2017 Form 1040NR-EZ Filing Checklist for Nonresident
Aliens
Understanding the 2017 Form 1040NR-EZ
The 2017 Form 1040NR-EZ provides a simplified filing option for nonresident aliens without
dependents. The personal exemption is $4,050, with phaseout beginning at adjusted gross
income exceeding $156,900. The form reflects the 2017 tax law before the implementation of
the Tax Cuts and Jobs Act in 2018. Itemized deductions are limited to state and local income
taxes only.
Ten-Step Filing Checklist
Step 1: Verify Eligibility
You must be a nonresident alien for the entire 2017 tax year, having failed both the green card
and substantial presence tests. Your only U.S. source income must be wages, salaries, tips,
state and local tax refunds, scholarship or fellowship grants, and nontaxable interest or
dividends. If you had taxable interest or dividends, use Form 1040NR instead. Your taxable
income must be less than $100,000. You cannot claim dependents or be claimed as a
dependent.You can only claim the scholarship exclusion and student loan interest deduction. You cannot
claim any tax credits or spouse exemption if married. The only itemized deduction allowed is
state and local income taxes, though Indian students and business apprentices may qualify for
the standard deduction under treaty provisions. You can only owe Tax Table amounts or
unreported social security and Medicare tax. You cannot claim credit for excess social security
tax withheld.Step 2: Gather Documentation
Collect all Forms W-2 showing wages in box 1, Forms 1042-S for scholarship or fellowship
grants, Form 1099-G for state or local tax refunds, and Form 1099-R if federal income tax was
withheld. Obtain documentation of student loan interest payments if you are claiming this
deduction. Maintain records of U.S. physical presence days for 2017, 2016, and 2015 for
Schedule OI reporting.If claiming treaty benefits, obtain the tax treaty between the United States and your country,
specifying the relevant article numbers. Prepare Form 8843 if claiming exempt individual status
under specific visa classifications.Step 3: Complete Personal Information
Enter your name, address, city, town, and country. For foreign addresses, enter the city name,
then complete the spaces below with the country name in uppercase English letters, foreign
province, state, or county, and foreign postal code. Please provide your Social Security number
or ITIN. Check line 1 if single, including never married, legally separated, or widowed before
January 1, 2017. Check line 2 if married and not qualifying as single.To qualify as single while married, you must be a resident of Canada, Mexico, or South Korea or
be a U.S. national; file separately; pay over half the cost of keeping up your home; live apart
from your spouse for the last six months of 2017; have your home serve as the main home of
your qualifying child for more than half of 2017; and be able to claim a dependency exemption
for the child on Form 1040NR.Step 4: Report Wages on Line 3
Enter total effectively connected wages from Form W-2 box 1. Include household employee
wages under $2,000 not on Form W-2, noting HSH, unreported tip income, including allocated
tips from box eight, unless you can prove less, noncash tip value, disability pensions if below
minimum retirement age, and wages from Form 8919 line 6.If you received tax-exempt interest from state and municipal bonds, enter TEI and the amount
on the dotted line, but do not add to line 3 total. Do not include treaty-exempt wages, which
must be reported on line 6 with Schedule OI item J completed.Step 5: Report Other Income on Lines 4 and 5
Line 4 reports state or local income tax refunds received in 2017, including amounts applied to
estimated tax. Leave blank if you did not itemize in the year tax was paid or if you were an
Indian student or apprentice who claimed the standard deduction in 2016. Line 5 reports
scholarship amounts from Form 1042-S box 2. Degree candidates report amounts used for
room, board, and travel as taxable.Non-degree candidates are required to report the full amount as taxable. Include payment for
teaching, research, or services. Attach Forms 1042-S or institutional statements. Do not include
treaty-exempt amounts, which belong on line 6.Step 6: Report Treaty-Exempt Income on Line 6
Enter total income exempt under the tax treaty, including both effectively connected and not
effectively connected income. This must equal Schedule OI item J, column d, line e total. Do not
include treaty-exempt income on lines 3 or 5. Complete Schedule OI item J with treaty country
in column a, treaty article number in column b, months claimed in prior years in column c, and
exempt income amount in 2017 in column d.Total the amounts in column D and enter the result on line E, transferring it to line 6. Attach
Form 8833 if required. Item J also asks whether you were subject to foreign country tax on the
income and whether you are claiming treaty benefits pursuant to a Competent Authority
determination, requiring a copy of the determination letter if applicable.
