under the instructions for line 42 to see if you can use this worksheet to figure your tax.

  • Before completing this worksheet, complete Form 1040NR through line 41.

  • If you do not have to file Schedule D (Form 1040) and you received capital gain distributions, be sure you checked the box on line 14 of Form 1040NR.

1. Enter the amount from Form 1040NR, line 41 1.      
2. Enter the amount from Form 1040NR, line 10b 2.          
3. Are you filing Schedule D (Form 1040)?                
  Yes. Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0-. 3.          
  No. Enter the amount from Form 1040NR, line 14.        
4. Add lines 2 and 3 4.          
5. Subtract line 4 from line 1. If zero or less, enter -0- 5.      
6. If you checked the filing status: 
  • Box 1, 2, 3, 4, or 5, enter $36,900

  • Box 6, enter $73,800

 
6.
     
7. Enter the smaller of line 1 or line 6 7.      
8. Enter the smaller of line 5 or line 7 8.      
9. Subtract line 8 from line 7. This amount is taxed at 0% 9.  
10. Enter the smaller of line 1 or line 4 10.      
11. Enter the amount from line 9 11.      
12. Subtract line 11 from line 10 12.      
13. If you checked the filing status: 
  • Box 1 or 2, enter $406,750

  • Box 3, 4, or 5, enter $228,800

  • Box 6, enter $457,600

13.      
14. Enter the smaller of line 1 or line 13 14.      
15. Add lines 5 and 9 15.      
16. Subtract line 15 from line 14. If zero or less, enter -0- 16.      
17. Enter the smaller of line 12 or line 16 17.      
18. Multiply line 17 by 15% (.15) 18.  
19. Add lines 9 and 17 19.      
20. Subtract line 19 from line 10 20.      
21. Multiply line 20 by 20% (.20) 21.  
22. Figure the tax on the amount on line 5.
  • If the amount on line 5 is less than $100,000, use the Tax Table to figure the tax.

  • If the amount on line 5 is $100,000 or more, use the Tax Computation Worksheet*

22.      
23. Add lines 18, 21, and 22 23.  
24. Figure the tax on the amount on line 1.
  • If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax.

  • If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet*

24.  
25. Tax on all taxable income. Enter the smaller of line 23 or line 24. Also include this amount on Form 1040NR, line 42 25.  
*Estates and trusts must use the Tax Rate Schedules.
Schedule J (Form 1040).    If you had income from farming or fishing (including certain amounts received in connection with the Exxon Valdez litigation), your tax may be less if you choose to figure it using income averaging on Schedule J.

Line 43—Alternative minimum tax.   The tax law gives special treatment to some kinds of income and allows special deductions and credits for some kinds of expenses. If you benefit from these provisions, you may have to pay a minimum amount of tax through the alternative minimum tax. This tax is figured on Form 6251 for individuals. If you are filing for an estate or trust, see Schedule I (Form 1041) and its instructions to find out if you owe this tax.

  If you have any of the adjustments or preferences from the list in Adjustments and Preferences, later, or you are claiming a net operating loss deduction, a general business credit, or the foreign tax credit, you must complete Form 6251. Otherwise, to see if you should complete Form 6251, add the amount on line 39 of Form 1040NR to the amounts on lines 1 and 13 of Schedule A (Form 1040NR). If the total is more than the dollar amount shown below that applies to you, fill in Form 6251.  
  • $52,800 if you checked filing status box 1 or 2.

  • $41,050 if you checked filing status box 3, 4, or 5.

  • $82,100 if you checked filing status box 6.

Disposition of U.S. real property interests.   If you disposed of a U.S. real property interest at a gain, you must make a special computation to see if you owe this tax. For details, see Nonresident Aliens in the Instructions for Form 6251.

Adjustments and Preferences.   
  • Accelerated depreciation.

  • Stock received by exercising an incentive stock option and you did not dispose of the stock in the same year.

  • Tax-exempt interest from private activity bonds.

  • Intangible drilling, circulation, research, experimental, or mining costs.

  • Amortization of pollution-control facilities or depletion.

  • Income or (loss) from tax-shelter farm activities, passive activities, partnerships, or activities for which you are not at risk.

  • Income from long-term contracts not figured using the percentage-of- 
    completion method.

  • Net operating loss deduction.

  • Alternative minimum tax adjustments from an estate, trust, electing large partnership, or cooperative.

  • Section 1202 exclusion.

  • Any general business credit claimed on Form 3800 if either line 6 (in Part I) or line 25 of Form 3800 is more than zero.

  • Qualified electric vehicle credit.

  • Alternative fuel vehicle refueling property credit.

  • Credit for prior year minimum tax.

  
Form 6251 should be filled in for a child if Form 8615 must be used to figure the child's tax and the child's AGI on Form 1040NR, line 37, exceeds the child's earned income by more than $7,250. To find out when Form 8615 must be used, see Form 8615 in the instructions for line 42.

Line 44—Excess advance premium tax credit repayment.   The premium tax credit helps pay premiums for health insurance purchased from the Health Insurance Marketplace. If advance payments of this credit were made for coverage for you, your spouse, or your dependent, complete Form 8962. If the advance payments were more than the premium tax credit you can claim, enter the amount, if any, from Form 8962, line 29.

  If you enrolled someone who is not claimed as a dependent on your return or for more information, see the instructions for Form 8962.

Credits

Line 46—Foreign tax credit.   If you paid income tax to a foreign country or U.S. possession, you may be able to take this credit, but only if you:
  1. Report income from foreign sources (see Foreign Income Taxed by the United States, earlier), and

  2. Have paid or owe foreign tax on that income.

  Generally, you must complete and attach Form 1116 to take this credit.

Exception.

You do not have to complete Form 1116 to take this credit if all of the following apply.

  1. Form 1040NR is being filed for a nonresident alien individual and not an estate or trust.

  2. The total of your foreign taxes was not more than $300.

  3. All of your foreign source gross income was from the passive category (which includes most interest and dividend income).

  4. All the income and any foreign taxes paid on it were reported to you on qualified payee statements, such as Form 1099-INT, Form 1099-DIV, or similar substitute statements.

  5. You held the stock or bonds on which the dividends or interest were paid for at least 16 days and were not obligated to pay these amounts to someone else.

  6. All of your foreign taxes were:

    1. Legally owed and not eligible for a refund or reduced tax rate under a tax treaty, and

    2. Paid to countries that are recognized by the United States and do not support terrorism.

Note.

If you need more information about these requirements, see the Instructions for Form 1116.

  If you meet all six requirements, enter on line 46 the smaller of (a) your total foreign tax or (b) the total of the amounts on Form 1040NR, lines 42 and 44.

   If you do not meet all six requirements, see Form 1116 to find out if you can take the credit. For additional information, see Pub. 514, Foreign Tax Credit.

Line 47—Credit for child and dependent care expenses.   You may be able to take this credit if you paid someone to care for:
  • Your qualifying child under age 13,

  • Your disabled spouse or any other disabled person who could not care for himself or herself, or

  • Your child whom you could not claim as a dependent because of the rules for Children who did not live with you due to divorce or separation in the instructions for line 7c.

For details, see Form 2441.

Line 48—Retirement savings contributions credit (saver's credit).   You may be able to take this credit if you made (a) contributions, other than rollover contributions, to a traditional or Roth IRA; (b) elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental 457, SEP, or SIMPLE plan; (c) voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan); or (d) contributions to a 501(c)(18)(D) plan.

  However, you cannot take the credit if either of the following applies.
  • The amount on Form 1040NR, line 37, is more than $30,000.

  • You:

    1. Were born after January 1, 1997,

    2. Are claimed as a dependent on someone else's 2014 tax return, or

    3. Were a student (defined next).

  

  You were a student if during any part of 5 calendar months of 2014 you: 
  • Were enrolled as a full-time student at a school, or

  • Took a full-time, on-farm training course given by a school or a state, county, or local government agency.

  A school includes a technical, trade, or mechanical school. It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. For more details, see Form 8880.

Line 49—Child tax credit.   This credit is for people who have a qualifying child as defined in the instructions for line 7c, column (4). It is in addition to the credit for child and dependent care expenses on Form 1040NR, line 47. Complete the 2014 Child Tax Credit Worksheet—Line 49 to determine if you can take the child tax credit.

  If you can take the child tax credit, attach Schedule 8812 if required. See Schedule 8812 and its instructions for more information.

  

2014 Child Tax Credit Worksheet—Line 49

 
  1. To be a qualifying child for the child tax credit, the child must be your dependent, be under age 17 at the end of 2014, and meet all the conditions in the instructions for line 7c, column (4). Make sure you check the box on Form 1040NR, line 7c, column (4), for each qualifying child.

  2. If you do not have a qualifying child, you cannot claim the child tax credit.

  3. If your qualifying child has an ITIN instead of an SSN, file Schedule 8812 .

  4. Do not use this worksheet, but use Pub. 972 instead if you are claiming the adoption credit, mortgage interest credit, a carryforward of the District of Columbia first-time homebuyer credit, or residential energy efficient property credit.

 
                     
PART 1 1.  
Number of qualifying children: X $1,000. 
Enter the result.
   
 
1
   
                   
  2.  
Enter the amount from Form 1040NR, line 37.
   
2
     
                 
  3. Enter the amount shown below for the filing status box you checked on page 1 of Form 1040NR.                
     
•Box 1, 2, or 6—$75,000 
•Box 3, 4, or 5—$55,000
  3      
                 
  4. Is the amount on line 2 more than the amount on line 3?      
   
No. Leave line 4 blank. Enter -0- on line 5, and go to line 6.
             
   
Yes. Subtract line 3 from line 2. 
If the result is not a multiple of $1,000, increase it to the next multiple of $1,000. For example, increase $425 to $1,000, increase $1,025 to $2,000, etc.
           
         
 
4
     
                   
  5.  
Multiply the amount on line 4 by 5% (.05). Enter the result.
 
 
5
   
                 
  6. Is the amount on line 1 more than the amount on line 5?        
   
No.
You cannot take the child tax credit on Form 1040NR, line 49. You also cannot take the additional child tax credit on Form 1040NR, line 64. Complete the rest of your Form 1040NR.
             
   
Yes. Subtract line 5 from line 1. Enter the result. 
           
 
6
   
     
 
Go to Part 2 on the next page.
             

Child Tax Credit Worksheet—Continued from Part I of the Worksheet

Before you begin Part 2:Figure the amount of any credits you are claiming on Form 5695, Part II; Form 8910; or Form 8936.
 
                 
PART 2 7. Enter the amount from Form 1040NR, line 45.    
 
7
   
               
  8. Add any amounts from:          
    Form 1040NR, line 46    ____________        
    Form 1040NR, line 47   + ____________        
    Form 1040NR, line 48   + ____________        
    Form 5695, line 30   + ____________        
    Form 8910, line 15   + ____________        
    Form 8936, line 23   + ____________  
 
       
    Enter the total.  
 
8
         
  9. Are the amounts on lines 7 and 8 the same?        
   
Yes.
You cannot take this credit because there is no tax to reduce. However, you may be able to take the additional child tax credit. See the TIP below.
       
   
No. Subtract line 8 from line 7.
   
9
   
             
  10. Is the amount on line 6 more than the amount on line 9? 
       
   
Yes. Enter the amount from line 9. Also, you may be able to take the additional child tax credit. See the TIP below.  
 
 
No. Enter the amount from line 6.
           
 
This is your child tax credit.
   
10
 
        Enter this amount on Form 1040NR, line 49.
               
   
You may be able to take the additional child tax credit on Form 1040NR, line 64, if you answered “Yes” on line 9 or line 10 above.
     
   
  • First, complete your Form 1040NR through line 63. 

  • Then, use Schedule 8812 to figure any additional child tax credit.

 
     

Line 50—Residential energy credits.   Enter the total of any residential energy efficient property credit and nonbusiness energy property credit on line 50.

Residential energy efficient property credit.

You may be able to take this credit by completing and attaching Form 5695 if you paid for any of the following during 2014.

  • Qualified solar electric property for use in your home located in the United States.

  • Qualified solar water heating property for use in your home located in the United States.

  • Qualified fuel cell property installed on or in connection with your main home located in the United States.

  • Qualified small wind energy property for use in connection with your home located in the United States.

  • Qualified geothermal heat pump property installed on or in connection with your home located in the United States.

Also complete Form 5695 if you only have a credit carryforward from 2013.

Nonbusiness energy property credit.

You may be able to take this credit by completing and attaching Form 5695 for any of the following improvements to your main home located in the United States in 2014 if they are new and meet certain requirements for energy efficiency.

  • Any insulation material or system primarily designed to reduce heat gain or loss in your home.

  • Exterior windows (including skylights).

  • Exterior doors.

  • A metal roof or asphalt roof with pigmented coatings or cooling granules primarily designed to reduce the heat gain in your home.

You also may be able to take this credit for the cost of the following items if the items meet certain performance and quality standards.

  • Certain electric heat pump water heaters, electric heat pumps, central air conditioners, and natural gas, propane, or oil water heaters.

