Taxation of nonresidents aliens.

An alien is any individual who is not a US citizen.

A nonresident alien is a person that has not passed the green card test, the substantial presence test, or has not actually been in the country for more than 183 days.

Who must file?

If a person meets any of the following conditions, must file the Federal Tax Return:

1. A nonresident alien person engaged in or deemed to be engaged in a trade or business in the United States during the year.

2. A nonresident alien individual person who is not engaged in a trade or business in the United States but has US income.

3. A representative or agent responsible for filing the return of the individual described in items 1 and 2.

4. A fiduciary for an estate or trust of a nonresident alien.

5. A resident or domestic fiduciary, or other person, in charge of the care of the person or property of a nonresident person, may be required to file an income tax return for that person and pay the tax.

In the case of a nonresident alien student, teacher, or trainee who was temporarily present in the United States on an "F," "J," "M," or "Q" visa, he or she is considered to be engaged in a trade or business in the United States. In this case, must file Form 1040NR, (U.S. Nonresident Alien Income Tax Return).

Claiming a refund or a benefit.

You must also file an income tax return if you want to:

1. You want to claim a refund of taxes withheld or overpaid . 

2. You want to claim the benefit of the deductions or credits. For example, if you do not do business in the US but have income from real estate that you choose to treat as effectively connected income (ECI), you must timely file a true and accurate return to take allowable deductions against that income.

What income do I report?

A nonresident alien's income that is subject to U.S. income tax should generally be divided into three categories:

1. Income that is effectively connected with a trade or business in the United States (ECI).

2. US source income that is fixed, determinable, annual, or periodic (FDAP)

3. Effectively connected income , after allowable deductions , is taxed at graduated rates. These are the same rates that apply to US citizens and residents. Effectively connected income must be reported on page one of Form 1040NR (Nonresident AlienIncome Tax Return).

Which form do I file:

Nonresident aliens who must file an income tax return must use:

1. Form 1040NR, U.S. Nonresident Alien Income Tax Return OR,

two. Form 1040NR-EZ, US Income Tax Return for Certain Nonresident Aliens Without Dependents, if you qualify.

See the Instructions for Form 1040NR-EZ to determine if you qualify on the IRS page.

When and where to apply

If you are an employee and receive wages subject to U.S. income tax withholding, or if you have an office or place of business in the United States, you generally must file by the 15th day of the fourth month after the tax year ends. For a person applying using a calendar year, it is generally April 15.

If you are not an employee or self-employed person receiving wages or non-employment compensation subject to U.S. income tax withholding, or if you do not have an office or place of business in the United States, you must apply by the 15th day of the sixth month after your tax year ends. For a person applying using a calendar year, it is usually June 15.

File Form 1040NR-EZ and Form 1040NR at the address shown in the instructions for Forms 1040NR-EZ and 1040NR on the IRS page.

Extension of time to present

If you are unable to file your return by the due date, you must file Form 4868 to request an automatic extension of time to file.

For more information you can visit the IRS website.