Schedule NEC Example—John Maple

Schedule NEC Example—John Maple

Summary. This is an example of Schedule NEC as pertains to the description in the text. The item lines and columns completed are

  • "Schedule NEC−Tax on Income Not Effectively Connected With a U.S. Trade or Business"

  • Divided in 2 columns

  • 1– Nature of Income

  • 2– Amount of Income under the appropriate rate of tax. This column is subdivided 4 columns listed as (a) 10%, (b) 15%, (c) 30%, and (d). Column (d) is divided in 2 columns each for 0%.

"1. Dividends paid by:"
"a. U.S. Corporation, ..................... Column (b)" field contains 1,000
"10. Gambling—Residents of Canada only. Enter net income in column (c). If zero or less, enter –0–" "a. Winnings _______" field contains 5,000
"11. Column (a) unshaded."
"b. Losses ________"field contains 4,500"10c Column (c)"field contains 500
"13. Column (b) and column (c)"fields contain 1,000 and 500
"14. Multiply line 13 by rate of tax at top of each column. Column (b) and column (c)"fields contain 150 and 150
"15. Tax on Income Not Effectively Connected With a U.S. Trade or Business. Add columns (a)–(d) of line 14. Enter the total here and on Form 1040-NR, line 54 "field contains 300