  • A qualified furnace or hot water boiler that uses natural gas, propane, or oil.

  • A stove that burns biomass fuel to heat your home or to heat water for use in your home.

  • An advanced main air circulating fan used in a natural gas, propane, or oil furnace.

Condos and co-ops.

If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of such association or corporation for purposes of these credits.

More details.

For details, see Form 5695.

Line 51—Other credits.   Enter the total of the following credits on line 51 and check the appropriate box(es). Check all boxes that apply. If box c is checked, also enter the applicable form number. To find out if you can take the credit, see the form or publication indicated.  
  • General business credit. This credit consists of a number of credits that usually apply only to individuals who are partners or self-employed or have rental property. See Form 3800 or Pub. 334.

  • Credit for prior year minimum tax. If you paid alternative minimum tax in a prior year, see Form 8801.

  • Mortgage interest credit. If a state or local government gave you a mortgage credit certificate, see Form 8396.

  • Adoption credit. You may be able to take this credit if you paid expenses to adopt a child or you adopted a child with special needs and the adoption became final in 2014. See the Instructions for Form 8839.

  • District of Columbia first-time homebuyer credit. See Form 8859. You cannot claim this credit for a home you bought after 2011. You can only claim the credit if you have a credit carryforward from 2013.

  • Qualified plug-in electric drive motor vehicle credit. See Form 8936.

  • Qualified electric vehicle credit. You cannot claim this credit for a vehicle placed in service after 2006. You can claim this credit only if you have an electric vehicle passive activity credit carried forward from a prior year. See Form 8834.

  • Alternative motor vehicle credit. See Form 8910 if you placed a new fuel cell motor vehicle in service during 2014.

  • Alternative fuel vehicle refueling property credit. See Form 8911.

  • Credit to holders of tax credit bonds. See Form 8912.

Other Taxes

Line 55—Self-employment tax.   Enter the amount of any taxes from Schedule SE (Form 1040), Section A, line 5, or Section B, line 12. See the Instructions for Schedule SE (Form 1040) for more information.

  If you are a self-employed nonresident alien, you must pay self-employment tax only if an international social security agreement (often called a totalization agreement) in effect determines that you are covered under the U.S. social security system. See the Instructions for Schedule SE (Form 1040) for information about international social security agreements. Information about totalization agreements is available at IRS.gov. Enter “totalization agreement”  
in the search box. You also can  
find information at 
www.socialsecurity.gov/international under “International Agreements.

  

  
If you are not required to pay self-employment tax but do so anyway, you will not be eligible to receive social security benefits.

Line 56—Unreported social security and Medicare tax from Forms 4137 and 8919.    Enter the total of any taxes from Form 4137 and Form 8919. Check the appropriate box(es).

Form 4137.

If you received tips of $20 or more in any month and you did not report the full amount to your employer, you must pay the social security and Medicare or railroad retirement (RRTA) tax on the unreported tips.

Do not include the value of any noncash tips, such as tickets or passes. You do not pay social security and Medicare taxes or RRTA tax on these noncash tips.

To figure the social security and Medicare tax, use Form 4137. If you owe RRTA tax, contact your employer. Your employer will figure and collect the RRTA tax.

You may be charged a penalty equal to 50% of the social security and Medicare or RRTA tax due on tips you received but did not report to your employer.

Form 8919.

If you are an employee who received wages from an employer who did not withhold social security and Medicare tax from your wages, use Form 8919 to figure your share of the unreported tax. Include on line 56 the amount from line 13 of Form 8919. Include the amount from line 6 of Form 8919 on Form 1040NR, line 8.

Line 57—Additional tax on IRAs, other qualified retirement plans, etc.   If any of the following apply, see Form 5329 and its instructions to find out if you owe this tax and if you must file Form 5329. Also see Form 5329 and its instructions for definitions of the terms used here.
  1. You received an early distribution from (a) an IRA or other qualified retirement plan, (b) an annuity, or (c) a modified endowment contract entered into after June 20, 1988, and the total distribution was not rolled over in a qualified rollover contribution.

  2. Excess contributions were made to your IRAs, Coverdell education savings accounts (ESAs), Archer MSAs, or health savings accounts (HSAs).

  3. You received taxable distributions from Coverdell ESAs or qualified tuition programs.

  4. You were born before July 1, 1943, and did not take the minimum required distribution from your IRA or other qualified retirement plan.

Exception.

If only item (1) applies and distribution code 1 is correctly shown in box 7 of all your Forms 1099-R, you do not have to file Form 5329. Instead, multiply the taxable amount of the distribution by 10% (.10) and enter the result on line 57. The taxable amount of the distribution is the part of the distribution you reported on Form 1040NR, line 16b or line 17b, or on Form 4972. Also, enter “No” under the heading Other Taxes to the left of line 57 to indicate that you do not have to file Form 5329.

However, you must file Form 5329 if distribution code 1 is incorrectly shown in box 7 of Form 1099-R, you received a Form 1042-S for the distribution, or you qualify for an exception, such as the exceptions for qualified higher education expenses or qualified first-time homebuyer distributions.

Line 58—Transportation tax.   Nonresident alien individuals are subject to a 4% tax on U.S. source gross transportation income that is not effectively connected with a U.S. trade or business. However, the term U.S. source gross transportation income does not include any such income that is taxable in a possession of the United States under the provisions of the Internal Revenue Code as applied to that possession.

  For purposes of this tax, transportation income will be treated as not effectively connected with the conduct of a trade or business in the United States unless:
  1. You had a fixed place of business in the United States involved in the earning of transportation income, and

  2. At least 90% of your U.S. source gross transportation income was attributable to regularly scheduled transportation. Or, in the case of income from the leasing of a vessel or aircraft, it was attributable to a fixed place of business in the United States. See chapter 4 of Pub. 519 for rules, definitions, and exceptions.

  You may be exempt from this tax because of a treaty or an exchange of notes between the United States and the country of which you are a resident. If the country of which you are a resident does not impose tax on the shipping or aircraft income of U.S. persons, you also may be exempt from this tax. If you are exempt from the tax by treaty or exchange of notes, complete Form 8833 and attach it to this return. Also, complete item L of Schedule OI on page 5 and include the amount on line 22 on page 1 of Form 1040NR. If you are exempt from the tax for any other reason, you must attach a statement to Form 1040NR identifying your country of residence and the law and provisions under which you claim exemption from the tax.

  If you owe this tax, you must attach a statement to your return that includes the information described in Pub. 519.

Line 59a—Household employment taxes.   Enter the household employment taxes you owe for having a household employee. If any of the following apply, see Schedule H (Form 1040) and its instructions to find out if you owe these taxes.
  1. You paid any one household employee (defined below) cash wages of $1,900 or more in 2014. Cash wages include wages paid by check, money order, etc. But do not count amounts paid to an employee who was under age 18 at any time in 2014 and was a student.

  2. You withheld federal income tax during 2014 at the request of any household employee.

  3. You paid total cash wages of $1,000 or more in any calendar quarter of 2013 or 2014 to household employees.

  Any person who does household work is a household employee if you can control what will be done and how it will be done. Household work includes work done in or around your home by babysitters, nannies, health aides, maids, yard workers, and similar domestic workers.

Line 59b—First-time homebuyer credit repayment.   Enter the first-time homebuyer credit you have to repay if you:
  • Disposed of the home within 36 months after buying it,

  • Stopped using the home as your main home within 36 months after buying it, or

  • Bought the home in 2008.

  If you bought the home in 2008 and owned and used it as your main home for all of 2014, you can enter your 2014 repayment on this line without attaching Form 5405.

  See the Form 5405 instructions for details and for exceptions to the repayment rule. Also see the Form 5405 instructions if the home you bought was destroyed, condemned, or sold under threat of condemnation and you did not buy a new home within 2 years.

Line 60—Other taxes.   Use line 60 to report any taxes not reported elsewhere on your return or other schedules. To find out if you owe the tax, see the form or publication indicated. Enter on line 60 the total of all of the following taxes you owe.

Additional Medicare Tax.

See Form 8959 and its instructions if the total of your 2014 wages and your 2014 self-employment income was more than $125,000 if married (box 3, 4, or 5 on page 1 of Form 1040NR), or $200,000 if single or qualifying widow(er) (box 1, 2, or 6 on page 1 of Form 1040NR).

If you checked box 3, 4, or 5 on page 1 of Form 1040NR, you must use the threshold amount for married filing separately of $125,000 when you complete Form 8959.

In addition, see Form 8959 and its instructions if your railroad retirement (RRTA) compensation was more than the applicable threshold above.

Check box a if you owe the tax.

   For the following taxes, check box b and in the space next to that box, enter the amount of the tax and the code that identifies it. If you need more room, attach a statement listing the amount of each tax and the code.
  1. Net investment income tax if you are a dual-status taxpayer (see Dual-Status Taxpayers, earlier). You may owe this tax for the part of the year you were a U.S. resident (see Form 8960 and its instructions). Identify as “NIIT.

  2. Additional tax on health savings account (HSA) distributions (see Form 8889, Part II). Identify as “HSA.

  3. Additional tax on an HSA because you did not remain an eligible individual during the testing period (see Form 8889, Part III). Identify as “HDHP.

  4. Additional tax on Archer MSA distributions (see Form 8853). Identify as “MSA.

  5. Additional tax on Medicare Advantage MSA distributions (see Form 8853). Identify as “Med MSA.

  6. Recapture of the following credits.

    1. Investment credit (see Form 4255). Identify as “ICR.

    2. Low-income housing credit (see Form 8611). Identify as “LIHCR.

    3. Indian employment credit (see Form 8845). Identify as “IECR.

    4. New markets credit (see Form 8874). Identify as “NMCR.

    5. Credit for employer-provided childcare facilities (see Form 8882). Identify as “ECCFR.

    6. Alternative motor vehicle credit (see Form 8910). Identify as “AMVCR.

    7. Alternative fuel vehicle refueling property credit (see Form 8911). Identify as “ARPCR.

    8. Qualified plug-in electric drive motor vehicle credit (see Form 8936). Identify as “8936R.

  7. Recapture of federal mortgage subsidy. If you sold your home in 2014 and it was financed (in whole or in part) from the proceeds of any tax-exempt qualified mortgage bond or you claimed the mortgage interest credit, see Form 8828. Identify as “FMSR.

  8. Section 72(m)(5) excess benefits tax (see chapter 4 of Pub. 560). Identify as “Sec. 72(m)(5).

  9. Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. This tax should be shown in box 12 of Form W-2 with codes A and B or M and N. Identify as “UT.

  10. Golden parachute payments. If you received an excess parachute payment (EPP), you must pay a 20% tax on it. This tax should be shown in box 12 of Form W-2 with code K. If you received a Form 1099-MISC, the tax is 20% of the EPP shown in box 13. Identify as “EPP.

  11. Tax on accumulation distribution of trusts (see Form 4970). Identify as “ADT.

  12. Excise tax on insider stock compensation from an expatriated corporation. See section 4985. Identify as “ISC.

  13. Interest on the tax due on installment income from the sale of certain residential lots and timeshares. Identify as “453(l)(3).

  14. Interest on the deferred tax on gain from certain installment sales with a sales price over $150,000. Identify as “453A(c).

  15. Additional tax on recapture of a charitable contribution deduction relating to a fractional interest in tangible personal property. See Contributions of Property in Pub. 526. Identify as “FITPP.

  16. Look-back interest under section 167(g) or 460(b). See Form 8697 or 8866. Identify as “From Form 8697” or “From Form 8866.

  17. Additional tax on income you received from a nonqualified deferred compensation plan that fails to meet the requirements of section 409A. This income should be shown in box 12 of Form W-2 with code Z, or in box 15b of Form 1099-MISC. The tax is 20% of the amount required to be included in income plus an interest amount determined under section 409A(a)(1)(B)(ii). See section 409A(a)(1)(B) for details. Identify as “NQDC.

  18. Additional tax on compensation you received from a nonqualified deferred compensation plan described in section 457A if the compensation would have been includible in your income in an earlier year except that the amount was not determinable until 2014. The tax is 20% of the amount required to be included in income plus an interest amount determined under section 457A(c)(2). See section 457A for details. Identify as “457A.

Payments

Lines 62a through 62d—Federal income tax withheld.   Enter all federal income tax withheld.

   Line 62a. Enter on line 62a the total of any federal income tax withheld and shown on Form(s) W-2, and 1099. The amount withheld should be shown in box 2 of Form W-2, and in box 4 of Form 1099-R. Attach Form(s) W-2 to the front of your return. Attach Form(s) 1099-R to the front of your return if federal income tax was withheld.

  If you had Additional Medicare Tax withheld by your employer(s) in 2014, include the amount shown on Form 8959, line 24, in the total on line 62a. Attach Form 8959.

  Also include on line 62a any federal income tax withheld as reported on Schedule(s) K-1.

   Line 62b. Enter on line 62b any tax withheld by a partnership and shown on Form(s) 8805. Attach a copy of all Form(s) 8805 to the back of your return.

