What IRS Form 1040-EZ (NR) (2013) Is For
IRS Form 1040-EZ (NR) (2013) is used by a nonresident alien who has simple federal income tax reporting needs for the 2013 calendar year and only receives wages, taxable income, or interest that is subject to U.S. taxation. The Internal Revenue Service created this form for situations where income is limited, deductions are not claimed, and the taxable income can be figured without advanced calculations. It applies only to source income that is taxed in the United States and does not involve worldwide income or complex benefits.
When You’d Use IRS Form 1040-EZ (NR) (2013)
This section explains the primary situations in which a person would file IRS Form 1040-EZ (NR) (2013).
- Limited income type: A nonresident alien files this form when they have only wages, salaries, tips, or taxable interest that is effectively connected income and does not require reporting of capital gains, dividends, or other complex items.
- Simple federal income tax profile: A filer uses this form when they do not plan to claim deductions and credits that would require Form 1040 or Form 1040-NR for proper filing requirements.
- No standard deduction eligibility: A filer uses this form when they understand that nonresident aliens cannot claim the standard deduction except for specific treaty exceptions that apply only to certain country categories.
- No joint return allowed: A filer chooses this form when they do not intend to file a joint return with a spouse because nonresident aliens generally cannot file jointly unless they elect to be treated as a resident alien for tax purposes.
- Straightforward tax status: A filer uses the form when their tax status is uncomplicated for federal tax and income tax purposes, and they do not have FAFSA income that would require a different filing approach.
Key Rules or Details for 2013
There are specific rules for the 2013 tax year that affect the use of IRS Form 1040-EZ (NR) (2013).
- Income limits: The form applies only when taxable income is below the Internal Revenue Service threshold for the year and does not include capital gains, dividends, or other types of income that require additional reporting.
- No deductions beyond allowance: A filer can use this form only when they do not plan to claim deductions and credits except those determined allowable by treaty provisions or Internal Revenue Service instructions.
- Withholding requirements: A filer must compare their withholding on each paycheck to determine whether enough tax has been withheld for the calendar year and whether adjustments are needed before filing.
- Nonresident alien rules: A filer must understand that effectively connected income is taxed under graduated rates. In contrast, FDP income is taxed at a flat rate unless a lower treaty rate applies under the person’s country of residence.
- Taxation limits: A filer is required to report only U.S. source income and does not include worldwide income unless choosing to be treated as a resident alien for tax purposes under specific exceptions.
Step-by-Step (High Level)
These steps outline how a nonresident alien completes IRS Form 1040-EZ (NR) (2013) from start to finish.
- Gather income documents: A filer collects wage statements, taxable interest information, and any source income records to ensure the income portion of the form is completed accurately.
- Determine tax status: A filer reviews Internal Revenue Service residency rules to determine whether they qualify as a nonresident alien for tax purposes during the current year.
- Figure taxable income: A filer enters wages and other applicable amounts, then reviews allowed adjustments to figure taxable income according to instructions provided by the Internal Revenue Service.
- Calculate tax shown: A filer calculates federal income tax using graduated rates that apply specifically to nonresident aliens for the 2013 calendar year.
- Review withholding and payment: A filer compares withholding and estimated tax payments to determine whether they owe or qualify for a refund after completing the income and tax sections.
- Complete and file form: A filer signs and dates the form, verifies all sections for accuracy, and files the return according to Internal Revenue Service filing requirements.
Common Mistakes and How to Avoid Them
These standard errors often affect nonresident aliens who file IRS Form 1040-EZ (NR) (2013).
- Incorrect tax status: A filer can avoid this mistake by reviewing residency tests to determine whether they are a resident alien or a nonresident alien before filing the form.
- Not reporting all U.S. source income: A filer avoids this issue by checking wages, taxable interest, and FDAP income to ensure all income subject to federal tax is included.
- Using the wrong form: A filer avoids this by confirming that they qualify for IRS Form 1040-EZ (NR) (2013); if they have deductions, credits, or additional income types, they must file Form 1040-NR or Form 1040 instead.
- Miscalculating tax liability: A filer avoids this error by using the correct tax tables for 2013 and reviewing instructions to determine the accurate tax shown on the return.
- Missing estimated payments: A filer avoids penalties by making estimated payments on time and reviewing due dates for quarterly estimated tax payments if withholding will not cover their tax liability.
What Happens After You File
After filing IRS Form 1040-EZ (NR) (2013), the Internal Revenue Service processes the tax return and determines whether the filer has paid enough tax during the calendar year. If the filer paid more than required, a refund is issued; otherwise, the filer must pay the remaining balance, along with any applicable interest or penalties. The IRS reviews the information, records the payment, and updates the filer’s tax record for the following year. Filers can expect updates or confirmations through the IRS system once the return is processed.
FAQs
Do nonresident aliens who file IRS Form 1040-EZ (NR) (2013) need to make estimated tax payments?
A filer may need to make estimated tax payments if withholding on wages is not enough to cover federal income tax for the year or if they receive income that is not subject to withholding.
Can a filer include FDAP income on this form for federal tax purposes?
A filer cannot include FDAP income on this form if it requires separate reporting or a different tax rate; instead, they must use the appropriate form, such as Form 1040-NR, when FDAP income applies.
What should a person do if they determine they paid too much in taxes for the calendar year?
A filer can request a refund on the form, and the Internal Revenue Service will process it after determining that the tax return and payments are accurate.
Can a nonresident alien use a treaty to reduce tax on wages or interest?
A filer can apply a lower treaty rate when eligible under their country’s tax treaty, and the reduction must be supported by treaty rules that apply to wages or interest.
Does this form allow a filer to use a mobile device to file or check federal tax information?
A filer can use a mobile device to access IRS tools and check account information, although the form itself is completed and filed according to standard IRS filing instructions.
