Include the following items in your statement. A complete list of all of your real property, or any interest in real property, located in the United States including location.
Give the legal identification of U. Once made, the section election will remain in effect until revoked with the consent of the Commissioner. A new section election may not be made until after the 5th year in which the revocation occurs. You may be required to report some income from foreign sources on your U. For this foreign income to be treated as effectively connected with a U. For more information, including a list of the types of foreign source income that must be treated as effectively connected with a U.
The expatriation tax provisions apply to certain U. You are a former U. For more information on the expatriation tax provisions, see Expatriation Tax in chapter 4 of Pub. For , there are three important changes in these line instructions. You need the Instructions for Forms and SR. Throughout these line instructions, you will be referred to those instructions for guidance. Exceptions are listed where applicable. The line numbering has changed.
See those schedules. See also the instructions for those schedules following these line instructions. The amount of your tax depends on your filing status. Before you decide which box to check, read the following explanations. For more information about marital status, see Pub. Remember to provide your country of residency, or that you are a U. Certain tax benefits, such as the child tax credit and the credit for other dependents, are only available to residents of Canada and Mexico and to U.
The "Married filing separately" filing status replaces the former "Married" filing status. Married persons who live apart: Some married nonresident aliens who have a child and who do not live with their spouse can file as single.
If you meet all five of the following tests and you are a married resident of Canada or Mexico, you are a married U. You lived apart from your spouse for the last 6 months of Temporary absences for special circumstances, such as for business, medical care, school, or military service, count as time lived in the home.
Your home was the main home of your child, stepchild, or foster child for more than half of Temporary absences by you or the child for special circumstances, such as school, vacation, business, or medical care, count as time the child lived in the home.
If the child was born or died in , you can still file as single as long as the home was that child's main home for more than half of the part of the year he or she was alive in You could have claimed the child as a dependent or could claim the child except that the child's other parent claims him or her as a dependent under the rules for children of divorced or separated parents.
An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption. A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. See Qualifying Widow er in the Instructions for Forms and SR for details on the qualifying widow er filing status.
You cannot check the "Single" box, unless in addition to meeting the criteria in that section, you also satisfy the two criteria below for You were a resident alien or U. This refers to your actual status, not the election that some nonresident aliens can make to be taxed as U.
Enter your name, street address, city or town, and country on the appropriate lines. Include an apartment number after the street address, if applicable. Check the box for "Individual. Enter the name of the estate or trust and check the box for "Estate or Trust. Attach a statement to Form NR with your name, title, address, and the names and addresses of any U. Attach a statement to Form NR with your name, title, address, and the names and addresses of all beneficiaries.
See P. If you are an F-1 or M-1 student, you must also show your Form I; or. If you are a J-1 exchange visitor, you must also show your Form DS If the entity does not have an EIN, you must apply for one. Enter "SS-4" in the search box. For more details, see IRS. Only U.
Residents of South Korea and students or business apprentices from India who are eligible for the benefits of Article 21 2 of the United States-India Income Tax Treaty may claim dependents on the more limited terms described in chapter 5 of Pub. No other person filing a Form NR can claim a qualifying dependent. The instructions for this section assume you have decided that the income involved is effectively connected with a U. The tax status of income also depends on its source. Under some circumstances, items of income from foreign sources are treated as effectively connected with a U.
Other items are reportable as effectively connected or not effectively connected with a U. See chapter 4 of Pub. See Line 1—Wages, Salaries, Tips, etc. Enter on line 1a of Form NR only the wages, salaries, tips, etc. Do not include any income on line 1a of Form NR that is not treated as effectively connected to a U.
Unlike on Form or SR, do not include scholarship or fellowship grants on this line. Do not include scholarship and fellowship grants reduced by any exclusion for those grants. Scholarship and fellowship grants are reported on Form NR, line 1b; the scholarship and fellowship exclusion is reported on Form NR, line 10c. Wages, salaries, tips, etc.