   Line 62c. Enter on line 62c any tax withheld on dispositions of U.S. real property interests and shown on Form(s) 8288-A. Attach a copy of all Form(s) 8288-A to the front of your return.

   Line 62d. Enter on line 62d the total amount shown as federal income tax withheld under chapter 3 or 4 on your Form(s) 1042-S. The amounts withheld should be shown in box 10 of your Form(s) 1042-S. Attach all Form(s) 1042-S to the front of your return.

  
Be sure to attach to the front of your return a copy of all Form(s) W-2, 1042-S, SSA-1042S, RRB-1042S, and 8288-A. Attach to the front of your return Form(s) 1099-R if tax was withheld. Be sure to attach to the back of your return all Form(s) 8805. A foreign trust or estate must also attach to the back of Form 1040NR copies of the Form(s) 8805 it must furnish to its beneficiaries with the Schedule(s) T completed.

  
Refunds of taxes shown on Forms 8805 or 1042-S may be delayed for up to 6 months. See Refund Information, later.

Line 63—2014 estimated tax payments.   Enter any estimated federal income tax payments you made for 2014. Include any overpayment that you applied to your 2014 estimated tax from:
  • Your 2013 return, or

  • An amended return (Form 1040X).

Name change.

If you changed your name because of marriage, divorce, etc., and you made estimated tax payments using your former name, attach a statement to the front of Form 1040NR. On the statement, explain all of the payments you made in 2014 and the name(s) and identifying number(s) under which you made them.

Line 64—Additional child tax credit.   This credit is for certain people who have at least one qualifying child for the child tax credit (as defined in the instructions for line 7c, column (4)). The additional child tax credit may give you a refund even if you do not owe any tax or did not have any tax withheld.

Two Steps To Take the Additional Child Tax Credit!   

Step 1.

Be sure you figured the amount, if any, of your child tax credit. See the instructions for line 49.

Step 2.

Read the TIP at the end of your Child Tax Credit Worksheet. Use Schedule 8812 to see if you can take the additional child tax credit, but only if you meet the condition given in that TIP.

Line 65—Net 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. The premium tax credit helps pay for this health insurance. Complete Form 8962 to determine the amount of your premium tax credit, if any. Enter the amount, if any, from Form 8962, line 26. See Pub. 974 and the instructions for Form 8962 for more information.

Line 66—Amount paid with request for extension to file.   If you got an automatic extension of time to file Form 1040NR by filing Form 4868 or by making a payment, enter the amount or any amount you paid with Form 4868. If you paid by debit or credit card, do not include on line 66 the convenience fee you were charged.

You may be able to deduct any debit or credit card convenience fees on your 2015 Schedule A.

Line 67—Excess social security and tier 1 RRTA tax withheld.   If you had more than one employer for 2014 and total wages of more than $117,000, too much social security or tier 1 railroad retirement (RRTA) tax may have been withheld. You can take a credit on this line for the amount withheld in excess of $7,254. But if any one employer withheld more than $7,254, you cannot claim the excess on your return. The employer should adjust the tax for you. If the employer does not adjust the overcollection, you can file a claim for refund using Form 843.

  You cannot claim a refund for excess tier 2 RRTA tax on Form 1040NR. Instead, use Form 843.

  See chapter 3 of Pub. 505 for more details.

Line 68—Credit for federal tax on fuels.   Enter any credit for federal excise taxes paid on fuels that are ultimately used for a nontaxable purpose (for example, an off-highway business use). Attach Form 4136.

Line 69—Other payments.   Check the box on line 69 to report any credit from Form 2439.

  If you are claiming a credit for repayment of amounts you included in your income in an earlier year because it appeared you had a right to the income, include the credit on line 69, check box d and enter “I.R.C. 1341” in the space next to that box. See Pub. 525 for details about this credit.

  If you made a tax payment that does not belong on any other line, include the payment on line 69. Check box d and enter "Tax" in the space next to that box.

  If you check more than one box, enter the total of the line 69 credits and payments.

Line 70—Credit for amount paid with Form 1040-C.   Enter any amount you paid with Form 1040-C for 2014.

Refund

Line 72—Amount overpaid.   If line 72 is under $1, we will send a refund only on written request.

If the amount you overpaid is large, you may want to decrease the amount of income tax withheld from your pay by filing a new Form W-4. See Income Tax Withholding and Estimated Tax Payments for 2015 in General Information, later.

Refund offset.

If you owe past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or certain federal nontax debts, such as student loans, all or part of the overpayment on line 72 may be used (offset) to pay the past-due amount. Offsets for federal taxes are made by the IRS. All other offsets are made by the Treasury Department's Bureau of Fiscal Service. For federal tax offsets, you will receive a notice from the IRS. For all other offsets, you will receive a notice from the Fiscal Service. To find out if you may have an offset or if you have any questions about it, contact the agency to which you owe the debt.

Lines 73a through 73e—Amount refunded to you.   If you want to check the status of your refund just use the IRS2Go phone app or go to IRS.gov and click on Where's My Refund. See Refund Information, later. Information about your return will generally be available 4 weeks after you mail your return. Have your 2014 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund.

   Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund.

Refunds of tax withheld on a Form 1042-S or Form 8805.

If you request a refund of tax withheld on a Form 1042-S or Form 8805, we may need additional time to process the refund. Allow up to 6 months for these refunds to be issued.

  
Fast Refunds! Choose direct deposit—a fast, simple, safe, secure way to have your refund deposited automatically to your checking or savings account, including an individual retirement arrangement (IRA). See the information about IRAs later.

   If you want us to directly deposit the amount shown on line 73a to your checking or savings account, including an IRA, at a bank or other financial institution (such as a mutual fund, brokerage firm, or credit union) in the United States:
  • Complete lines 73b through 73d (if you want your refund deposited to only one account), or

  • Check the box on line 73a and attach Form 8888 if you want to split the direct deposit of your refund into more than one account or use all or part of your refund to buy paper series I savings bonds.

  If you do not want your refund directly deposited to your account, do not check the box on line 73a. Draw a line through the boxes on lines 73b and 73d. We will send you a check instead.

  Do not request a deposit of any part of your refund to an account that is not in your name. Do not allow your tax preparer to deposit any part of your refund into his or her account. The number of direct deposits to a single account or prepaid debit card is limited to three refunds a year. After this limit is exceeded, paper checks will be sent instead. Learn more at IRS.gov.

   Why Use Direct Deposit?
  • You get your refund faster by direct deposit than you do by check.

  • Payment is more secure. There is no check that can get lost or stolen.

  • It is more convenient. You do not have to make a trip to the bank to deposit your check.

  • It saves tax dollars. It costs the government less to refund by direct deposit.

IRA.   You can have your refund (or part of it) directly deposited to a traditional IRA, Roth IRA, or SEP-IRA, but not a SIMPLE IRA. You must establish the IRA at a bank or other financial institution before you request direct deposit. Make sure your direct deposit will be accepted.

  You also must notify the trustee or custodian of your account of the year to which the deposit is to be applied (unless the trustee or custodian will not accept a deposit for 2014). If you do not, the trustee or custodian can assume the deposit is for the year during which you are filing the return. For example, if you file your 2014 return during 2015 and do not notify the trustee or custodian in advance, the trustee or custodian can assume the deposit to your IRA is for 2015.

  If you designate your deposit to be for 2014, you must verify that the deposit was actually made to the account by the due date of the return (without regard to extensions). If the deposit is not made by that date, the deposit is not an IRA contribution for 2014. In that case, you must file an amended 2014 return and reduce any IRA deduction and any retirement savings contributions credit you claimed.

  
You may be able to contribute up to $5,500 ($6,500 if age 50 or older at the end of 2014) to a traditional IRA or Roth IRA for 2014. You may owe a penalty if your contributions exceed these limits, and the limits may be lower depending on your income. For more information on IRA contributions, see Pub. 590-A. If the limits on IRA contributions change for 2015, Pub. 590-A will have the new 2015 limits.

  For more information on IRAs, see Pub. 590-A and Pub. 590-B.

TreasuryDirect®.   You can request a deposit of your refund (or part of it) to a TreasuryDirect® online account to buy U.S. Treasury marketable securities and savings bonds.  
For more information, go to  
www.publicdebt.treas.gov/index1.htm.

Form 8888.   You can have your refund directly deposited into more than one account or use it to buy up to $5,000 in paper series I savings bonds. You do not need a TreasuryDirect® account to do this. For more information, see the Form 8888 instructions.

  
The number of direct deposits to a single account or prepaid debit card is limited to three refunds a year. After this limit is exceeded, paper checks will be sent instead. Learn more at IRS.gov.

Line 73b.

The routing number must be nine digits. The first two digits must be 01 through 12 or 21 through 32. On the sample check (shown earlier), the routing number is 250250025. Rufus and Mary Maple would use that routing number unless their financial institution instructed them to use a different routing number for direct deposits.

Ask your financial institution for the correct routing number to enter on line 73b if:

  • The routing number on a deposit slip is different from the routing number on your checks,

  • Your deposit is to a savings account that does not allow you to write checks, or

  • Your checks state they are payable through a financial institution different from the one at which you have your checking account.

Line 73c.

Check the appropriate box for the type of account. Do not check more than one box. If the deposit is to an account such as an IRA, health savings account, brokerage account, or other similar account, ask your financial institution whether you should check the “Checking” or “Savings” box. You must check the correct box to ensure your deposit is accepted. For a TreasuryDirect® online account, check the “Savings” box.

Line 73d.

The account number can be up to 17 characters (both numbers and letters). Include hyphens but omit spaces and special symbols. Enter the number from left to right and leave any unused boxes blank. On the sample check earlier, the account number is 20202086. Do not include the check number.

If the direct deposit to your account(s) is different from the amount you expected, you will receive an explanation in the mail about 2 weeks after your refund is deposited.

Reasons your direct deposit request may be rejected.   If any of the following apply, your direct deposit request will be rejected and a check will be sent instead.
  • Any numbers or letters on lines 73b through 73d are crossed out or whited out.

  • You file your 2014 return after December 31, 2015.

  • Three direct deposits of tax refunds have already been made to your account or prepaid debit card.

  • The name on your account does not match the name on the tax refund.

  
The IRS is not responsible for a lost refund if you enter the wrong account information. Check with your financial institution to get the correct routing and account numbers and to make sure your direct deposit will be accepted.

Line 73e.

If you want your refund mailed to an address not listed on page 1 of Form 1040NR, enter that address here. See Foreign address, earlier, for information on entering a foreign address.

Note.

If the address on page 1 of Form 1040NR is not in the United States, you can enter an address in the United States on line 73e. However, if the address on page 1 of Form 1040NR is in the United States, the IRS cannot mail a refund to a different address in the United States.

Line 74—Applied to your 2015 estimated tax.   Enter on line 74 the amount, if any, of the overpayment on line 72 you want applied to your 2015 estimated tax.

  
This election to apply part or all of the amount overpaid to your 2015 estimated tax cannot be changed later.

Amount You Owe

Line 75—Amount You Owe

To save interest and penalties, pay your taxes in full by the due date of your return (see When To File, earlier). You do not have to pay if line 75 is under $1.

Include any estimated tax penalty from line 76 in the amount you enter on line 75.

You can pay online, by phone, or by check or money order. Do not include any estimated tax payment for 2015 in this payment. Instead, make the estimated tax payment separately.

Bad check or payment.   The penalty for writing a bad check to the IRS is $25 or 2% of the check, whichever is more. However, if the amount of the check is less than $25, the penalty equals the amount of the check. This penalty also applies to other forms of payment if the IRS does not receive the funds. Use TeleTax topic 206.

Pay Online

Paying online is convenient and secure and helps make sure we get your payments on time. You can pay using either of the following electronic payment methods.

  • Direct transfer from your bank account. Go to IRS.gov. Click on “Pay Your Tax Bill” and then “Direct Pay.

  • Debit or credit card.

To pay your taxes online or for more information, go to www.irs.gov/payments.

Pay by Phone

Paying by phone is another safe and secure method of paying electronically. Use one of the following methods.

  • Direct transfer using Electronic Federal Tax Payment System (EFTPS).

  • Debit or credit card.

Direct transfer.   To use EFTPS, you must be enrolled. You can enroll online or have an enrollment form mailed to you. To make a payment using EFTPS, call 1-800-555-4477 (English) or 1-800-244-4829 (Español). People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-733-4829. For more information about EFTPS, go to www.irs.gov/payments.

Debit or credit card.   To pay using a debit or credit card, you can call one of the following service providers. There is a convenience fee charged by these providers that varies by provider, card type, and payment amount.

  

WorldPay US, Inc. 
1-844-PAY-TAX-8TM (1-844-729-8298)  
www.payUSAtax.com

Official Payments Corporation 
1-888-UPAY-TAXTM (1-888-872-9829) 
www.officialpayments.com

Link2Gov Corporation 
1-888-PAY-1040TM (1-888-729-1040) 
www.PAY1040.com

  For the latest details on how to pay by phone, go to www.irs.gov/payments.

