What is Form 1040-NR?

How it works

Form 1040-NR is the non-resident-alien version of Form 1040. It separates US-source income into two buckets that get different treatment:

• Effectively Connected Income (ECI) — reported on the front of the return, taxed at graduated rates (10% to 37%) on net income after allowable deductions. This is the same rate structure as a US person's 1040.
• FDAP income not subject to the 30% gross withholding mechanism, or where over-withholding occurred — reported on Schedule NEC (Not Effectively Connected). Taxed at 30% gross unless a treaty applies.

Foreign-source income is not reported on 1040-NR. Non-residents are taxed only on US-source income; everything else is outside the IRS's reach.

Deadlines

• April 15 if the non-resident received US wages subject to withholding (typical of H-1B, L-1, or other US-employed individuals during a partial-year residency).
• June 15 for all other non-residents (independent contractors, real-estate investors, founders with US-LLC ECI).
• October 15 automatic extension via Form 4868 (filed before the regular deadline).

What gets attached

The IRS expects supporting documentation depending on the income type:

• Form W-2 for wages → unmodified, attach as-is.
• Form 1042-S for FDAP and certain ECI → attach copy B; refund claim made on Schedule NEC.
• Schedule K-1 from a US partnership → use the K-1 figures to compute ECI on the front of 1040-NR.
• Form 8833 if claiming treaty position that overrides default treatment.
• Form 8840 if claiming Closer Connection exception.

Examples

• Brazilian founder's Delaware LLC paid him a $50,000 ECI distribution. Files 1040-NR by 15 June. Reports $50,000 on the front; deducts allowable business expenses; pays graduated tax on the net. Attaches Schedule K-1 from the partnership 1065.
• French YouTuber over-withheld at 30% on $40,000 of US AdSense royalties. Files 1040-NR by 15 June claiming the France-US treaty 0% royalty rate on Schedule NEC. Refund of the full $12,000 (less processing) issued 6–18 months later.

Common mistakes

• Filing 1040 instead of 1040-NR. The two forms are not interchangeable. A non-resident who files 1040 mis-claims worldwide income reporting and allowable deductions; the IRS may amend, deny, or recharacterise positions.
• Skipping the form when over-withheld. No filing = no refund. The 1042-S sitting in your inbox doesn't trigger an automatic refund.
• Missing the June 15 deadline. Less famous than April 15, but real. Treaty rights can be forfeited; late-filing penalties apply on the gross unpaid balance.
• Forgetting state tax. California, New York and several other states have residency tests independent of federal NRA classification. You can clear 1040-NR cleanly and still owe a state non-resident return on the same days.