Filing taxes as a nonresident in the United States can seem like an overwhelming process, especially if you are unfamiliar with the local tax system. However, it becomes significantly more manageable when you understand the documentation you need to gather before beginning your return. This article provides a comprehensive explanation of the tax documents required for nonresidents, including how to obtain them and why they are important. The goal is to simplify tax season by giving you the tools and knowledge needed to file accurately and confidently.
Who Qualifies as a Nonresident for Tax Purposes
Before determining which documents you need to file your tax return, it is important to clarify your tax residency status. In the United States, an individual is generally considered a nonresident for tax purposes if they do not pass the Green Card Test or the Substantial Presence Test. Most international students, scholars, interns, and exchange visitors on F, J, M, or Q visas are classified as nonresidents during their initial years of presence in the US.
For example, international students on an F-1 visa are typically considered nonresidents for their first five calendar years. Scholars and researchers on J visas are generally nonresidents for their first two calendar years. The exact length of time depends on the individual’s visa type and presence in the US. Determining your residency status is the first step before beginning your tax return.
Importance of Filing a Tax Return Correctly
Filing a tax return is a legal requirement for nonresidents who earn income in the United States. Failing to file or submitting an incorrect return can lead to several negative consequences. These include penalties and interest from the IRS, as well as complications with future US visa or immigration applications. Additionally, if you are due a refund, you will not receive it unless you file a proper return.
Understanding which documents you need is crucial to ensuring you file your tax return accurately. Each form or document plays a role in reporting your income, determining your eligibility for deductions, and calculating your refund or tax liability. Missing even one document can lead to delays, errors, or underreporting of income.
Essential Documents Required for Nonresident Tax Filing
To file your nonresident tax return, you will need to collect a range of official documents. These include personal identification documents, travel records, income statements, and forms related to your visa and immigration status. Gathering these documents early will save time and reduce stress as the filing deadline approaches.
Passport
Your passport is your primary form of identification. It is used to confirm your identity, nationality, and date of birth. You should have your passport available when preparing your tax return to ensure that your personal information is accurately reflected on all tax forms.
Your passport may also contain visa information and entry stamps that help establish your residency status under US tax law. These details can be important if you are close to meeting the Substantial Presence Test and need to confirm your dates of arrival and departure from the United States.
US Entry and Exit Dates
You must keep a detailed record of all your entry and exit dates from the United States. These dates are used to determine whether you meet the Substantial Presence Test and, in turn, whether you are considered a resident or nonresident for tax purposes.
The most reliable way to access your travel history is through the online system managed by US Customs and Border Protection. This system provides a complete record of your arrivals and departures from the United States. If you do not have access to this system, you can also refer to your passport stamps or airline boarding passes as alternative sources.
Accurate travel dates are essential for calculating your tax residency and completing Form 8843, which is required for most nonresidents on F, J, M, or Q visas, even if they had no income.
Tax Forms You May Receive from Employers and Institutions
As a nonresident, you may receive several different tax forms depending on the source and type of income you earned while in the United States. Each form serves a specific purpose and must be included in your tax filing. Understanding the differences between these forms will help ensure your return is complete and accurate.
Form W-2 Wage and Tax Statement
Form W-2 is issued to employees by their employer. It shows the total amount of wages, tips, and other compensation you received during the tax year, along with the amount of taxes withheld. If you worked on campus or for a US employer, you should expect to receive a W-2 by the end of January following the tax year.
The W-2 contains important information, including the name and address of your employer, their Employer Identification Number, your total income, and the amount of federal, state, and local taxes withheld. This form is used to determine your total taxable income and whether you may be entitled to a refund or owe additional taxes.
If you have not received your W-2 by January 31, you should contact your employer immediately to request it. Without this form, you will not be able to accurately file your return or report your employment income.
Forms 1099
Form 1099 is a family of documents used to report various types of non-employment income. If you received income outside of regular employment, such as freelance work, investment earnings, or interest payments, you might receive one or more versions of Form 1099. The most common types for nonresidents include Form 1099-NEC, Form 1099-DIV, and Form 1099-INT.
Form 1099-NEC is used to report income earned as an independent contractor or self-employed worker. If you received $600 or more from a client or business during the tax year, you should expect to receive this form. It will list the total compensation you received, which must be reported on your return.
