Preparing Form 1040NR: U.S. Nonresident Alien Income Tax Return (Currently Unavailable)

Author: Carolyn Turnbull

Nonresident alien clients who have U.S. source income will need your assistance filing Form 1040NR, U.S. Nonresident Alien Income Tax Return, a form with numerous complex requirements that demands careful analysis of the taxpayer's circumstances.

Recognize the fundamentals of filing the very complicated Form 1040NR in this convenient two-hour CPE course with noted international tax expert, Carolyn Turnbull, CPA, M.S.T. Ms. Turnbull will provide a practical review of the basic tax concepts affecting nonresident aliens in the U.S. and will describe how to address common problems in the preparation of their 1040NR returns.

Publication Date: August 2017

Designed For
Tax and accounting professionals responsible for cross-border tax compliance and planning as well as CPAs, EAs, tax attorneys and other financial and wealth management advisors working with clients on international tax compliance and planning matters.

Topics Covered

• "Resident alien" versus "nonresident alien" and why the distinction is important
• The role and application of relevant tax treaties
• IRS forms and publications related to non-U.S. citizens living in the United States
• 1040NR versus 1040NR-EZ
• The purpose and structure of Form 1040NR
• Filing due dates
• Determining filing status
• Dual-status taxpayers
• The treatment of spouses and dependents
• Important elections
• Income subject to tax
• Treatment of Effectively Connected Income (ECI) and Fixed, Determinable, Annual, Periodical (FDAP) Income
• The deductions available and limitations
• Penalties for failing to file
• Common problem areas and mistakes to avoid

Learning Objectives

• Gain a practical understanding of the taxation of nonresident aliens living in the United States
• Recognize and apply the filing requirements, parts and schedules for the Form 1040NR
• Describe how to compute taxable income for a nonresident alien
• Prepare accurate Form 1040NRs
• Identify potential situations where criminal penalty may occur when not filing Form 1040NR
• Describe which IRS Publication relates to withholding of tax on nonresident aliens and foreign entities
• Identify a tax form a nonresident alien may have to file that relates to the initial and annual expatriation statement
• Recognize exceptions to the days of presence in the U.S. test for aliens
• Differentiate which schedule is used to report itemized deductions
• Differentiate bilateral income tax treaties
• Identify which type of individual is not required to file Form 1040NR
• Describe the amount an NRA must have taxable income less than what amount in order to file Form 1040NR-EZ
• Differentiate which tests are used once an individual meets the requirements for resident alien status
• Recognize the time period when a taxpayer is a dual-status taxpayer if they are both an NRA and a resident alien
• Differentiate which rule relate to the fact that an individual will be treated as a U.S. resident for the entire calendar year if the individual is a resident during any part of the following calendar year
• Identity source of income rules relating to the fact that income is sourced by where the property or property rights are used
• Identify the relevant IRC Section with respect to electing U.S. resident alien status

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic knowledge of U.S. international taxation principles

Advance Preparation
None