Tax filers who are nonresident aliens who work or reside in the United States use the 1040NR-EZ form. The form is a simple version of the 1040 NR for nonresident aliens, to be used when:
- When the taxpayer does not claim any dependents.
- When the taxpayer cannot be claimed as a dependent on the taxes of another individual.
- When the taxpayers only source of income is from U.S. wages, salaries, tips, taxable refunds of state and local taxes or scholarship and grant monies.
Dividends Income and Requirements to Use the Form
If the taxpayer has any taxable dividend income, they must use the Form 1040NR instead of the Form 1040NR-EZ. Additionally, a taxpayer that wishes to use the Form 1040NR-EZ must have taxable income that is less than $100,000. The taxpayer, who is a nonresident alien, must have no deductions, save those allowed for any student scholarship or fellowship grant reward. There can be no tax credits claimed by the taxpayer or an exemption for the taxpayer’s spouse.
What May Be Deducted or Reported
The taxpayer may itemize for state or local deductions. The taxes owed, as reported on the 1040NR-EZ must be found in the tax table for the form and unreported Medicare and Social Security taxes. These taxes are reported on Forms 4137 or 8919.
Instruction Booklet Available Online
The IRS provides guidance for completed the Form 1040NR-EZ form through its website on IRS.gov. The instructions take the taxpayer step-by-step through the tax filing process in order to complete their obligation and pay any taxes that may be due.
How to Understand the Instructions
The easiest and best way to file the Form 1040NR-EZ is to read the instruction booklet from cover to cover in order to see what is required. The form is also available online via the IRS website and can be used as a companion to the instruction booklet. The instruction booklet gives the taxpayer line-by-line instructions as to what information needs to be provided and in what format.
Process for Filing
Because the Form 1040NR-EZ is a short form filing, meaning that it does not permit credits or deductions to be taken from reported income amount, filing time to complete the form should not be that long or arduous. The form should be easy to figure out, complete and send to the IRS for processing. If after reading the instruction booklet provided by the IRS you still have problems with filing the form or understanding the filing requirements, it may be necessary to consult with a qualified tax preparer in order to understand the instructions.
Obtaining the Form and Instructions
The form and instructions can also be obtained by the foreign embassy or consulate of the nonresident alien. The form and instructions are only available during tax season from these sources. The estimated time to complete the 1040NR-EZ, including obtaining all necessary documents and attachments is 11.1 hours at an approximate cost of $52.