Form 1099-DIV is issued when you receive dividends or other distributions from investments such as stocks or mutual funds. This form will list the type and amount of dividends paid to you during the year.
Form 1099-INT is used to report interest income from savings accounts, certificates of deposit, or other interest-bearing financial instruments. Banks and financial institutions typically send this form in January if you earned more than $10 in interest during the year.
Each version of the 1099 form provides critical information that must be included in your tax return. Be sure to check your mail and email during January and February, as these forms are typically sent by the end of January.
Form 1042-S Foreign Person’s US Source Income Subject to Withholding
Form 1042-S is issued to nonresidents who received US source income subject to tax withholding. Common sources of income reported on Form 1042-S include scholarships, grants, stipends, royalties, and payments for personal services. This form is especially relevant for international students and scholars receiving financial aid or compensation from educational institutions.
The 1042-S shows the amount of income received, the amount of tax withheld, and the type of income being reported. Unlike the W-2, which is for employees, the 1042-S is used to report payments made to non-employees, such as students receiving scholarships or visiting professors earning honoraria.
Form 1042-S is usually prepared and submitted to the IRS by the university or other paying institution. You should receive your copy by mid-March. If you expect to receive this form and do not receive it by the deadline, contact the institution directly to request it.
This form plays a critical role in your tax filing. Any income reported on Form 1042-S must be included in your return, and the amount of tax withheld will affect your final tax liability or refund.
Visa and Immigration Status Documents
In addition to income and identification documents, you must also provide information about your visa and immigration status. This information confirms your eligibility for nonresident tax treatment and is required when completing Form 8843 and other supporting documentation.
Form DS-2019 Certificate of Eligibility for Exchange Visitor Status
If you are in the United States on a J visa, you will have received Form DS-2019 from your sponsor. This document outlines the purpose of your visit, your program dates, and the sponsoring institution. It is required when filing Form 8843, which documents your claim to nonresident tax status under the Substantial Presence Test exemption.
The DS-2019 also helps verify your eligibility for tax treaty benefits, if applicable. Keep this document in a safe place, as you will need it each year you file taxes as a J visa holder.
Form I-20 Certificate of Eligibility for Nonimmigrant Student Status
Students on F-1 or M-1 visas receive Form I-20, which serves a similar purpose to the DS-2019. It confirms your enrollment at an educational institution and details your program start and end dates. Like the DS-2019, the I-20 is used to complete Form 8843 and demonstrate your nonresident status.
This form is issued by your Designated School Official and must be kept up to date. Changes in program dates, academic level, or funding sources should be reflected in the document. Be sure to keep a copy of your most recent I-20 when preparing your tax return.
Social Security Number or Individual Taxpayer Identification Number
To file your tax return, you must have a valid taxpayer identification number. Depending on your eligibility, this will either be a Social Security Number or an Individual Taxpayer Identification Number. These numbers are used by the IRS to track your income, withholdings, and filings.
Understanding Taxpayer Identification Numbers for Nonresidents
A key requirement for filing a US tax return is possessing a valid taxpayer identification number. This is essential for the IRS to process your return, track your income and taxes, and issue refunds if applicable. For nonresidents, this identification is either a Social Security Number or an Individual Taxpayer Identification Number. Which one you need depends on your visa type, employment authorization, and whether you are eligible to work in the United States.
What Is a Social Security Number
A Social Security Number is a nine-digit number issued by the US Social Security Administration. It is primarily used to track earnings for individuals authorized to work in the United States. If you are employed while in the United States on a visa that permits employment, you will be required to obtain a Social Security Number. The SSN is used not only for employment but also for tax filing, opening bank accounts, and receiving certain public services.
Obtaining an SSN should be a top priority once you arrive in the United States. You must apply in person at a Social Security Office, and you will need to present documents that verify your identity, age, immigration status, and eligibility to work. These usually include your passport, visa, Form I-94, and Form I-20 or DS-2019, depending on your visa category. Once issued, your SSN is valid for life and should be kept safe and secure.
If you have an SSN, you must use it when filing your US tax return. If you are eligible to apply for one but do not do so, your tax return may be rejected or delayed.