Generally, if you submitted a properly completed Form , Exemption From Withholding on Compensation for Independent and Certain Dependent Personal Services of a Nonresident Alien Individual, to claim an exemption from withholding based on a treaty, your employer would not have withheld tax on the exempt amount and would have reported the exempt amount on a Form S and not in box 1 of Form W However, if you did not submit a Form to your employer or if you submitted a Form to your employer but your employer withheld tax on the exempt amount because it could not readily determine your eligibility for the exemption, you can claim the exemption on Form NR by reducing your line 1a wages by the exempt amount.
You will need to complete item L on Schedule OI Form NR and attach a statement to your return containing all information that would have otherwise been required on a Form to explain your eligibility for the exemption. See the examples next. Anna is a citizen of France who came to the United States on an F-1 visa in for the primary purpose of studying at an accredited university.
In , Anna completed a paid summer internship with a U. Anna submitted a valid Form to her employer to claim an exemption from withholding for the portion of her wages that is exempt under the treaty. Anna should attach both the Form W-2 and the Form S to her return. All of Anna's wages from the internship were withheld upon and reported in box 1 on her Form W She should also attach a statement to her Form NR containing all information that would have otherwise been required on a Form to justify the exemption claimed.
If you performed services as an employee both inside and outside the United States, you must allocate your compensation between U. Compensation other than certain fringe benefits is generally sourced on a time basis. To figure your U. Multiply the result by your total compensation other than certain fringe benefits. Certain fringe benefits such as housing and educational expenses are sourced on a geographic basis.
The source of the fringe benefit compensation is generally your principal place of work. The amount of the fringe benefit compensation must be reasonable and you must keep records that are adequate to support the fringe benefit compensation. Also attach to Form NR a statement that contains the following information. The specific compensation or the specific fringe benefit for which an alternative method is used. A comparison of the dollar amount of the compensation sourced within and outside the United States under both the alternative method and the time or geographical method for determining the source.
All wages received as a household employee. Tip income you did not report to your employer. This should include any allocated tips shown in box 8 on your Form s W-2 unless you can prove that your unreported tips are less than the amount in box 8. Allocated tips are not included as income in box 1.
Also include the value of any noncash tips you received, such as tickets, passes, or other items of value. Although you do not report these noncash tips to your employer, you must report them on line 1a. You may owe social security and Medicare tax on unreported tips. See Line 5 under Instructions for Schedule 2, later. Dependent care benefits, which should be shown in box 10 of your Form s W But first complete Form , Child and Dependent Care Expenses, to see if you can exclude part or all of the benefits.
Employer-provided adoption benefits, which should be shown in box 12 of your Form s W-2 with code T. But see the Instructions for Form , Qualified Adoption Expenses, to find out if you can exclude part or all of the benefits. You may also be able to exclude amounts if you adopted a child with special needs and the adoption became final in Excess elective deferrals. The amount deferred should be shown in box 12 of your Form W-2, and the "Retirement plan" box in box 13 should be checked.
Although designated Roth contributions are subject to this limit, do not include the excess attributable to such contributions on line 1a. They are already included as income in box 1 of your Form W A higher limit may apply to participants in section b deferred compensation plans for the 3 years before retirement age.
Contact your plan administrator for more information. This additional deferral amount is not subject to the overall limit on elective deferrals. You cannot deduct the amount deferred. It is not included as income in box 1 of your Form W Disability pensions shown on Form S or Form R if you have not reached the minimum retirement age set by your employer. Corrective distributions from a retirement plan shown on Form S or Form R of excess elective deferrals or other excess contributions plus earnings.
Instead, report distributions from an IRA on lines 4a and 4b. See Missing or Incorrect Form W-2? If you received a scholarship or fellowship, part or all of it may be taxable. Amounts received in the form of a scholarship or fellowship that are payment for teaching, research, or other services are generally taxable as wages even if the services were required to get the scholarship or fellowship.
If you were a degree candidate, the amounts you used for expenses other than tuition and course-related expenses fees, books, supplies, and equipment are generally taxable. For example, amounts used for room, board, and travel are generally taxable. If you were not a degree candidate, the full amount of the scholarship or fellowship is generally taxable.
