Form 1040NR-EZ: U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents (2013)

What the Form Is For

Form 1040NR-EZ is a simplified tax return designed specifically for nonresident aliens with straightforward tax situations. This two-page form allows certain foreign individuals working or studying in the United States to report their U.S.-source income and calculate their federal income tax liability. The form serves as an easier alternative to the more complex Form 1040NR, but only for those who meet strict eligibility requirements.

To qualify for Form 1040NR-EZ, you must meet several conditions simultaneously. First, you cannot claim any dependents and cannot be claimed as a dependent on someone else's return. Your U.S. income must come exclusively from wages, salaries, tips, state and local income tax refunds, scholarship or fellowship grants, and nontaxable interest or dividends. If you received any taxable interest or dividend income, you must use the regular Form 1040NR instead. Additionally, your taxable income must be less than one hundred thousand dollars, and the only exclusion you can claim is for scholarship and fellowship grants, with the student loan interest deduction being your only permitted adjustment to income. You cannot claim tax credits or exemptions for your spouse, and if you're married, you must file separately. The only itemized deduction available to you is for state and local income taxes, with a special exception for students and business apprentices from India who may take the standard deduction instead.

This form is specifically designed for nonresident aliens—individuals who are not U.S. citizens and who do not meet the "green card test" or "substantial presence test" that would classify them as resident aliens for tax purposes. Common users include foreign students on F or J visas, temporary workers on H visas, and other foreign nationals with limited U.S. income who have not established U.S. residency.

When You’d Use It (Late/Amended)

The standard filing deadlines depend on your employment situation. If you were an employee who received wages subject to U.S. income tax withholding, your return is due by April 15, 2014 (for the 2013 tax year). However, if you did not receive wages as an employee with withholding, you have until June 16, 2014 to file. These later deadlines for nonresident aliens recognize that many foreign individuals may not have the same withholding structure as typical U.S. employees.

If you cannot meet your filing deadline, you can request an automatic six-month extension by filing Form 4868 before your original due date. Keep in mind 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 on unpaid amounts even with a valid extension. Filing late without an extension triggers a penalty of five percent of the amount due for each month or part of a month your return is late, up to a maximum of twenty-five percent. If your return is more than sixty days late, the minimum penalty is the lesser of one hundred thirty-five dollars or the full amount of tax you owe. For fraudulent late filing, penalties escalate to fifteen percent per month, reaching up to seventy-five percent.

To correct errors on a previously filed Form 1040NR-EZ, you must file an amended return using Form 1040-X. This form allows you to correct mistakes in income reporting, deductions, credits, or other items that you discovered after filing your original return. 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 if you're claiming a refund. The IRS may need several weeks to process amended returns, and the "Where's My Refund?" tool does not track amended return refunds. Filing an excessive refund claim can result in a penalty of twenty percent of the disallowed amount.

Key Rules or Details for 2013

Residency Status Rules

Understanding your residency status is fundamental to using Form 1040NR-EZ correctly. The IRS determines whether you're a nonresident or resident alien through specific tests.

Green card test: You are a resident if you were a lawful permanent resident at any time during the year.
Substantial presence test: Uses a weighted formula:
- Current-year days × 1
- Previous-year days × 1/3
- Two-years-prior days × 1/6
  If the total ≥ 183 days, you are generally a resident alien and cannot use Form 1040NR-EZ.

Exceptions and Special Situations

Even if you meet the substantial presence test, you may still qualify as a nonresident if you maintain a tax home in a foreign country and establish a closer connection to that country. Certain visa holders—including students on F, J, M, or Q visas—are "exempt individuals" whose days do not count toward the test.

To claim a closer-connection exemption, you must file Form 8840.

Income Source and Reporting Rules

Only income from U.S. sources or income effectively connected with a U.S. trade or business is reportable on Form 1040NR-EZ.

Report wages from Form W-2
Report scholarship/fellowship income from Form 1042-S
Exclude certain qualifying scholarship amounts
Claim eligible treaty benefits on Schedule OI (and possibly Form 8833)

Identification Requirements

Accurate SSN or ITIN information is mandatory. ITINs issued after 2012 expire after five years and must be renewed. Mismatched names or ID numbers can delay or reduce refunds.