Pay by Check or Money Order

Make your check or money order payable to “United States Treasury” for the full amount due. Do not send cash. Do not attach the payment to your return. Write “2014 Form 1040NR” and your name, address, daytime phone number, and identifying number (SSN, ITIN, or EIN) on your payment.

To help us process your payment, enter the amount on the right side of the check like this: $ XXX.XX. Do not use dashes or lines (for example, do not enter “$ XXX–” or “$ XXX XX/100 ”).

You may need to (a) increase the amount of income tax withheld from your pay by filing a new Form W-4, (b) increase the tax withheld from other income by filing Form W-4P or W-4V, or (c) make estimated tax payments for 2015. See Income Tax Withholding and Estimated Tax Payments for 2015 in General Information, later.

What if You Cannot Pay?

  If you cannot pay the full amount shown on line 75 when you file, you can ask for:
  • An installment agreement, or

  • An extension of time to pay.

Installment agreement.

Under an installment agreement, you can pay all or part of the tax you owe in monthly installments. However, even if your request to pay in installments is granted, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 2015. You also must pay a fee. To limit the interest and penalty charges, pay as much of the tax as possible when you file. But before requesting an installment agreement, you should consider other less costly alternatives, such as a bank loan or credit card payment.

  To ask for an installment agreement, you can apply online or use Form 9465. To apply online, go to IRS.gov and click on “Tools” and then “Online Payment Agreement.

Extension of time to pay.

If paying the tax when it is due would cause you an undue hardship, you can ask for an extension of time to pay by filing Form 1127 by April 15, 2015. An extension generally will not be granted for more than 6 months. If you pay after April 15, 2015, you will be charged interest on the tax not paid by April 15, 2015. You must pay the tax before the extension runs out. If you do not, penalties may be imposed.

If the due date is April 15, 2015, and you pay after April 15, 2015, you will be charged interest on the tax not paid by April 15, 2015.

Line 76—Estimated Tax Penalty

You may owe this penalty if:

  • Line 75 is at least $1,000 and it is more than 10% of the tax shown on your return, or

  • You did not pay enough estimated tax by any of the due dates. This is true even if you are due a refund.

For most people, the “tax shown on your return” is the amount on your 2014 Form 1040NR, line 61, minus the total of any amounts shown on lines 64, 65, and 68 and Forms 8828, 4137, 5329 (Parts III through VIII only), and 8919.

Also subtract from line 61 any tax on an excess parachute payment, any excise tax on insider stock compensation of an expatriated corporation, any uncollected social security and Medicare or RRTA tax on tips or group-term life insurance, and any look-back interest due under section 167(g) or 460(b).

When figuring the amount on line 61, include household employment taxes (line 59a) only if the total of lines 62a through 62d is more than zero or you would owe the penalty even if you did not include those taxes.

Exception.    You will not owe the penalty if your 2013 tax return was for a tax year of 12 full months and either of the following applies.
  1. You had no tax shown on your 2013 return and you were a U.S. citizen or resident for all of 2013.

  2. The total of lines 62a through 62d, 63, 67, and 70 on your 2014 return is at least 100% of the tax shown on your 2013 return. (But see Caution, later.) Your estimated tax payments for 2014 must have been made on time and for the required amount.

  
If your 2013 AGI was over $150,000 (over $75,000 if you checked filing status box 3, 4, or 5 for 2014), item (2) applies only if the total of lines 62a through 62d, 63, 67, and 70 on your 2014 tax return is at least 110% of the tax shown on your 2013 return. This rule does not apply to farmers and fishermen.

  For most people, the “tax shown on your 2013 return” is the amount on your 2013 Form 1040NR, line 60, minus the total of any amounts shown on lines 63 and 66 and Forms 8828, 4137, 5329 (Parts III through VIII only), 8885, and 8919.

  Also, subtract from line 60 any tax on an excess parachute payment, any excise tax on insider stock compensation of an expatriated corporation, any uncollected social security and Medicare or RRTA tax on tips or group-term life insurance, any look-back interest due under section 167(g) or 460(b), and write-in tax included on line 59 from Form 8885.

  When figuring the amount on line 60, include household employment taxes only if the total of lines 61a through 61d is more than zero or you would have owed the estimated tax penalty for 2013 even if you did not include those taxes.

Figuring the penalty.    If the Exception just described does not apply and you choose to figure the penalty yourself, use Form 2210 (or Form 2210-F for farmers and fishermen).

  Enter any penalty on line 76. Add the penalty to any tax due and enter the total on line 75.

  However, if you have an overpayment on line 72, subtract the penalty from the amount you otherwise would enter on line 73a or 74. Lines 73a, 74, and 76 must equal line 72.

  If the penalty is more than the overpayment on line 72, enter -0- on lines 73a and 74. Then subtract line 72 from line 76 and enter the result on line 75.

  Do not file Form 2210 with your return unless Form 2210 indicates that you must do so. Instead, keep it for your records.

  
Because Form 2210 is complicated, you can leave line 76 blank and the IRS will figure the penalty and send you a bill. We will not charge you interest on the penalty if you pay by the date specified on the bill. If your income varied during the year, the annualized income installment method may reduce the amount of your penalty. But you must file Form 2210 because the IRS cannot figure your penalty under this method. See the Instructions for Form 2210 for other situations in which you may be able to lower your penalty by filing Form 2210.

Third Party Designee

If you want to allow your preparer, a friend, a family member, or any other person you choose to discuss your 2014 tax return with the IRS, check the “Yes” box in the “Third Party Designee” area of your return. Also, enter the designee's name, U.S. phone number, and any five digits the designee chooses as his or her personal identification number (PIN).

If you check the “Yes” box, you are authorizing the IRS to call the designee to answer any questions that may arise during the processing of your return. You also are authorizing the designee to:

  • Give the IRS any information that is missing from your return,

  • Call the IRS for information about the processing of your return or the status of your refund or payment(s),

  • Receive copies of notices or transcripts related to your return, upon request, and

  • Respond to certain IRS notices about math errors, offsets, and return preparation.

You are not authorizing the designee to receive any refund check, bind you to anything (including any additional tax liability), or otherwise represent you before the IRS. If you want to expand the designee's authorization, see Pub. 947.

The authorization will end automatically no later than the due date (without regard to extensions) for filing your 2015 tax return.

Sign Here

See Sign Your Return, later, after you complete pages 3, 4, and 5 of the form.

Instructions for Schedule A, Itemized Deductions

Do not include on Schedule A (Form 1040NR) items deducted elsewhere, such as on Form 1040NR or Schedule C, C-EZ, E, or F (Form 1040).

Note.

Except as provided in the exception below, include only deductions and losses properly allocated and apportioned to income effectively connected with a U.S trade or business. Do not include deductions and/or losses that relate to exempt income or to income that is not effectively connected with a U.S. trade or business. See section 861(b).

Exception.

You can deduct certain charitable contributions and casualty and theft losses even if they do not relate to your effectively connected income. See Gifts to U.S. Charities below and Casualty and Theft Losses, later.

State and Local Income Taxes

Line 1

You can deduct state and local income taxes you paid or that were withheld from your salary during 2014 on income connected with a U.S. trade or business. If, during 2014, you received any refunds of, or credits for, income tax paid in earlier years, do not subtract them from the amount you deduct here. Instead, see the instructions for Form 1040NR, line 11, earlier.

Gifts to U.S. Charities

Lines 2 Through 4

You can deduct contributions or gifts you gave to U.S. organizations that are religious, charitable, educational, scientific, or literary in purpose. You also can deduct what you gave to organizations that work to prevent cruelty to children or animals. See Pub. 526 for details.

To verify an organization's charitable status, check with the organization to which you made the donation. The organization should be able to provide you with verification of its charitable status.

See Tax Information for Charitable Organizations at www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations. Click the link Tax Information for Contributors for a searchable database of organizations eligible to receive tax-deductible charitable contributions.

Call our Tax Exempt/Government Entities Customer Account Services at 1-877-829-5500 if you are in the United States.

Examples of U.S. qualified charitable organizations include the following.

  • Churches, mosques, synagogues, temples, etc.

  • Boy Scouts, Boys and Girls Clubs of America, CARE, Girl Scouts, Goodwill Industries, Red Cross, Salvation Army, United Way, etc.

  • Fraternal orders, if the gifts will be used for the purposes listed earlier.

  • Veterans' and certain cultural groups.

  • Nonprofit schools, hospitals, and organizations whose purpose is to find a cure for, or help people who have: arthritis, asthma, birth defects, cancer, cerebral palsy, cystic fibrosis, diabetes, heart disease, hemophilia, mental illness or retardation, multiple sclerosis, muscular dystrophy, tuberculosis, etc.

  • Federal, state, and local governments if the gifts are solely for public purposes.

Contributions you can deduct.   Contributions can be in cash, property, or out-of-pocket expenses you paid to do volunteer work for the kinds of organizations described earlier. If you drove to and from the volunteer work, you can take the actual cost of gas and oil or 14 cents a mile. Add parking and tolls to the amount you claim under either method. But do not deduct any amounts that were repaid to you.

Gifts from which you benefit.   If you made a gift and received a benefit in return, such as food, entertainment, or merchandise, you generally can deduct only the amount that is more than the value of the benefit. But this rule does not apply to certain membership benefits provided in return for an annual payment of $75 or less or to certain items or benefits of token value. For details, see Pub. 526.

Example.

You paid $70 to a charitable organization to attend a fund-raising dinner and the value of the dinner was $40. You can deduct only $30.

Gifts of $250 or more.   You can deduct a gift of $250 or more only if you have a statement from the charitable organization showing the information in (1) and (2) next.
  1. The amount of any money contributed and a description (but not value) of any property donated.

  2. Whether the organization did or did not give you any goods or services in return for your contribution. If you did receive any goods or services, a description and estimate of the value must be included. If you received only intangible religious benefits (such as admission to a religious ceremony), the organization must state this, but it does not have to describe or value the benefit.

  In figuring whether a gift is $250 or more, do not combine separate donations. For example, if you gave your church $25 each week for a total of $1,300, treat each $25 payment as a separate gift. If you made donations through payroll deductions, treat each deduction from each paycheck as a separate gift. See Pub. 526 if you made a separate gift of $250 or more through payroll deduction.

  
You must get the statement by the date you file your return or the due date (including extensions) for filing your return, whichever is earlier. Do not attach the statement to your return. Instead, keep it for your records.

Limit on the amount you can deduct.   See Pub. 526 to figure the amount of your deduction if any of the following applies.
  1. Your cash contributions or contributions of ordinary income property are more than 30% of the amount on Form 1040NR, line 37.

  2. Your gifts of capital gain property are more than 20% of the amount on Form 1040NR, line 37.

  3. You gave gifts of property that increased in value or gave gifts of the use of property.

 
 

Amounts you cannot deduct.   
  • Travel expenses (including meals and lodging) while away from home, unless there was no significant element of personal pleasure, recreation, or vacation in the travel.

  • Political contributions.

  • Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups.

  • Cost of raffle, bingo, or lottery tickets.

  • Cost of tuition. But you may be able to deduct this expense on Schedule A, line 7.

  • Value of your time or services.

  • Value of blood given to a blood bank.

  • The transfer of a future interest in tangible personal property (generally, until the entire interest has been transferred).

  • Gifts to individuals and groups that are run for personal profit.

  • Gifts to foreign organizations. But you may be able to deduct gifts to certain U.S. organizations that transfer funds to foreign charities and certain Canadian, Israeli, and Mexican charities. For details and exceptions, see Pub. 526.

  • Gifts to organizations engaged in certain political activities that are of direct financial interest to your trade or business. See section 170(f)(9).

  • Gifts to groups whose purpose is to lobby for changes in the laws.

  • Gifts to civic leagues, social and sports clubs, labor unions, and chambers of commerce.

  • Value of benefits received in connection with a contribution to a charitable organization. See Pub. 526 for exceptions.

Line 2–Gifts by Cash or Check

Enter on line 2 the total gifts you made in cash or by check (including out-of-pocket expenses).

Recordkeeping.   For any contribution made in cash, regardless of the amount, you must maintain as a record of the contribution a bank record (such as a canceled check or credit card statement) or a written record from the charity. The written record must include the name of the charity, date, and amount of the contribution. If you made contributions through payroll deduction, see Pub. 526 for information on the records you must keep. Do not attach the record to your tax return. Instead, keep it with your other tax records.

Line 3–Other Than by Cash or Check

Enter your contributions of property. If you gave used items, such as clothing or furniture, deduct their fair market value at the time you gave them. Fair market value is what a willing buyer would pay a willing seller when neither has to buy or sell and both are aware of the conditions of the sale. For more details on determining the value of donated property, see Pub. 561.

If the amount of your deduction is more than $500, you must complete and attach Form 8283. For this purpose, the “amount of your deduction” means your deduction before applying any income limits that could result in a carryover of contributions.

If you deduct more than $500 for a contribution of a motor vehicle, boat, or airplane, you also must attach a statement from the charitable organization to your return. The organization may use Form 1098-C to provide the required information.

