2007 Form 1040NR - Filing Instructions

U.S. Nonresident Alien Income Tax Return (long form)

Although most nonresident aliens present in United States for a short period of time qualify to file Form 1040NR-EZ, some of them are required to file the long form - Form 1040 NR for their nonresident tax returns.

In most cases, Form 1040NR is used by nonresident aliens for whom the following cases apply:

• claiming dependents (residents of Canada , Mexico , Japan , Korea and students from India only) - Form 1040NR
• received dividends or capital gains from U.S. stocks - Form 1040NR
• received income on Form 1099 as independent contractor - Form 1040NR
• claiming itemized deductions such as donations to U.S. charities, professional tax preparation fees from previous years - Form 1040NR
• claiming unreimbursed employee expenses (moving, travel, continuing education) - Form 1040NR
• have additional adjustments to income - Form 1040NR

You can use Form 1040 NR-EZ instead of Form 1040 NR if all the requirements below apply to you (a large majority of nonresident aliens meet all these conditions):

• You do not claim any dependents. (do not claim a wife or children on your tax return. Only residents of Canada , Mexico , Japan , Korea and students from India can claim dependents on their U.S. tax return)
• You cannot be claimed as a dependent on someone else's return (ex: spouse, parent).
• You are not claiming any tax credits.
• If you are married, and you do not claim an exemption for your spouse.
• Your taxable income is less than $100,000.00.
• You do not claim any itemized deductions other than for state and local income taxes.
• You are not claiming any adjustments to income other than scholarship and fellowship grants excluded.
• You do not owe any "other taxes"
• Your only U.S. income was from wages, salaries, and tips, refunds of state and local income taxes, and/or scholarship or fellowship grants.

Note:

• Income received as an independent contractor on Form 1099 is not considered wages or salaries and can not be reported on Form 1040NR-EZ. If you have received income as an independent contractor on Form 1099 you must use Form 1040NR to file your nonresident tax return.
• If you had taxable interest or dividend income, you cannot use this form. Download Form 1040NR and 1040NR instructions from the IRS website.
• Bank interest is not taxable for non resident aliens and is not counted towards income.
• If you do not qualify to file Form 1040NR-EZ, you must download and file Form 1040 NR.

If after applying the Substantial Presence Test, you determine that are a resident alien for tax purposes but you are able to demonstrate that you have a closer connection with your home country, you may file Form 8840 to remain in nonresident alien status and may file Form 1040 NR or Form 1040 NREZ. For more information, please review the filing instructions for Form 8840.

In general, Form 1040NR is used by nonresident aliens claiming additional deductions or credits. Please ensure that you read Form 1040NR instructions, before claiming deductions or credits. Not all deductions and credits available for resident aliens and U.S. citizens are also available for nonresident aliens on Form 1040NR.

You must file Form 1040NR or Form 1040NR-EZ even if:

• None of your income came from a trade or business conducted in the United States,
• You have no income from U.S. sources, or
• Your income is exempt from U.S. tax.

When to File

If you were an employee and received wages subject to U.S. income tax withholding, file Form 1040NR-EZ by April 15, 2008.

Extension of Time to File

If you cannot file your Form 1040NR by the due date, you should file Form 4868 to receive an extension of time to file. You must file Form 4868 by the regular due date of the return.

Note: Form 4868 does not extend the time to pay your income tax. The tax is due by the regular due date of the return.

Where to File

File Form 1040 NR with the Internal Revenue Service Center, Austin, TX 73301-0215, U.S.A.