It can feel incredibly difficult to find work these days, especially if your application requires you to check the box stating that you’re not a United States citizen, but that’s where IRS Form 1040NR comes in. Nonresident aliens may need to handle their taxes a little differently once they’re on the job, too, which makes understanding the requirements — and any changes to them — increasingly important to avoid Internal Revenue Service (IRS) penalties.
Are you familiar with Form 1040NR? Do you know everything you need to know to make sure you’re filling out your taxes and managing them correctly? This guide will give you a better idea of how to fill out IRS Form 1040NR and ensure you are handling all those important details for tax purposes.
What is a Nonresident Alien?
What is Form 1040-NR?
Form 1040-NR is the version of the IRS tax return nonresident aliens fill out as they conduct business in the U.S. and earn any income in the country each year. This is particularly important if you plan to reenter the U.S. or apply for permanent residency status, as you will need to show that you made the effort to manage your taxes properly in either case.
Unlike many tax return forms, you cannot fill out Form 1040NR electronically. Instead, you will need to fill out a paper version of the form and mail it in to the IRS. Here’s what you need to know about filing that document.
Step-by-Step Guide to Filling Out Form 1040-NR
4 Common Problems When Filling Out Form 1040-NR
If you want to be sure that you receive the maximum amount for your refund, or if you want to increase your odds of changing your visa status in the coming years, you want to be sure that you avoid common problems associated with filling out Form 1040NR.
Due to the form not being filled out digitally, you must check the numbers yourself or work with a tax attorney to ensure its accuracy. Reduce the odds of potential penalties by avoiding the following common issues.
1. Filing as a resident instead of as a nonresident alien using Form 1040-NR
One of the most common mistakes is simply filling out your taxes as a resident rather than using Form 1040-NR.
Hint: If you used common tax prep software, you likely filled out your forms incorrectly. If you’ve already filed your return, make sure you take steps to fix the error as soon as possible. If not, consider working with an experienced tax attorney to learn more about how to fill out the form correctly.