If your total deduction is over $5,000, you also may have to get appraisals of the values of the donated property. This amount is $500 for certain contributions of clothing and household items (see below).

See Form 8283 and its instructions for details.

Contributions of clothing and household items.   A deduction for these contributions will be allowed only if the items are in good used condition or better. However, this rule does not apply to a contribution of any single item for which a deduction of more than $500 is claimed and for which you include a qualified appraisal and Form 8283 with your tax return.

Recordkeeping.   If you gave property, you should keep a receipt or written statement from the organization you gave the property to, or a reliable written record, that shows the organization's name and address, the date and location of the gift, and a description of the property. For each gift of property, you also should keep reliable written records that include the following.
  • How you figured the property's value at the time you gave it. If the value was determined by an appraisal, keep a signed copy of the appraisal.

  • The cost or other basis of the property if you must reduce it by any ordinary income or capital gain that would have resulted if the property had been sold at its fair market value.

  • How you figured your deduction if you chose to reduce your deduction for gifts of capital gain property.

  • Any conditions attached to the gift.

If your total deduction for gifts of property is over $500, you gave less than your entire interest in the property, or you made a “qualified conservation contribution,” your records should contain additional information. See Pub. 526 for details.

Line 4–Carryover From Prior Year

Enter any carryover of contributions that you could not deduct in an earlier year because they exceeded your AGI limit. See Pub. 526 for details.

Casualty and Theft Losses

Line 6–Casualty or Theft Loss(es)

Complete and attach Form 4684 to figure the amount of your loss to enter on line 6.

You may be able to deduct part or all of each loss caused by theft, vandalism, fire, storm, or similar causes; car, boat, and other accidents; and corrosive drywall. You also may be able to deduct money you had in a financial institution but lost because of the insolvency or bankruptcy of the institution.

You can deduct nonbusiness casualty or theft losses only to the extent that:

  1. The amount of each separate casualty or theft loss is more than $100, and

  2. The total amount of all losses during the year (reduced by the $100 limit discussed in (1)) is more than 10% of the amount shown on Form 1040NR, line 37.

Corrosive drywall losses.   Generally, loss of property due to progressive deterioration is not deductible as a casualty loss. However, there is a special procedure that you can use to deduct the amount you paid to repair damage to your home and household appliances due to corrosive drywall. See Pub. 547 for details.

Job Expenses and Certain Miscellaneous Deductions

Miscellaneous deductions are allowed only if and to the extent they are directly related to your effectively connected income. You can deduct only the part of these expenses that exceeds 2% of the amount on Form 1040NR, line 37.

Pub. 529 discusses the types of expenses you can and cannot deduct.

Examples of expenses you cannot deduct.   
  • Political contributions.

  • Legal expenses for personal matters that do not produce taxable income.

  • Lost or misplaced cash or property.

  • Expenses for meals during regular or extra work hours.

  • The cost of entertaining friends.

  • Commuting expenses. See Pub. 529 for the definition of commuting.

  • Travel expenses for employment away from home if that period of employment exceeds 1 year.

  • Travel as a form of education.

  • Expenses of attending a seminar, convention, or similar meeting unless it is related to your employment.

  • Club dues.

  • Expenses of adopting a child. But you may be able to take a credit for adoption expenses. See Form 8839 and its instructions for details.

  • Fines and penalties.

  • Expenses of producing tax-exempt income.

Line 7–Unreimbursed Employee Expenses

Enter the total ordinary and necessary job expenses you paid for which you were not reimbursed. (Amounts your employer included in box 1 of your Form W-2 are not considered reimbursements.)

An ordinary expense is one that is common and accepted in your field of trade, business, or profession. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary.

But you must fill in and attach Form 2106 if either (1) or (2) below applies.

  1. You claim any travel, transportation, meal, or entertainment expenses for your job.

  2. Your employer paid you for any of your job expenses that you otherwise would report on line 7.

If you used your own vehicle, are using the standard mileage rate, and (2) above does not apply, you may be able to file Form 2106-EZ instead.

If you do not have to file Form 2106 or 2106-EZ, list the type and amount of each expense on the dotted lines next to line 7. If you need more space, attach a statement showing the type and amount of each expense. Enter the total of all these expenses on line 7.

Do not include on line 7 any educator expenses you deducted on Form 1040NR, line 24.

Examples of other expenses to include on line 7 are the following.

  • Safety equipment, small tools, and supplies needed for your job.

  • Uniforms required by your employer that are not suitable for ordinary wear.

  • Protective clothing required in your work, such as hard hats, safety shoes, and glasses.

  • Physical examinations required by your employer.

  • Dues to professional organizations and chambers of commerce.

  • Subscriptions to professional journals.

  • Fees to employment agencies and other costs to look for a new job in your present occupation, even if you do not get a new job.

  • Certain business use of part of your home. For details, including limits that apply, see Pub. 587.

  • Certain educational expenses. For details, see chapter 12 of Pub. 970.

Line 8–Tax Preparation Fees

Enter the fees you paid for preparation of your tax return. If you paid your tax by debit or credit card, include the convenience fee you were charged on line 9 instead of this line.

Line 9–Other Expenses

Enter the total amount you paid to produce or collect taxable income and manage or protect property held for earning income. But do not include any personal expenses. List the type and amount of each expense on the dotted lines next to line 9. If you need more space, attach a statement to your paper return showing the type and amount of each expense. Enter one total on line 9.

Examples of expenses to include on line 9 are:

  • Certain legal and accounting fees.

  • Clerical help and office rent.

  • Custodial (for example, trust account) fees.

  • Your share of the investment expenses of a regulated investment company.

  • Certain losses on nonfederally insured deposits in an insolvent or bankrupt financial institution. For details, including limits that apply, see Pub. 529.

  • Casualty and theft losses of property used in performing services as an employee from Form 4684, lines 32 and 38b, or Form 4797, line 18a.

  • Deduction for repayment of amounts under a claim of right if $3,000 or less.

  • Convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by debit or credit card. The deduction is claimed for the year in which the fee was charged to your card.

Other Miscellaneous Deductions

Line 14–Other

Only the expenses listed next can be deducted on this line. List the type and amount of each expense on the dotted lines next to line 14. If you need more space, attach a statement to your paper return showing the type and amount of each expense. Enter one total on line 14. These expenses are:

  • Casualty and theft losses of income-producing property from Form 4684, lines 32 and 38b, or Form 4797, line 18a.

  • Loss from other activities from Schedule K-1 (Form 1065-B), box 2.

  • Deduction for repayment of amounts under a claim of right if over $3,000. See Pub. 525 for details.

  • Certain unrecovered investment in a pension.

  • Impairment-related work expenses of a disabled person.

For more details, see Pub. 529.

Total Itemized Deductions

Line 15

Use the Itemized Deductions Worksheet to figure the amount to enter on line 15 if the amount on Form 1040NR, line 37, is over the following amounts.

  • $305,050 if you checked box 6.

  • $254,200 if you checked box 1 or 2.

  • $152,525 if you checked box 3, 4, or 5.

Otherwise, enter the total of lines 1, 5, 6, 13, and 14 on line 15. Also enter this amount on Form 1040NR, line 38.

Itemized Deductions Worksheet — Line 15

1. Add the amounts on Schedule A, lines 1, 5, 6, 13, and 14 1.  
2. Enter the total of the amount on Schedule A, line 6, plus any casualty or theft losses included on line 14.  
Be sure your casualty or theft losses are clearly identified on the dotted lines next to line 14
2.  
3. Is the amount on line 2 less than the amount on line 1? 
No.
Your deduction is not limited. Enter the amount from line 1 of this worksheet on Schedule A, line 15. Do not complete the rest of this worksheet. 
Yes. Subtract line 2 from line 1
3.  
4. Multiply line 3 by 80% (.80) 4.      
5. Enter the amount from Form 1040NR, line 37 5.      
6. Enter:
  • $305,050 if you checked box 6,

  • $254,200 if you checked box 1 or 2, or

  • $152,525 if you checked box 3, 4, or 5.

6.      
7. Is the amount on line 6 less than the amount on line 5? 
No.
Your deduction is not limited. Enter the amount from line 1 of this worksheet on Schedule A, line 15. Do not complete the rest of this worksheet. 
Yes. Subtract line 6 from line 5
7.      
8. Multiply line 7 by 3% (.03) 8.      
9. Enter the smaller of line 4 or line 8 9.  
10. Total itemized deductions. Subtract line 9 from line 1. Enter the result here and on Schedule A, line 15 10.  

Instructions for Schedule NEC, Tax on Income Not Effectively Connected With a U.S. Trade or Business

Enter your income in the row that lists the correct category of income and in the column that lists the correct tax rate under a tax treaty or the general U.S. tax rules. Use column (d) if the income is subject to a 0% rate. Include income only to the extent it is not effectively connected with the conduct of a trade or business in the United States.

Withholding of tax at the source.   Tax must be withheld at the source on income not effectively connected with a U.S. trade or business that is paid to nonresident aliens. The withholding is generally at a 30% rate. The tax must be withheld by the person who pays the income. For details, see Pub. 519, Pub. 515, and section 1441 and its regulations.

  Certain amounts paid for guarantees of indebtedness issued after September 27, 2010, are U.S. source income. If the payments are not made in connection with a U.S. trade or business, tax must be withheld.

Exceptions.

There are exceptions to the general rule. The withholding tax rate may be lower or the income may be exempt if your country of tax residence and the United States have a treaty setting lower rates. Table 1 in Pub. 901 summarizes which countries have such treaties and what the rates are.

The 30% tax applies only to amounts included in gross income. For example, the tax applies only to the part of a periodic annuity or pension payment that is subject to tax. It does not apply to the part that is a return of your cost.

Categories of Noneffectively Connected Income

The following list gives only a general idea of the types of income to include on Schedule NEC. The instructions for a specific line include more information and any exceptions to withholding. For more information, see Pub. 519 and Pub. 515.

  1. Income that is fixed or periodic, such as interest (other than original issue discount), dividends, rents, salaries, wages, premiums, annuities, other compensation, or alimony received. Other items of income, such as royalties, also may be subject to the 30% tax.

  2. Gains, other than capital gains, from the sale or exchange of patents, copyrights, and other intangible property.

  3. Original issue discount (OID). If you sold or exchanged the obligation, include in income the OID that accrued while you held the obligation minus the amount previously included in income. If you received a payment on an OID obligation, see Pub. 519.

  4. Capital gains in excess of capital losses from U.S. sources during 2014. Include these gains only if you were in the United States at least 183 days during 2014.

  5. Prizes, awards, and certain gambling winnings. Proceeds from lotteries, raffles, etc., are gambling winnings (see Pub. 519 for exceptions). You must report the full amount of your winnings unless you are a resident of Canada.

See Lines 10a Through 10c—Gambling Winnings-Residents of Canada and Line 11—Gambling Winnings-Residents of Countries Other Than Canada, later.

Lines 1a and 1b—Dividends

Except as provided next, include all dividends paid by U.S. corporations on line 1a. Include all U.S. source dividends paid by foreign corporations on line 1b. A dividend includes a substitute dividend payment made to the transferor of a security in a securities lending transaction or a sale-repurchase transaction that would be treated as a dividend if it were a distribution on the transferred security.

Dividend equivalent payments.   Dividends also include all dividend equivalent payments made after September 13, 2010. Currently, dividend equivalent payments include (1) substitute dividends and (2) payments made pursuant to a specified notional principal contract that, directly or indirectly, are contingent on or determined by reference to, the payment of a dividend from U.S. sources. However, the IRS may determine that other payments are substantially similar to payments described in (1) and (2) above.

  For more information on dividend equivalent payments, see Dividends in Pub. 519 and Pub. 515.

Exceptions.

The following items of dividend income that you received as a nonresident alien generally are exempt from the 30% tax.

  • Interest-related dividends received from a mutual fund.

  • Short-term capital gain dividends from a mutual fund only if you were present in the United States for less than 183 days during the tax year.

  • If a U.S. corporation in existence on January 1, 2014, received most of its gross income from the active conduct of a foreign business, and continues to receive most of its gross income from the active conduct of a foreign business, the part of the dividend attributable to the foreign gross income.

  • U.S. source dividends paid by certain foreign corporations.

For more information, including other exceptions to withholding, see Dividends in Pub. 519 and Pub. 515.

Lines 2a Through 2c—Interest

Include all interest on the appropriate line 2a, 2b, or 2c.

Exceptions.   The following items of interest income that you received as a nonresident alien generally are exempt from the 30% tax.
  • Interest from a U.S. bank, savings and loan association, or similar institution, and from certain deposits with U.S. insurance companies.

  • Portfolio interest on obligations issued after July 18, 1984.

  
Interest payments on foreign bearer obligations (bonds not issued in registered format and held by non-U.S. holders) issued on or after March 19, 2012, are not eligible for the portfolio interest exception to withholding.

  For more information, including other exceptions to withholding, see Interest in Pub. 519 and Pub. 515.

