Filing a Simplified Nonresident Alien Tax Return (2012)

2012 Form 1040NR-EZ Filing Checklist for Nonresident
Aliens
Why 2012 Form 1040NR-EZ is Unique
The 2012 Form 1040NR-EZ provides a simplified filing option for nonresident aliens without
dependents. Key features include enhanced treaty-exempt income reporting through Schedule
OI, specific Form 8833 attachment rules, a personal exemption of $3,800, and itemized
deductions limited to state and local income taxes only.

Ten-Step Filing Checklist

1. Step 1: Verify Eligibility

   You must be a nonresident alien for the entire 2012 tax year, having failed both the green card
   and substantial presence tests. Your only U.S. source income must be wages, salaries, tips,
   state and local tax refunds, and scholarship or fellowship grants with no interest or dividends.

   Your taxable income must be less than $100,000. You cannot claim dependents or be claimed
   as a dependent.

   You can only claim the scholarship exclusion and student loan interest deduction. You cannot
   claim any tax credits or spouse exemption if married. The only itemized deduction allowed is
   state and local income taxes, though Indian students and business apprentices may qualify for
   the standard deduction under treaty provisions. You can only owe Tax Table amounts or
   unreported social security and Medicare tax.

2. Step 2: Gather Documentation

   Collect all Forms W-2 showing wages in box 1, Forms 1042-S for scholarship or fellowship
   grants, Form 1099-G for state or local tax refunds, student loan interest payment
   documentation, records of U.S. physical presence days for 2012, 2011, and 2010, and the tax
   treaty between the United States and your country if claiming treaty benefits with specific article
   numbers.

3. Step 3: Complete Personal Information

   Enter your name, address, city, town, and country. For foreign addresses, enter the city name,
   then complete the spaces below with the country name in uppercase English letters, postal
   code, and province, county, or state. Please provide your Social Security number or ITIN. Check

   line 1 if single or line 2 if married filing separately and meeting all five qualifying conditions as a
   resident of Canada, Mexico, or South Korea, or as a U.S. national.

4. Step 4: Report Wages and Salary Income on Line 3

   Enter total effectively connected wages from Form W-2 box 1. Include household employee
   wages under $1,800 not on Form W-2, noting HSH, unreported tip income, including allocated
   tips from box eight and noncash tips, disability pensions if below minimum retirement age, and
   wages from Form 8919. Do not include treaty-exempt wages, which must be reported on line 6
   with Schedule OI item J completed.

5. Step 5: Report Other Income on Lines 4 and 5

   Line 4 reports state or local income tax refunds received in 2012, including amounts applied to
   estimated tax. Leave blank if you did not itemize in the year tax was paid, or if you were an
   Indian student or apprentice who claimed the standard deduction in 2011—line 5 reports
   scholarship amounts from Form 1042-S box 2.

   Degree candidates report amounts used for room, board, and travel as taxable. Non-degree
   candidates are required to report the full amount as taxable. Include payment for teaching,
   research, or services. Attach Forms 1042-S or institutional statements. Do not include
   treaty-exempt amounts, which belong on line 6.

6. Step 6: Report Treaty-Exempt Income on Line 6

   Enter the total income exempt under the tax treaty, including both effectively connected and not
   effectively connected income. This must equal the total from Schedule OI, item J, column D, line
   E. Do not include treaty-exempt income on lines 3 or 5. Complete Schedule OI item J with the
   treaty country in column a, the treaty article number in column b, the months claimed in prior
   years in column c, and the exempt income amount in 2012 in column d.

   Total column d and enter on line e, transferring to line 6. Attach Form 8833 if required, with
   exceptions for reduced withholding on dividends, interest, or royalties; dependent personal
   services, pensions, or student income, social security agreements; partnership or estate
   reporting; or payments totaling under $10,000.

7. Step 7: Calculate Adjusted Gross Income on Lines 7 Through 10

   Line 7 adds lines 3, 4, and 5 to calculate the total income. Line 8 enters scholarship amounts
   used for tuition, fees, books, supplies, and equipment only if included on line 5, noting that
   section 117 amounts not reported in Form 1042-S box two cannot be excluded. Line 9 enters
   the student loan interest deduction with a $2,500 maximum if you paid interest in 2012, your
   filing status is single, and your modified AGI is under $75,000 using the Student Loan Interest

   Deduction Worksheet. Line 10 subtracts the sum of lines 8 and 9 from line 7 for adjusted gross
   income.

8. Step 8: Calculate Taxable Income on Lines 11 Through 14

   Line 11 enters state and local income taxes paid or withheld in 2012, the only itemized
   deduction generally available, without subtracting refunds received in 2012, which belong on
   Line 4. Indian students and business apprentices may take the standard deduction per
   Publication 519. Line 12 subtracts line 11 from line 10. Line 13 enters the exemption amount of
   $3,800 for yourself. Line 14 subtracts line 13 from line 12 for taxable income, entering zero if the
   result is zero or less.

9. Step 9: Calculate Total Tax on Lines 15 Through 17

   Line 15 uses the Tax Table with your taxable income from line 14 and filing status to determine
   your regular income tax. Line 16 enters unreported social security and Medicare tax from Form
   4137 for unreported tips or Form 8919 for uncollected taxes on wages. Line 17 combines lines
   15 and 16 to calculate the total tax liability.

10. Step 10: Calculate Refund or Amount Owed on Lines 18 Through 24

    Line 18a reports federal tax withheld from wages, as per Form W-2, box 2. Line 18b enters
    federal tax withheld per Form 1042-S box seven, including backup withholding from Forms
    1099. Line 18c adds lines 18a and 18b for total withholding. Line 19 reports 2012 estimated tax