If the grant was reported on Form s S, you must generally include the amount shown in box 2 of Form s S on line1b. However, if any or all of that amount is exempt by treaty, do not include the treaty-exempt amount on line 1b.
For more information about scholarships and fellowships in general, see chapter 1 of Pub. You are a citizen of a country that does not have an income tax treaty in force with the United States. You are receiving a full scholarship from ABC University.
You are not required to perform any services, such as teaching, research, or other services, to get the scholarship. The total amounts you received from ABC University during are as follows. The facts are the same as in Example 1 , except that you are a citizen of a country that has an income tax treaty in force with the United States that includes a provision that exempts scholarship income and you were a resident of that country for income tax purposes immediately before arriving in the United States to attend ABC University.
Also, assume that, under the terms of the tax treaty, you are present in the United States only temporarily to finish your degree, and all of your scholarship income is exempt from tax because ABC University is a nonprofit educational organization. Under some treaties, scholarship or fellowship grant income is not exempt from tax if the income is received in exchange for the performance of services, such as teaching, research, or other services.
Also, many tax treaties do not permit an exemption from tax on scholarship or fellowship grant income unless the income is from sources outside the United States. If you are a resident of a treaty country, you must know the terms of the tax treaty between the United States and the treaty country to claim treaty benefits on Form NR.
See the instructions for item L of Schedule OI, later, for details. Report on line 1c the total of all your income that is exempt from tax by an income tax treaty, including both effectively connected income and not effectively connected income. Do not include this exempt income on line 1a. Attach any Form S you received for treaty-exempt income.
If required, attach Form See Treaty-based return position disclosure , later. The interest will not be includible on line 2a of Form NR unless it is effectively connected with a trade or business. If the interest was not effectively connected with a U. Do not include interest from a U. Report on line 2b only your taxable interest income from assets effectively connected with a U. If you received interest not effectively connected with a U.
If the interest is tax exempt under a treaty, include the tax-exempt amount on line 1c and complete item L of Schedule OI Form NR. If the interest is tax exempt under a treaty but the withholding agent withheld tax, report the interest on Schedule NEC Form NR , line 2. Do not include on line 2b interest from a U. Only report qualified dividends effectively connected with a trade or business on Form NR, line 3a.
If the qualified dividends were not effectively connected with a U. Only report ordinary dividends effectively connected with a trade or business on Form NR, line 3b. If the ordinary dividends were not effectively connected with a U. Only report pensions and annuities effectively connected with a trade or business on Form NR, lines 5a and 5b. If the pensions and annuities were not effectively connected with a U. In addition to entering pension and annuity amounts from box 1 of Form R, you may also enter pension and annuity amounts from box 2 of Form S.
If you performed services in the United States, your income is generally effectively connected with a U. See section for details and exceptions. If you worked in the United States after December 31, , the part of each pension distribution that is attributable to the services you performed after is income that is effectively connected with a U.
You worked in the United States from January 1, , through December 31, 10 years. You now receive monthly pension payments from your former U. In most cases, the effectively connected pension distribution will be fully taxable in the United States, so you must include it on line 5b. However, in some situations, you can report a lower amount on line 5b.
The most common situations are where:. A part of your pension payment is attributable to after-tax contributions to the pension plan, or.
See chapter 2 of Pub. On line 5b, include the total pension or annuity payments from box 2 of Form s S, if any, with the total of payments from box 1 of Form s R. On line 5a, include the total pension or annuity payments from box 2 of Form s S, if any, with the total of payments from box 1 of Form s R.
If your Form S or Form R does not show the taxable amount, you must figure the taxable amount and include that amount on line 5b. If your annuity is paid under a qualified plan and your annuity starting date was after July 1, , see Simplified Method , later.
If your annuity is paid under a nonqualified plan or paid under a qualified plan and your annuity starting date was before July 2, , you must generally use the General Rule. For more information about the General Rule, see Pub. If your Form R shows a taxable amount, you can include that amount on line 5b. But you may be able to report a lower taxable amount by using the General Rule or the Simplified Method.
