U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents
May I Use Form 1040NR-EZ?
You can use Form 1040NR-EZ instead of Form 1040NR if all nine of the following apply.
- You do not claim any dependents.
- You cannot be claimed as a dependent on another person's U.S. tax return (such as your parent's return).
- Your only U.S. source income was from wages, salaries, tips, taxable refunds of state and local income taxes, and scholarship or
If you had taxable interest or dividend income, you cannot use this form.
- Your taxable income (line 14 of Form 1040NR-EZ) is less than $50,000.
- The only adjustments to income you can claim are the student loan interest deduction or the exclusion for scholarship and fellowship
- You do not claim any tax credits.
- If you were married, you do not claim an exemption for your spouse.
- The only itemized deduction you can claim is for state and local income taxes.
Residents of India who were students or business apprentices may be able to take the standard deduction instead of the itemized deduction for state
and local income taxes. See the instructions for line 11 on page 6.
- The only taxes you owe are:
- The tax from the Tax Table on pages 11 through 15.
- The social security and Medicare tax on tip income not reported to your employer.
Whats New for 2001?
Scholarship and Fellowship Grants
The information that a nonresident alien receives on Form 1042-S about scholarship or fellowship grants has changed. In particular, withholding
agents (for example, colleges and universities) are no longer required to report amounts that are exempt from tax under section 117 (that is, tuition,
fees, books, supplies, and equipment) on Form 1042-S. (Previously, all scholarship or fellowship grant information was reported on Form
1042-S, including amounts that were exempt from tax under section 117.) Also, Form 1042-S has been completely redesigned. The instructions
for line 5 (on page 4) and line 9 (on page 6) reflect these changes.
Tax Rates Reduced
Most of the tax rates have been reduced and a new 10% tax rate has been added. The new rates are reflected in the Tax Table that begins on page 11.
Student Loan Interest Deduction
If you paid interest on a qualified student loan, you may be able to deduct up to $2,500 of the interest on line 8. See the instructions for line 8
on page 5 for details.
Third Party Designee
If you want to allow the IRS to discuss your 2001 tax return with a family member, friend, or any other person you choose, check the Yes box
in the Third Party Designee area of your return and enter the requested information. See page 7 for details.
Tax Relief for Victims of Terrorist Attacks
See Pub. 3920.
What To Look for in 2002
Reduced Tax Rates
Most of the tax rates will decrease by ½%.
Student Loan Interest Deduction
The 60-month limit will no longer apply and the modified AGI limit will increase.
Other Reporting Requirements
If you meet the closer connection to a foreign country exception to the substantial presence test, you must file Form 8840. If you
exclude days of presence in the United States for purposes of the substantial presence test, you must file Form 8843. This rule does not
apply to foreign-government-related individuals who exclude days of presence in the United States. Certain dual-resident taxpayers who claim tax
treaty benefits must file Form 8833. A dual-resident taxpayer is one who is a resident of both the United States and another country under
each country's tax laws.
If you need more information, our free publications may help you. Pub. 519, U.S. Tax Guide for Aliens, will be the most important, but
the following publications may also help.
||Recordkeeping for Individuals
||Information on the United States-Canada Income Tax Treaty
||U.S. Tax Treaties
||Guide to Free Tax Services (includes a list of all publications)
These free publications and the forms and schedules you will need are available on request from the Internal Revenue Service. If you have a foreign
address, send your order to the Eastern Area Distribution Center, P.O. Box 85074, Richmond, VA 23261-5074, U.S.A. You may also download forms and
publications from the IRS Web Site at www.irs.gov. Also see Taxpayer Assistance on page 9 for other ways to get these forms and
publications (as well as information on receiving IRS assistance in completing the forms).
Resident Alien or Nonresident Alien
If you are not a citizen of the United States, specific rules apply to determine if you are a resident alien or a nonresident alien for tax
purposes. Generally, you are considered a resident alien if you meet either the green card test or the substantial presence test
for 2001. If you do not meet either of these tests for 2001 but you meet the substantial presence test for 2002, you may be able to choose to be
treated as a resident alien for part of 2001. But you must have been physically present in the United States for at least 31 days in a row during 2001
to do so. This choice does not apply if you met either the green card test or the substantial presence test for 2000. For more details, see Pub. 519.
You are considered a nonresident alien for the year if you are not a U.S. resident under either of these tests. You are also considered a
nonresident alien if you otherwise meet the substantial presence test but you come under any of the three exceptions described below.
For more details on resident and nonresident status, the tests for residence and the exceptions to them, see Pub. 519.
