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

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