Line 6—Real Property Income and Natural Resources Royalties

Enter income from real property on line 6. Do not include any income that you elected to treat as effectively connected and included on line 18 on Form 1040NR, page 1. For more information, see the instructions for line 18, earlier.

Line 8—Social Security Benefits (and Tier 1 Railroad Retirement Benefits Treated as Social Security)

85% of the U.S. social security and equivalent railroad retirement benefits you received are taxable. This amount is treated as U.S. source income not effectively connected with a U.S. trade or business. It is subject to the 30% tax rate, unless exempt or taxed at a reduced rate under a U.S. tax treaty. Social security benefits include any monthly benefit under title II of the Social Security Act or the part of a tier 1 railroad retirement benefit treated as a social security benefit. They do not include any Supplemental Security Income (SSI) payments.

You should receive a Form SSA-1042S showing the total social security benefits paid to you in 2014 and the amount of any benefits you repaid in 2014. If you received railroad retirement benefits treated as social security, you should receive a Form RRB-1042S.

Enter 85% of the total amount from box 5 of all of your Forms SSA-1042S and Forms RRB-1042S in the appropriate column of line 8 of Schedule NEC. Attach a copy of each Form SSA-1042S and RRB-1042S to the front of Form 1040NR.

Line 9—Capital Gain

Enter the amount from Schedule NEC, line 18.

Lines 10a Through 10c—Gambling Winnings-Residents of Canada

If you are a resident of Canada who is not engaged in the trade or business of gambling, enter all gambling winnings on line 10a. Include proceeds from lotteries and raffles. Do not include winnings from blackjack, baccarat, craps, roulette, or big-6 wheel. You can deduct your U.S. source gambling losses to the extent of your U.S. source gambling winnings. Enter your gambling losses on line 10b. Enter your net gambling income on line 10c, column (c). If line 10b is more than line 10a, enter -0- on line 10c. A net loss from gambling activities is not deductible.

Line 11—Gambling Winnings-Residents of Countries Other Than Canada

Residents of one of the following countries who are not engaged in the trade or business of gambling enter all gambling winnings on line 11, column (d), specifying 0%: Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Netherlands, Russia, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Tunisia, Turkey, Ukraine, United Kingdom.

Residents of Malta who are not engaged in the trade or business of gambling enter all gambling winnings on line 11, column (a).

Residents of other countries who are not engaged in the trade or business of gambling enter all gambling winnings on line 11, column (c).

Include proceeds from lotteries and raffles. Do not include winnings from blackjack, baccarat, craps, roulette, or big-6 wheel. You cannot offset losses against winnings and report the difference unless the winnings and losses are from the same session.

If you have winnings from blackjack, baccarat, craps, roulette, or big-6 wheel, and the casino gave you a Form 1042-S showing that tax was withheld, enter these winnings on line 11, column (d), and enter 0% as the tax rate. You can claim a refund of the tax.

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Schedule NEC John Maple

Line 12—Other

Include all U.S. source income that has not been reported on another line or is not excluded from tax. This includes prizes and awards. It also includes the tax withheld pursuant to section 5000C on specified federal procurement payments.

Example.

John Maple is a resident of Canada who purchased stock in XYZ, a U.S. corporation. In 2014, XYZ paid dividends of $1,000 to John. The U.S. withholding tax rate on these dividends is 30%. However, Article X of the tax treaty between the United States and Canada limits the U.S. tax rate on these dividends to a maximum rate of 15%. John filed Form W-8BEN with XYZ to claim the lower treaty rate, and XYZ correctly withheld $150. In addition, John has U.S. source gross gambling winnings of $5,000 and U.S. source gambling losses of $4,500. These items would be reported on Schedule NEC as shown in the example, earlier.

Lines 16 Through 18—Capital Gains and Losses From Sales or Exchanges of Property

Include these gains only if you were in the United States at least 183 days during 2014. They are not subject to U.S. tax if you were in the United States less than 183 days during the tax year. In determining your net gain, do not use the capital loss carryover. Losses from sales or exchanges of capital assets in excess of similar gains are not allowed. Enter the amount from line 18 on line 9. If you had a gain or loss on disposing of a U.S. real property interest, see Dispositions of U.S. Real Property Interests, earlier.

Instructions for Schedule OI, Other Information

Answer all questions.

Item A

List all countries of which you were a citizen or national during the tax year.

Item B

List the country in which you claimed residence for tax purposes during the tax year.

Item C

If you have completed immigration Form I-485 and submitted the form to the U.S. Citizenship and Immigration Services, you have applied to become a green card holder (lawful permanent resident) of the United States.

Item D

If you checked “Yes” for D1 or D2, you may be a U.S. tax expatriate and special rules may apply to you. See Expatriation Tax in chapter 4 of Pub. 519 for more information.

Item E

If you had a visa on the last day of the tax year, enter your visa type. Examples are the following.

  • B-1 Visitor for business.

  • F-1 Students-academic institutions.

  • H-1B Temporary worker with specialty occupation.

  • J-1 Exchange visitor.

If you do not have a visa, enter your U.S. immigration status on the last day of the tax year. For example, if you entered under the visa waiver program, enter “VWP” and the name of the Visa Waiver Program Country.

If you were not present in the United States on the last day of the tax year, and you have no U.S. immigration status, enter “Not present in U.S.—No U.S. immigration status.

Item F

If you ever changed your visa type or U.S. immigration status, check the “Yes” box. For example, you entered the United States in 2013 on an F-1 visa as an academic student. During 2014 you changed to an H-1B visa as a teacher. You will check the “Yes” box and enter on the dotted line “Changed status from F-1 student to H-1B teacher on August 20, 2014.

Item G

Enter the dates you entered and left the United States during 2014 on short business trips or to visit family, go on vacation, or return home briefly.

If you are a resident of Canada or Mexico and commute to work in the United States on more than 75% of the workdays during your working period, you are a regular commuter and do not need to enter the dates you entered and left the United States during the year. Commute means to travel to work and return to your residence within a 24-hour period. Check the appropriate box for Canada or Mexico and skip to item H. See Days of Presence in the United States in chapter 1 of Pub. 519.

If you were in the United States on January 1, enter 1/1 as the first date you entered the United States. If you were in the United States on December 31, do not enter any date departed.

Item H

Review your entry and passport stamps or other records to count the number of days you actually were present in the United States during the years listed. A day of presence is any day that you are physically present in the United States at any time during the 24-hour period beginning at 12:01 a.m. For the list of exceptions to the days you must count as actually present in the United States, see Days of Presence in the United States in chapter 1 of Pub. 519. If you were not in the United States on any day of the year, enter -0-.

Item I

If you filed a U.S. income tax return for a prior year, enter the latest year for which you filed a return and the form number you filed.

Item J

If you are filing this return for a trust, check the first “Yes” box. Check the second “Yes” box if you checked the first “Yes” box and at least one of the following statements applies to the trust.

  • The trust (or any part of the trust) is treated as a grantor trust under the grantor trust rules (sections 671 through 679), whether or not the person who is treated as the owner of the trust is a U.S. person.

  • The trust made a distribution or loan to a U.S. person during the tax year.

  • The trust received a contribution from a U.S. person during the tax year.

A U.S. person is a U.S. citizen or resident alien, a domestic partnership, a domestic corporation, an estate other than a foreign estate, or a domestic trust. See Pub. 519 for more information.

Item K

If you received total compensation of $250,000 or more for 2014, check the first “Yes” box. If you checked the first “Yes” box, check the second “Yes” box if you are using an alternative method to determine the source of the compensation. Total compensation includes all compensation from sources within and without the United States.

If you check the second “Yes” box, you must attach a statement to your return. For details about the statement and the alternative method, see Services performed partly within and partly without the United States, earlier.

Item L

Line 1.   If you are a resident of a treaty country (that is, you qualify as a resident of that country within the meaning of the tax treaty between the United States and that country), you must know the terms of the tax treaty between the United States and that country to properly complete item L. You can download the complete text of most U.S. tax treaties at IRS.gov. Enter “Tax Treaties” in the search box. Technical explanations for many of those treaties are also available at that site. Also, see Pub. 901 for a quick reference guide to the provisions of U.S. tax treaties.

  If you are claiming exemption from income tax under a U.S. income tax treaty with a foreign country on Form 1040NR, you must provide all the information requested in item L.

Column (a), Country.

Enter the treaty country that qualifies you for treaty benefits.

Column (b), Tax treaty article.

Enter the number of the treaty article that exempts the income from U.S. tax.

Column (c), Number of months claimed in prior tax years.

Enter the number of months in prior tax years for which you claimed an exemption from U.S. tax based on the specified treaty article.

Column (d), Amount of exempt income in current tax year.

Enter the amount of income in the current tax year that is exempt from U.S. tax based on the specified treaty article.

Line (e), Total.

Add the amounts in column (d). Enter the total on line 1e and on Form 1040NR, page 1, line 22. Do not include this amount in the amounts entered on Form 1040NR, page 1, line 8 or 12.

If required, attach Form 8833. See Treaty-based return position disclosure, later.

Line 2.   Check “Yes” if you were subject to tax in a foreign country on any of the income reported in line 1, column (d).

Example.

Sara is a citizen of Italy and was a resident there until September 2013, when she moved to the United States to accept a position as a high school teacher at an accredited public school. Sara came to the United States on a J-1 visa (Exchange visitor) and signed a contract to teach for 2 years at this U.S. school. She began teaching in September 2013 and plans to continue teaching through May 2015. Sara's salary per school year is $40,000. She plans to return to Italy in June 2015 and resume her Italian residence. For calendar year 2014, Sara earned $40,000 from her teaching position. She completes the table in Item L on her 2014 tax return as shown in the example earlier.

If you are claiming tax treaty benefits and you failed to submit adequate documentation to a withholding agent, you must attach to your tax return all information that otherwise would have been required on the withholding tax document (for example, all information required on Form W-8BEN (Individuals), Form W-8BEN-E (Entities), or Form 8233).

Treaty-based return position disclosure.   If you take the position that a treaty of the United States overrides or modifies any provision of the Internal Revenue Code and that position reduces (or potentially reduces) your tax, you must report certain information on Form 8833 and attach it to Form 1040NR.

  If you fail to report the required information, you will be charged a penalty of $1,000 for each failure, unless you show that such failure is due to reasonable cause and not willful neglect. For more details, see Form 8833 and its instructions.

Exceptions.   You do not have to file Form 8833 for any of the following.
  1. You claim a treaty that reduces the withholding tax on interest, dividends, rents, royalties, or other fixed or determinable annual or periodical income ordinarily subject to the 30% rate.

  2. You claim a treaty that reduces or modifies the taxation of income from dependent personal services, pensions, annuities, social security and other public pensions, or income of artists, athletes, students, trainees, or teachers. This includes taxable scholarship and fellowship grants.

  3. You claim an International Social Security Agreement or a Diplomatic or Consular Agreement that reduces or modifies the taxation of income.

  4. You are a partner in a partnership or a beneficiary of an estate or trust that reports the required information on its return.

  5. The payments or items of income that otherwise are required to be disclosed total no more than $10,000.

Example. Item L—Income Exempt From Tax by Treaty

(a) Country (b) Tax treaty article (c) Number of months claimed in prior tax years (d) Amount of exempt income in current tax year
Italy 20 4 $40,000
       
       
       
(e) Total. Enter this amount on Form 1040NR, line 22. Do not enter it on line 8 or line 12 $40,000

Sign Your Return

Form 1040NR is not considered a valid return unless you sign it. Be sure to date your return and enter your occupation(s) in the United States. If you have someone prepare your return, you are still responsible for the correctness of the return. If your return is signed by a representative for you, you must have a power of attorney attached that specifically authorizes the representative to sign your return. To do this, you can use Form 2848.

You can have an agent in the United States prepare and sign your return if you could not do so for one of the following reasons. 

  • You were ill.

  • You were not in the United States at any time during the 60 days before the return was due.

  • For other reasons that you explained in writing to:

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

    and that the IRS approved.

Court-Appointed Conservator, Guardian, or Other Fiduciary

If you are a court-appointed conservator, guardian, or other fiduciary for a mentally or physically incompetent individual who has to file Form 1040NR, sign your name for the individual and file Form 56.

Child's return.   If your child cannot sign the return, either parent can sign the child's name in the space provided. Then, enter “By (your signature), parent for minor child.

Paid preparer must sign your return.   Generally, anyone you pay to prepare your return must sign it and include their preparer tax identification number (PTIN) in the space provided. The preparer must give you a copy of the return for your records. Someone who prepares your return but does not charge you should not sign your return.

Identity Protection PIN

For 2014, if you received an Identity Protection Personal Identification Number (IP PIN) from the IRS, enter it in the IP PIN spaces provided below your daytime phone number. You must correctly enter all six numbers of your IP PIN. If you did not receive an IP PIN, leave these spaces blank.

New IP PINs are issued every year. Enter the latest IP PIN you received. IP PINs for 2014 tax returns generally were sent in December 2014.

