Everything Nonresidents Need to Know About Filing U.S. Taxes

In case you’re residing in the US as a nonresident alien, it’s regular to have questions on submitting your U.S. taxes. Perhaps you’re right here on an F-1 scholar visa, working underneath an H-1B visa, or planning to use for a inexperienced card in the future. Regardless of your state of affairs, submitting a tax return would possibly really feel complicated, intimidating, and even dangerous.

TaxAct may help.

U.S. residents like to complain about revenue tax season — typically with good cause! However for nonresident aliens, navigating tax paperwork, residency assessments, and tax varieties like Type 1040-NR can add an entire new stage of stress.

That’s why TaxAct® gives guided, step-by-step questions so you’ll be able to DIY your tax submitting with confidence. Need assist alongside the best way? Add TaxAct Xpert Assist to get stay tax recommendation from actual, credentialed tax specialists by way of telephone or chat.¹ And for those who’re anxious about accuracy, we again our software program with a $100k Accuracy Assure.² If we make a mistake, we’ll cowl the distinction and even pay audit or authorized charges as much as $100,000.

Now, let’s break down what it’s essential learn about submitting a U.S. tax return as a nonresident alien, together with what tax varieties to make use of and the way your residency standing impacts your taxes.

Do I must file an revenue tax return if I’m not a U.S. citizen?

Sure. In case you earn any U.S. revenue, you’re required to file a federal tax return — even for those who’re not a everlasting resident or inexperienced card holder.

This contains revenue from:

A U.S. employer
Investments in U.S. corporations
Aspect gigs, freelance work, or being self-employed
Scholarships (in some instances)

You’ll additionally must file a state tax return in case your state collects revenue tax.

What are the advantages of submitting a tax return if I’m not a U.S. resident?

There are a number of causes you might need to file a U.S. revenue tax return:

To get a tax refund: If an excessive amount of tax was withheld, you will get a reimbursement.
To say tax credit: In sure instances, like in case your nation has a tax treaty with the U.S. or you’ve got a toddler with a Social Safety quantity (SSN), you would possibly qualify for the Baby Tax Credit score or different tax breaks.
Not submitting may backfire: U.S. Citizenship and Immigration Services (USCIS) specifically warns that not submitting or paying taxes when required can harm your skill to ascertain “good moral character,” which is among the standards for turning into a U.S. citizen.

Will submitting taxes as a nonresident or undocumented employee negatively have an effect on me?

There are additionally some potential drawbacks and challenges to contemplate when submitting taxes as a nonresident alien or undocumented employee, particularly as of 2025.

Previously, the Inner Income Service (IRS) typically saved taxpayer data non-public. However in 2025, the company signed a memorandum of understanding (MOU) with Immigration and Customs Enforcement (ICE) and started cooperating with ICE in particular investigations. The MOU permits ICE to confirm the names, addresses, and tax data of people with last removing orders or those that are underneath legal investigation, together with instances of failing to go away the nation for 90 days.

Understandably, this alteration has made some individuals nervous about submitting a U.S. tax return. In case you have any questions or issues about how submitting a U.S. tax return might negatively have an effect on you, it’s greatest to seek the advice of an immigration legal professional.

What tax varieties do I must fill out?

That depends upon your residency standing for tax functions. The IRS separates noncitizens into two classes:

Resident alien

You’re thought of a resident alien if:

On this case, you file the identical type as a U.S. citizen: Type 1040. You continue to must report any international supply revenue you earned outdoors the nation.

Nonresident alien

You’re a nonresident alien for those who:

Have a brief visa (like F-1 or H-1B) or are an undocumented employee, and
Do NOT go the substantial presence check.

On this situation, you’ll file Form 1040-NR, the nonresident alien revenue tax return. You’re solely required to report U.S. earned revenue on this way.

fill out Type 1040-NR

Type 1040-NR consists of two pages. Web page 1 appears to be like like this:

To efficiently fill out Type 1040-NR, be prepared to offer:

Your visa sort and immigration standing
Variety of days you have been bodily within the U.S. through the calendar yr
Any U.S. supply revenue earned
Your taxpayer identification quantity (ITIN)
Data about any tax treaty advantages you’re claiming (extra on this later)

What’s the substantial presence check?

The substantial presence test determines for those who depend as a resident or nonresident for tax functions. Right here’s the fundamental system.

