Who Counts as a Nonresident Alien
An alien is anyone who isn’t a U.S. citizen or U.S. national. You’re a nonresident alien if you haven’t passed the green card test or the substantial presence test.
The Substantial Presence Test
The substantial presence test makes you a resident if you were in the U.S. at least 31 days this year and 183 days over three years. To get the three-year total:
- Count every day you were here this year.
- Add one-third of last year’s days.
- Add one-sixth of the days from two years ago.
If you spent 120 days here each year, your total is 120 + 40 + 20 = 180. That’s under 183, so you’re still a nonresident.
Exempt Individuals and Form 8843
Exempt individuals don’t count their days. They include F, J, M, or Q visa students who substantially comply with their visa, plus J or Q teachers and trainees. Students and scholars who exclude days file Form 8843, even with no income.
When Nonresident Aliens Must File
Next, decide whether you have to file. You must file Form 1040-NR in the first two situations below, and may want to in the last two:
- You were engaged in a U.S. trade or business during the year.
- You had U.S. income, and withholding didn’t fully pay the tax on it.
- You want a refund because too much tax was withheld.
- You want to claim deductions or credits.
F, J, M, and Q visa holders count as engaged in a U.S. trade or business. They only need to file if they had taxable income, such as wages or scholarship grants.
How Nonresident Alien Income Is Taxed
Your income falls into two types. A tax treaty (an agreement between the U.S. and your home country) may lower the rate on some income.
| Effectively connected income (ECI) | FDAP income | |
|---|---|---|
| What it is | Income from U.S. work or business, like wages | Fixed, determinable, annual, or periodical income, like dividends |
| Tax rate | Graduated rates, same as citizens | Flat 30% or lower treaty rate |
| Deductions | Allowed | Not allowed |
| Where to report it | Page 1 of Form 1040-NR | Schedule NEC (Form 1040-NR) |
Graduated rates work like federal tax brackets, where higher income faces higher rates.
Filing Status and Deductions on Form 1040-NR
Your ECI tax also depends on your filing status and deductions.
Filing Status
You can generally file using the single or married filing separately filing status. You can’t file as head of household. Joint filing is generally allowed only if you’re married to a U.S. citizen or resident and choose resident treatment.
Itemized Deductions
Most nonresidents can’t take the standard deduction, though students and business apprentices from India can under the U.S.-India treaty. You can itemize certain ECI-related deductions on Schedule A (Form 1040-NR), such as state and local income taxes and gifts to U.S. charities.
Form 1040-NR Deadlines
Your due date depends on how you earn U.S. income:
- If you had wages subject to U.S. withholding or a U.S. office, file by April 15 in most years.
- Otherwise, file by June 15 in most years.
For more time, file Form 4868 by your regular due date. Filing more than 16 months late can cost you deductions and credits. The IRS tax guide for aliens has full details.