When to Use an Individual Taxpayer Identification Number
If you are not eligible for an SSN but need to file a tax return or are expecting taxable income in the United States, you will need to apply for an Individual Taxpayer Identification Number. An ITIN is a nine-digit number issued by the Internal Revenue Service specifically for nonresident and resident aliens who are not eligible for an SSN. It is used exclusively for tax purposes.
Common reasons for requiring an ITIN include receiving a taxable scholarship or grant, receiving compensation while not eligible for an SSN, or being a dependent or spouse of a nonresident alien who is required to file a US tax return. The ITIN allows individuals to comply with US tax laws even if they are not authorized to work or receive Social Security benefits.
You cannot use an ITIN for work authorization. It does not grant you eligibility to work in the US, nor can it be used to apply for Social Security benefits. It is purely for IRS tracking and tax compliance purposes.
How to Apply for an ITIN
Applying for an ITIN requires submitting Form W-7, which is the Application for IRS Individual Taxpayer Identification Number. Along with the completed Form W-7, you must also submit a valid federal tax return unless you meet one of the exceptions outlined by the IRS. The form must be accompanied by original documents or certified copies that verify your identity and foreign status, such as a passport.
You can apply for an ITIN through several methods. One is to submit your application directly to the IRS by mail. Another option is to apply through an IRS-authorized Certifying Acceptance Agent, who can review your documents and help you complete the application process. You may also be able to apply in person at select IRS Taxpayer Assistance Centers.
It is important to apply for your ITIN as early as possible, especially if you need it to file your tax return. Processing times can vary, but it typically takes seven to ten weeks to receive your ITIN. During peak tax season, it can take longer. If you wait too long to apply, you may miss the tax filing deadline or face delays in receiving your refund.
What If You Already Have an ITIN
ITINs do not expire automatically, but if they are not used on a federal tax return for three consecutive years, they become inactive. Additionally, ITINs with specific middle digits may expire according to IRS guidelines. If your ITIN has expired or is inactive, you will need to renew it before filing your tax return. Renewal requires completing Form W-7 again, but you do not need to attach a federal tax return when renewing.
To check the status of your ITIN, you can review IRS announcements or contact the IRS directly. It is critical to ensure your ITIN is active before preparing your return, or else your filing may be rejected.
Filing Without an SSN or ITIN
If you need to file a tax return and do not have an SSN or ITIN, you cannot simply leave that section blank. Instead, you must apply for an ITIN and include Form W-7 with your tax return. The IRS will process your ITIN application and return it together. This is common for students and scholars who receive taxable scholarships or stipends and are filing for the first time.
You should not attempt to file using another person’s SSN or ITIN, nor should you invent a number or leave the space empty. Filing without proper identification will cause your return to be rejected or result in penalties.
Tax Filing Deadlines for Nonresidents
Just like US citizens and residents, nonresidents must file their tax returns by specific deadlines each year. Filing on time is essential to avoid penalties, interest charges, and delays in receiving refunds. The deadlines vary slightly depending on whether you earned income during the year and whether you are only submitting informational forms.
Federal Tax Return Filing Deadline
The standard deadline to file your federal tax return is April 15 of the following year. For example, for income earned during the 2024 tax year, your return must be filed by April 15, 2025. If April 15 falls on a weekend or holiday, the deadline may be extended to the next business day.
If you are unable to file your return by the deadline, you can request an automatic six-month extension by filing Form 4868. However, the extension only applies to filing your return, not to paying any taxes owed. If you expect to owe taxes, you must estimate the amount and pay it by the original deadline to avoid penalties and interest.
Deadline for Filing Form 8843
Form 8843 is required for nonresidents on F, J, M, or Q visas, even if they did not earn any income in the United States. This form documents your presence in the US and helps confirm your nonresident status for tax purposes. The deadline to file Form 8843 is also April 15.
If you are not submitting a tax return because you had no US-source income, you must still send Form 8843 to the IRS separately by mail. Failure to file Form 8843 can lead to issues with future visa or immigration applications, as it demonstrates compliance with tax reporting requirements.
State Tax Return Deadlines
In addition to filing a federal tax return, you may also be required to file a state tax return if you earned income in a state that levies income tax. Each state sets its own tax rules, residency definitions, and deadlines. While many states follow the federal April 15 deadline, others may have different dates or requirements.
If you moved between states or worked in multiple states during the year, you may need to file multiple state tax returns. Some states also require nonresidents to file a return if they earned income sourced to that state, even if they do not live there. Understanding the state-specific rules is essential to ensure you are compliant and avoid penalties.