Report effectively connected capital gains or losses connected with a trade or business on Form NR, line 7. If the capital gains or losses were not effectively connected with a U. Only report effectively connected capital gains or losses connected with a trade or business on Form NR, line 7. If you received a scholarship or fellowship grant and were a degree candidate, enter amounts used for tuition and course-related expenses fees, books, supplies, and equipment , but only to the extent the amounts are included on line 1b.
See the examples in the instructions forline 1b. See the instructions for Schedule A, line 8, later, for more details. Students or business apprentices may be able to take the standard deduction on Form NR, line 12, instead of their itemized deductions if they are eligible for benefits under Article 21 2 of the United States-India Income Tax Treaty. They will enter the standard deduction amount found for their filing status on Form or SR.
You must have income effectively connected with a U. A trust or estate can claim an exemption only to the extent of its income that is effectively connected with a U. You can't claim an exemption deduction in if you are an individual. See Line 16—Tax in the Instructions for Forms and SR for details on taxes includible on this line, and for whether you must use the Tax Table or the Tax Computation Worksheet to compute your tax.
If you are filing for an estate or trust, use Tax Rate Schedule W, later, to figure the tax. Do not include on line 16 any of the following that are listed in those instructions. They do not apply to persons filing Form NR. You are not eligible for the foreign earned income exclusion, housing exclusion, or housing deduction on Form The Form must be filed for a child even if the child is a nonresident alien. That form is not filed by persons filing Form NR. That worksheet is for persons filing Form Form is not filed by persons filing Form NR.
To claim the child tax credit or the credit for other dependents on Form NR in full, you must be a U. No other persons filing Form NR can claim the child tax credit or the credit for other dependents. Those forms are not filed by persons filing Form NR. However, the term "U. For purposes of this tax, transportation income will be treated as not effectively connected with the conduct of a trade or business in the United States unless:.
You had a fixed place of business in the United States involved in the earning of transportation income, and. Or, in the case of income from the leasing of a vessel or aircraft, it was attributable to a fixed place of business in the United States.
You may be exempt from this tax because of a treaty or an exchange of notes between the United States and the country of which you are a resident. If the country of which you are a resident does not impose tax on the shipping or aircraft income of U. If you are exempt from the tax by treaty or exchange of notes, complete Form and attach it to this return.
If you are exempt from the tax for any other reason, you must attach a statement to Form NR identifying your country of residence and the law and provisions under which you claim exemption from the tax. If you owe this tax, you must attach a statement to your return that includes the information described in Pub. The taxes withheld on those forms are reported on Form NR, lines 25e, 25f, and 25g, respectively.
Enter on line 25e any tax withheld by a partnership and shown on Form s Attach a copy of all Form s to the back of your return. Enter on line 25f any tax withheld under section related to dispositions of U.
Attach a copy of all Form s A to the front of your return. Enter on line 25g the total amount shown as federal income tax withheld under chapter 3 or 4 on your Form s S. The withholding credit should be shown in box 10 of your Form s S. Attach Form s S to the front of your return. Attach to the front of your return Form s R if tax was withheld. Be sure to attach to the back of your return Form s A foreign trust or estate must also attach to the back of Form NR copies of the Form s it must furnish to its beneficiaries with the Schedule s T completed.
Refunds of taxes shown on Forms , A, or S may be delayed for up to 6 months. See Refund Information, later.
Leave line 27 blank. To claim the additional child tax credit in full, you must be a U. Residents of South Korea and India can claim the credits to the extent described in Pub.
No other persons filing Form NR can claim the additional child tax credit. Enter any amount you paid with Form C for The American opportunity credit cannot be claimed by persons filing Form NR. Leave line 30 blank.
The recovery rebate credit cannot be claimed by persons filing Form NR. The Injured Spouse discussion does not apply to you. A person filing Form NR cannot file a joint return.
