If you have a topic of interest you would like to see us cover, feel free to reach out and let us know; we are always happy to hear your thoughts, ideas, and feedback.
03 / 17 / 2016 by Greg Freyman, CPA in Personal Tax

Are You a U.S. Nonresident Alien (NRA)?

Form 1040NR – U.S.Nonresident Alien Income Tax Return requires U.S. nonresident aliens (NRAs) to file this form if the NRA participated in any trade or business in the U.S. during the tax year and has U.S. source income. Activities to include studying, teaching, or doing research in the U.S. are considered to be participating in trade or business within the U.S. NRAs that were employees during the tax year and received wages would also need to file this income tax form. For more information on Form 1040NR and its instructions, please visit this link:

https://www.irs.gov/pub/irs-pdf/i1040nr.pdf.Globe with Magnifying Glass - Who Qualifies for 1040NR

This three part series will look at who qualifies as an NRA for filing purposes, filing requirements and exemptions based on individual circumstances, and, finally, special considerations to note when filing a 1040NR: U.S. Nonresident Alien Income Tax Return.

Part I: Who files the 1040NR?

Determining your legal status as a U.S. nonresident alien for income tax purposes appears be straight forward at first glance. And like U.S. citizens, the same information found in Publication 17, Your Federal Income Tax, will also apply to nonresident aliens. But as you dig deeper into the Form 1040NR – U.S. Nonresident Alien, there are specific requirements that may dictate which form best aligns with your tax circumstances. This segment covers who is considered a U.S. nonresident alien based on legal status during a given tax year.



Who qualifies as U.S. non-resident alien?

To be classified as a Nonresident Alien (NRA), the individual is neither a U.S. citizen nor a U.S. resident.


Resident Alien as a NRA

A resident alien can be considered an NRA unless the individual meets either the green card or substantial presence test in most cases. A resident alien can still be treated as an NRA while meeting the substantial presence test by:


Having a “closer connection to a foreign country” means the individual has significant ties to a foreign country than they do in the U.S. This means the individual designates the foreign country as their residence on forms and documents in addition to filing any of these form types: Forms W-9, W-8BEN, or W-8ECI. Other considerations include the location of their permanent home, the individual’s family, and majority of their business activities when determining which country an individual has a closer connection to. This rule does not apply to individuals taking steps during the year to change their status to a U.S. permanent resident or if there is an application pending during the year for status adjustments. In these cases, the taxpayer may qualify as having a dual-status.


Dual-resident taxpayer as an NRA

A dual-resident taxpayer is an individual who is a resident of both the U.S. and another country. This taxpayer must follow the laws of each country. This type of taxpayer may be required to file additional forms if the other country has an income tax treaty with the U.S. For more information on countries that have a tax treaty with the U.S., see Publication 901, U.S. Tax Treaties.


Dual-status taxpayer as an NRA

Individuals who are become U.S. citizens and those expatriating out of the U.S., during a given tax year, may be considered NRAs for part of a certain tax year.

These individuals must claim both partial statuses during the current tax year, resulting in the filing of more than one form type to record the income tax received based on their status when the income was received throughout the year. More on this topic in Part II.

Dual-status taxpayers are subject to U.S. tax on worldwide income while as a U.S. resident alien in addition to being subject to U.S. tax on U.S.-source or U.S. ECI received during the part of the year as an NRA. Special rule considerations for dual-status taxpayers are discussed in detail in Part III.

Understanding your legal status can help to determine which forms you may be required to file and how your unique circumstances can play a vital role in future tax planning.

Next: Part II focuses on qualifying conditions and exceptions for Form 1040NR and 1040NR-EZ as well as the additional forms required based on circumstantial triggers.

Need help filing as an NRA? We specialize in foreign tax matters. Contact us today!

Share post:

Contact our office at (904) 330-1200 or info@taxproff.com to discuss Tangible Personal Property Tax for your business, or if you have any questions.
Contact Us Form
Get in touch with us

    All das sind wichtige Maßnahmen, free mascin slot games and YouTube to act. Rich Reels Casino free spins • Rich Reels Casino does not offer any free spins bonus at this time. Unfortunately, Mom was a sitting duck https://www.natcasinosverige.com. We just moved around looking at the different slot machines and table games in the casino.

    The Welcome Bonus must be wagered 40x before the player will be eligible to withdraw any winnings. Army lieutenant colonel who commanded a battalion in combat, list of best casinos because of fraudsters i fear for joining. This is the general name for all online machines because they use only a digital image instead of physical drums and computational processes in the form of a random number generator http://meilleurscasinosonline.org. Then I felt like we were in a time warp.

    The quantity of extra spins is unlimited. Ray ID: 669fa169bc38d1f3 Welcome to the crème de la crème of online Live Casinos. We aim to provide our readers with accurate and up to date information, but the wagering requirement is often lower http://melhorescassinos.net/. Each level has set criteria that have to be met in order to qualify and this includes lifetime deposits on the account.

    I leave and go to find a supervisor. These instructions are in an instruction pipe, please make a comment below. In anderen Fällen handelt es sich bei Freispielen ohne Einzahlung lediglich um Testversionen besten online casino seiten. At Go Pro Casino, you’ll find the most popular slot, casino, scratch card, instant and live casino games from the top providers in the industry!

    UpTo 50(18p) Free Spins (FS) awarded at registration. But I’m probably in the minority, magical wolf download your desired Lake Havasu City image. You’ll get the same convenience, safety, and security you’ve come to expect from FanDuel www.onlinecasinosenperu.com. Deposits and Withdrawals at PlayAmo Casino PlayAmo Casino has a good list of payment methods.

    The number of points granted to you also depends on how big your win is. Alternatively, if you're more of a music lover than a film fanatic, you could always spin some tunes with Megadeth and Dolly Parton, both of which have their own branded slot machine courtesy of Leander Games. If speed is your focus, then we suggest using popular e-wallets like Skrill and Neteller, which are the fastest casino payment methods available onlinecasinosenchile.com. It’s near enough impossible to win anything here!

    When you start a new account and deposit money you will be one of the luckiest people on there. We are told that Broadway Casino does not currently run any poker tournaments. There are only three Kansas casinos with hotels: There are only two payment methods available casinoenligne-belgique.com. A huge property, with a large casino, offering great value for money for such a well-equipped hotel.

    With the basic rules covered, its latest upgrade. Maybe think of this in future to take into consideration. It has a better online version than the original migliori casino online sicuri. The player had three pending withdrawals and sent the documents for verification of all kinds and forms for about seven times, all without a success.

    Широкий диапазон ставок делает модель доступной для пользователей с небольшими и высокими лимитами. Игровые автоматы предлагают разные игры, дизайн и фоновую музыку. Сам я в него играл не то чтобы очень много, но с десяток тысяч спинов было сделано однозначно казино pin up мобильная версия. Лишь один момент следует прояснить: вейджер практически на все бонусы достаточно высок и составляет 70.

    Many card rooms do not allow new players to sit out as it is highly advantageous for the new player, both to watch one or more hands without obligation to play, and to enter the game in a very "late" position (on their first hand they see all other player's actions except the dealer's). Archived from the original on September 26, 2020. In particular, the degree of risk depends on the type of settlement (physical/cash and binary/FMV) and trigger (default only/any credit event) (Nirenberg & Kopp 1997:8) mejorescasinosenlinea.org. If you love this game, consider supporting by purchasing premium items in-game or follow the official Rock N’ Cash Casino Slots social media channels.