Green Card Test.
You are a resident for tax purposes if you were a lawful permanent resident (immigrant) of the United States at any time during 2001.
Substantial Presence Test.
You are considered a U.S. resident if you meet the substantial presence test for 2001. You meet this test if you were physically present in the
United States for at least:
- 31 days during 2001 and
- 183 days during the period 2001, 2000, and 1999, counting all the days of physical presence in 2001 but only 1/3 the number of
days of presence in 2000 and only 1/6 the number of days in 1999.
Generally, you are treated as present in the United States on any day that you are physically present in the country at any time during the day.
- Exempt individual. You do not count days for which you are an exempt individual. In general, an exempt individual is an
individual who is a:
- Foreign-government-related individual,
- Teacher or trainee,
- Student, or
- Professional athlete who is temporarily in the United States to compete in a charitable sports event.
Alien individuals with Q visas are treated as either students or teachers and trainees and, as such, are exempt individuals for purposes of
the substantial presence test if they otherwise qualify. Q visas are issued to aliens participating in certain international cultural exchange
Medical condition. You do not count any day that you intended to leave the United States but were unable to leave because of a
medical condition or medical problem that arose while you were present in the United States.
This exception does not apply to pre-existing medical conditions or problems. For more details, see Pub. 519.
Closer connection to foreign country. Even though you would otherwise meet the substantial presence test, you are not treated as
having met that test for 2001 if you:
- Were present in the United States for fewer than 183 days during 2001,
- Establish that during 2001 you had a tax home in a foreign country, and
- Establish that during 2001 you had a closer connection to one foreign country in which you had a tax home than to the United States unless
you had a closer connection to two foreign countries.
Who Must File
File Form 1040NR-EZ (or Form 1040NR) if you were a nonresident alien engaged in a trade or business in the United States during 2001. You must file
even if -
- None of your income came from a trade or business conducted in the United States,
- You have no income from U.S. sources, or
- Your income is exempt from U.S. tax.
Exception. If you were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an
F, J, M, or Q visa, you must file Form 1040NR-EZ (or Form 1040NR) only if you have income (such as wages,
salaries, tips, etc. or scholarship and fellowship grants) that is subject to tax under section 871.
When To File
If you were an employee and received wages subject to U.S. income tax withholding, file Form 1040NR-EZ by April 15, 2002.
If you did not receive wages as an employee subject to U.S. income tax withholding, file Form 1040NR-EZ by June 17, 2002.
Extension of Time To File.
If you cannot file your return by the due date, you should file Form 4868. You must file Form 4868 by the regular due date of the
Form 4868 does not extend the time to pay your income tax. The tax is due by the regular due date of the return.
Where To File
File Form 1040NR-EZ with the Internal Revenue Service Center, Philadelphia, PA 19255, U.S.A.
Private Delivery Services
You can use certain private delivery services designated by the IRS to meet the timely mailing as timely filing/paying rule for tax returns
and payments. The most recent list of designated private delivery services was published by the IRS in October 2001. The list includes only the
- Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service.
- DHL Worldwide Express (DHL): DHL Same Day Service, and DHL USA Overnight.
- Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day.
- United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus,
and UPS Worldwide Express.
The private delivery service can tell you how to get written proof of the mailing date.
Private delivery services cannot deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any item to an IRS P.O. box address.
Election To Be Taxed as a Resident Alien
You can elect to be taxed as a U.S. resident for the whole year if all of the following apply:
- You were married.
- Your spouse was a U.S. citizen or resident alien on the last day of the tax year.
- You file a joint return for the year of the election using Form 1040, 1040A, or 1040EZ.
To make this election, you must attach the statement described in Pub. 519 to your return. Do not use Form 1040NR-EZ.
Your worldwide income for the whole year must be included and will be taxed under U.S. tax laws. You must agree to keep the records, books, and
other information needed to figure the tax. If you made the election in an earlier year, you may file a joint return or separate return for 2001. If
you file a separate return, use Form 1040 or Form 1040A. Your worldwide income for the whole year must be included whether you file a joint or
Nonresident aliens who make this election may forfeit the right to claim benefits otherwise available under a U.S. tax treaty. For more details,
see Pub. 901 or refer to the specific treaty.
If you elect to be taxed as a resident alien (discussed starting on page 2), the special instructions and restrictions discussed here do not
Dual-Status Tax Year
A dual-status year is one in which you change status between nonresident and resident alien. Different U.S. income tax rules apply to each status.
