Form 1040NR
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Table of Contents
Form 1040NR: Nonresident alien tax return guide
If you earned US-source income, such as wages, business income, or investment income, but are not a US tax resident, you may need to file Form 1040NR. Form 1040NR is the federal tax return for nonresident aliens. You file it when you are not a US tax resident but have US-source income. It is different from Form 1040, which is used by US residents for tax purposes.
Your tax residency status determines which return you file and what income you must report. If residency is determined incorrectly, you could file the wrong form or report the wrong income.
What is Form 1040NR?
Form 1040NR is the US federal income tax return used by nonresident aliens who have US-source income. The IRS instructions for 2025–2026 make this clear: if you are a nonresident for tax purposes and have income that must be reported, 1040NR is generally your form.
It is not determined solely by where you physically live. It is determined by specific IRS residency tests.
People typically encounter Form 1040NR in situations like:
- Working temporarily in the US
- Receiving a US paycheck with withholding
- Earning US dividends or other investment income
- Receiving US scholarships or grants
- Operating or participating in a US business
Sometimes you file because tax was withheld and you want a refund. Other times you file because the law requires reporting, even if you expect little or no tax due.
Who must file Form 1040NR?
You generally must file Form 1040NR if:
- You are classified as a nonresident alien for US tax purposes, and
- You earned income from US sources that is taxable under US law or requires reporting to reconcile withholding.
In other words, Form 1040NR applies when you are treated as a nonresident alien for US tax purposes, but you earned income connected to the US.
Common filing scenarios:
|
Situation |
File Form 1040NR? |
Why |
|
You worked in the US and were a nonresident for tax purposes |
Yes |
US wages must be reported |
|
US tax was withheld, and you want a refund |
Yes |
You must reconcile withholding |
|
You earned income connected to a US business |
Yes |
Effectively connected income must be reported |
|
You are a US tax resident under IRS tests |
No (usually 1040) |
Residents file Form 1040 |
Got Form 1040NR questions? Get in touch today for expert answers.
Form 1040NR vs Form 1040: which one applies?
Everything depends on your tax residency status, not where you physically live today. The IRS uses two main tests: the Green Card test and the Substantial Presence Test.
- Green Card test
If you were a lawful permanent resident (Green Card holder) at any time during the year, you are generally treated as a US resident for tax purposes for that year. In that case, Form 1040 usually applies instead of 1040NR.
However, immigration status changes mid-year can create split situations. That’s where dual-status returns enter the picture.
- Substantial presence test
This test is based on days spent in the United States. To meet it, you generally must:- Be present in the US for at least 31 days in the current year, and
- Have a total of 183 or more weighted days over the current year and the two prior years (where the current year counts fully, the prior year counts one-third, and the year before that counts one-sixth).
However, certain visa categories (such as some student and teacher visas) allow excluded days. If you are close to the 183-day threshold, reducing the number of days spent in the United States before year-end may prevent you from meeting the substantial presence test.
Dual-status returns
Sometimes your residency changes during the year. For example:
- You move to the US
- You leave the US permanently
- You receive a Green Card mid-year
When your residency changes during the year, you have a dual-status year. This means part of the year is taxed under resident rules and part under nonresident rules.
If you are a resident on the last day of the year, you generally file Form 1040 as the main return and attach a statement covering the nonresident portion of the year.
If you are a nonresident on the last day of the year, you generally file Form 1040NR as the main return and attach a statement covering the resident portion of the year.
What income goes on Form 1040NR?
The IRS divides nonresident income into two main categories: Effectively Connected Income (ECI) and FDAP income. The difference matters because each category is taxed differently.
Effectively Connected Income (ECI) is income that arises from working in the United States or operating a US trade or business.
- Wages from a US employer
- Self-employment income connected to US services
- Business profits from US operations
ECI is taxed at graduated rates, similar to how residents are taxed. You can usually deduct expenses that are directly connected to earning that income. In practice, this means careful tracking of business-related expenses can reduce taxable income.
FDAP income (Fixed, Determinable, Annual, or Periodical income) is usually passive US-source income. Common examples include:
- Dividends
- Royalties
- Rental income
- Certain types of US-source interest (although some bank deposit interest may be exempt from US tax for nonresidents)
FDAP income is typically subject to a flat 30% withholding rate at the source, unless a tax treaty reduces that rate. Unlike ECI, FDAP income is usually taxed on a gross basis, meaning you typically cannot deduct expenses against it.
When FDAP income is involved, Schedule NEC (attached to Form 1040NR) is typically used to calculate the tax separately from effectively connected income.
Note: It’s common to have both in the same year. For example, US wages (ECI) and US dividends (FDAP).