Add collectively:

All the times you have been within the U.S. this yr
1/3 of the times from final yr
1/6 of the times from two years in the past

If that complete is 183 days or extra AND you have been bodily current within the U.S. a minimum of 31 days through the present yr, you might be thought of a U.S. resident for tax functions.

Some exempt people (like worldwide college students on F-1 visas) don’t depend sure days towards this check. In case you’re exempt, you’ll additionally must file Form 8843 annually.

What’s Type 8843, and who must file it?

It’s essential to file Type 8843 if you’re briefly current within the U.S. as:

A international government-related particular person underneath an A or G visa (excluding A-3 and G-5 visas)
A trainer or trainee underneath an F or Q visa, who considerably meets the visa necessities
A scholar underneath an F, J, M, or Q visa, who considerably meets the visa necessities
An expert athlete competing in a charitable sports activities occasion

In case you fall into any of the above classes, you don’t depend these days towards the substantial presence check. Even for those who earned no taxable revenue, you continue to must file Type 8843 yearly to maintain your exempt standing.

What’s successfully linked revenue (ECI)?

Successfully linked revenue is U.S. revenue that’s linked to a commerce or enterprise you’re actively concerned in. This may embody wages from a job, revenue from freelancing, or earnings from a enterprise you run.

In distinction, fastened, determinable, annual, or periodic (FDAP) revenue contains extra passive U.S. revenue sources like:

Dividends
Curiosity
Royalties
Pensions
Annuities

ECI vs. FDAP revenue

ECI is taxed at graduated charges (like U.S. residents), and also you could possibly declare sure tax deductions to decrease your taxable revenue.
FDAP revenue is mostly taxed at a flat 30% charge, until a tax treaty lowers or eliminates it.

Understanding whether or not your revenue is ECI or FDAP issues as a result of it impacts your tax charge, eligibility for sure allowable tax deductions, and which tax varieties it’s essential file. Don’t stress about this, although — TaxAct may help you classify your revenue appropriately by asking you detailed questions as you put together your tax return with our tax software program.

Commonplace deduction for nonresidents

Usually, nonresident aliens will not be eligible for the usual deduction.

Nonetheless, particular guidelines apply to college students and enterprise apprentices from India who’re eligible for the United States-India Revenue Tax Treaty. A tax treaty permits you sure tax advantages not usually accessible to nonresidents, akin to claiming an ordinary deduction on this case, and even claiming dependents.

To determine your commonplace deduction as a scholar or enterprise apprentice from India, use IRS Worksheet 5-1.

TaxAct may help you declare the usual deduction as a scholar or enterprise apprentice from India — take a look at our support page for more information on how to do that within the TaxAct program.

Can I declare dependents as a nonresident?

Usually, nonresident aliens can’t declare dependents, however there are a number of exceptions.

You could possibly declare a dependent if you’re a:

U.S. nationwide
Resident of Canada or Mexico
Resident of South Korea
Pupil or enterprise apprentice from India (underneath the U.S.–India tax treaty)

In case you fall into one in every of these classes, and your dependent meets the usual IRS guidelines — like relationship, help, and residency assessments — you could possibly declare the kid in your tax return. You’ll additionally want to offer a legitimate SSN or ITIN for every dependent you declare.

You’ll be able to apply for an ITIN (particular person taxpayer identification quantity) by submitting Form W-7 (en Español) together with your federal revenue tax return.

TaxAct can walk you through how to file Form W-7 utilizing our tax software program. As soon as authorised, the IRS will assign you a quantity to make use of if you file Type 1040-NR.

Nonresident partner submitting guidelines

In case you’re married and your partner is a nonresident alien, your submitting choices rely by yourself residency standing for tax functions.

Listed here are your selections:

In case you’re each nonresidents: You’ll every typically file a separate Type 1040-NR. The U.S. doesn’t enable joint returns for 2 nonresident aliens.
If one in every of you is a U.S. citizen or resident alien: You’ll be able to select to be handled as married submitting collectively. This selection treats the nonresident partner as a U.S. resident for tax functions. You’ll be able to nonetheless elect to file a joint return if one in every of you grew to become a U.S. resident through the yr, whereas the opposite didn’t.