If you request a refund of tax withheld on a Form S, Form , or Form A, we may need additional time to process the refund. Allow up to 6 months for these refunds to be issued. If you want your refund mailed outside the United States to an address not listed on page 1 of Form NR, enter that address on line 35e.
See Foreign address , earlier, for information on entering a foreign address. If you want to pay electronically but do not have a U. If you are paying by check or money order, the check or money order must be drawn on a U. You did not pay enough estimated tax by any of the due dates. This is true even if you are due a refund. Also, subtract from line 24 any:.
When figuring the amount on line 24, include household employment taxes Schedule 2 Form , line 7a only if the total of lines 25d through 25g is more than zero or you would owe the penalty even if you did not include those taxes.
You will not owe the penalty if your tax return was for a tax year of 12 full months and either of the following applies. You had no tax shown on your return and you were a U. But see the Caution below. Your estimated tax payments for must have been made on time and for the required amount. This rule does not apply to farmers and fishermen.
When figuring the amount on line 61, include household employment taxes only if the total of lines 62a through 62d is more than zero or you would have owed the estimated tax penalty for even if you did not include those taxes. If the Exception just described does not apply, see the Instructions for Form for other situations in which you may be able to lower your penalty by filing Form If you choose to figure the penalty yourself, use Form or Form F for farmers and fishermen.
Enter any penalty on line Add the penalty to any tax due and enter the total on line However, if you have an overpayment on line 34, subtract the penalty from the amount you would otherwise enter on line 35a or line Lines 35a, 36, and 38 must equal line If the penalty is more than the overpayment on line 34, enter on lines 35a and Then, subtract line 34 from line 38 and enter the result on line Don't file Form with your return unless Form indicates that you must do so.
Instead, keep it for your records. Because Form is complicated, you can leave line 38 blank and the IRS will figure the penalty and send you a bill.
Further evidence of this somewhat surprising limitation is seen in the Form NR-EZ instructions where the topic of electronic filing is conspicuously missing from the "What's New" section. E-filing was started by the IRS much earlier than many practitioners might remember. Fact Sheet provides the history of e-filing, which began in Initially, e-filing was a pilot program in which five tax preparers who volunteered to participate e-filed 25, tax returns.
In the beginning, the program required the tax preparer to call an IRS number where an IRS employee would connect the phone to a special modem with a tape drive called a Mitron. When the transmission was complete, the tape would be transferred to a minicomputer where the data was readied for IRS processing. The IRS continued to expand the pilot program until when e-filing was made available nationwide.
In that year, 4. Since the rollout, the number and percentage of e-filed returns have steadily increased over the years. The report sought to improve taxpayer service and transform the IRS into an agency that was "fair, efficient, and friendly. Furthermore, the RRA added Sec. Another initiative that has contributed to the increased e-filing percentage was the passage of the Worker, Homeownership, and Business Assistance Act of , P.
This act requires paid preparers to e-file if the number of returns they prepare exceeds a certain amount. The mandate was phased in over time, with a threshold of returns for and 11 returns for and beyond. Therefore, the e-file limitations no longer apply to the Form NR except for the following situations that is, the return cannot be filed electronically :. Notice states that it does not affect the exemptions provided in Notice for certain categories of specified tax return preparers, such as certain foreign tax return preparers.
Updates to all other administrative exemptions described in Notice aside from exemptions due to IRS e-file limitations will continue to be announced in an IRS notice or other appropriate guidance, rather than in IRS Publication KPMG International Limited is a private English company limited by guarantee and does not provide services to clients.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
Request for proposal. Quick receipt - You get an email acknowledgment within minutes that your return was received and accepted. Paperless filing - This increases efficiency and reduces costs, with the additional benefit of saving trees. Introduction of Form NR Through the Modernized e-File System Electronic filing for Form NR was introduced for returns as the latest phase of an e-file modernizing program that was started in This is the next generation of electronic filing, as described in IRS Publication The Modernized e-File MeF system is a replacement of IRS tax return filing technology with a modernized, Internet based electronic filing platform.
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