If you need more information or answers to frequently asked questions on how to use the IP PIN, go to  
www.irs.gov/Individuals/Understanding‐Your‐CP01A‐Notice. If you received an IP PIN but misplaced it, call 1‐800‐908‐4490.

Assemble Your Return

Assemble any schedules and forms behind Form 1040NR in order of the “Attachment Sequence No.” shown in the upper right corner of the schedule or form. If you have supporting statements, arrange them in the same order as the schedules or forms they support and attach them last. Do not attach correspondence or other items unless required to do so.

Attach a copy of Forms W-2, 1042-S, SSA-1042S, RRB-1042S, 2439, and 8288-A to the front of Form 1040NR. If you received a Form W-2c (a corrected Form W-2), attach a copy of your original Forms W-2 and any Forms W-2c. Also attach Form(s) 1099-R to the front of Form 1040NR if tax was withheld. Attach Form 8805 to the back of your return. Enclose, but do not attach, any payment.

General Information

How To Avoid Common Mistakes

Mistakes can delay your refund or result in notices being sent to you. 

  • Make sure you entered the correct name and identifying number (SSN, ITIN, or ATIN) for each dependent you claim on line 7c. Check that each dependent's name and identifying number agree with his or her identification document. For each child under age 17 who is a qualifying child for the child tax credit, make sure you checked the box in line 7c, column (4).

  • Check your math, especially for the child tax credit, total income, itemized deductions, deduction for exemptions, taxable income, total tax, federal income tax withheld, and refund or amount you owe.

  • Be sure you used the correct method to figure your tax. See the instructions for line 42.

  • Be sure to enter your identifying number in the space provided on page 1 of Form 1040NR. If you are married and you checked filing status box 3 or 4 on page 1, also enter your spouse's information in the space provided on page 1. Check that your name and identifying number agree with your identification document, such as your social security card or the IRS notice assigning your ITIN.

  • Make sure your name and address are correct.

  • If you live in an apartment, be sure to include your apartment number in your address.

  • If you received capital gain distributions but were not required to file Schedule D (Form 1040), make sure you checked the box on line 14.

  • Remember to sign and date Form 1040NR and enter your occupation(s) in the United States.

  • Attach your Form(s) W-2 and other required forms and schedules. Put all forms and schedules in the proper order. See Assemble Your Return, earlier.

  • If you owe tax and are paying by check or money order, be sure to include all the required information on your payment. See the instructions for line 75 for details.

  • Do not file more than one original return for the same year, even if you have not gotten your refund or have not heard from the IRS since you filed. Filing more than one original return for the same year, or sending in more than one copy of the same return (unless we ask you to do so), could delay your refund.

Income Tax Withholding and Estimated Tax Payments for 2015

If the amount you owe or the amount you overpaid is large, you may want to file a new Form W-4 with your employer to change the amount of income tax withheld from your 2015 pay. For details on how to complete Form W-4, see the Instructions for Form 8233 and Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens. If you have pension or annuity income, use Form W-4P. If you receive certain government payments (such as unemployment compensation or social security benefits), you can have tax withheld from those payments by giving the payer Form W-4V. If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax.

In general, you do not have to make estimated tax payments if you expect that your 2015 Form 1040NR will show a tax refund or a tax balance due of less than $1,000. If your total estimated tax for 2015 is $1,000 or more, see Form 1040-ES (NR) and Pub. 505 for a worksheet you can use to see if you have to make estimated tax payments. However, if you expect to be a resident of Puerto Rico during all of 2015 and you must pay estimated tax, use Form 1040-ES (PR). For more details, see Pub. 505.

For more information on withholding or estimated tax payments, see Paying Tax Through Withholding or Estimated Tax in chapter 8 of Pub. 519.

Secure Your Tax Records From Identity Theft

Identity theft occurs when someone uses your personal information, such as your name, social security number (SSN), or other identifying information, without your permission, to commit fraud or other crimes. An identity thief may use your SSN to get a job or may file a tax return using your SSN to receive a refund.

To reduce your risk: 

  • Protect your SSN,

  • Ensure your employer is protecting your SSN, and

  • Be careful when choosing a tax preparer.

If your tax records are affected by identity theft and you receive a notice from the IRS, respond right away to the name and phone number printed on the IRS notice or letter. For more information, see Pub. 4535.

If your SSN has been lost or stolen or you suspect you are a victim of tax-related identity theft, visit www.irs.gov/identitytheft to learn what steps you should take.

Victims of identity theft who are experiencing economic harm or a systemic problem, or are seeking help in resolving tax problems that have not been resolved through normal channels, may be eligible for Taxpayer Advocate Service (TAS) assistance. You can reach TAS by calling the National Taxpayer Advocate helpline at 1-877-777-4778. People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-829-4059. Persons who are deaf, hard of hearing, or have a speech disability can also contact the IRS through relay services such as the Federal Relay Service available at www.gsa.gov/fedrelay.

Protect yourself from suspicious emails or phishing schemes.   Phishing is the creation and use of email and websites designed to mimic legitimate business emails and websites. The most common form is sending an email to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft.

  The IRS does not initiate contacts with taxpayers via emails. Also, the IRS does not request detailed personal information through email or ask taxpayers for the PIN numbers, passwords, or similar secret access information for their credit card, bank, or other financial accounts.

  If you receive an unsolicited email claiming to be from the IRS, forward the message to phishing@irs.gov. You also may report misuse of the IRS name, logo, forms, or other IRS property to the Treasury Inspector General for Tax Administration toll-free at 1-800-366-4484. People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-877-8339. You can forward suspicious emails to the Federal Trade Commission at spam@uce.gov or contact them at www.ftc.gov/idtheft or 1-877-IDTHEFT (1-877-438-4338). People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-866-653-4261.

  Visit IRS.gov and enter “identity theft” in the search box to learn more about identity theft and how to reduce your risk.

How Do You Make a Gift To Reduce Debt Held By the Public?

If you wish to do so, make a check payable to “Bureau of the Fiscal Service.” You can send it to:

Bureau of the Fiscal Service 
Department G 
P.O. Box 2188  
Parkersburg, WV  
26106-2188 
U.S.A.

Or you can enclose the check with your income tax return when you file. Do not add your gift to any tax you may owe. See the instructions for line 75 for details on how to pay any tax you owe.

Go to www.publicdebt.treas.gov/index1.htm for information on how to make this type of gift online.

You may be able to deduct this gift on your 2015 tax return.

How Long Should Records Be Kept?

Keep a copy of your tax return, worksheets you used, and records of all items appearing on it (such as Forms W-2, 1042-S, and 1099) until the statute of limitations runs out for that return. Usually, this is 3 years from the date the return was due or filed or 2 years from the date the tax was paid, whichever is later. You should keep some records longer. For example, keep property records (including those on your home) as long as they are needed to figure the basis of the original or replacement property. For more details, see chapter 1 of Pub. 17.

How Do You Amend Your Tax Return?

File Form 1040X to change a return you already filed. Also use Form 1040X if you filed Form 1040NR and you should have filed Form 1040, 1040A, or 1040EZ, or vice versa. Generally, Form 1040X must be filed within 3 years after the date the original return was filed or within 2 years after the date the tax was paid, whichever is later. But you may have more time to file Form 1040X if you live in a federally declared disaster area or you are physically or mentally unable to manage your financial affairs. See Pub. 519 and Pub. 556 for details.

How Do You Get a Copy of Your Tax Return Information?

Tax return transcripts are free and generally are used to validate income and tax filing status for mortgage applications, student and small business loan applications, and during tax preparation. To get a free transcript:

  • Visit IRS.gov and click on “Get Transcript of Your Tax Records” under “Tools,

  • Use Form 4506-T or 4506T-EZ,

  • If you are in the United States, call 1-800-908-9946, or

  • If you are outside the United States, call 267-941-1000 (English speaking only). This number is not toll-free.

If you need a copy of your actual tax return, use Form 4506. There is a fee for each return requested. See Form 4506 for the current fee. If your main home, principal place of business, or tax records are located in a federally declared disaster area, this fee will be waived.

Death of a Taxpayer

If a taxpayer died before filing a return for 2014, the taxpayer's personal representative may have to file and sign a return for that taxpayer. A personal representative can be an executor, administrator, or anyone who is in charge of the deceased taxpayer's property. If the deceased taxpayer did not have to file a return but had tax withheld, a return must be filed to get a refund. The person that files the return must enter “Deceased,” the deceased taxpayer's name, and the date of death across the top of the return. If this information is not provided, it may delay the processing of the return.

The personal representative should promptly notify all payers of income, including financial institutions, of the taxpayer's death. This will ensure the proper reporting of income earned by the taxpayer's estate or heirs. A deceased taxpayer's SSN or ITIN should not be used for tax years after the year of death, except for estate tax return purposes.

Claiming a Refund for a Deceased Taxpayer

If you are a court-appointed representative, file Form 1040NR for the decedent and include a copy of the certificate that shows your appointment. All other filers requesting the deceased taxpayer's refund, including the deceased taxpayer's spouse, must file the return and attach Form 1310.

For more details, use TeleTax topic 356 or see Pub. 559, Survivors, Executors, and Administrators.

Past Due Returns

If you or someone you know needs  
to file past due tax returns, use  
TeleTax topic 153 or go to  
www.irs.gov/individuals for help in filing those returns. Send the return to the address shown in the latest Form 1040NR instructions. For example, if you are filing a 2011 return in 2015, use the address in Where To File, earlier. However, if you got an IRS notice, mail the return to the address in the notice.

How To Get Tax Help

Do you need help with a tax issue or preparing your tax return, or do you need a free publication or form?

Preparing and filing your tax return.   Find free options to prepare and file your return on IRS.gov or in your local community if you qualify.
  • Go to IRS.gov and click on the Filing tab to see your options.

  • Enter “VITA” in the search box, download the free IRS2Go app, or call 1-800-906-9887 to find the nearest Volunteer Income Tax Assistance or Tax Counseling for the Elderly (TCE) location for free tax preparation.

  • Enter “TCE” in the search box, download the free IRS2Go app, or call 1-888-227-7669 to find the nearest Tax Counseling for the Elderly location for free tax preparation.

  The Volunteer Income Tax Assistance (VITA) program offers free tax help to people who generally make $53,000 or less, persons with disabilities, the elderly, and limited-English-speaking taxpayers who need help preparing their own tax returns. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors.

Getting answers to your tax law questions.   IRS.gov and IRS2Go are ready when you are—24 hours a day, 7 days a week.
  • Enter “ITA” in the search box on IRS.gov for the Interactive Tax Assistant, a tool that will ask you questions on a number of tax law topics and provide answers. You can print the entire interview and the final response.

  • Enter “Tax Map” or “Tax Trails” in the search box for detailed information by tax topic.

  • Call TeleTax at 1-800-829-4477 for recorded information on a variety of tax topics. See What Is TeleTax?, later, for a list of the topics covered.

  • Go to IRS.gov and click on the Help & Resources tab for more information.

Tax forms and publications.   You can download or print all of the forms and publications you may need on www.irs.gov/formspubs. Otherwise, you can:
  • Go to www.irs.gov/orderforms to place an order and have forms mailed to you.

  • Call 1-800-829-3676 to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years).

You should receive your order within 10 business days.

Where to file your tax return.   
  • See Where To File near the beginning of these instructions to determine where to mail your completed tax return.

Getting a transcript or copy of a return.   
  • Go to IRS.gov and click on “Get Transcript of Your Tax Records” under “Tools.

  • Download the free IRS2Go app to your smart phone and use it to order transcripts of your tax returns or tax account.

  • Call the transcript toll-free line at 1-800-908-9946.

  • Mail Form 4506-T or Form 4506T-EZ (both available on IRS.gov).

Using online tools to help prepare your return.   Go to IRS.gov and click on the Tools bar to use these and other self-service options.

Understanding identity theft issues.   

Checking on the status of a refund.   
  • Go to www.irs.gov/refunds.

  • Download the free IRS2Go app to your smart phone and use it to check your refund status.

  • Call the automated refund hotline at 1-800-829-1954. See Refund Information, later.

Making a tax payment.   You can make electronic payments online, by phone, or from a mobile device. Paying electronically is safe and secure. The IRS uses the latest encryption technology and does not store banking information. It’s easy and secure and much quicker than mailing in a check or money order. Go to IRS.gov and click on the Payments tab or the “Pay Your Tax Bill” icon to make a payment using the following options.
  • Direct Pay (only if you have a checking or savings account).

  • Debit or credit card.

  • Electronic Federal Tax Payment System.

  • Check or money order.

What if I can’t pay now?   Click on the Payments tab or the “Pay Your Tax Bill” icon on IRS.gov to find more information about these additional options.
  • An online payment agreement determines if you are eligible to apply for an installment agreement if you cannot pay your taxes in full today. With the needed information, you can complete the application in about 30 minutes, and get immediate approval.

  • An offer in compromise allows you to settle your tax debt for less than the full amount you owe. Use the Offer in Compromise Pre-Qualifier to confirm your eligibility.

Checking the status of an amended return.   

