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2021

Department of the Treasury
Internal Revenue Service

Instructions for Form
1040-NR

DRAFT AS OF
January 19, 2022

U.S. Nonresident Alien Income Tax Return
Contents

Form 1040-NR Helpful Hints . .
Affordable Care Act—What You
Need To Know . . . . . . . .
What's New . . . . . . . . . . . . .
Filing Requirements . . . . . . . .
Resident or Nonresident
Alien . . . . . . . . . . . . .
When and Where Should
You File? . . . . . . . . . .
Election To Be Taxed as a
Resident Alien . . . . . . . .
Dual-Status Taxpayers . . . . . .
How To Report Income . . . . . .
Line Instructions . . . . . . . . . .
Filing Status . . . . . . . . . .
Name and Address . . . . .
Dependents . . . . . . . . . .
Effectively Connected
Income (ECI) . . . . . . .

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Contents

Payments . . . . . . . . . . .
Refund . . . . . . . . . . . . .
Amount You Owe . . . . . .
Third Party Designee . . . .
Sign Your Return . . . . . . .
Assemble Your Return . . .
2021 Tax Table . . . . . . . .
2021 Tax Computation
Worksheet—Line 16
General Information . . . . .
Keeping Records . . . . . .
Amending Your Return . . .
Death of a Taxpayer . . . .
Past Due Returns . . . . . .
How To Get Tax Help . . . .
Interest and Penalties . . . .
Refund Information . . . . .
Instructions for Schedule 1
(Form 1040)—Additional

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Contents

Income and Adjustments
to Income . . . . . . . . . .
Instructions for Schedule 2
(Form 1040)—Additional
Taxes . . . . . . . . . . . . .
Instructions for Schedule 3
(Form 1040)—Additional
Credits and Payments . .
Instructions for Schedule A
(Form 1040-NR) . . . . . .
Instructions for Schedule
NEC (Form 1040-NR) . .
Instructions for Schedule OI
(Form 1040-NR) . . . . . .
TeleTax . . . . . . . . . . . . .
Disclosure, Privacy Act, and
Paperwork Reduction Act
Notice . . . . . . . . . . . . .
Index . . . . . . . . . . . . . . . . . .

1040-NR

Jan 18, 2022

only the schedules
that are right for you!

A
OI

Cat. No. 11368V

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Section references are to the Internal
Revenue Code unless otherwise noted.

Form 1040-NR and Schedules
Use the base form and Schedule OI...

Page

NEC

Form 1040-NR Helpful Hints
The lines on Form 1040-NR are arranged so that, in most instances, they are for the same tax items as the lines on 2021 Forms 1040 and 1040-SR.
You may also need the three Form 1040 numbered schedules: Schedule 1 (Form 1040), Additional Income and Adjustments to Income; Schedule 2 (Form
1040), Additional Taxes; and Schedule 3 (Form 1040), Additional Credits and Payments.
You will need to complete the applicable items on Schedule OI (Form 1040-NR) and include that schedule with your Form 1040-NR.
CAUTION: There are a Schedule A (Form 1040-NR) and a Schedule A (Form 1040). Do not use Schedule A (Form 1040-NR) with Form 1040 or Form
1040-SR. Use Schedule A (Form 1040-NR) only with Form 1040-NR. If using a Schedule A with Form 1040 or 1040-SR, use Schedule A (Form 1040).

DRAFT AS OF
January 19, 2022

Though you will need to file Form 1040-NR and Schedule OI (Form 1040-NR), you may not need to file the numbered schedules (Schedules 1 through 3
(Form 1040)), or Schedule A (Form 1040-NR) and Schedule NEC (Form 1040-NR). However, if your return is more complicated (for example, you claim
certain deductions or credits or owe additional taxes, or you have U.S. source income not effectively connected with a U.S. trade or business), you will need to
complete one or more of those schedules. Below is a general guide to which schedule(s) you will need to file based on your circumstances. See the
instructions for the schedules later for more information. If you e-file your return, you generally will not notice much of a change and the software you use will
generally determine which schedules you need.
You will need the Instructions for Form 1040. Throughout these instructions, you are directed to go to the Instructions for Forms 1040 (also known as the
Instructions for Form 1040 (and 1040-SR)) for details on how to complete a line. But, in most instances, you will need to look at whether you must take
exceptions into consideration when applying those instructions. The specific exceptions for a line are listed under the instructions for the line. Some of the
exceptions noted repeatedly in the line instructions are below.

• A nonresident alien filing Form 1040-NR cannot have a Married filing jointly or a Head of household filing status.
• Certain tax benefits (such as the child tax credit, the credit for other dependents, and the additional child tax credit; and the premium tax credit for

dependents) are only available in full to residents of Canada and Mexico and, to a limited extent, to residents of India and South Korea. These tax benefits
cannot be claimed by other nonresident aliens.
• There are certain forms used by Form 1040 and Form 1040-SR filers that are NOT used by Form 1040-NR filers: for example, Form 2555, Form 965, and
Schedule K-1 (Form 1120-S).
• The instructions for estates and trusts on the main form may, in certain instances, align more with the Instructions for Form 1041, U.S. Income Tax Return
for Estates and Trusts, than with the Instructions for Form 1040, which are for individuals. If you are filing for a nonresident alien estate or trust, you will still
need to follow the Instructions for Schedule NEC, later, if the estate or trust has U.S. source income that is not effectively connected with a U.S. trade or
business. And there may be tax benefits and income inclusions on Form 1041 not applicable to a nonresident alien trust or estate.