Utilizing the married submitting collectively election can supply advantages, like claiming the usual deduction and different tax breaks, nevertheless it additionally comes with sure guidelines. In case you select to file collectively with a nonresident partner, right here’s what which means:

You’ll each be handled as U.S. residents for tax functions for the yr you make the selection, and for future years too, until you cancel it.
It’s essential to file a joint return for the yr you make the election. After that, you’ll be able to select to file individually for later years in order for you.
You each must report your complete worldwide revenue, not simply what you earned within the U.S.
You normally can’t use tax treaty advantages whereas this alternative is in impact, however there could also be restricted exceptions for particular kinds of revenue.

Bear in mind, even for those who elect to be taxed as a resident for revenue tax functions, your partner should still be handled as a nonresident for Social Safety and Medicare taxes relying on their visa or work state of affairs. You’ll be able to be taught extra about this subject on the IRS website.

elect to file a joint return

To make the election, connect an announcement to your joint return (normally Type 1040) signed by each spouses. Your assertion ought to embody:

A declaration that one partner was a nonresident alien, and the opposite partner was a U.S. citizen (as of the Dec. 31 of the tax yr) and that you’re selecting to be handled as residents for the whole yr.
The names, tackle(es), and identification quantity (SSN or ITIN) for each spouses.

TaxAct may help you connect a PDF assertion containing the above to your return. For steps on how to do that, take a look at our support page.

FAQs

Do I’ve to file taxes if I didn’t earn any U.S. revenue?

In case you didn’t earn any U.S. supply revenue through the yr, you possible don’t must file a federal revenue tax return. Nonetheless, for those who’re an exempt particular person within the U.S. — for instance, college students on an F, J, M, or Q visa — you’re nonetheless required to file Type 8843, even for those who had zero revenue. This kind helps preserve your exempt standing for the substantial presence check.

So, when you may not must file a full revenue tax return, you should still have a submitting requirement relying in your visa and immigration standing.

What occurs if I don’t file after I ought to have?

Not submitting your U.S. tax return can result in some not-so-great penalties. You would possibly face IRS penalties, curiosity on unpaid taxes, and even lose out on a tax refund for those who wait too lengthy to file (greater than three years). And for those who’re eligible for a tax treaty profit, you may miss out on that too.

Your tax return additionally serves as necessary proof of your eligibility when making use of for naturalization, and the USCIS may ask you to bring certified tax returns from the final 5 years as a part of your software. Even for those who didn’t earn a lot or owe something, it’s nonetheless necessary to file for those who’re required to!

Can I file collectively with my U.S. partner?

Probably! You’ll be able to select to be handled as a resident for tax functions and file collectively for those who’re married to a U.S. citizen or resident alien. Each you and your partner might want to report your worldwide revenue, and also you may not be capable to use sure tax treaty advantages for those who go this route.

Can I file as head of family if my partner is a nonresident alien?

You would possibly be capable to file utilizing head of family standing if you don’t select to deal with your nonresident partner as a U.S. resident. To do that, you’ll want to satisfy sure situations, together with paying for greater than half the family prices for dependents or kin apart from your partner. TaxAct may help you determine for those who qualify to file as head of family by asking you detailed questions on your loved ones state of affairs.

What occurs if a nonresident information taxes as a resident?

Submitting with the fallacious residency standing (even accidentally) may cause issues. If a nonresident alien information as a resident after they shouldn’t, right here’s what may occur:

• Your tax return could also be inaccurate, particularly for those who claimed the usual deduction, tax credit, or different advantages you’re not eligible for.
• You would possibly underpay your taxes and owe penalties or curiosity.
• It may delay your tax refund or set off an IRS audit.
• In case you’re making use of for a inexperienced card or one other immigration profit, an inconsistent tax historical past may elevate pink flags.

On this state of affairs, it’s a good suggestion to repair the error sooner reasonably than later. In case you’ve already filed incorrectly, you’ll be able to normally right the difficulty by submitting an amended return (Type 1040-X) utilizing the appropriate varieties — like switching from Type 1040 to Type 1040-NR.

Why do I’ve 30% withholding on dividends?

The IRS usually requires a flat 30% tax withholding on FDAP revenue, together with dividends from U.S. corporations paid to nonresidents. However you would possibly be capable to cut back or eradicate this withholding if your own home nation has a tax treaty with the U.S. To say this, you’ll must fill out Form W-8BEN and submit it to the withholding agent (the individual or firm making the dividend funds).

