Form 1040NR-EZ: U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents (2010)
What Form 1040NR-EZ Is For
Form 1040NR-EZ is a simplified tax return designed specifically for nonresident aliens who have relatively straightforward tax situations and earn income from U.S. sources. If you're not a U.S. citizen and don't meet the requirements to be treated as a resident alien for tax purposes, this form allows you to report your U.S. income and pay the required taxes without the complexity of the full Form 1040NR.
You can use Form 1040NR-EZ only if you meet several specific conditions: you cannot claim any dependents, you cannot be claimed as a dependent on someone else's return, your only U.S. income came from wages, salaries, tips, state/local tax refunds, or scholarship/fellowship grants, and your taxable income is less than $100,000. Additionally, you cannot have received taxable interest or dividend income, and you can claim only limited deductions and credits—specifically, the standard deduction or state and local income tax deduction, and the student loan interest deduction if you qualify.
The form serves nonresident aliens who were engaged in a trade or business in the United States during the tax year, even if they had no actual income or their income was exempt under a tax treaty. Understanding your residency status is crucial: you're generally a nonresident alien if you don't hold a green card and don't meet the "substantial presence test" (being physically present in the U.S. for at least 31 days during the year and 183 days over a three-year period using a weighted formula).
When You’d Use Form 1040NR-EZ (Including Late or Amended Returns)
The standard filing deadline for Form 1040NR-EZ depends on your employment situation. If you received wages as an employee subject to U.S. income tax withholding, you must file by April 15 (or April 18, 2011, for the 2010 tax year due to the Emancipation Day holiday in Washington, D.C.). If you didn't receive wages subject to withholding, you have until June 15 to file.
If you cannot meet these deadlines, you can request an automatic six-month extension by filing Form 4868 before the original due date. However, it's critical to understand that an extension to file is not an extension to pay—any taxes owed are still due by the original deadline, and you'll be charged interest and possibly penalties on late payments.
For amended returns, you'll need to use Form 1040X if you need to correct a previously filed Form 1040NR-EZ or if you realize you should have filed a different form entirely (such as the full Form 1040NR or a U.S. resident form). You generally have three years from the date you filed your original return or two years from the date you paid the tax (whichever is later) to file an amended return and claim a refund. Special extensions may apply if you live in a federally declared disaster area or if you're physically or mentally unable to manage your financial affairs.
Key Rules or Details for the 2010 Tax Year
Several fundamental rules govern who can use Form 1040NR-EZ and how to file it correctly.
Residency Status Requirements
Your residency status determines whether you use this form—you must be a nonresident alien, not someone who qualifies as a resident under the green card test or substantial presence test. However, even if you meet one of these resident tests, you may still be able to file as a nonresident if you qualify as a resident of a treaty country under an income tax treaty between the United States and that country.
ID Numbers (SSN or ITIN)
You must have a valid taxpayer identification number—either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). If you're eligible for an SSN, you must apply for one rather than using an ITIN. Foreign students on F-1 or M-1 visas and J-1 exchange visitors need to present their Forms I-20 or DS-2019 when applying for an SSN.
Tax Treaty Rules
Tax treaties can significantly affect your tax obligations. If your home country has a tax treaty with the United States, you may be eligible for reduced tax rates or exemptions on certain types of income. To claim these benefits, you must complete Schedule OI (Other Information) on page 2 of the form, specifically item J, and you may need to attach Form 8833 depending on your circumstances.
Dual-Status Taxpayers
Dual-status taxpayers—those who change from nonresident to resident status (or vice versa) during the tax year—face special rules. You typically cannot take the standard deduction, file a joint return with a U.S. citizen or resident spouse, or use certain tax credits unless you elect to be taxed as a resident alien for the entire year. Your income is taxed differently depending on when you earned it during the year.
Step-by-Step (High Level)
Step 1: Gather Required Documents
Begin by gathering all necessary documents: Forms W-2 from employers, Forms 1042-S for scholarship and fellowship grants, and Forms 1099-R if you received certain distributions with tax withheld. Make sure your identifying information is correct—your name, address, country of residence, and taxpayer identification number.
Step 2: Complete Your Income Section
Complete the income section by entering your wages, salaries, and tips from Form W-2 on line 3. If you received scholarship or fellowship grants, enter the amount from Form 1042-S on line 5. If any of your income is exempt from tax under a treaty, report it on line 6 and provide detailed information in Schedule OI, item J. Add your income sources to determine your total income on line 7.