Most dual-status years are the years of arrival or departure. Before you arrive in the United States, you are a nonresident alien. After you
arrive, you may or may not be a resident, depending on the circumstances.
If you become a U.S. resident, you stay a resident until you leave the United States. You may become a nonresident alien when you leave, if, after
leaving (or after your last day of lawful permanent residency if you met the green card test) and for the remainder of the calendar year of your
departure, you have a closer connection to a foreign country than to the United States, and, during the next calendar year, you are not a U.S.
resident under either the green card test or the substantial presence test. See Pub. 519.
What and Where To File for a Dual-Status Year
If you were a U.S. resident on the last day of the tax year, file Form 1040. Write Dual-Status Return across the top and attach a
statement showing your income for the part of the year you were a nonresident. You may use Form 1040NR-EZ as the statement; write Dual-Status
Statement across the top. File your return and statement with the Internal Revenue Service Center, Philadelphia, PA 19255, U.S.A.
If you were a nonresident on the last day of the tax year, file Form 1040NR-EZ. Write Dual-Status Return across the top and
attach a statement showing your income for the part of the year you were a U.S. resident. You may use Form 1040 as the statement; write Dual-Status
Statement across the top. File your return and statement with the Internal Revenue Service Center, Philadelphia, PA 19255, U.S.A.
Any statement you file with your return must show your name, address, and identifying number (defined on page 4).
Income Subject to Tax for Dual-Status Year
As a dual-status taxpayer not filing a joint return, you are taxed on income from all sources for the part of the year you were a resident alien.
Generally, you are taxed on income only from U.S. sources for the part of the year you were a nonresident alien. However, all income that is
considered to be effectively connected with the conduct of a trade or business in the United States is taxable.
Income you received as a dual-status taxpayer from sources outside the United States while a resident alien is taxable even if you became a
nonresident alien after receiving it and before the close of the tax year. Conversely, income you received from sources outside the United States
while a nonresident alien is not taxable in most cases even if you became a resident alien after receiving it and before the close of the tax year.
Income from U.S. sources is taxable whether you received it while a nonresident alien or a resident alien.
Restrictions for Dual-Status Taxpayers
You may not take the standard deduction.
Head of Household.
You may not use the Head of Household Tax Table column or Tax Rate Schedule.
You may not file a joint return. However, see Election To Be Taxed as a Resident Alien on page 2.
If you were married and a nonresident of the United States for all or part of the tax year and you do not make the election to be taxed as a
resident alien as discussed on page 2, you must use the Tax Table column for Married Filing Separately to figure your tax on income that is
considered to be effectively connected with a U.S. trade or business. If married, you may not use the Single Tax Table column.
Deduction for Exemptions.
As a dual-status taxpayer, you usually will be entitled to your own personal exemption. Subject to the general rules for qualification, you are
allowed exemptions for your spouse in figuring taxable income for the part of the year you were a resident alien. The amount you may claim for these
exemptions is limited to your taxable income (determined without regard to exemptions) for the part of the year you were a resident alien. You may not
use exemptions (other than your own) to reduce taxable income to below zero for that period.
If you are a resident of Canada, Mexico, Japan, or the Republic of Korea; a U.S. national; or a student or business apprentice from India, special
rules apply. See Pub. 519.
You may not take an education credit unless your filing status is married filing jointly.
How To Figure Tax for Dual-Status Tax Year
When you figure your U.S. tax for a dual-status year, you are subject to different rules for the part of the year you were a resident and the part
of the year you were a nonresident.
All income for the period of residence and all income that is considered to be effectively connected with a trade or business in the United States
for the period of nonresidence, after allowable deductions, is added and taxed at the same rates that apply to U.S. citizens and residents.
You are allowed a credit against your U.S. income tax liability for certain taxes you paid, are considered to have paid, or that were withheld from
your income. These include:
||Tax withheld from wages earned in the United States.
||When filing Form 1040, show the total tax withheld on line 59. Enter amounts from the attached statement (Form 1040NR-EZ, line 18) to the left of line 59 and identify and include in the amount on line 59.
||When filing Form 1040NR-EZ, show the total tax withheld on line 18. Enter the amount from the attached statement (Form 1040, line 59) to the left of line 18 and identify and include in the amount on line 18.
||Estimated tax paid with Form 1040-ES or Form 1040-ES (NR).
||Tax paid with Form 1040-C at the time of departure from the United States. When filing Form 1040, include the tax paid with Form 1040-C with the total payments on line 66. Identify the payment in the area to the left of the entry.
As a dual-status taxpayer, you generally may claim tax credits using the same rules that apply to resident aliens.
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