What Form 1040NR-EZ (2018) Is For
Form 1040NR-EZ (2018) was created for a nonresident alien who earned U.S. income and needed an income tax return simpler than Form 1040-NR. It applied to individuals temporarily in the United States on an F, J, M, or Q visa who received wages, scholarships, or other U.S. income connected to a trade or business. The form excluded anyone treated as a resident alien or U.S. citizen under the green card test or substantial presence test.
The form allowed for the reporting of effectively connected income and limited deductions, such as state taxes, but did not permit a personal exemption, the Child Tax Credit, or the Standard Deduction, except for certain Indian students. A filer could not report rental property income, investment income, self-employment compensation, or transactions under the Foreign Investments in Real Property Tax Act. A valid Social Security number, ITIN number, or Taxpayer Identification Number was required to file a tax return.
For a detailed breakdown of filing requirements, eligibility rules, and step-by-step instructions, see our comprehensive guide for Form 1040NR-EZ: U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents (2018).
When You’d Use Form 1040NR-EZ
A taxpayer used Form 1040NR-EZ when they met all eligibility requirements and needed to file for 2018, including late or corrected filings. A late filer can request more time using Form 4868 or file after the deadline, but may incur penalties and interest. The form was also used when wages were reported on Form W-2 or taxes were paid through withholding.
If a taxpayer needs to correct a previous income tax return, they file an amended return and include updates to Schedule NEC or Schedule A, as required. A taxpayer who should have used Form 1040-NR instead of the 1040NR EZ had to correct the filing promptly. Form 1040NR-EZ could not be used by anyone who qualified or elected to file as married filing jointly.
For complete details on wage reporting, withholdings, and tax filings, see our guide for Individual Tax Forms.
Key Rules or Details for 2018
Rules for the 2018 tax year limited eligibility to simple international individual tax matters with income under $100,000 and no dependents. Only limited deductions were allowed, and the form excluded important options available on Form 1040, such as a personal exemption or most credits. A taxpayer needed to review whether the income was effectively connected income or taxed under a tax treaty.
The form did not allow reporting of rental property income, investment income, or self-employment compensation. Tax treaty benefits required proper disclosure, and certain taxpayers needed to provide additional schedules or documents for U.S. income sourced under tax purposes—a taxpayer with disqualifying income types needed to file the required Form 1040-NR instead.
Step-by-Step (High Level)
The filing process for Form 1040NR-EZ followed a structured path.
Step 1: Personal Information
The taxpayer provided their name, mailing address, and identifying number. They needed a Social Security number or an ITIN number. A taxpayer who did not qualify for a Social Security number was required to apply for a Taxpayer Identification Number using Form W-7.
Step 2: Filing Status
The form allowed only Single or Married Filing Separately. Married Filing Jointly was not an option. Filing status was determined based on the taxpayer’s situation on the last day of the tax year.
Step 3: Report Income
The taxpayer entered wages, taxable scholarship amounts, state tax refunds, and treaty-exempt income. They determined whether the income was effectively connected or not. Schedule NEC applied for income taxed at source.
Step 4: Adjustments
The taxpayer could exclude qualified scholarship amounts or claim student loan interest as allowed under the 2018 rules.
Step 5: Itemized Deduction
The taxpayer entered eligible state and local tax amounts subject to applicable limits.
Step 6: Calculate the Tax
The taxpayer computed taxable income and used the 2018 tax tables. They confirmed that the correct tax table column matched the filing status.
Step 7: Payments
The taxpayer reported federal income tax withheld from Forms W-2, 1099-R, and 1042-S. They included estimated tax payments.
Step 8: Refund or Amount Due
The taxpayer determined whether a refund was owed or whether additional tax was due. Refunds were issued by direct deposit or check. Taxpayers with an outstanding balance must pay promptly to avoid penalties.
Step 9: Sign and Attach Documents
The taxpayer signed the return and attached wage statements and other required documents. Missing attachments caused delays.
Common Mistakes and How to Avoid Them
- Using incorrect identifying information: Ensure your name, SSN, or ITIN matches IRS records and include complete address details—such as apartment numbers—to avoid correspondence issues.
- Forgetting or misplacing required attachments: Attach Forms W-2 and 1042-S in the correct sections of the return to support income and withholding amounts.
- Using the wrong tax table column or claiming disallowed credits: Follow nonresident rules carefully and use only the tax table column and deductions permitted for Form 1040NR-EZ filers.
- Reporting income types not allowed on Form 1040NR-EZ: Exclude rental income, investment income, and self-employment compensation, which require filing Form 1040NR instead.
- Misunderstanding residency requirements or falling for IRS-related scams: Verify eligibility under the substantial presence or green card tests and ignore phishing emails that impersonate the IRS.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
Once filed, the IRS processed the return and issued refunds or notices from its offices, including those in Washington, DC. Delays occurred when documents were not found, when the taxpayer used the wrong identifying number, or when the IRS required clarification of a response message. Refunds could also be offset to pay federal or state debts.
Taxpayers sometimes encountered scam emails pretending to be the IRS or experienced an Error 404, Server Error, or another HTTP status code when checking IRS resources. These issues were often linked to a web server, server configuration, or network connectivity rather than the tax return. A missing 404 error page or client request issue affected user experience, but did not change income tax processing.
FAQs
Can a taxpayer file Form 1040NR-EZ electronically?
Most 2018 nonresident returns had to be mailed. Electronic filing options were limited.
What if a taxpayer does not have a Social Security number?
A taxpayer who does not qualify for a Social Security number must apply for an ITIN using Form W-7.
Does a tax treaty reduce U.S. income tax?
A tax treaty may reduce the tax owed if the taxpayer meets treaty requirements. Treaty-exempt income must be reported correctly and supported.
Can a taxpayer file jointly on this form?
No, Married Filing Jointly is not allowed on Form 1040NR-EZ. The taxpayer must file as Single or Married Filing Separately.
What if the taxpayer used the wrong form?
The taxpayer must file Form 1040X and attach a corrected Form 1040-NR.