Step 7: Calculate Adjusted Gross Income on Lines 7 Through 10
Line 7 adds lines 3, 4, and 5 to calculate the total income. Line 8 enters scholarship amounts
used for tuition, fees, books, supplies, and equipment only if included on line 5, noting that
withholding agents are not required to report section 117 amounts on Form 1042-S. Line 9
enters the student loan interest deduction using the worksheet in the instructions. Line 10
subtracts the sum of lines 8 and 9 from line 7 for adjusted gross income.Step 8: Calculate Taxable Income on Lines 11 Through 14
Line 11 reports state and local income taxes paid or withheld in 2017, the only itemized
deduction available, without subtracting refunds received, which belong on Line 4. If line 10
exceeds $156,900, your itemized deduction may be limited. Indian students and business
apprentices may take the standard deduction per Publication 519. Line 12 subtracts line 11 from
line 10.Line 13 enters the exemption amount of $4,050, which may be reduced if the total tax on lines
15 through 17 is greater than $4,050.Subtracting 13 from line 12 for taxable income, entering
zero if the result is zero or less.Step 9: Calculate Total Tax on Lines 15 Through 17
Line 15 uses the 2017 Tax Table with your taxable income from line 14 and filing status to
determine your regular income tax. Line 16 enters unreported social security and Medicare tax
from Form 4137 for unreported tips or Form 8919 for uncollected taxes on wages. Line 17
combines lines 15 and 16 to calculate the total tax liability.Step 10: Calculate Refund or Amount Owed
Line 18a enters federal tax withheld from wages per Form W-2 box two and Form 1099-R. Line
18b reports federal tax withholding as per Form 1042-S, Box 10. Line 19 reports 2017 estimated
tax payments from Form 1040-ES or Form 1040-ES (NR), including any 2016 overpayment
applied to 2017.Line 20 enters credit for amounts paid with Form 1040-C departure tax. Line 21 adds lines 18a
through 20 for total payments. If line 21 exceeds line 17, line 22 shows the overpayment, line
23a shows the refund amount, and line 24 shows the amount applied to the 2018 estimated tax.If line 17 exceeds line 21, line 25 shows the amount owed. Line 26 enters the estimated tax
penalty, if applicable.Step 11: Complete Schedule OI
Complete all Schedule OI items, as they are mandatory for all returns. Item A refers to the
citizenship or national status of a country. Item B enters the tax residence country. Item C
answers whether you applied for green card status. Item D answers whether you were ever a
U.S. citizen or green card holder with expatriation rule references in Publication 519, chapter 4.Item E is entered as the visa type on December 31, 2017, or the immigration status.
Item F indicates visa or status changes with dates and nature. Item G provides a
comprehensive list of all U.S. entry and exit dates in 2017, and also includes a checkbox for
commuters from Canada or Mexico. Item H enters the total days physically present in the U.S.
during 2015, 2016, and 2017, including vacation days, nonworkdays, and partial days. Item I
indicates the prior year's U.S. tax return filing with the latest year and form number. Item J
reports treaty benefits as described in Step 6.- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 12: Sign and File Return
Sign and date the return under penalties of perjury, declaring accurate reporting of all U.S.
source income received during 2017. Enter your U.S. occupation. Paid preparers must sign and
provide their PTIN. Attach all Forms W-2, Forms 1042-S, Form 1099-R if tax was withheld, Form
8833 if required, and Form 8843 if claiming exempt individual status.Mail to Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0215 U.S.A.
without payment, or to Internal Revenue Service, P.O. Box 1303, Charlotte, NC 28201-1303
U.S.A. with payment. File by April 17, 2018, if you received wages subject to withholding, or by
June 15, 2018, if you did not. Submit Form 4868 for an automatic six-month extension to
October 17, 2018, though the extension does not extend the time to pay tax, and interest
accrues on unpaid amounts.Key Restrictions
You generally cannot claim the standard deduction except for Indian students and business
apprentices under treaty provisions. You cannot claim dependents, spouse exemptions, or any
tax credits, including earned income credit, child tax credit, or education credits. You cannot file
jointly if married unless you qualify as single under the married individuals who live apart rule.Itemized deductions are limited to state and local income taxes with potential phaseout if the
adjusted gross income exceeds $156,900.You cannot deduct medical expenses, charitable contributions, or mortgage interest. You cannot
report taxable interest, taxable dividends, capital gains, business income, or rental income. Only
two adjustments are permitted: the scholarship exclusion and the student loan interest
deduction. The personal exemption is $4,050, but may be reduced if adjusted gross income
exceeds $156,900. These restrictions reflect the simplified nature of this form for nonresident
aliens with straightforward U.S. tax situations involving wages or scholarships.If you’re missing tax documents or want to ensure the numbers you enter match IRS records,
we can help.
