Form 1040-NR: 2019 U.S. Nonresident Alien Income Tax Return Filing Checklist
Overview
Form 1040-NR is the federal income tax return for nonresident aliens who received U.S. source income or engaged in U.S. trade or business during 2019. Form 1040NR-EZ was discontinued after the 2017 tax year, requiring all nonresident aliens to file Form 1040-NR, regardless of income complexity or dependent status. For 2019, personal exemptions remain suspended at zero under the Tax Cuts and Jobs Act, and the standard deduction is $12,200 for single filers and $24,400 for married filing jointly. However, most nonresident aliens are not eligible to claim it.
Step-by-Step Filing Process
Step 1: Verify Nonresident Alien Status
Confirm you do not meet the green card test or substantial presence test for 2019. The significant presence test requires at least 31 days in the U.S. during 2019, plus 183 days over three years: all 2019 days, plus one-third of 2018 days, and one-sixth of 2017 days. Exempt individuals, including students on F, J, M, or Q visas, are not counted when determining certain days toward the substantial presence test.
Step 2: Determine Filing Requirement
File Form 1040-NR if you engaged in U.S. trade or business during 2019, regardless of income amount, received U.S. source income when tax was not entirely withheld, owe alternative minimum tax or additional taxes on retirement plans, received HSA or MSA distributions, had advance premium tax credit payments made for Marketplace coverage, or held a qualified opportunity fund investment. Consider filing even if not required to claim refunds of withheld taxes.
Step 3: Gather Required Documentation
Collect Forms W-2 for wages subject to U.S. withholding, Forms 1042-S for scholarships and treaty-exempt income, Forms 1099 for interest, dividends, capital gains, and other income, and Schedule K-1 from partnerships, S corporations, estates, or trusts. Compile receipts for state and local income taxes, charitable contributions to U.S. organizations, and casualty losses from federally declared disasters.
Step 4: Complete Personal Information and Filing Status
Enter your name exactly as shown on your Social Security card or ITIN assignment letter. Provide your U.S. or foreign address. Choose filing status: single, married filing separately, qualifying surviving spouse, or head of household if you are eligible under treaty provisions for Canada, Mexico, or South Korea. Nonresident aliens generally cannot use the married filing jointly status.
Step 5: Report Income Effectively Connected
Report income effectively connected with U.S. trade or business, including wages from Forms W-2, interest, dividends, capital gains from Schedule D, other gains from Form 4797, IRA distributions, pensions and annuities, rental income from Schedule E, farm income from Schedule F, unemployment compensation, and other income from Schedule 1. This income is taxed at graduated rates from 10% to 37%.
Step 6: Report Income Not Effectively Connected
Complete Schedule NEC for income not connected with U.S. trade or business, subject to flat withholding rates. Report dividends, interest, royalties, real property income, pensions, capital gains unconnected to U.S. business, and other income in appropriate tax rate columns based on treaty provisions, typically 15% or 30%. Transfer the total tax to Form 1040-NR line 23a.
Step 7: Calculate Adjustments to Income
Claim adjustments on Schedule 1 including educator expenses up to $250, HSA deductions up to $3,500 for self-only or $7,000 for family coverage, moving expenses for Armed Forces, self-employment tax deduction under international agreements, self-employed health insurance, IRA deduction phasing out at $64,000 to $74,000 for single filers with workplace plans, and student loan interest up to $2,500 phasing out at $70,000 to $85,000. Subtract adjustments from total income to calculate adjusted gross income.
Step 8: Determine Deductions
Most nonresident aliens are required to itemize their deductions using Schedule A (Form 1040-NR) and cannot claim the standard deduction. Exceptions apply to students and business apprentices from India under Article 21(2) of the U.S.-India treaty, who may claim $12,200 for single or $24,400 for married filing jointly. Itemize state and local income taxes allocated to effectively connected income, charitable contributions to U.S. organizations, and casualty losses from federally declared disasters exceeding 10% of AGI plus $100 per casualty.
Step 9: Calculate Taxable Income
Personal exemptions are suspended at zero for 2019. Subtract standard or itemized deductions from adjusted gross income. Also, subtract the qualified business income deduction on line 11b if you have eligible income from partnerships, S corporations, or sole proprietorships qualifying for the 20% deduction. Enter taxable income on line 11c. If deductions exceed AGI, taxable income is zero.
Step 10: Calculate Tax
Use the 2019 tax table if taxable income is under $100,000 or the tax computation worksheet if your taxable income is $100,000 or more. Tax rates range from 10% to 37%. Add tax on non-effectively connected income from Schedule NEC. Include alternative minimum tax from Form 6251 if applicable, with exemption amounts of $71,700 for single and $111,700 for married filing jointly, phasing out at $510,300 and $1,020,600. Add other taxes from Schedule 2, including self-employment tax and additional retirement plan taxes.
