Form 1040NR - U.S. Nonresident Alien Income Tax Return

             Form 1040NR, U.S. Nonresident Alien Income Tax Return, is used by taxpayers who meet any of the following four criteria.  If the taxpayer was a nonresident alien conducting a trade or business in the United States during the year, he or she would be required to file even though one of the following is true:  they did not have any income from the trade or business conducted in the United States, they did not have any U.S. source income, or their income was exempt from U.S. tax due to a tax treaty or the Internal Revenue Code.           

            The second criteria that would cause a taxpayer to be required to file Form 1040NR is if that taxpayer was a nonresident alien who was not conducting a trade or business in the United States during the year and one of the following situations apply to the taxpayer.  If the taxpayer received income from U.S. sources which is reportable on lines 76a through line 85, and the full amount of U.S. tax owed was not captured by withholding from the income, the taxpayer is required to file.  Another situation where the taxpayer would be required to file is if the taxpayer represents a deceased person who would have been required to file Form 1040NR.  Also, if the taxpayer represents an estate or trust that is required to file Form 1040NR, they would be required to file.

            There are several exceptions to the filing requirements for Form 1040NR.  A taxpayer would not be required to file Form 1040NR if performing personal services was their only U.S. trade or business, and the amount earned was under $3,400.  Also required for this exception is that the taxpayer does not have any other reason to file a return for the purpose of claiming a refund for excess withheld taxes, or to satisfy additional withholding at the source, or for the purpose of claiming income that is exempt or partially exempt by treaty.  Another exception for filing is if the taxpayer was a nonresident alien student, teacher, or trainee who resided on a temporary basis in the U.S. under an “F,” “J,” “M,” or “Q” visa, and did not have any income which is subject to tax under Section 871.

             There is also an exception related to children under the age of eighteen.  If the child’s only income was from interest and dividends that were related to a U.S. trade or business, and the total amount of that income was less than $8,500, the taxpayer can elect to report the child’s income on their return.  If this election is made, the taxpayer is required to complete Form 8814, and the child would not be required to file a return.

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