What deductions and credits apply to Form 1040NR?
Form 1040NR does not follow the same deduction and credit rules as Form 1040. Nonresident aliens are taxed under a narrower framework, and many benefits available to US residents simply do not apply.
Standard deduction
Most individuals filing Form 1040NR cannot claim the standard deduction. There are limited exceptions, including certain treaty provisions, but they are specific and must be carefully verified.
If you filed Form 1040 in a prior year, do not assume the same deduction rules apply now. Residency status controls eligibility.
Deductions tied to effectively connected income (ECI)
If you have effectively connected income (ECI), you may deduct expenses that are directly connected to earning that income. Common examples include:
- Business expenses
- Certain state income taxes related to ECI
However, personal deductions are generally more limited than on a resident return. The deduction must have a clear link to the US income being reported.
Tip: If you have business-related ECI, document expenses carefully. Proper classification can significantly reduce taxable income, but only if the connection to US activity is clear.
Tax credits
Many common credits available to US residents, such as the Earned Income Tax Credit, are not available to most nonresident aliens.
Many refunds arise because employers or payors withhold tax at flat rates, such as 30%, even when a lower treaty rate applies.
Tax treaty benefits on Form 1040NR
US tax treaties can significantly affect a Form 1040NR filing. Depending on your country of residence, a treaty may:
- Reduce the standard 30% withholding rate on passive income
- Exempt certain income (such as specific scholarships or training income)
- Provide residency tie-breaker rules
Treaty claims must align with how income is reported on the return.
Note: If you are claiming treaty benefits, determine whether Form 8833 (Treaty-Based Return Position Disclosure) is required. Some treaty claims are reported directly on Form 1040NR, while others require disclosure on Form 8833 under IRC §6114.
How to file Form 1040NR
Here’s a step-by-step procedure on filing Form 1040NR:
Step 1: Gather your documents
You will typically need:
- Form W-2
- Form 1042-S
- Relevant 1099 forms
- Brokerage or bank statements
- Travel and visa records
- Prior year returns
Step 2: Confirm your taxpayer identification number
Before you file Form 1040NR, you must have a valid US taxpayer identification number. The IRS will not process your return without one. There are two possibilities:
|
Identification |
Who it applies to |
Key point |
|
SSN (Social Security Number) |
Individuals authorized to work in the US |
Issued through the Social Security Administration |
|
ITIN (Individual Taxpayer Identification Number) |
Individuals required to file a US return but not eligible for an SSN |
Issued by the IRS |
If you have an SSN, use it. Do not apply for an ITIN instead.
You may need an ITIN if:
- You earned US income but were not eligible for an SSN
- You are claiming treaty benefits
- You need to file Form 1040NR to claim a refund
- You are listed on a return but are not eligible for an SSN
An ITIN is strictly for tax filing. It does not authorize you to work in the US or provide immigration status.
Step 3: Submit the return (e-file or paper)
After confirming your identification number, you must decide whether to e-file or mail your return. E-filing is generally the smoother option when available. However, not all tax software supports every 1040NR situation, especially complex treaty claims or dual-status returns.
Paper filing may be necessary if:
- You are applying for an ITIN
- Software does not support your situation
- You must attach additional required statements
Due dates for Form 1040NR
Form 1040NR does not always follow the same deadline as Form 1040. The due date depends on whether you received wages subject to US withholding. For calendar-year filers (2025 tax year, filed in 2026):
- April 15, 2026: if you received wages subject to US withholding.
- June 15, 2026: if you did not receive wages subject to withholding.
These dates follow the IRS Form 1040NR instructions for the 2025 tax year. An extension extends the time to file, but not the time to pay any tax due.
Final checklist before filing Form 1040NR
Before submitting your return, review the following:
- Confirm residency status under IRS rules
- Classify income as ECI or FDAP
- Reconcile all US withholding
- Verify treaty eligibility
- Confirm SSN or ITIN status
- Check your filing deadline
Form 1040NR follows a structured framework. Most filing errors occur when residency status or income classification is determined incorrectly.
For US expats and nonresident individuals, careful planning, especially around residency days, treaty claims, and withholding rates, can significantly reduce unnecessary tax and prevent reporting errors.
FAQ'S
Can I amend Form 1040NR if I forgot income or missed a treaty benefit?
Yes. You can generally amend a previously filed Form 1040NR using Form 1040-X for any year that remains open under the statute of limitations.
Do I need to file a US state tax return if I file Form 1040NR?
What if I don’t have an SSN or ITIN yet?
How long does it take to get a refund after filing Form 1040NR?
I filed Form 1040, but I think I was a nonresident and should’ve filed 1040NR. What do I do?
