Filing Tax Returns for Nonresidents

Who Is a Nonresident Alien?
A nonresident alien is an individual who is not a U.S. citizen and does not meet the IRS's green card test or substantial presence test.

Who Must File

You must file a U.S. tax return as a nonresident alien if:

  • You were engaged or considered to be engaged in a trade or business in the U.S. during the year.
  • You had U.S.-source income on which the tax was not fully withheld at the source, even if not engaged in a trade or business.
  • You want to claim a refund of overpaid or overwithheld tax, or claim deductions or credits.

Special note: Nonresident alien students, teachers, or trainees temporarily in the U.S. on F, J, M, or Q visas are generally considered engaged in a trade or business and must file if they have taxable U.S. income.

What Form to File

  • Form 1040-NR: This is the main federal income tax return for non-resident aliens. Each nonresident must file their own return; joint filing is not allowed unless one spouse is a U.S. citizen or resident and both elect to be treated as residents.
  • Form 8843: If you are a nonresident student or scholar and had no U.S. income, you may still need to file this form to claim exemption from the substantial presence test.

What Income to Report

  • Nonresidents report only U.S.-source income and income effectively connected with a U.S. trade or business.
  • Income from outside the U.S. is generally not taxed for nonresident aliens.

How to File

  1. Collect Documentation: Gather all relevant income documents (e.g., W-2, 1042-S, 1099).
  2. Complete Form 1040-NR: Fill out the form with your income, deductions, and credits.
  3. File Electronically or by Mail: You can file electronically using approved software or mail your return to the IRS.
  4. Pay Any Tax Owed: If you owe taxes, pay by the deadline to avoid penalties.
  5. State Taxes: Check state requirements, as many states require nonresidents to file if they earned income in that state. Rules and thresholds vary by state.

Additional Considerations

  • If you had no U.S.-source income but were present in the U.S. as a student or scholar, you still need to file Form 8843.
  • If you are married to a U.S. citizen or resident, you may elect to file jointly as residents, but this means your worldwide income is subject to U.S. tax.

Summary Table

Requirement

Form to File

Notes

U.S.-source income

1040-NR

Report only U.S. income

No U.S. income, but present

8843

For students/scholars on F, J, M, Q visas

Claiming refund/credits

1040-NR

File even if no tax due

State income

State return

Rules vary by state

 

For more details, refer to the IRS website on taxation of non-resident aliens.