Simplified U.S. Tax Filing for Nonresident Aliens (2015)

Checklist for Nonresident Aliens With No Dependents
Overview
Form 1040NR-EZ serves as the simplified U.S. income tax return for nonresident aliens with no
dependents for the tax year 2015. This form provides a streamlined filing option for individuals
with straightforward U.S. source income who meet specific eligibility requirements.

Understanding the 2015 tax rules, exemption amounts, and filing procedures ensures accurate
compliance with federal tax obligations.

Understanding Form 1040NR-EZ for Tax Year 2015
Form 1040NR-EZ is designed exclusively for nonresident aliens who cannot be claimed as
dependents and have limited types of income. For 2015, the personal exemption amount was
$4,000, representing an increase from $3,950 in 2014. This form excludes certain credits
permanently unavailable to nonresident aliens, including the earned income credit, which has
never been available to individuals who were nonresident aliens for any part of the tax year.

The simplified nature of Form 1040NR-EZ eliminates complex schedules while maintaining
accurate tax reporting. Eligible filers can complete their returns efficiently without the burden of
detailed itemized deduction calculations or extensive supporting schedules.

Step-by-Step Filing Process

1. Step 1: Verify Nonresident Alien Status

   Confirm you qualify as a nonresident alien by verifying you do not meet the green card test or
   substantial presence test for 2015. You meet the green card test if you were a lawful permanent
   resident at any time during the calendar year. The substantial presence test requires at least 31
   days in the United States during 2015 and 183 days calculated over three years, using the
   following formula: all 2015 days plus one-third of the 2014 days plus one-sixth of the 2013 days.

   Certain individuals are exempt from counting days for the substantial presence test, including
   teachers, trainees, students on F, J, M, or Q visas for a specified period, and professional
   athletes temporarily in the United States for charitable sporting events. If you qualify as exempt,
   you remain a nonresident alien even if present for more than the threshold number of days.

2. Step 2: Determine Eligibility for Form 1040NR-EZ

   Confirm you meet all eligibility requirements for Form 1040NR-EZ rather than the full Form
   1040NR. You qualify to use the simplified form only if you claim no dependents, your only
   income sources are wages, salaries, tips, taxable scholarship and fellowship grants, and
   interest and dividend income, your taxable income is less than $100,000, you claim only the
   exemption for yourself, and you claim only the deduction for state and local income taxes or
   claim the standard deduction if eligible under treaty provisions.

   You cannot use Form 1040NR-EZ if you claim dependents, itemize deductions beyond state
   and local income taxes, claim adjustments to income other than the student loan interest
   deduction, claim tax credits other than those specifically allowed on the form, or have income
   from business activities, rental properties, or other complex sources requiring additional
   schedules.

3. Step 3: Gather Required Income Documentation

   Collect all Forms W-2 showing wages, salaries, tips, and other compensation subject to U.S.
   income tax withholding during 2015. Obtain all Forms 1042-S reporting scholarship and
   fellowship grants, treaty-exempt income, and other amounts subject to withholding at source.

   Gather Forms 1099-INT for interest income and Forms 1099-DIV for dividend income.

   Verify that all forms reflect accurate amounts and proper withholding. If you received income
   from multiple sources, organize documents chronologically and by income type. Ensure Forms
   1042-S clearly indicate any tax treaty benefits claimed during the year, as this information must
   be reported on Schedule OI.

4. Step 4: Confirm No Dependents Status

   Verify you are not claiming any dependents for 2015. Form 1040NR-EZ is exclusively for filers
   who cannot claim dependents under any circumstances. If you have qualifying children or other
   dependents, you must file Form 1040NR instead, even if all other eligibility criteria for the EZ
   form are met.

   This requirement applies regardless of whether the dependent is a U.S. citizen, resident alien,
   or nonresident alien. Even if you financially support family members abroad or in the United
   States, you cannot claim them as dependents on Form 1040NR-EZ and must use the full Form

   1040NR.

5. Step 5: Select Filing Status

   Choose your filing status from the limited options available on Form 1040NR-EZ: single or
   married filing separately. Nonresident aliens cannot file as married filing jointly or head of

   household. If you are married, you must file as married filing separately even if your spouse had
   no income or was not present in the United States during 2015.

   Certain residents of Canada, Mexico, or South Korea may qualify for different filing status
   options under tax treaty provisions, but these require filing Form 1040NR rather than Form
   1040NR-EZ. If you believe you qualify under treaty provisions for preferential filing status,
   determine whether you must file the full Form 1040NR.

6. Step 6: Report Wages, Salaries, and Tips

   Enter total wages, salaries, tips, and other compensation from Forms W-2 on the appropriate
   line. This includes all compensation for services performed in the United States that was subject
   to U.S. income tax withholding. Add amounts from multiple Forms W-2 if you worked for several
   employers during 2015.

