U.S. Federal Income Tax Filing Requirements for Nonresident Alien

If you are not a U.S. citizen and don't meet the tests for resident aliens, you are considered as nonresident alien. A nonresident alien usually is subject to U.S. income tax only on U.S. source income. According to publication 519 and 1040NR instruction, if you meet any of the following, you must file a tax return Form 1040NR - U.S. Nonresident Alien Income Tax Return:

1. If you are engaged in a trade or business in the United States (see the definition of be engaged in trade or business in U.S. at the end of this post), you must file even if:

• You have no income from a trade or business conducted in the United States,
• You have no U.S. source income, or
• Your income is exempt from U.S. tax under a tax treaty or any section of the Internal Revenue Code.

2. If you are not engaged in a trade or business in the United States and received  U.S. source income, you must file if the U.S. tax withheld from that income is more or less than the required withholding amount (see example below).

3. You represent a deceased person who would have had to file Form 1040NR.

4. You represent an estate or trust that has to file Form 1040NR.

5. You owe any special taxes, including any of the following.

• Alternative minimum tax.
• Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account.
• Household employment taxes.
• Social security and Medicare tax on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes.
• Recapture of first-time homebuyer credit.
• Write-in taxes or recapture taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts.

6. You received HSA, Archer MSA, or Medicare Advantage MSA distributions.

7. You had net earnings from self-employment of at least $400 and you are a resident of a country with whom the United States has an international social security agreement.

8. You want to claim tax overpaid or withheld.

If you meet the following exceptions, you don’t need to file a return:

1. Your only U.S. trade or business was the performance of personal services; and

• Your wages were less than $3,950; and
• You have no other need to file a return to claim a refund of over withheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty.

2. You were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa, and you have no income that is subject to tax.

You are considered engaged in trade or business in the U.S. if you meet any of the following:

• You perform personal services in US.
• You are temporarily present in the United States as a nonimmigrant under an “F,” “J,” “M,” or “Q” visa.
• You own and operate a business in the United States selling services, products, or merchandise.
• You are a member of a partnership that at any time during the tax year is engaged in a trade or business in the United States.
• you are the beneficiary of an estate or trust that is engaged in a trade or business in the United States.

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