Form 1040NR-EZ: U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents (2012)
What the Form Is For
Form 1040NR-EZ is a simplified tax return designed specifically for nonresident aliens with straightforward tax situations. Think of it as the “express lane” version of the regular Form 1040NR—it's shorter and easier to complete, but only if your income and circumstances meet strict requirements.
This form allows eligible nonresident aliens to report their U.S. source income and calculate any tax owed or refund due. It's specifically designed for individuals who earned money in the United States through employment or educational grants but maintain their tax residency in another country. The “EZ” designation indicates that it's meant for simpler situations: you can't have dependents, can't claim most deductions or credits, and your income must come only from wages, tips, state tax refunds, or scholarship grants.
You must be a nonresident alien to use this form. If you hold a green card or spend enough time in the United States to meet the “substantial presence test” (generally 31 days in the current year plus 183 days over a three-year period using a weighted formula), you're considered a resident alien and cannot use this form. However, students, teachers, and exchange visitors on F, J, M, or Q visas may qualify for special exceptions that allow them to remain classified as nonresident aliens even if they spend considerable time in the country.
When You’d Use It
Filing Deadlines
The filing deadline depends on your income type. If you received wages as an employee with U.S. income tax withheld from your paycheck, you must file Form 1040NR-EZ by April 15, 2013 (for the 2012 tax year). If you didn't have wages subject to withholding, your deadline extends to June 17, 2013. You can request an automatic six-month extension by filing Form 4868 by the original due date, though this extends only the time to file, not the time to pay any taxes owed.
Late Filing
Filing late triggers penalties that accumulate quickly. The late filing penalty is typically 5% of the unpaid tax for each month (or partial month) your return is late, up to a maximum of 25%. If your return is fraudulent, the penalty jumps to 15% per month, up to 75%. Additionally, if your return is more than 60 days late, you'll face a minimum penalty of $135 or the full amount of tax you owe, whichever is smaller. Late payment carries a separate penalty of 0.5% of the unpaid amount per month (up to 25%), plus interest charges. These penalties can be waived if you have a reasonable explanation—include it with your return if circumstances beyond your control caused the delay.
Amended Returns
If you need to correct a mistake or change information on a return you've already filed, use Form 1040X (Amended U.S. Individual Income Tax Return). You generally have three years from the date you filed the original return or two years from when you paid the tax (whichever is later) to file an amendment. Form 1040X is also used if you filed Form 1040NR-EZ when you should have filed a different form type (such as Form 1040, 1040A, 1040EZ, or the regular 1040NR), or vice versa. Mail your Form 1040X to the Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0215.
Key Rules or Details for the 2012 Tax Year
You can only use Form 1040NR-EZ if every single item on the IRS checklist applies to your situation. Miss even one requirement, and you must use the longer Form 1040NR instead.
Eligibility Requirements
You must meet ALL of these requirements:
- You cannot claim any dependents, and you cannot be claimed as a dependent on someone else's U.S. tax return
- Your only U.S. source income was wages, salaries, tips, state/local tax refunds, or scholarship/fellowship grants (having even a small amount of interest or dividend income disqualifies you)
- Your taxable income is less than $100,000
- You don't claim any tax credits whatsoever
- If married, you don't claim an exemption for your spouse
- The only itemized deduction you claim is for state and local income taxes (with a special exception for students and business apprentices from India, who may take the standard deduction)
- The only income exclusion you claim is for scholarship/fellowship grants, and the only adjustment to income is the student loan interest deduction
- The only taxes you owe are from the tax table or unreported Social Security and Medicare taxes
Residency Status
Your residency status is critical. You must be a nonresident alien—meaning you don't have a green card and don't meet the substantial presence test (unless you qualify for an exception). Students on F, J, M, or Q visas are often treated as “exempt individuals” for the substantial presence test, allowing them to file as nonresident aliens even after spending years in the United States for their studies.
Step-by-Step Filing Process (High Level)
Gather Your Documents
Collect all Forms W-2 (wage statements), Forms 1042-S (foreign person's U.S. source income subject to withholding), and any Forms 1099-R if you had taxes withheld. Make sure your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) is correct and matches your official documentation.
Complete Your Identifying Information
Enter your name, current address, and identifying number at the top of the form. If you have a foreign address, follow the specific format instructions. Indicate your visa type and answer the questions on Schedule OI (Other Information) on page 2, including your citizenship, dates of U.S. entry and departure, and any tax treaty claims.
Report Your Income
Enter your wages, salaries, and tips from Form W-2 on line 3. Report any taxable state or local income tax refunds on line 4. If you received scholarship or fellowship grants, enter them on line 5. If any income is exempt under a tax treaty, report it separately on line 6 and complete the treaty information section.