   Report the full gross income amount before any withholding. Do not reduce wages by federal
   income tax withheld, social security taxes, or other deductions shown on Form W-2. The
   withholding amounts will be reported separately on the designated lines for tax payments and
   credits.

7. Step 7: Report Scholarship and Fellowship Income

   Enter taxable portions of scholarship and fellowship grants from Forms 1042-S. Only amounts
   representing payment for teaching, research, or other services are taxable and reportable on
   Form 1040NR-EZ. Amounts received as qualified scholarships for tuition and course-related
   expenses at eligible educational institutions are generally not taxable and should not be
   included in income.

   If you received both taxable and nontaxable scholarship amounts, carefully separate them
   according to the Form 1042-S information and IRS guidance. Retain documentation explaining
   the purpose and use of scholarship funds in case of IRS inquiry.

8. Step 8: Report Interest and Dividend Income

   Report taxable interest income from U.S. sources, including amounts from bank accounts,
   certificates of deposit, and other interest-bearing accounts. Enter dividend income from U.S.
   corporations. Portfolio interest and certain bank deposit interest may be exempt from U.S.
   taxation under specific provisions, but you must determine eligibility for these exemptions.

   Interest on state and local government obligations is generally exempt from federal income tax.

   Do not include tax-exempt interest in your taxable income, though you may need to report it for
   informational purposes on Schedule OI if required.

9. Step 9: Calculate Total Income

   Add all income sources to determine your total income for 2015. This includes wages, salaries,
   tips from Form W-2, taxable scholarship and fellowship grants from Form 1042-S, taxable
   interest income, and dividend income. Verify your calculations carefully, as errors in total income
   affect all subsequent calculations on your return.

   Compare your total income calculation to source documents to ensure accuracy. If your total
   income exceeds $100,000, you are not eligible to use Form 1040NR-EZ and must file Form
   1040NR instead.

10. Step 10: Claim Student Loan Interest Deduction

    Calculate and claim the student loan interest deduction if eligible. For 2015, you can deduct up
    to $2,500 of interest paid on qualified student loans. The deduction phases out for single filers
    with modified adjusted gross income between $65,000 and $80,000, and for married filing
    separately between $65,000 and $80,000.

    To qualify, you must have paid interest on a qualified student loan during 2015, the loan must
    have been taken out solely to pay qualified higher education expenses, you cannot be claimed
    as a dependent on another person’s return, and your filing status cannot be married filing jointly.

    Calculate the deductible amount and enter it on the corresponding line, reducing your total
    income to determine your adjusted gross income.

11. Step 11: Deduct State and Local Income Taxes

    Calculate your deduction for state and local income taxes paid during 2015. This is the only
    itemized deduction allowed on Form 1040NR-EZ. Enter the total amount of state and local
    income taxes you actually paid during the year, including amounts withheld from your wages
    and any estimated tax payments made to state or local governments.

    Do not include sales taxes, property taxes, or other taxes in this calculation. Only state and local
    income taxes qualify for this deduction. If you are a student or business apprentice from India
    eligible for benefits under Article 21(2) of the U.S.-India Income Tax Treaty, you may instead
    claim the standard deduction of $6,300 for single filers or $12,600 for married filing separately if
    both spouses qualify.

12. Step 12: Claim Personal Exemption

    Claim the personal exemption amount of $4,000 for 2015. You can claim this exemption if you
    cannot be claimed as a dependent on another taxpayer’s return. Subtract the exemption amount
    from your income after deductions to calculate your taxable income.

    If another taxpayer, such as a parent, can claim you as a dependent, you cannot claim the
    personal exemption for yourself, even if they choose not to actually claim you. The test is
    whether you could be claimed, not whether you actually are claimed.

13. Step 13: Calculate Taxable Income

    Calculate your taxable income by subtracting the state and local income tax deduction and the
    personal exemption from your adjusted gross income. If your state and local income tax
    deduction plus the $4,000 personal exemption exceeds your adjusted gross income, your
    taxable income is zero.

    Use this taxable income amount to determine your tax liability using the tax table or tax rate
    schedules provided in the Form 1040NR-EZ instructions for 2015. Locate your taxable income
    in the appropriate column based on your filing status.

14. Step 14: Determine Tax Liability

    Find your tax liability using the 2015 tax table included in the Form 1040NR-EZ instructions.

    Locate your taxable income amount and filing status to determine the exact tax owed. For 2015,
    the tax rates for nonresident aliens on income effectively connected with a U.S. trade or
    business range from 10% to 39.6% depending on income levels.

    If your taxable income exceeds the amounts shown in the tax table, you must use the tax rate
    schedule to calculate your tax. Follow the computational instructions carefully, applying the
    correct percentage to the appropriate portion of your income.