Step 3: Calculate Adjusted Gross Income
Next, calculate your adjusted gross income by subtracting any excludable scholarship amounts (used for tuition, fees, books, supplies, and required equipment if you're a degree candidate) on line 8, and the student loan interest deduction on line 9 if you qualify. The result on line 10 is your adjusted gross income.
Step 4: Determine Taxable Income
Determine your taxable income by subtracting your itemized deductions (state and local income taxes you paid or that were withheld) on line 11, then subtract your personal exemption of $3,650 on line 13. The result on line 14 is your taxable income. Use the Tax Table provided in the instructions to find your tax based on your taxable income and filing status, and enter this amount on line 15.
Step 5: Enter Payments and Credits
Complete the payments and credits section by entering any federal income tax withheld from Forms W-2, 1042-S, and 1099-R on lines 18a and 18b. Add any estimated tax payments you made and amounts paid with other forms. Compare your total payments to your total tax to determine whether you're owed a refund or owe additional tax.
Step 6: Complete Schedule OI
Finally, complete Schedule OI on page 2, which asks important questions about your immigration status, country of citizenship and tax residence, visa type, dates of entry and departure from the United States, and any treaty-based exemptions you're claiming.
Step 7: Sign, Attach Documents, and Mail
Sign and date your return, enter your occupation in the United States, and attach all required forms to the front of your return before mailing it to the Austin, Texas IRS Service Center.
Common Mistakes and How to Avoid Them
Identification Mistakes
One of the most frequent errors involves identification numbers—entering an incorrect Social Security Number or Individual Taxpayer Identification Number, or having your name not match your social security card or IRS notice. This mistake can delay your refund, reduce or disallow deductions and credits, and prevent you from receiving proper credit for social security earnings. Always double-check that your identifying information matches your official documents exactly.
Calculation Errors
Many taxpayers make calculation errors when using the Tax Table or computing their taxable income, federal income tax withheld, total payments, and refund or amount owed. The IRS return checklist specifically warns about these arithmetic mistakes. Take time to verify each calculation, use the correct line from the Tax Table based on your actual taxable income amount, and ensure you're using the proper filing status column (Single or Married filing separately).
Missing Attachments
Forgetting to attach required forms is another common problem. Forms W-2, 1042-S, and 1099-R (if tax was withheld) must be attached to the front of your return. Without these, your return will be incomplete and processing will be delayed. Similarly, failing to sign and date the return or neglecting to enter your U.S. occupation will cause processing delays.
Filing Multiple Original Returns
Some taxpayers inadvertently file multiple original returns for the same tax year, either because they haven't received their refund yet or haven't heard from the IRS. Filing more than one original return or sending multiple copies (unless specifically requested by the IRS) can significantly delay your refund. File only one original return and wait for IRS processing, which can take several weeks.
Address Errors
Entering your name, address, and apartment number incorrectly or in the wrong order causes processing difficulties. If you live in an apartment, make sure to include your apartment number. For foreign addresses, follow your country's format for city, province or state, postal code, and country name (in English, in uppercase letters).
Treaty Claim Errors
If you're claiming treaty benefits, failing to complete Schedule OI, item J, properly—or not attaching Form 8833 when required—can result in loss of treaty benefits and potential penalties. Carefully review the treaty requirements and provide all requested information about the treaty article, exempt income amounts, and months claimed in prior years.
What Happens After You File
After mailing your return to the Austin, Texas IRS Service Center, you can check your refund status online at IRS.gov using the "Where's My Refund" tool, typically three to four weeks after filing. You'll need your Social Security Number or Individual Taxpayer Identification Number, your filing status, and the exact whole dollar amount of your expected refund.
If you're expecting a refund, be aware that the IRS or the Treasury Department's Financial Management Service may offset all or part of your refund to pay past-due federal taxes, state income tax, child support, spousal support, student loans, or certain other federal debts. You'll receive a notice explaining any offset that occurs.
The IRS will review your return for accuracy and completeness. If there are errors, missing information, or questions about items on your return, you'll receive a notice requesting clarification or corrections. It's important to respond promptly to any IRS correspondence and keep copies of all documents you send.
If you owe tax and didn't pay by the original deadline, the IRS will charge interest on the unpaid amount from the due date until you pay in full, even if you received an extension to file. Late filing penalties apply if you don't file by the deadline and don't have a reasonable explanation—typically five percent of the unpaid tax per month, up to a maximum of 25 percent. If your failure to file is fraudulent, the penalty increases to 15 percent per month, up to 75 percent. Returns more than 60 days late face a minimum penalty of $135 or the amount of tax owed, whichever is smaller.