What’s a tax treaty, and the way do I take advantage of it?

A tax treaty is an settlement between the US and sure different international locations that helps cut back or eradicate double taxation. In brief, it’s designed to be sure to don’t get taxed twice on the identical revenue — as soon as by your own home nation, and once more by the U.S.

In case your nation has a tax treaty with the U.S., you could possibly:

• Pay a decrease withholding charge on curiosity, dividends, or royalties
• Exclude sure kinds of revenue from U.S. taxation
• Keep away from paying U.S. taxes on revenue from educating, finding out, or analysis for those who’re a scholar or professor

How do I declare a tax treaty profit?

Claiming tax treaty advantages normally entails filling out particular IRS varieties. Which one(s) you want depends upon the kind of revenue you’re receiving:

• Form 8233: Use this for those who’re incomes wages, compensation for providers, or fellowship revenue and your nation’s treaty permits it to be tax-exempt.
• Form W-8BEN: Use this way for those who’re receiving passive revenue like dividends or royalties and need to declare a decreased tax charge underneath your nation’s tax treaty.
• Form 8833: Use this to clarify a tax treaty place for those who’re claiming a profit that overrides or modifies U.S. tax legislation (required in additional complicated conditions).

You’ll normally connect the suitable type to your Type 1040-NR or present it on to the payer (like your employer or funding agency).

Tax Tip: Not all tax treaty advantages apply mechanically, and never each nation has a treaty with the U.S. Try a list of which countries have tax treaties with the U.S. on the IRS web site.

What tax deductions can I take as a nonresident?

In case you earn ECI (like wages from a job or cash from freelancing) you’ll be able to normally declare sure itemized deductions to decrease your taxable revenue. These are bills which are instantly associated to your U.S. job or enterprise. You’ll be able to’t deduct prices tied to revenue that’s tax-free or not linked to your U.S. work.

That mentioned, some deductions, like charitable donations or sure losses from theft or disasters, should still be allowed even when they aren’t linked to your job. To say these, use Schedule A together with your Type 1040-NR. Don’t fear — TaxAct may help you with this for those who file with us.

Can I e-file my tax return with TaxAct as a nonresident?

Sure! TaxAct helps e-filing for Type 1040-NR. You will want to point that you’re a nonresident by checking the Nonresident alien field when filling out your primary data. Our tax software program will then information you thru the suitable interview inquiries to and assist you to fill out your tax varieties.

I need assistance submitting. What ought to I do?

In case you can’t afford tax preparation, want a translator, or simply need assistance submitting your tax return, the IRS Volunteer Income Tax Assistance (VITA) program can help you. To discover a supplier close to you and verify for those who qualify, begin by entering your zip code here.

The underside line

Submitting your U.S. tax return as a nonresident alien might really feel overwhelming, however you don’t need to do it alone. TaxAct is right here to assist stroll you thru submitting your tax return step-by-step. Whether or not you’re a scholar, a visa holder, or somebody planning a extra everlasting keep within the U.S., we may help you file your taxes appropriately and with out problem.

This text is for informational functions solely and never authorized or monetary recommendation.

All TaxAct gives, services and products are topic to applicable terms and conditions.

¹Tax Specialists can be found with TaxAct® Xpert Help®, which encompasses a collection of providers designed to offer various ranges of help and help in your tax submitting wants. These providers can be found at an extra value and are topic to limitations and restrictions. Service availability, options, and pricing might differ and are topic to alter with out discover. For extra particulars, read full terms.

²We assure our software program is 100% correct and can calculate your most refund underneath relevant legislation. If an error in our software program leads to you in the end receiving a smaller refund or bigger tax legal responsibility than you obtain utilizing the identical information with one other tax preparation product, we’ll: (1) refund the relevant software program charges you paid us, (2) pay you the distinction within the tax refund or legal responsibility, (3) cowl any penalties and curiosity levied towards you and (4) any moderately documented authorized and audit prices you incur. In no occasion will our complete, cumulative obligation underneath (1)-(4) above to any buyer underneath this assure exceed $100,000. This assure solely extends to returns which are e-filed by taxpayers getting ready their very own tax returns utilizing our Shopper 1040 merchandise. Learn extra about our $100k Accuracy Guarantee.

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