Step 11: Claim Tax Credits
Calculate foreign tax credit on Form 1116 to prevent double taxation. Claim a child tax credit of $2,000 per qualifying child under age 17, available to residents of Canada, Mexico, South Korea, U.S. nationals, or treaty-eligible Indian students. Children must be U.S. citizens, nationals, or residents with valid Social Security numbers—the credit phases out above $200,000 for single filers and $400,000 for married couples filing jointly. Claim an additional child tax credit of 15% of earned income over $2,500, up to $1,400 per child.
Step 12: Report Tax Payments
Enter federal income tax withheld from Forms W-2, 1099, and 1042-S on line 25b. Include FIRPTA withholding from Form 8288-A. Report estimated tax payments made using Form 1040-ES(NR) on line 26, including quarterly payments and extension payments. Report excess social security tax withheld on line 31 if you worked for multiple employers and wages exceeded $132,900. Add all payments to determine total payments on line 33.
Step 13: Calculate Refund or Amount Owed
If payments exceed tax, you have an overpayment on line 34. Indicate the amount to apply to the 2020 estimated tax on line 35. The remaining amount on line 36a is your refund. For direct deposit, provide the bank routing number, account number, and account type. If tax exceeds payments, the difference on line 37 is the amount owed. Include payment with your return or pay electronically.
Step 14: Complete Schedule OI
Complete the mandatory Schedule OI providing the country of citizenship, country of tax residence, visa type on December 31, 2019, and days present in the U.S. during 2017, 2018, and 2019. For treaty-exempt income, provide the treaty country, the treaty article number, the months in prior years you claimed benefits under the same article, and the total 2019 exempt income. Attach Form 8833 if required when claiming treaty benefits that override U.S. tax laws.
Step 15: Attach Required Forms
Attach Forms W-2 to the front of page one. Include Forms 1042-S, Forms 1099 with withholding, Schedule A (Form 1040-NR) if itemizing, Schedule NEC for non-effectively connected income, Schedule B if interest or dividends exceed $1,500, mandatory Schedule OI, Schedule 1 for adjustments, Schedule 2 for additional taxes, Schedule 3 for credits, Schedule C for business income, Schedule D for capital gains, Schedule E for rental income, Schedule F for farm income, Form 4797 for asset sales, and Form 8833 if required.
Step 16: Sign and File Your Return
Sign and date your return in ink. Include your occupation and phone number. If using a paid preparer, they must also sign and provide their PTIN and firm information. Mail your submission to the address provided in the instructions, depending on whether you include payment or file electronically if eligible. E-filing is available for most filers except dual-status taxpayers, fiscal year filers, estates, and trusts.
File by April 15, 2020, if you received wages subject to withholding, or June 15, 2020, if not. Request a six-month extension using Form 4868 by the original deadline. An extension to the file is not an extension to pay. Pay the estimated tax owed by the original deadline to avoid penalties and interest.
Step 17: Make 2020 Estimated Tax Payments
Make quarterly estimated tax payments using Form 1040-ES(NR) if you expect to owe at least $1,000 for 2020, and withholding will be less than 90% of 2020 tax or 100% of 2019 tax (110% if 2019 AGI exceeded $150,000)—pay by April 15, June 15, September 15, and January 15. Skip the January payment if you file your 2020 return by February 1, 2021.
Step 18: Maintain Records
Keep copies of your return, all attachments, and supporting documentation for at least three years from the date of filing or two years from the date of payment, whichever is later. Retain Forms W-2, 1042-S, 1099, receipts for deductions, proof of payments, and treaty documentation.
If social security or Medicare taxes were withheld in error from F, J, M, or Q visa holders—file Form 843 for a refund.
Important 2019 Reminders
Personal exemptions remain suspended at zero through 2025. Most nonresident aliens cannot claim the standard deduction, except for treaty-eligible Indian students, who may claim $12,200 for single filers or $24,400 for married filers jointly. Nonresident aliens cannot claim earned income credit, most education credits, or premium tax credit except under specific circumstances.
Child tax credit and additional child tax credit are available only to residents of Canada, Mexico, South Korea, U.S. nationals, and treaty-eligible Indian students. The maximum student loan interest deduction is $2,500, with a phase-out range of $70,000 to $85,000. HSA contribution limits are $3,500 for self-only coverage and $7,000 for family coverage, plus a $1,000 catch-up contribution for individuals aged 55 or older.
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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.