What If You Miss the Tax Filing Deadline
If you miss the deadline to file your return, you should still file as soon as possible. The IRS assesses penalties for both late filing and late payment. The longer you wait, the more interest and penalties will accrue. If you are due a refund, there is no penalty for filing late, but you must file within three years to claim your refund.
If you realize you made an error on a previously filed return, you can correct it by filing an amended return using Form 1040-X. For nonresident returns, this is done by submitting a corrected Form 1040-NR with the appropriate changes. You can amend a return within three years from the date you filed the original return or within two years of the date you paid the tax, whichever is later.
Importance of Accurate Filing and Supporting Documentation
Accuracy is critical when preparing your tax return. Providing incorrect information, omitting required forms, or using the wrong taxpayer identification number can result in rejection, delays, audits, or penalties. In some cases, incorrect filings can impact your visa or immigration status, particularly if the IRS identifies unpaid taxes or repeated errors.
Always keep copies of your filed tax returns and supporting documentation. These records may be requested by immigration authorities, future employers, or financial institutions. They also help you verify information in future years, especially if you receive correspondence from the IRS.
Staying Compliant with US Tax Laws
Nonresidents are subject to different tax rules from residents. For example, nonresidents are taxed only on US-source income and are not eligible for many of the deductions and credits available to residents. Understanding your obligations and filing correctly helps you stay compliant with US tax law and protects your legal status in the country.
Understanding How Different Tax Forms Affect Your Filing
When preparing to file a tax return as a nonresident in the United States, it is essential to know the specific forms that report different types of income. These forms provide the IRS with details about how much money you earned, where it came from, and how much tax was withheld. Knowing the purpose and content of each form will allow you to file your tax return accurately and avoid underreporting or overreporting income.
The Role of Form W-2 in Tax Filing
Form W-2, Wage and Tax Statement, is the most common tax form issued to nonresidents who are employed by a US-based organization or institution. If you worked for an employer and received wages or salary during the tax year, you should receive a W-2 form. The W-2 is typically issued by January 31 of the following tax year and is required for filing your tax return.
The form includes your name, address, and Social Security Number, along with your employer’s name, address, and Employer Identification Number. It provides a detailed breakdown of your earnings, including wages, tips, and other compensation. It also reports the amount of federal, state, and local income tax withheld from your paychecks.
The amounts shown on your W-2 must be reported on your Form 1040-NR tax return. If you had more taxes withheld than what you owe based on your income and treaty benefits, you may be eligible for a refund. Conversely, if not enough was withheld, you may owe additional taxes.
If you believe there is an error on your W-2, you should contact your employer immediately to correct it. Filing a return with incorrect information may result in processing delays or penalties.
Understanding Form 1099 and Its Variants
The 1099 form series is used to report various types of income that are not classified as wages. If you earned money from self-employment, freelance work, investments, or interest-bearing accounts, you may receive one or more versions of the 1099 form. It is important to understand which types of 1099 forms are relevant to you as a nonresident and how they must be reported on your tax return.
Form 1099-NEC for Independent Contractors
Form 1099-NEC is issued to individuals who performed services as independent contractors or were self-employed. If you worked on a contract basis or as a freelancer and earned more than six hundred dollars from a single payer during the tax year, you should receive this form.
The 1099-NEC reports your gross earnings from nonemployee compensation. It does not include any tax withholding unless the payer was required to perform backup withholding. Nonresidents who receive income reported on a 1099-NEC must report it on their Form 1040-NR as income from self-employment or independent services.
Unlike employment income reported on a W-2, independent contractor earnings are not subject to Social Security and Medicare tax for nonresidents. However, they are subject to federal income tax, and in some cases, self-employment tax may be required if the individual becomes a resident alien in future years.
Because the income reported on a 1099-NEC is not automatically withheld for tax purposes, nonresidents who receive this type of income often have to pay estimated taxes or make a larger payment when they file their tax return.
Form 1099-DIV for Dividend Income
Form 1099-DIV is used to report dividends and distributions from investments such as stocks or mutual funds. If you hold investments in US-based companies and earn dividend income, the financial institution managing your investment account will send you this form.
