The tax return for nonresidents in the United States typically focuses on determining if the person is a “nonresident alien”, what type of income they have in the U.S. and whether they must file Form 1040-NR or other related schedules.

Introduction to tax returns for non-residents

In the United States, a person is considered a nonresident for tax purposes when they do not meet either the “green card test” or the “substantial presence test.” Consequently, these taxpayers are typically only taxed on income from U.S. sources, whether related to economic activity in the country or subject to fixed withholding.

However, even if the taxpayer is not a tax resident, they may still be required to file an annual tax return. In many cases, this return is filed using Form 1040-NR, which serves as the income tax return for nonresident aliens.

Also, learn about “FIRPTA in Florida: Everything Foreign Investors Need to Know,” as many nonresidents with real estate investments also need to understand FIRPTA and its withholdings. Likewise, it’s helpful to consult “How to Open an LLC in Florida in 2025: A Guide for Foreigners” for those structuring businesses in the U.S. and subsequently required to file taxes.

Documents required for the declaration

Before completing Form 1040-NR, nonresidents should gather proof of income and withholdings, such as Forms W-2 and 1099, bank statements, and lease agreements, among others. In most cases, they will also need a Social Security number (SSN) or, if unavailable, an Individual Taxpayer Identification Number (ITIN) issued by the IRS to file the return correctly.

Additionally, when a taxpayer claims benefits under a double taxation treaty, information about their country of residence and the specific treaty articles they wish to apply is usually required. This information is provided, for example, in Schedule OI of Form 1040-NR and, in some cases, on Form 8833.

Step-by-step procedure

First, the taxpayer must confirm their nonresident status using the criteria of the substantial presence test and the green card test, as described in IRS Publication 519. From there, if they are confirmed as a “nonresident alien” and have U.S.-source income, it is necessary to determine whether they are required to file Form 1040-NR based on the type and amount of income.

Second, once the documents are gathered, Form 1040-NR is completed, including personal information, income actually connected, allowable deductions, and applicable tax credits. Schedules such as Schedule NEC for other income and Schedule OI for additional information are also attached.

Third, after carefully reviewing the accuracy of the data, the taxpayer files the return electronically, when possible, or by mail to the appropriate IRS address, respecting the deadline. Generally, if there were wages subject to withholding, the deadline is April of the following year. If there are only certain other types of income, the deadline can be extended until June.

Common mistakes and how to avoid them

Nonresidents frequently make the mistake of filing Form 1040 (for residents) instead of Form 1040-NR. This error can lead to delays, corrections, and, in some cases, future problems with the IRS, because the tax authority assumes the taxpayer is a resident and pays taxes on worldwide income.

Another common mistake is failing to properly report the combination of income actually connected with a U.S. business and other income subject to withholding. This can result in missing information on the Schedule NEC or the application of incorrect tax rates. Additionally, some people forget to claim treaty benefits that could reduce withholdings and, therefore, end up paying more taxes than necessary.

If you would like to learn more, see “Accounting Consulting in Doral: Specialized Services for International Businesses,” where we handle the filing of Form 1040-NR and other forms.

In short, filing taxes for non-residents in the United States involves correctly determining tax status, identifying U.S.-source income, and completing Form 1040-NR with its schedules. While the process may seem complex at first, a structured approach and the support of official resources and professional advice significantly reduce the risk of errors.