Calculate Deductions and Exemptions
Subtract any excludable scholarship amounts (line 8) and student loan interest deduction (line 9) to arrive at your adjusted gross income. Claim your itemized deduction for state and local taxes on line 11, then claim your personal exemption ($3,800 for 2012) on line 13 to calculate your taxable income.
Figure Your Tax
Use the tax table in the instructions with your taxable income amount and filing status (single or married filing separately) to find your tax. Enter this on line 15, add any unreported Social Security or Medicare taxes, then enter your total tax on line 17.
Calculate Refund or Amount Owed
Enter all federal income tax withheld from Forms W-2 and 1042-S, estimated tax payments, and any other payments. If your total payments exceed your total tax, you'll receive a refund. If you owe more tax, calculate the amount due. Sign, date, and mail your return to the address listed in the instructions (addresses differ depending on whether you're enclosing a payment).
Common Mistakes and How to Avoid Them
Identification and Math Errors
Incorrect or mismatched identification numbers:
The most common error is entering an incorrect SSN or ITIN, or having a name that doesn't match official records. Double-check that your name and number on the return match your Social Security card or IRS ITIN notice exactly. Mismatches can delay refunds or reduce deductions.
Math errors:
Simple calculation mistakes when figuring taxable income, withholding totals, or the refund amount are frequent. Use a calculator and check your work twice. Round all amounts to whole dollars if you choose to round (if you do, you must round every amount—drop cents below 50¢ and round up cents from 50¢ to 99¢).
Errors in Tax Tables and Attachments
Using the wrong tax table or amount:
Make sure you're using the correct taxable income figure (line 14) and the right tax table column for your filing status.
Missing or incorrectly attached forms:
Attach all Forms W-2, 1042-S, and 1099-R to the front of your return. The IRS cannot process withholding credits without these forms. Don't staple them—use a paper clip.
Signature and Schedule OI Errors
Forgetting to sign and date the return:
An unsigned return is not valid.
Incomplete Schedule OI information:
Schedule OI requires specific information about your citizenship, visa type, U.S. entry and exit dates, and any tax treaty benefits claimed.
Claiming Ineligible Deductions
Remember that Form 1040NR-EZ allows only state/local income tax deductions and the student loan interest adjustment. You cannot claim the earned income credit, education credits, dependent exemptions, or standard deduction (except certain Indian students/business apprentices).
What Happens After You File
Refund Status and Processing Times
You can check your refund status online at IRS.gov using the “Where's My Refund” tool starting three to four weeks after mailing your return. Refunds are typically issued within six to eight weeks for standard cases.
If you are requesting a refund of tax withheld on Form 1042-S, allow up to six months for the IRS to issue the refund due to extra verification steps.
Refund Methods and Timing
Refunds can be direct deposited if you include your bank routing and account numbers. Mailed checks take longer. You must generally file within three years of the due date to claim a refund.
Payments if You Owe Tax
If you owe taxes, payment is due by the original filing deadline. You can mail a check or money order payable to “United States Treasury.”
IRS Follow-Up
The IRS may contact you for more information or may select your return for examination (audit). Respond promptly and keep copies of your documents for at least three years.
FAQs
Can I use Form 1040NR-EZ if I'm a student on an F-1 visa?
Yes, if you meet all the other eligibility requirements. Students on F, J, M, and Q visas are often classified as “exempt individuals” for the substantial presence test.
What's the difference between a resident alien and nonresident alien for tax purposes?
Your immigration status and tax residency status are separate. Resident aliens file Forms 1040-series and are taxed on worldwide income; nonresident aliens file Form 1040NR or 1040NR-EZ and generally pay tax only on U.S. source income.
What should I do if I received a Form 1042-S showing scholarship income that's tax-exempt under a treaty?
Enter treaty-exempt income on line 6 and complete item J of Schedule OI. You may need to attach Form 8833 depending on treaty rules.
I didn't receive my Form W-2—can I still file my tax return?
Yes. Contact your employer first. If you still can't obtain the form, you can file using your own records, such as pay stubs or bank deposits.
What happens if I filed Form 1040NR-EZ but should have filed a different form?
File Form 1040X (Amended U.S. Individual Income Tax Return) to correct your return.
Can I claim treaty benefits to exempt my scholarship or fellowship grant from U.S. tax?
Possibly. You must check whether your country has a treaty that covers the type of income and whether you meet the treaty qualifications.
Do I need to report cash tips not shown on my W-2?
Yes. All tip income is taxable, including unreported cash tips and non-cash tips like tickets or items.