15. Step 15: Complete Schedule OI

    Complete Schedule OI (Other Information) as required for all Form 1040NR-EZ filers. Provide
    your country or countries of citizenship during 2015, your country of residence for tax purposes,
    and dates of entry and departure if you left the United States during the year. Indicate your visa
    type or immigration status as of December 31, 2015.

    If claiming benefits under a tax treaty, identify the specific treaty country, the relevant treaty
    article number under which you claim benefits, the number of months in previous years you
    claimed treaty benefits, and the dollar amount of treaty-exempt income for 2015. Attach Form
    8833 if required by the instructions for reporting treaty-based positions.

16. Step 16: Report Federal Income Tax Withheld

    Enter the total federal income tax withheld during 2015 from all Forms W-2, Forms 1099, and
    Forms 1042-S. Add all withholding amounts together and enter the total on the designated line.

    This represents the amount of tax already paid through withholding that will be credited against
    your total tax liability.

    Attach all Forms W-2 to the front of your tax return. Also attach Forms 1042-S and Forms 1099
    showing withholding. Ensure the withholding amounts you enter match the sum of all attached
    forms.

17. Step 17: Report Estimated Tax Payments

    If you made estimated tax payments during 2015 using Form 1040-ES(NR), enter the total
    amount paid. Include all four quarterly payments if you made them: the payments due April 15,
    2015, June 15, 2015, September 15, 2015, and January 15, 2016. Add any additional tax
    payments made with an extension request on Form 4868.

    Keep copies of all payment confirmations, including canceled checks, bank statements showing
    electronic payments, or IRS payment confirmation numbers if you paid online or by phone.

    These serve as proof of payment if questions arise about your return.

18. Step 18: Calculate Refund or Amount Owed

    Subtract your total tax liability from your total payments, including withholding and estimated tax
    payments. If your payments exceed your tax liability, you have a refund. If your tax liability
    exceeds your payments, you owe additional tax that must be paid by the filing deadline.

    For refunds, select direct deposit by providing your bank routing number and account number,
    or request a paper check to be mailed to your address. For amounts owed, include payment
    with your return by check or money order, or pay electronically through IRS payment options.

19. Step 19: Sign and Date Your Return

    Sign and date your return in ink. Your signature certifies that you have examined the return and
    accompanying schedules and statements, and to the best of your knowledge and belief, they
    are true, correct, and complete. If you had your return prepared by someone else, you remain
    responsible for its accuracy.

    Include your occupation and daytime phone number. If you authorize the IRS to discuss your
    return with your paid preparer, check the appropriate box and provide the necessary
    information. Your preparer must also sign the return, provide their Preparer Tax Identification
    Number, and include their contact information.

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20. Step 20: Attach Required Forms and File

    Attach all required forms and schedules to your return in the correct order. Place Forms W-2 on
    the left margin of the front page of Form 1040NR-EZ. Attach Forms 1042-S behind Forms W-2.

    Include Schedule OI immediately after the main form. Attach Form 8833 if you claimed treaty
    benefits requiring disclosure.

    Mail your completed return to the address specified in the instructions for Form 1040NR-EZ for
    the 2015 tax year. The address depends on whether you are including payment. File by April 18,
    2016, for calendar year 2015 returns, or by the 15th day of the fourth month after your fiscal
    year ends. If you cannot file by the deadline, request an extension using Form 4868. However,
    please note that an extension to file is not an extension to pay any tax owed.

    Important Restrictions for Nonresident Aliens
    Nonresident aliens filing Form 1040NR-EZ cannot claim certain credits available to U.S. citizens
    and residents. You cannot claim the earned income credit, which has never been available to
    individuals who were nonresident aliens for any part of the tax year. You also cannot claim the
    child tax credit, education credits, retirement savings contributions credit, or premium tax credit.

    These restrictions apply to all nonresident aliens regardless of income level or family situation. If
    you believe you qualify for credits not allowed on Form 1040NR-EZ due to treaty provisions or
    special circumstances, consult the instructions for Form 1040NR to determine whether you
    should file that form instead.

    Key Reminders for Tax Year 2015
    The personal exemption for 2015 was $4,000, up from $3,950 in 2014. The maximum deduction
    for student loan interest remained at $2,500, with income phase-out ranges applying. Standard
    deduction amounts for those eligible under U.S.-India treaty provisions were $6,300 for single
    filers and $12,600 for married filing separately.

    Form 1040NR-EZ has always been a simplified form that does not permit Schedule A for
    itemized deductions beyond state and local income taxes or Schedule B for detailed interest
    and dividend reporting. These limitations are inherent to the EZ form design and apply to all
    years, not just 2015.

    Maintain copies of your completed return and all supporting documentation for at least three
    years from the filing date. If you discover errors after filing, you may need to file an amended
    return using Form 1040X, though special rules apply to nonresident aliens amending returns.

    If you’re missing tax documents or want to ensure the numbers you enter match IRS records,
    we can help.