You should keep copies of your tax return, all worksheets, and supporting documents (Forms W-2, 1042-S, 1099) for at least three years from the filing deadline or date filed, or two years from the date you paid the tax, whichever is later. Some records, particularly those related to property, should be kept longer to establish the cost basis for future tax calculations.
FAQs
What if I'm a student from a country with a tax treaty—do I still have to file?
Yes, you must file Form 1040NR-EZ (or Form 1040NR) if you were engaged in a trade or business in the United States, even if your income is entirely exempt under a tax treaty. However, there are limited exceptions: if your only U.S. trade or business was personal services (like employment), your wages were less than $3,650, and you have no other reason to file (such as claiming a refund), you may not need to file. Students and trainees on F, J, M, or Q visas who have no income subject to tax under section 871 also don't need to file. When claiming treaty benefits, you must complete Schedule OI, item J, on page 2 of the form with details about the treaty article, exempt income amounts, and months previously claimed.
Can I claim my spouse or children as dependents on Form 1040NR-EZ?
No, Form 1040NR-EZ cannot be used if you want to claim dependents. You also cannot claim an exemption for your spouse using this form. If you need to claim dependents or a spouse exemption, you must use the regular Form 1040NR instead. The only exemption allowed on Form 1040NR-EZ is your own personal exemption of $3,650. Certain residents of Canada, Mexico, South Korea, or U.S. nationals, and students/business apprentices from India may be eligible for additional exemptions, but must use Form 1040NR to claim them.
What happens if I change from nonresident to resident status during the year?
You become a dual-status taxpayer, and special rules apply. If you were a nonresident alien on December 31, you file Form 1040NR-EZ with "Dual-Status Return" written across the top and attach a statement (you can use Form 1040 as the statement) showing income for the part of the year you were a resident. Different parts of your income are taxed differently: income from all sources is taxable for the resident period, while generally only U.S.-source income is taxable for the nonresident period. You cannot take the standard deduction, file a joint return, or claim certain credits unless you elect to be treated as a resident alien for the entire year by filing jointly with a U.S. citizen or resident spouse.
How do I prove I qualify for the closer connection exception?
If you were present in the United States for fewer than 183 days and maintained a closer connection to a foreign country where you had a tax home, you may qualify to be treated as a nonresident alien even if you meet the substantial presence test. You must file Form 8840, Closer Connection Exception Statement for Aliens, to claim this exception. Foreign students may have a special closer connection exception; they must show they don't intend to reside permanently in the United States, have maintained closer connections with a foreign country, have substantially complied with visa requirements, and must file Form 8843, Statement for Exempt Individuals and Individuals With a Medical Condition.
What if I lost my Form W-2 or it has the wrong information?
Your employer is required to provide Form W-2 by January 31 following the tax year. If you don't receive it by early February, contact your employer to request it. If you lose your copy, ask your employer for a replacement. If the information on Form W-2 is incorrect, request that your employer issue a corrected W-2. Even if you cannot obtain a Form W-2, you still must report your wages on line 3 of Form 1040NR-EZ and file your return by the deadline. Estimate your wages as accurately as possible based on your pay stubs or other records.
Do I need to report income from my home country on Form 1040NR-EZ?
No. As a nonresident alien, you generally report only income from U.S. sources that is effectively connected with a U.S. trade or business. Foreign-source income is typically not taxable on Form 1040NR-EZ unless you elect to be treated as a resident alien for the entire year. However, if you were a dual-status taxpayer and were a resident alien for part of the year, income from all sources (including foreign) for that resident period must be reported. The rules are different if you make the election to file jointly with a U.S. citizen or resident spouse—in that case, your worldwide income for the whole year is included and taxed.
What if I need to amend my Form 1040NR-EZ after I've already filed it?
Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct any errors or changes to a previously filed Form 1040NR-EZ. You can also use Form 1040X if you filed Form 1040NR-EZ but should have filed a different form (Form 1040, 1040A, 1040EZ, or the full Form 1040NR), or vice versa. Generally, you must file Form 1040X within three years after the date you filed your original return or within two years after the date you paid the tax, whichever is later. To claim a refund, you must file within this timeframe. Attach any supporting documentation and mail Form 1040X to the address shown in the Form 1040X instructions.
