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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 payments from Form 1040-ES (NR), including the 2011 overpayment applied to 2012. Line 20 adds lines 18c and 19 to calculate the total costs.
If line 20 exceeds line 17, line 21 indicates the overpayment, line 22 shows the amount applied to the 2013 estimated tax, and line 23 displays the refund amount. If line 17 exceeds line 20, line 24 shows the amount owed with the return.
Step 11: Complete Schedule OI
Complete all Schedule OI items, as they are mandatory for all returns. It refers to the citizenship or national status of a country. Item B enters the tax residence country. Items C and D answer questions about prior green card applications and prior U.S. citizenship or green card status. Item E is entered as the visa type on December 31, 2012, or immigration status. Item F indicates visa or status changes with dates and descriptions.
Item G lists all U.S. entry and exit dates in 2012 or checks the box for Canadian or Mexican commuters. Item H enters the total days physically present in the U.S. during 2012, 2011, and 2010, including partial days. Item I indicates the prior year U.S. tax return filing with the latest year and form number. Item J reports treaty benefits as described in Step 6.
Step 12: Sign and File Return
Sign and date the return under penalties of perjury. Paid preparers must sign and provide their PTIN. Attach all Forms W-2, Forms 1042-S, and Form 8833 if required. Mail to Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0215 U.S.A. without payment, or to Internal Revenue Service, P.O. Box 1303, Charlotte, NC 28201-1303 U.S.A. with payment. File by April 15, 2013, if you received wages subject to withholding, or by June 17, 2013, if you did not. Submit Form 4868 for an automatic six-month extension, though the extension does not extend the time to pay tax.
Key Restrictions
You cannot claim the standard deduction except for Indian students and business apprentices under treaty provisions. You cannot claim dependents, spouse exemptions, or any tax credits, including earned income credit, child tax credit, or education credits. You cannot file jointly if married. Itemized deductions are limited to state and local income taxes only, with no medical expenses, charitable contributions, or mortgage interest allowed.
You cannot report interest, dividends, capital gains, business income, or rental income. Only two adjustments are permitted: scholarship exclusion and student loan interest deduction. These restrictions reflect the simplified nature of this form for nonresident aliens with straightforward U.S. tax situations.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
