Form 1040NR Checklist – Tax Year 2013
Year-Specific Context
Form 1040NR for 2013 uniquely permits nonresident aliens to deduct charitable contributions for Typhoon Haiyan relief made after March 25, 2014, but before April 15, 2014, as if made on December 31, 2013. The form provides clarity on the Additional Medicare Tax of 0.9%, effective as of 2013. It specifies the personal exemption amount at $3,900, with phase-out thresholds dependent on filing status and adjusted gross income exceeding $150,000 for married filing separately, $250,000 for single filers, or $300,000 for a qualifying widow or widower.
These year-specific provisions distinguish the 2013 Form 1040NR from prior and subsequent tax years and require careful attention during preparation to ensure accurate reporting and compliance with new thresholds.
Year-specific programs applying to 1040NR filers in 2013 include the Typhoon Haiyan disaster relief charitable contribution election. No Economic Impact Payments, Affordable Care Act shared responsibility payments, or Tax Cuts and Jobs Act provisions apply in 2013. Nonresident aliens must file Form 8843 if claiming exemption from the substantial presence test as students, teachers, trainees, government-related individuals, or those with medical conditions preventing departure from the United States.
Ten-Step Checklist: Form 1040NR for 2013
Step 1: Determine Residency and Filing Requirement
Verify substantial presence test: 31 or more days physically present in the United States during 2013 and 183 or more days during the three years, with 2013 counted at 1.000 multiplier, 2012 at 0.333 multiplier, and 2011 at 0.167 multiplier, with full days in 2013 counted first. If you are claiming a closer connection exception, file Form 8840 with your return.
If claiming exemption as a teacher, trainee, student on an F, J, M, or Q visa, or government-related individual, file Form 8843 separately. Confirm that the filing status category in boxes 1 through 6 on page 1 matches your resident-of-Canada or Mexico status, or U.S. national designation, as of December 31, 2013.
Step 2: Gather Income Documents
Collect Forms W-2 for wages subject to withholding, Forms 1042-S for nonresident alien income and withholding, Forms 1099-R for retirement distributions, Schedule K-1 for partnership, S-corporation, and trust income, and any statements showing interest, dividends, capital gains, rentals, royalties, pensions, annuities, or scholarships.
Nonresident aliens receive Forms 1042-S rather than Forms 1099-MISC for independent contractor income. Comprehensive documentation is essential for accurate reporting and substantiation of all income categories subject to U.S. taxation.
Step 3: Report Effectively Connected Income
Enter wages, business income, capital gains, and rental income on lines 8 through 21 on page 1 that relate to U.S. trade or business activity. Sum these amounts on line 23.
Deduct applicable expenses on Schedule C for business income, Schedule D for capital gains and losses, or Schedule E for rental and farm income, and carry net amounts to page 1. All effectively connected income is taxed at graduated rates applicable to U.S. citizens, ranging from 10% at the lowest bracket to 39.6% at the highest bracket for the 2013 tax year.
Step 4: Report Income Not Effectively Connected
Complete Schedule NEC for dividends, interest, royalties, pensions, annuities, gambling winnings, and other passive income. Allocate gross amounts to tax rate columns: 10%, 15%, 30%, or other treaty rate in column (d).
Tax on Schedule NEC income from line 15 transfers to Form 1040NR line 53. Non-effectively connected income represents passive investment income from U.S. sources that is taxed at flat rates rather than graduated rates, with treaty provisions potentially reducing the standard 30% withholding rate.
Step 5: Calculate Adjustments to Income
Report adjustments on lines 24 through 34: educator expenses with $250 limit per 2013 rules, health savings account deduction, moving costs, self-employment tax deductible portion, self-employed retirement and health insurance deductions, early withdrawal penalties, excluded scholarship and fellowship grants, IRA deduction, and student loan interest deduction with $2,500 limit if applicable.
Sum on line 35 and subtract from effectively connected income on line 23 to obtain adjusted gross income on line 36.
Step 6: Itemize Deductions or Claim Zero Standard Deduction
Complete Schedule A for Form 1040NR for state and local income taxes, home mortgage interest, charitable contributions, and unreimbursed employee expenses subject to 2% floor.
Nonresident aliens cannot claim the standard deduction. Itemized deductions are limited if adjusted gross income on line 36 exceeds $150,000 for married filing separately in boxes 3, 4, or 5; $250,000 for single filers in boxes 1 or 2; or $300,000 for a qualifying widow or widower in box 6.
Transfer line 15 from Schedule A to Form 1040NR line 38. The inability to claim the standard deduction for nonresident aliens represents a significant limitation requiring itemization of all allowable deductions.