Step-by-Step (High Level)

Step 1: Determine Eligibility and Gather Documents

Verify your qualification for Form 1040NR-EZ. Collect:

Forms W-2
Forms 1042-S
Forms 1099-R (if tax withheld)
Tax treaty documentation

Step 2: Complete the Header Section

Enter identification and address information exactly as required. Select the correct filing status (single or married filing separately).

Step 3: Report Income

Line 3: Wages
Line 4: State/local taxable refunds
Line 5: Scholarship/fellowship taxable portion
Line 6: Treaty-exempt income
Line 7: Total income

Step 4: Make Adjustments to Income

Line 8: Scholarship exclusion for qualified tuition expenses
Line 9: Student loan interest deduction
Line 10: Adjusted gross income

Step 5: Apply Deductions and Exemptions

Line 11: Itemized deductions
Line 13: Personal exemption
Line 14: Taxable income

Step 6: Calculate Tax and Additional Taxes

Use the tax table for your filing status. Include any owed Social Security/Medicare taxes.

Step 7: Report Payments and Credits

Includes:

W-2 withholding
1042-S withholding
Estimated payments
Departing U.S. tax payments (Form 1040-C)

Step 8: Determine Refund or Amount Owed

Compare total tax and total payments. Choose direct deposit or apply refund to next year.

Step 9: Complete Schedule OI

Provide visa details, residency information, dates of entry/exit, and treaty claims.

Step 10: Sign, Attach Documents, and Mail

Attach W-2, 1042-S, and 1099-R (if applicable). Mail to the correct IRS address.

Common Mistakes and How to Avoid Them

Identification Errors

Mismatched names or incorrect ITIN/SSN entries are extremely common and delay processing.

Calculation Errors

Arithmetic mistakes on AGI, deductions, or taxable income occur frequently. Double-check all math.

Scholarship Reporting Errors

Many filers incorrectly report scholarship amounts on the wrong lines or fail to apply exclusions properly.

Filing Status Errors

Nonresident aliens cannot use married filing jointly unless electing resident status—requiring Form 1040 instead.

Missing Attachments

Forgotten W-2s and 1042-S forms significantly slow processing.

Address Issues

Incorrect ZIP codes, missing apartment numbers, or improper foreign address formatting can lead to misdirected mail.

Schedule OI Errors

Leaving questions blank or failing to report dates of entry/exit or treaty details is a major cause of IRS notices.

What Happens After You File

Processing takes about four weeks for paper returns. Refunds can be checked via "Where's My Refund?" (after ~4 weeks). Refunds involving Form 1042-S may take up to six months.

The IRS may send notices for:

Missing documents
Discrepancies
Math errors
Treaty questions

Refunds arrive via direct deposit more quickly than mailed checks. If tax is owed, penalties and interest apply to late payments.

Returns must be filed within three years to claim a refund.

FAQs

#### I'm an international student on an F-1 visa. Do I automatically qualify as a nonresident alien to use Form 1040NR-EZ?

Not automatically—you must still apply the residency tests, but students often receive favorable treatment. Foreign students temporarily in the United States on F, J, M, or Q visas are considered "exempt individuals" for purposes of the substantial presence test, meaning your days in the United States don't count toward the test that would otherwise make you a resident alien. For the first five calendar years you're in the United States as a student, you're generally treated as a nonresident alien. However, if you've been in the country longer or your visa status changed, you must carefully evaluate whether you've become a resident alien under the substantial presence test. Additionally, you can only use Form 1040NR-EZ if you meet all the eligibility requirements, including having less than one hundred thousand dollars in taxable income and only receiving income from wages, scholarships, and the other limited sources listed on the form.