Understanding an IRS notice or letter.   
  • Enter “Understanding your notice” in the search box on IRS.gov to find additional information about your IRS notice or letter.

Visiting the IRS.   
  • Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS.gov. Enter “office locator” in the search box. Or choose the “Contact Us” option on the IRS2Go app and search Local Offices. Before you visit, use the Locator tool to check hours and services available.

  • If you wish to write instead of calling, please address your letter to:

    Internal Revenue Service 
    International Accounts 
    Philadelphia, PA 19255-0725  
    U.S.A.

Make sure you include your identifying number (defined in Identifying Number, earlier) when you write.

Watching IRS videos.   The IRS Video portal www.irsvideos.gov contains video and audio presentations on topics of interest to individuals, small businesses, and tax professionals. You’ll find video clips of tax topics, archived versions of live panel discussions and Webinars, and audio archives of tax practitioner phone forums.

Getting tax information in other languages.   For taxpayers whose native language is not English, we have the following resources available.
  • Taxpayers can find information on IRS.gov in the following languages.

  • Spanish.

  • Chinese.

  • Vietnamese.

  • Korean.

  • Russian.

  • The IRS Taxpayer Assistance Centers provide over-the-phone interpreter service in over 170 languages, and the service is available free to taxpayers.

Taxpayer assistance outside the United States.   If you are outside the United States, you can call 267-941-1000 (English speaking only). This number is not toll free.

  Outside the United States, we will answer your tax questions and help with account problems at any of our overseas offices. You can phone or visit—just be sure to have last year’s tax return, your wage and income statements, and your other tax records with you. If you wish to write instead of calling, please contact the office to obtain the mailing address.

  The offices are located in the following countries.
  • Frankfurt, Germany

    U.S. Consulate Frankfurt 
    Giessener Str. 30 
    60435 Frankfurt am Main  
    Germany  
    Tel. {49} (69) 7535-3823

     

  • London, England

    U.S. Embassy  
    24 Grosvenor Square  
    London, W1K 6AH  
    United Kingdom  
    Tel. {44} (207) 894-0477  
    Fax {44} (207) 495-4224

     

  • Paris, France

    U.S. Embassy 
    2 avenue Gabriel  
    75382 Paris Cedex 08  
    France  
    Tel. {33} (1) 4312-2555  
    Fax {33} (1) 4312-2303

Many of our U.S. embassies and consulates abroad also offer tax forms, instructions, publications and services (but only during the tax return filing period).

Taxpayer Bill of Rights 
 
All taxpayers have fundamental rights they should be aware of when dealing with the IRS. The Taxpayer Bill of Rights, which the IRS adopted in June of 2014, takes existing rights in the tax code and groups them into the following 10 broad categories, making them easier to understand. Explore your rights and our obligations to protect them.
 
The right to be informed. Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear explanations of the outcomes. 
 
The right to quality service. Taxpayers have the right to receive prompt, courteous, and professional assistance in their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service. 
 
The right to pay no more than the correct amount of tax. Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly. 
 
The right to challenge the IRS's position and be heard. Taxpayers have the right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions, to expect that the IRS will consider their timely objections and documentation promptly and fairly, and to receive a response if the IRS does not agree with their position.  
 
The right to appeal an IRS decision in an independent forum. Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties, and have the right to receive a written response regarding the Office of Appeals’ decision. Taxpayers generally have the right to take their cases to court.  
 
The right to finality. Taxpayers have the right to know the maximum amount of time they have to challenge the IRS’s position as well as the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt. Taxpayers have the right to know when the IRS has finished an audit. 
 
The right to privacy. Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary, and will respect all due process rights, including search and seizure protections and will provide, where applicable, a collection due process hearing. 
 
The right to confidentiality. Taxpayers have the right to expect that any information they provide to the IRS will not be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action will be taken against employees, return preparers, and others who wrongfully use or disclose taxpayer return information. 
 
The right to retain representation. Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS. Taxpayers have the right to seek assistance from a Low Income Taxpayer Clinic if they cannot afford representation. 
 
The right to a fair and just tax system. Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels. 
 
Learn more at www.irs.gov/taxpayerrights.

The IRS Mission
Provide America's taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.

Interest and Penalties

You do not have to figure the amount of any interest or penalties you may owe. Because figuring these amounts can be complicated, we will do it for you if you want. We will send you a bill for any amount due.

If you include interest or penalties (other than the estimated tax penalty) with your payment, identify and enter the amount in the bottom margin of Form 1040NR, page 2. Do not include interest or penalties (other than the estimated tax penalty) in the amount you owe on line 75.

Interest

We will charge you interest on taxes not paid by their due date, even if an extension of time to file is granted. We also will charge you interest on penalties imposed for failure to file, negligence, fraud, substantial valuation misstatements, substantial understatements of tax, and reportable transaction understatements. Interest is charged on the penalty from the due date of the return (including extensions).

Penalties

Late filing.   If you do not file your return by the due date (including extensions), the penalty is usually 5% of the amount due for each month or part of a month your return is late, unless you have a reasonable explanation. If you do, include it with your return. The penalty can be as much as 25% of the tax due. The penalty is 15% per month, up to a maximum of 75%, if the failure to file is fraudulent. If your return is more than 60 days late, the minimum penalty will be $135, adjusted for inflation, or the amount of any tax you owe, whichever is smaller.

Late payment of tax.   If you pay your taxes late, the penalty is usually ½ of 1% of the unpaid amount for each month or part of a month the tax is not paid. The penalty can be as much as 25% of the unpaid amount. It applies to any unpaid tax on the return. This penalty is in addition to interest charges on late payments.

Frivolous return.   In addition to any other penalties, the law imposes a penalty of $5,000 for filing a frivolous return. A frivolous return is one that does not contain information needed to figure the correct tax or shows a substantially incorrect tax because you take a frivolous position or desire to delay or interfere with the tax laws. This includes altering or striking out the preprinted language above the space where you sign. For a list of positions identified as frivolous, see Notice 2010-33, 2010-17 I.R.B. 609, available at www.irs.gov/irb/2010-17_IRB/ar13.html.

Other.   Other penalties can be imposed for negligence, substantial understatement of tax, reportable transaction understatements, filing an erroneous refund claim, and fraud. Criminal penalties may be imposed for willful failure to file, tax evasion, making a false statement or identity theft. See chapter 7 of Pub. 519 for details on some of these penalties.

Refund Information

Visit IRS.gov and click on Where's My Refund? 24 hours a day, 7 days a week. Information about your return will generally be available within 4 weeks after you mail a paper return.

To use Where’s My Refund? have a copy of your tax return handy. You will need to enter the following information from your return:

  • Your social security number (or other identification number),

  • Your filing status, and

  • The exact whole dollar amount of your refund.

Where's My Refund will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund.

Refunds of certain withholding tax.   The processing of refund requests of tax withheld and reported on a Form 1042-S or Form 8805 may require additional time. Allow up to 6 months for these refunds to be issued.

Updates to refund status are made once a day - usually at night.

If you do not have Internet access many services are available by phone.

  • You can check the status of your refund on the free IRS2Go app.

  • If you are in the United States call 1-800-829-1954 24 hours a day, 7 days a week, for automated refund information. Our phone and walk-in assistors can research the status of your refund only if it's been more than 6 weeks since you mailed your paper return.

Do not send in a copy of your return unless asked to do so.

To get a refund, you generally must file your return within 3 years from the date the return was due (including extensions).

Where’s My Refund? does not track refunds that are claimed on an amended tax return.

Refund information also is available in Spanish at www.irs.gov/espanol and 1-800-829-1954.

What Is TeleTax?

You can use TeleTax to read or listen to pre-recorded messages on various tax topics. All topics are available in Spanish.

Topics by Internet

TeleTax topics are available at www.irs.gov/taxtopics. Click on the link for the number of the topic you want to read.

Recorded Tax Information

Recorded tax information is available 24 hours a day, 7 days a week. Select the number of the topic you want to hear and call 1-800-829-4777. Have paper and pencil handy to take notes.

Tax information for aliens.   
  • 851 Resident and nonresident aliens

  • 856 Foreign tax credit

  • 857 Individual taxpayer identification number (ITIN)-Form W-7

  • 858 Alien tax clearance

Disclosure, Privacy Act, and Paperwork Reduction Act Notice

We ask for the information on this form to carry out the Internal Revenue laws of the United States. Sections 6001, 6011, 6012(a) and their regulations require that you give us the information.

We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. Section 6109 requires you to provide your identifying number. If you fail to provide the requested information in a timely manner, you may be charged penalties and interest and be subject to criminal prosecution. We may also have to disallow the exemptions, exclusions, credits, deductions, or adjustments; this could make the tax higher or delay any refund. Interest may also be charged.

This notice applies to all papers you file with us, including this tax return. It also applies to any questions we need to ask to complete, correct, or process your return; figure your tax; and collect tax, interest, or penalties. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law.

Generally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the Internal Revenue Service to disclose or give the information shown on your tax return to others as described in the Code. For example, we may disclose your tax information to the Department of Justice, to enforce the tax laws, both civil and criminal, and to cities, states, the District of Columbia, and U.S. commonwealths or possessions to carry out their tax laws. We may disclose your tax information to the Department of Treasury and contractors for tax administration purposes; and to other persons as necessary to obtain information needed to determine the amount of or to collect the tax you owe. We may disclose your tax information to the Comptroller General of the United States to permit review of the Internal Revenue Service. We may disclose your tax information to committees of Congress; federal, state, and local child support agencies; and to other federal agencies for purposes of determining entitlement for benefits or the eligibility for and the repayment of loans. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. Keep this notice with your records. It may help you if we ask you for other information. If you have any questions about the rules for filing and giving information, call or visit any Internal Revenue Service office.

We Welcome Comments on Forms

We try to create forms and instructions that can be easily understood. Often this is difficult to do because our tax laws are very complex. For some people with income mostly from wages, filling in the forms is easy. For others who have businesses, pensions, stocks, rental income, or other investments, it is more difficult.

If you have suggestions for making these forms simpler, we would be happy to hear from you. You can send us comments from www.irs.gov/formspubs. Select “Give us feedback” under “More Information.” Or you can send your comments to:

Internal Revenue Service 
Tax Forms and Publications Division 
1111 Constitution Ave. NW, IR-6526 
Washington, DC 20224 
U.S.A.

Do not send your return to this address. Instead, see Where To File, earlier.

Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms and instructions.

Reported time and cost burdens are national averages and do not necessarily reflect a “typical” case.

Estimates of Taxpayer Burden

The following table shows burden estimates as of November 2014, for taxpayers filing a 2014 Form 1040NR tax return.

Form Average Time Burden (Hours) Average Cost*
1040NR 14 $220
*Dollars rounded to the nearest $10.

Most taxpayers experience lower than average burden, with taxpayer burden varying considerably by taxpayer type. The estimated average time burden for all taxpayers filing a Form 1040NR is 14 hours, with an average cost of $220 per return. This average includes all related forms and schedules, across all preparation methods and taxpayer activities. Within these estimates, there is significant variation in taxpayer activity.

Out-of-pocket costs include any expenses incurred by taxpayers to prepare and submit their tax returns. Examples include tax return preparation and submission fees, postage and photocopying costs, and tax preparation software costs. Tax preparation fees vary widely depending on the tax situation of the taxpayer, the type of professional preparer, and the geographic area.

If you have comments concerning the time and cost estimates, you can contact us at either one of the addresses shown under We Welcome Comments on Forms, earlier.

The Taxpayer Advocate Service Is Here To Help You 
 
What is the Taxpayer Advocate Service? 
The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service that helps taxpayers and protects taxpayer rights. Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights
 
What Can the Taxpayer Advocate Service Do For You? 
We can help you resolve problems that you can’t resolve with the IRS. And our service is free. If you qualify for our assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if:
  • Your problem is causing financial difficulty for you, your family, or your business,

  • You face (or your business is facing) an immediate threat of adverse action, or

  • You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.

 
 
How Can You Reach Us? 
We have offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is in your local directory and at taxpayeradvocate.irs.gov. You can also call us at 1-877-777-4778. 
 
How Can You Learn About Your Taxpayer Rights? 
The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. Our Tax Toolkit at taxpayeradvocate.irs.gov can help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them. 
 
How Else Does the Taxpayer Advocate Service Help Taxpayers? 
TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to us at irs.gov/sams.
 

Low Income Taxpayer Clinics Help Taxpayers
Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. To find a clinic near you, visit www.irs.gov/litc or see IRS Publication 4134, Low Income Taxpayer Clinic List.
 

Suggestions for Improving the IRS 
 
Taxpayer Advocacy Panel
Have a suggestion for improving the IRS and do not know who to contact? The Taxpayer Advocacy Panel (TAP) is a diverse group of citizen volunteers who listen to taxpayers, identify taxpayers’ issues, and make suggestions for improving IRS service and customer satisfaction. The panel is demographically and geographically diverse, with at least one member from each state, the District of Columbia, and Puerto Rico. Contact TAP at www.improveirs.org or 1-888-912-1227 (toll-free).
 


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