Step 7: Claim Exemptions
Check boxes on line 7a for yourself, line 7b for spouse, only if spouse has no U.S. gross income and boxes 3 or 4 are checked, and line 7c for dependents with valid tax identification numbers.
The personal exemption for 2013 is $3,900 per filer and dependent, subject to phase-out if the adjusted gross income exceeds the threshold amounts noted in Step 6. Enter total exemptions on line 7d. The exemption phase-out reduces the total exemption amount by 2% for each $2,500 or fraction thereof by which adjusted gross income exceeds the applicable threshold.
Step 8: Calculate Tax Liability and Claim Eligible Credits
On page 2: subtract line 38 for itemized deductions and line 40 for exemptions from line 37 for adjusted gross income to determine taxable income on line 41. Calculate tax on line 42 using the 2013 tax computation worksheet or tax table. Add alternative minimum tax on line 43 if applicable.
Claim only credits available to nonresident aliens with effectively connected income: foreign tax credit on line 45 with Form 1116 required, child and dependent care credit on line 46 with Form 2441, retirement savings contributions credit on line 47 with Form 8880, and child tax credit on line 48 with Schedule 8812 for qualifying children who are U.S. citizens, nationals, or resident aliens.
Enter total credits on line 51. Subtract from total tax on line 44 to obtain tax after credits on line 52.
Step 9: Report Additional Taxes and Withholdings
On page 2, add income tax not effectively connected on line 53 from Schedule NEC line 15, self-employment tax on line 54 from Schedule SE if net earnings equal or exceed $400, and applicable, unreported social security and Medicare tax on line 55, and other applicable taxes on lines 56 through 59—total taxes on line 60.
Report total federal income tax withheld on line 61a from Forms 1099, generally, line 61c for other withholding, and line 61d for U.S. tax withheld on income not effectively connected from Forms 1042-S. Enter 2013 estimated tax payments and carryover from 2012 on line 62. Add all payments on line 69.
Step 10: Complete Schedule OI, Sign, Verify, and Prepare for Mailing
Answer all questions on Schedule OI on page 5: citizenship country, tax residence country, visa status if any, visa changes, dates entered and left the United States, days present in 2011 through 2013, prior year income tax filing status, and tax treaty claims.
If claiming tax treaty exemption or reduced rate, complete Schedule OI item L and attach Form 8833 for Treaty-Based Return Position Disclosure as required—sign and date Form 1040NR on page 6 under penalties of perjury.
Assemble in order: Form 1040NR, page 2 of Form, Schedule A, Schedule NEC, Schedule OI, and all required attachments, including Forms W-2, 1042-S, K-1, Forms 1116, 2441, 8880, 8812, 8833, and 8843 as applicable. Nonresident aliens may not file electronically; mail a paper return with original signatures to the appropriate Internal Revenue Service address, as specified in the “Where To File” section of Form 1040NR, based on the payment status.
Significant Changes for Form 1040NR in 2013
Schedule A Itemized Deductions and Medical Expense Threshold was updated for 2013. The prior approach allowed deductible medical and dental expenses to be reduced by 7.5% of the taxpayer’s adjusted gross income, or by a percentage based on the taxpayer’s age. For 2013, deductible medical and dental expenses are reduced by 10% of adjusted gross income for all taxpayers, with the 7.5% threshold retained only if either taxpayer was born before January 1, 1949, meaning they attained age 65 during or before tax year 2013. This change type is classified as updated.
The Maximum Tax Rate on Net Capital Gain and Qualified Dividends was updated for 2013. Prior approach imposed a 15% maximum rate on long-term capital gains and qualified dividends. For 2013, a 20% maximum rate applies to net capital gains and qualified dividends for higher-income taxpayers, as reflected in the 2013 tax computation worksheet. This change represents a significant increase in tax rates for specific categories of capital income and requires careful calculation using the appropriate worksheet to determine the correct tax liability. This change type is classified as updated.
Final Compliance Requirements
Nonresident aliens filing Form 1040NR for 2013 must ensure all required schedules and forms are completed and attached, including mandatory Schedule OI and any applicable supporting schedules. The return must be signed and dated under penalty of perjury, with a signature attestation that the information provided is true, accurate, and complete. Electronic filing is not available for Form 1040NR; the return must be printed, signed, and mailed to the appropriate IRS processing center.
Keep copies of all forms, schedules, and supporting documentation for at least three years from the filing date or two years from the date the tax was paid, whichever period is longer, to substantiate the income, deductions, credits, and withholding claimed on your return. Proper completion and timely filing are essential to avoid penalties and ensure accurate determination of tax liability.
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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.