Dividends received by nonresidents from US corporations are generally subject to a flat tax rate, typically thirty percent, unless reduced or exempted under a tax treaty. The 1099-DIV shows both the total dividend amount and the amount of tax withheld at the source. This withheld tax may be considered a final tax payment, or you may need to file a return to report and potentially reclaim part of it if a treaty benefit applies.
You must report dividend income on your Form 1040-NR, regardless of the amount. Even if tax was withheld correctly, reporting it is required for transparency and to maintain compliance with US tax laws.
Form 1099-INT for Interest Income
Form 1099-INT is issued when you earn interest income from financial products like savings accounts, certificates of deposit, or other interest-bearing assets. Banks and financial institutions are responsible for issuing this form when the total interest paid exceeds ten dollars for the tax year.
Nonresidents are generally exempt from US tax on bank deposit interest, provided certain conditions are met. However, other types of interest income may be taxable, such as interest from corporate bonds or investment accounts. The 1099-INT will indicate both the gross amount of interest earned and whether any tax was withheld.
You should review the nature of the interest income to determine whether it is taxable under US law or protected by a tax treaty. Even if the income is not taxable, it may still need to be reported on Form 1040-NR or Form 8843, depending on your circumstances.
Importance of Matching Reported Income to IRS Records
Each of the forms discussed is also reported to the IRS by the institution that issued it. That means the IRS has a record of how much income you were paid and what taxes were withheld. When you file your return, the IRS uses this information to verify the accuracy of your reported income. If there are discrepancies between what you report and what the IRS has on file, your return may be flagged for review, delayed, or rejected.
It is essential to collect all relevant forms before filing and ensure that your tax return accurately reflects the information shown on these forms. If you do not receive a form that you were expecting, contact the payer or institution directly to request it. You should not guess or estimate income amounts, as this may lead to reporting errors.
What Is Form 1042-S and When Do You Receive It
Form 1042-S is issued to nonresidents who receive US-source income that is subject to withholding and is not reported on a W-2 or 1099 form. Common examples of such income include scholarships, fellowships, grants, awards, royalty payments, and compensation for services performed under a non-employment agreement.
Institutions such as universities, research bodies, and sponsoring agencies use Form 1042-S to report this income to the IRS. The form also indicates the amount of federal tax withheld at the source. As a recipient, you should receive a copy of the 1042-S no later than March 15 following the end of the tax year.
Each 1042-S form lists several important pieces of information. These include the type of income received, the amount, the rate of withholding, the applicable income code, and the treaty benefit, if one was applied. This information must be transferred accurately to your Form 1040-NR when you file.
Failure to report income shown on a 1042-S can result in underreporting and potential penalties. If you received multiple types of income from different sources, you may receive more than one 1042-S. All of them must be included with your return.
Reporting Scholarships and Grants
Scholarship and grant income is one of the most common types of income reported on Form 1042-S, particularly for international students. While scholarships used for tuition and fees are generally not taxable, amounts used for other expenses such as housing, meals, or travel are considered taxable income for nonresidents.
If your university or sponsor provided a scholarship or fellowship that covered these costs, they will issue a 1042-S indicating the taxable portion and any tax withheld. You are required to report this income on your tax return and pay any additional taxes if the withholding was insufficient.
If your scholarship was exempt from withholding due to a tax treaty between your home country and the United States, this should be reflected on the 1042-S form. You will still need to report the income and indicate the applicable treaty benefit when filing your return.
Reporting Royalty and Other Non-Wage Income
Royalties from intellectual property, patents, music, or literary works are another type of income that may be reported on Form 1042-S. These payments are typically subject to a flat withholding rate and must be reported on your tax return regardless of the amount.
Other non-wage income, such as honoraria, awards, and stipends, may also be reported using Form 1042-S. These are often issued by universities, government agencies, or private organizations. Like royalty income, these payments are generally taxable unless specifically excluded under a treaty.
You should keep copies of any correspondence or documentation that supports the income listed on your 1042-S forms. These records may be requested by the IRS in the event of an audit or review.
What to Do If You Do Not Receive Your Tax Forms
If you believe you should have received a tax form such as a W-2, 1099, or 1042-S and it has not arrived by the expected deadline, take action immediately. Contact your employer, financial institution, or educational institution and request that the form be reissued. Confirm your mailing address and inquire whether the form was sent electronically or by post.