#### My scholarship pays for my tuition, fees, room, and board. Is all of this taxable income?

The taxability depends on what the money is used for and whether you're a degree candidate. If you're pursuing a degree at an eligible educational institution, amounts used for qualified educational expenses—tuition, required fees, books, supplies, and equipment—are not taxable and can be excluded on line eight of Form 1040NR-EZ. However, amounts used for room, board, travel, and other living expenses are generally taxable income that must be reported on line five. If you're not a degree candidate, the entire scholarship is generally taxable. Many international students can also claim tax treaty benefits that may exempt scholarship income from U.S. tax, but this depends on your country of residence and the specific terms of the tax treaty between that country and the United States. You must properly document treaty claims in Schedule OI and may need to file Form 8833.

#### I worked as a teaching assistant while studying. Can I still use Form 1040NR-EZ?

Potentially, but you need to verify that your teaching assistant compensation qualifies as wages rather than self-employment income and that all your income types are eligible for Form 1040NR-EZ. Most universities treat teaching assistants as employees and issue Form W-2, which reports wages that can be included on line three of Form 1040NR-EZ. However, if your teaching or research work was performed as an independent contractor and you received Form 1099-MISC or 1099-NEC instead of a W-2, you cannot use Form 1040NR-EZ—you must use the full Form 1040NR because you have self-employment income. Additionally, check whether any tax treaty between your home country and the United States provides an exemption for teaching or research income, as many treaties contain specific articles covering students and scholars.

#### I left the United States in May and returned to my home country. Do I still need to file a tax return?

Yes, if you had U.S.-source income during the year, you must file Form 1040NR-EZ or Form 1040NR even if you're no longer in the United States. The requirement to file depends on whether you were engaged in a U.S. trade or business during the year and whether you had income subject to U.S. tax, not on whether you're currently residing in the country. If you received wages, scholarship income, or other U.S.-source income during the part of the year you were in the United States, you must report it. Additionally, if you had tax withheld from your income, filing a return is the only way to claim a refund of any overpayment. The filing deadline remains the same—April 15 if you had wages subject to withholding, or June 16 if you didn't—regardless of where you're living when the return is due. You can use international mail to send your return to the IRS address listed in the instructions.

#### What's the difference between the scholarship exclusion on line eight and the treaty exemption on line six?

These are two different types of exclusions that can apply to scholarship and fellowship income, and understanding the distinction is crucial for accurate reporting. The scholarship exclusion on line eight applies under Section 117 of the Internal Revenue Code and allows degree candidates to exclude amounts used for tuition, required fees, books, supplies, and equipment. This exclusion is available to all students meeting the requirements, regardless of their country of origin, and doesn't require a tax treaty. The treaty exemption on line six applies when an income tax treaty between the United States and your home country specifically provides that scholarship or fellowship income is exempt from U.S. taxation. Treaty exemptions often have specific requirements—for example, many treaties require that the scholarship come from sources outside the United States, or that you were a resident of the treaty country immediately before coming to the United States. You cannot claim the same income under both exclusions, and Form 1042-S reporting may affect which line you use.

#### I made a mistake on my return that I already filed. How do I fix it?

You must file an amended return using Form 1040-X. This form allows you to correct errors in income, deductions, credits, or other items on your original Form 1040NR-EZ. Complete Form 1040-X showing the amounts from your original return in Column A, the net changes in Column B, and the corrected amounts in Column C. Attach an explanation of what you're changing and why. You must also attach any new or corrected forms that support the changes, such as a corrected Form W-2 or additional Form 1042-S that you didn't include with your original return. Mail the completed Form 1040-X to the address listed in its instructions. Generally, you have three years from the date you filed your original return to file an amended return if you're claiming a refund. The IRS may take several weeks to process amended returns—significantly longer than original returns—and you cannot track the status using the "Where's My Refund?" tool.

#### Can I file Form 1040NR-EZ electronically?

No, the IRS does not permit electronic filing of Form 1040NR-EZ or any nonresident alien tax returns. All nonresident alien returns must be filed on paper and mailed to the IRS address specified in the instructions. This requirement applies even though U.S. citizens and resident aliens can file most of their returns electronically. The paper filing requirement means you should allow extra time for mail delivery and processing, particularly if you're mailing from outside the United States. Keep copies of everything you submit, including the return itself, all attachments, and proof of mailing such as certified mail receipts with return receipt requested.

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