What Form 1040NR-EZ (2017) Is For
Form 1040NR-EZ is used by a nonresident alien who lived or worked in the United States during the 2017 calendar year and earned U.S. source income such as wages, taxable stipend amounts, or scholarship payments. It applies to individuals who are not U.S. citizens or resident aliens under the Green Card Test and who have simple filing needs based on IRS tax laws. The form supports taxpayers with income reported on tax forms such as Form W-2 or Form 1042-S and who do not qualify for the longer Form 1040 or Form 1040NR.
The form is intended for people who are engaged in a trade or business in the United States and must file a tax return with limited deductions and no dependents. It is designed for individuals who meet the IRS rules for resident versus nonresident aliens and who do not have foreign reporting requirements, such as Form 8938 or income from partnerships reported on Form 1065. Taxpayers often rely on Publication 519 for guidance on eligibility and rules related to tax treaty benefits, interest income, and effectively connected income.
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 (2017).
When You’d Use Form 1040NR-EZ
A taxpayer files Form 1040NR-EZ when they earned U.S. source income such as wages, scholarship amounts, or taxable stipends and must report income tax withholding for the 2017 tax year. It applies to individuals with a marital status of single or married filing separately, provided they meet all IRS nonresident rules. Many F-1, J-1, Q-1, and H-1B worker visa holders file this form when they remain nonresident under federal tax residency status.
The form is also used for late returns if the taxpayer did not file on time or did not request an extension using Form 4868. Amended returns use Form 1040X, and individuals leaving the United States may need to file Form 1040-C before departure. Since Modernized e-file does not support most nonresident filings, the completed return must typically be mailed.
Key Rules or Details for 2017
A taxpayer must meet all requirements to use Form 1040NR-EZ, including having a taxable income of under $100,000 and not claiming dependents. Only certain types of income qualify, and taxpayers cannot use the form if they have dividend income, partnership income, or foreign reporting obligations under the Foreign Asset Reporting Requirements. Taxpayers must list treaty-exempt amounts on line 6 and explain the relevant treaty article on the dotted line, following the United States Income Tax Treaties, Model Tax Convention rules, and Limitation on Benefits provisions.
IRS publications such as Publication 519, Publication 515, Publication 15-E, Publication 6186, Publication 3112, and Publication 1017 explain how to classify income and determine eligibility. A taxpayer must use the correct Social Security Number or U.S. Social Security Number, ensure names match W-4 forms, and follow rules regarding permanent establishment, source of income, and resident & nonresident alien determinations. Those with foreign assets, Form W-8 requirements, or certain Health Coverage Exemptions under Form 8965 must use Form 1040NR instead.
For complete details on wage reporting, withholdings, and tax filings, see our guide for Individual Tax Forms.
Step-by-Step (High Level)
Gather Identification and Tax Forms
The taxpayer collects a Social Security Number or ITIN along with tax forms such as Form W-2 and Form 1042-S. They also gather any records showing U.S. source income and income tax withholding for the 2017 calendar year.
Confirm Tax Residency Status and Eligibility
The taxpayer verifies nonresident status using the Green Card Test and Substantial Presence Test. They also review Publication 519 to confirm eligibility for Form 1040NR-EZ instead of Form 1040 or Form 1040NR.
Determine Filing Status and Tax Household Details
The taxpayer selects the correct marital status under IRS rules. They ensure all tax household information matches IRS records and supporting documents.
Enter Income, Adjustments, and Treaty Amounts
The taxpayer reports wages, taxable stipends, and other effectively connected income using Form W-2 and Form 1042-S. They enter any treaty-exempt income on line 6 and describe the treaty article on the dotted line.
Calculate Taxable Income and Tax Liability
The taxpayer computes taxable income by applying allowed deductions and using the IRS tax tables. Verify check guidance in Publication 515 and related publications to ensure calculations are correct.
Review, Sign, and File the Return
The taxpayer reviews all entries for accuracy and signs the form. They mail the completed tax return because nonresident filings generally cannot be submitted through Modernized e-file.
Learn more about federal tax filing through our IRS Form Help Center or explore IRS assistance options.
Common Mistakes and How to Avoid Them
- Incorrectly determining residency status: Verify nonresident status using the Green Card Test and Substantial Presence Test, and review Publication 519 before selecting the correct form.
- Submitting incomplete or incorrect treaty claims: List the treaty article, country, and amount on line 6 and the dotted line, and confirm the Limitation on Benefits provisions to avoid delays.
- Misreporting scholarship income: Separate qualified education expenses from taxable amounts, noting that room and board are taxable as effectively connected income.
- Providing mismatched identification information: Ensure your name, Social Security Number, and employer records match IRS data to prevent processing delays.
- Failing to attach required documents: Include all Forms W-2 and 1042-S showing income and withholding to support the information reported on your return.
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 the IRS receives the tax return, it begins processing the information and verifying documents such as Form W-2 and Form 1042-S. Returns involving scholarship withholding or treaty claims may take longer, especially when reviewing foreign tax credits, effectively connected income, and other tax household details. Taxpayers can check their refund status online after their return is entered into the IRS system.
If tax is owed, penalties and interest continue to accrue until payment is made. The taxpayer must follow the IRS's instructions to avoid further action. Issues involving shared responsibility payment, Health Coverage Exemptions, or claims under Form 8965 may require additional review. If the IRS requests additional information, taxpayers must respond promptly. Individuals may also consult the Taxpayer Advocate Service if they encounter any problems.
FAQs
Do all nonresident individuals need to file Form 1040NR-EZ for 2017?
A nonresident must file if they earned U.S. source income connected with a trade or business or had income tax withholding reported on Form W-2 or Form 1042-S.
Can scholarship income be excluded?
Scholarship income may be excluded when used for qualifying expenses. Amounts used for living expenses remain taxable unless exempt under a tax treaty.
What if a taxpayer received both a Form W-2 and a Form 1042-S?
Both forms must be included. A taxpayer must accurately report wage and scholarship amounts from each document.
Can this form be filed electronically?
Most nonresident returns cannot be e-filed and must be mailed because Modernized e-file does not support these filing types.
When is Form 4868 used?
Form 4868 is used to request an extension of time to file the return. It does not extend the time to pay any tax owed.
How does a taxpayer file an amended 2017 return?
A taxpayer must use Form 1040X and mail the return to the IRS. Amended nonresident filings are not eligible for e-file.