In some cases, errors in mailing or outdated contact information may cause forms to be delayed or lost. Do not assume the form will arrive eventually. Filing your tax return without the required forms can result in underreporting or missed deductions.
If you are close to the tax deadline and still have not received a form, you may need to file for an extension to give yourself additional time to obtain the necessary documentation. Remember that an extension to a file is not an extension to pay. If you believe you owe taxes, estimate the amount and submit payment by the original filing deadline.
Overview of Form 1040-NR for Nonresident Tax Filers
Form 1040-NR is the official tax return used by nonresident aliens to report their income earned in the United States. This form allows nonresidents to declare wages, scholarships, grants, and other sources of income, as well as to claim deductions, exemptions, and applicable treaty benefits. Unlike US citizens or residents who use Form 1040, nonresidents must always use Form 1040-NR, even if their income or circumstances are similar to those of residents.
It is essential to file the correct version of the form and provide complete and accurate information. Filing the wrong form, omitting required details, or submitting incomplete documents can result in rejection, penalties, or delayed processing.
Sections of Form 1040-NR
Form 1040-NR includes multiple sections, each serving a specific purpose. The beginning of the form gathers basic information, such as name, address, taxpayer identification number, and filing status. For nonresidents, the filing status is typically single or married filing separately. Nonresidents are not allowed to file as head of household or jointly with a spouse unless specific conditions are met.
The income section includes fields for wages, scholarships, self-employment income, dividends, interest, and other types of income commonly earned by nonresidents. It is important to include all income reported to you via W-2, 1099, or 1042-S forms, as well as any other US-source income, even if no tax was withheld.
Further down, the form allows nonresidents to claim deductions. Unlike residents, nonresidents have limited options when it comes to deductions. Most nonresidents can only claim state and local income taxes paid, charitable contributions, and deductions related to effectively connected income. Certain individuals, such as students or teachers on specific visas, may also claim standard deductions if permitted under a tax treaty.
The final section of the form calculates the total tax owed or refund due. You will also indicate how you want to receive your refund—by direct deposit or check—or how you will pay any balance due.
Attaching Supporting Documents
When submitting Form 1040-NR, you must include copies of any W-2, 1099, or 1042-S forms you received. These documents support the income and tax withholding you are reporting. Failure to include these forms may delay processing or result in rejection of the return.
If you are claiming a tax treaty benefit, you must also attach Form 8833, Treaty-Based Return Position Disclosure. This form provides an explanation of the treaty article being claimed and the reason it applies to your situation. It is particularly important for students, scholars, or researchers who are exempt from tax under a treaty provision.
In addition to income and treaty forms, you may also need to attach Form W-7 if you are applying for an ITIN, or Form 8843 if you are on an F, J, M, or Q visa. Each of these forms plays a specific role in documenting your status and eligibility.
Tax Treaty Benefits for Nonresidents
The United States has income tax treaties with more than sixty countries. These treaties are designed to prevent double taxation and provide tax relief for certain types of income, including wages, scholarships, and independent personal services. If your country of residence has a treaty with the United States, you may be eligible to claim reduced tax rates or full exemptions on specific types of income.
Each treaty is different and contains specific conditions based on your country, visa type, length of stay, and the type of income you receive. For example, many treaties exempt students and scholars from paying tax on a portion of their wages or scholarship income during their first few years in the US. Others may reduce the tax rate on dividends or interest income.
To claim a tax treaty benefit, you must refer to the appropriate article in the treaty and demonstrate that you meet all of its conditions. This typically requires attaching Form 8833 to your 1040-NR return and providing a detailed explanation of the treaty provision being claimed. You may also need to provide documentation from your educational institution, sponsor, or employer.
If you claim a treaty exemption but do not qualify, the IRS may reject your return or assess additional tax. Therefore, it is important to carefully review the treaty language or consult with a tax professional if you are unsure about your eligibility.
Common Mistakes to Avoid When Filing as a Nonresident
Filing taxes as a nonresident can be complicated, and mistakes are common. Avoiding the most frequent errors will help ensure your return is processed smoothly and without penalty. One of the most common mistakes is using the wrong tax form. As a nonresident, you must use Form 1040-NR, not Form 1040. Using the wrong form can result in the IRS rejecting your return and possibly viewing it as a fraudulent submission.
