IRS Form 1040-NR

Form 1040-NR is the nonresident version of Form 1040, the standard US individual income tax return. The IRS requires nonresident aliens to use this form rather than Form 1040 because nonresidents are taxed only on US-sourced income, not on worldwide income. US citizens and most green card holders file Form 1040 and report worldwide income; nonresident aliens file Form 1040-NR and report only US-sourced income.\n\nYour filing obligation depends on your residency classification under IRS rules. The IRS uses two primary tests to determine residency status: the green card test and the substantial presence test. If you do not hold a green card and do not meet the substantial presence threshold, you are generally treated as a nonresident alien and Form 1040-NR is the correct return. Applicable tax treaty provisions can also affect residency classification, so consult a qualified cross-border tax adviser before filing.\n\nThis is not tax advice. The correct form to file, and whether a filing obligation exists at all, depends on individual facts and circumstances. Always consult a qualified cross-border tax adviser for guidance specific to your situation.

Many English-speaking expats living in the UAE, Saudi Arabia, Qatar, and other GCC states retain US-source income - rental income from US property, dividends from US-listed securities, or income from US business activities. If you are not a US citizen, do not hold a green card, and do not meet the IRS substantial presence test, you are likely a nonresident alien and Form 1040-NR is the return the IRS expects. Filing the wrong form - for example, submitting Form 1040 when 1040-NR is required - can result in an incorrect tax calculation and potential IRS correspondence.\n\nGCC-based expats should also be aware that the US deadline for Form 1040-NR is April 15 of the year following the tax year, with extensions available. Tax treaty provisions between the US and an expat's home country may affect how certain income items are taxed on Form 1040-NR. Consult a tax adviser with cross-border US expertise before filing.