The “EZ” variant of this form is for people whose sole U.S. income comes from wages, salaries, tips, and other qualified sources. Individuals who made taxable interest, dividend income — those who would like to claim dependents for tax purposes should use the normal Form 1040NR.
1. You can just use Form 1040NR-EZ if you’re a nonresident alien, and your U.S. income came from particular resources, like salary, salaries, and tips.
2. You might not record the”EZ” variant of this form should you claim allies or could be claimed as a dependent on someone else’s yield.
3. Should you pass the”green card test” or”substantial presence test,” you’re considered a U.S. resident and shouldn’t file Form 1040NR or Form 1040NR-EZ.
Who Wants Form 1040NR-EZ?
You may just record the “EZ” variant of this tax form if you are a nonresident alien and fulfill a listing of criteria. As an instance:
- You can not be claimed as a dependent on another person’s U.S. taxation yield.
- Your sole income from U.S. resources have to be from wages, salaries, tips, refunds of state and local income taxation, scholarship or fellowship grants, and nontaxable interest or dividends (you can’t have pay interest or dividend income).
- You cannot claim any itemized deductions, except for local and state income taxation.
- For an entire list of prerequisites, check out the IRS Instructions for Form 1040NR-EZ.
How to Complete Form 1040NR-EZ
Form 1040NR-EZ is a two-page record that asks the citizen’s name and address, in addition to advice about filing status and earnings. The next page is “Schedule OI — Additional info,” in which filers offer details like nationality, country of residence for tax purposes, and immigration or visa status.
Unlike Form 1040NR, the “EZ” form doesn’t include sales people’s info, as nonresident aliens with dependents can’t use the simplified variant. And since taxpayers simply use type 1040NR-EZ with specific income forms, it doesn’t request income information effectively linked to U.S. trade or business.
Who is a Nonresident Alien?
To file Type 1040NR-EZ or Form 1040NR — you have to be a nonresident alien. Should you pass the green card test or the significant presence test for the tax year in question, then you’re considered a resident alien and can’t record these tax types.
Green Card Test
Beneath the green card test, you’re a resident if you have been a legal permanent resident of the USA at any stage throughout the taxation year. Typically you are a legal permanent resident in case you had been issued an alien registration card (also called a green card) from the U.S. Citizenship and Immigration Services (USCIS) or its predecessor company, Immigration and Naturalization Service (INS).
Substantial Presence Test
Another evaluation for determining residency status is based on the length of an individual’s stay in the USA during the tax year in question and the 2 decades prior.
Noncitizens pass this significant presence test if they satisfy both 31-day and 183-day needs to be regarded as a resident alien.
- You satisfy with the 31-day test if you’re present in the USA for at least 31 days during the tax season.
- You satisfy the 183-day test when the replies to lines 1, 2, and 3 under add up to 183.
- Tax year days at the U.S. x 1 =_ times First previous year times in the United States x 1/3 = times
- Second previous year times in the United States x 1/6 =__ times
Nevertheless, you’ll pass these tests in rare cases and still stay a nonresident alien for tax purposes. By way of instance, if you live in a state which has an income tax treaty with the USA and find a lesser U.S. tax rate under that treaty, then you’d be classified as a nonresident.
Can I Additionally File Form 1040?
If you’re a resident for only part of the calendar year, you might be what’s known as a”dual-status citizen ” and need to submit both Form 1040 and Form 1040NR-EZ. For example, those who had been classified as nonresident aliens at the onset of the tax season also eventually became resident aliens later in the year would need to submit a Form 1040 to record their earnings when they dwelt at the U.S.
Additionally, you’d finish either a 1040NR or even 1040NR-EZ type to report any revenue when you’re a nonresident, together with the tag”Double Status Statement” written across the top.
You’d do the reverse if you’re a resident alien at the beginning of the tax season and turned into a nonresident of the United States later in the year. You’d then file a Form 1040NR or 1040NR-EZ, together with a statement showing your earnings as a U.S. resident. That announcement might be Form 1040 using the tag “Double Status Statement” written at the top.
To ascertain the precise dates of your residency for tax purposes, see IRS Publication 519, U.S. Tax Guide for Aliens.
Can Type 1040NR-EZ Be E-Filed?
Form 1040NR-EZ can’t be e-filed. Taxpayers should complete and sign it, then apply it by email to the address on the form.