Another common error is failing to report all sources of US income. Some nonresidents believe they only need to report wages, but all US-source income, including scholarships, freelance earnings, dividends, and interest, must be reported. If the IRS receives forms like W-2, 1099, or 1042-S from payers but does not see them included on your return, it may initiate a review or impose penalties.
Nonresidents also sometimes forget to attach Form 8843. This informational form is required for all F, J, M, and Q visa holders, even if they earned no income. Omitting Form 8843 may jeopardize your immigration compliance or result in questions from the IRS or Department of Homeland Security in the future.
Incorrect or missing taxpayer identification numbers are another frequent issue. If you use an expired ITIN or fail to apply for one when needed, your return may be delayed. Always confirm that your SSN or ITIN is active and properly listed on your return.
Filing State Tax Returns as a Nonresident
In addition to the federal tax return, many nonresidents are also required to file state income tax returns. Whether you are required to file depends on the state in which you lived or worked, the source and amount of your income, and your residency status under state law. Each state has its own tax rules, definitions of residency, and filing thresholds.
In general, if you earned income in a state that has an income tax, you will need to file a return for that state. Even if you are considered a nonresident of the state, income earned from work performed within the state is usually subject to tax. Some states also require returns for part-year residents or for individuals who received income from property, investments, or businesses located within the state.
Unlike the federal government, most states do not follow the same definitions of nonresident or tax treaty benefits. Therefore, you may not be able to claim the same exemptions on your state return as you do on your federal return. Some states may also not recognize the standard deductions or personal exemptions available at the federal level.
You must file a separate return for each state where you are required to report income. Each state uses a different form, such as Form 540NR in California or Form IT-203 in New York. Deadlines for state returns usually match the federal April 15 deadline, but some states may have different dates.
Paying Taxes and Receiving Refunds
After completing your tax return, you will either owe tax to the IRS or be entitled to a refund. If you owe tax, the amount must be paid by the filing deadline to avoid interest and penalties. You can make payment through various methods, including direct debit, credit card, or check. The IRS also accepts payments via electronic funds transfer from US bank accounts.
If you are entitled to a refund, you can request it by direct deposit into a US bank account or by check mailed to your address. Direct deposit is generally faster and more secure. Nonresidents without a US bank account may have to wait longer to receive a refund check by mail, especially if they are filing from abroad.
Refund processing times vary depending on when you file, how you file, and whether the IRS requires additional documentation or review. Most refunds are issued within three weeks for electronic filers and six to eight weeks for paper returns. However, if you are filing for the first time, claiming a treaty benefit, or applying for an ITIN, the process may take longer.
It is important to note that even if you are due a refund, you must still file a tax return to claim it. The IRS will not issue refunds without a properly filed return, and failure to file within three years of the due date may forfeit your eligibility to receive a refund.
How to File Your Return
Nonresidents can file their tax return either electronically or by mail. Electronic filing is available for Form 1040-NR through certain tax software providers and authorized e-file partners. Filing electronically reduces errors and speeds up refund processing. If you are not eligible to e-file or prefer paper filing, you must mail your return to the appropriate IRS address listed in the Form 1040-NR instructions.
Before submitting your return, double-check that all forms are signed, complete, and include all required attachments. Mistakes, missing documents, or unsigned forms may delay processing. Keep copies of everything you submit, including confirmation of mailing or electronic submission.
Maintaining Compliance for Future Years
Filing taxes correctly as a nonresident is not only a legal obligation but also an important part of maintaining your immigration compliance and future eligibility for visas or permanent residence. Each year you spend time in the US, your tax residency status may change. Students and scholars eventually become residents for tax purposes after a certain number of years, which changes the way you must file.
It is important to reassess your residency status each year and update your filing practices accordingly. Keeping detailed records of your visa type, entry and exit dates, income, and tax filings will help you stay organized and ensure compliance in future years.
Final Thoughts
Navigating the US tax system as a nonresident can seem complex at first, but with the right preparation and understanding, you can meet your obligations with confidence. By gathering the correct documents, understanding which forms apply to your income, claiming any treaty benefits available to you, and filing on time, you will avoid penalties and protect your legal status in the US. Whether you are a student, researcher, intern, or temporary worker, filing your tax return properly each year is a critical part of your time in the United States.