IRS Form 1040-NR

Practical overview

Form 1040-NR is more complex than Form 1040 because it separates income into effectively-connected (taxed on a net basis at graduated rates) and not-effectively-connected (taxed on a gross basis at the flat 30 percent or treaty rate). Treaty positions usually require an attached Form 8833. Many filers struggle with sourcing-of-income rules and with allocating expenses to ECI.

Practical steps

• Determine whether income is effectively connected, FDAP, or treaty-exempt before completing the return.
• Attach Form 8833 for any treaty-based return position above the disclosure threshold.
• Attach Form 1042-S information for U.S. withholding on FDAP income.
• Use ITIN or SSN consistently across the return and any related Schedule OI.
• File by April 15 if you received wages subject to U.S. withholding; otherwise generally June 15.

Due-date notes

Penalty snapshot

Failure-to-file and failure-to-pay penalties apply on the same general schedule as Form 1040, with interest on unpaid balances.