IF YOU . . .

THEN USE . . .

Can claim deductions and losses properly allocated and apportioned to income effectively connected with Schedule A (Form 1040-NR)
a U.S. trade or business. Do not include deductions and/or losses that relate to exempt income or to
Note. Do not use Schedule A (Form 1040-NR)
income that is not effectively connected with a U.S. trade or business.
with Form 1040 or Form 1040-SR. Use
Schedule A (Form 1040-NR) only with Form
1040-NR. With Form 1040 or 1040-SR, use
Schedule A (Form 1040).
Have income not effectively connected with a U.S. trade or business.

Schedule NEC (Form 1040-NR)

Have additional income, such as business or farm income or loss, unemployment compensation, prize or
award money, or gambling winnings from a U.S. trade or business.

Schedule 1 (Form 1040), Part I

Have any deductions to claim, such as student loan interest deduction, self-employment tax, or educator
expenses.

Schedule 1 (Form 1040), Part II

Owe alternative minimum tax (AMT) or need to make an excess advance premium tax credit repayment.

Schedule 2 (Form 1040), Part I

Owe other taxes, such as self-employment tax, household employment taxes, and additional tax on IRAs
or other qualified retirement plans and tax-favored accounts.

Schedule 2 (Form 1040), Part II

Can claim a nonrefundable credit (other than the nonrefundable child tax credit or the credit for other
dependents), such as the foreign tax credit or general business credit.

Schedule 3 (Form 1040), Part I

Can claim a refundable credit (other than the refundable child tax credit or additional child tax credit), such
as the net premium tax credit, health coverage tax credit, or qualified sick and family leave credits from
Schedule H or Schedule SE.
Schedule 3 (Form 1040), Part II
Have other payments, such as an amount paid with a request for an extension to file or excess social
security tax withheld.

-2-

Instructions for Form 1040-NR (2021)

The Taxpayer Advocate Service (TAS) Is Here To Help You
What is the Taxpayer Advocate Service?
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers and protects
taxpayer rights. Their job is to ensure that every taxpayer is treated fairly and that you know and understand your rights
under the Taxpayer Bill of Rights.

DRAFT AS OF
January 19, 2022

How can you learn about your taxpayer rights?
The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to
TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your
rights. Know them. Use them.
What can TAS do for you?
TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their
assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything
possible to resolve your issue. TAS can help you if:
• Your problem is causing financial difficulty for you, your family, or your business;
• You face (or your business is facing) an immediate threat of adverse action; or
• You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded by the date
promised.
How can you reach TAS?
TAS has offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is in your local
directory at TaxpayerAdvocate.IRS.gov/Contact-Us. You can also call them at 877-777-4778.

How else does TAS help taxpayers?
TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please
report it to them at IRS.gov/SAMS.
TAS for Tax Professionals
TAS can provide a variety of information for tax professionals, including tax law updates and guidance, TAS programs, and
ways to let TAS know about systemic problems you’ve seen in your practice.

Low Income Taxpayer Clinics (LITCs)
Low Income Taxpayer Clinics (LITCs) are independent from the IRS. LITCs represent individuals whose income is below a
certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition,
LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak
English as a second language. Services are offered for free or a small fee for eligible taxpayers. To find an LITC near you,
visit TaxpayerAdvocate.IRS.gov/about/LITC or see IRS Pub. 4134, Low Income Taxpayer Clinic List.

Suggestions for Improving the IRS
Taxpayer Advocacy Panel
Have a suggestion for improving the IRS and do not know who to contact? The Taxpayer Advocacy Panel (TAP) is a diverse
group of citizen volunteers who listen to taxpayers, identify taxpayers’ issues, and make suggestions for improving IRS
service and customer satisfaction. The panel is demographically and geographically diverse, with at least one member from
each state, the District of Columbia, and Puerto Rico. Contact TAP at ImproveIRS.org or 888-912-1227 (toll free).

Instructions for Form 1040-NR (2021)

-3-

You can electronically file (e-file) your Form 1040-NR.

Options for e-filing your returns—safely, quickly, and easily
Why do 89% of Americans file their taxes electronically?

DRAFT AS OF
January 19, 2022
• Security—The IRS uses the latest encryption technology to safeguard your information.
• Flexible Payments—File early; pay by the due date of your return (not counting
extensions)—April 18, 2022 (for most people).
• Greater Accuracy—Fewer errors mean faster processing.

• Quick Receipt—Get an acknowledgment that your return was received and accepted.
• Go Green—Reduce the amount of paper used.

• Faster Refunds—Join the eight in 10 taxpayers who get their
refunds faster by using direct deposit and e-file.

IRS e-file: It’s Safe.
It’s Easy. It’s Time.
Joining the more than 135 million Americans who are already using e-file is easy. Just ask your tax preparer or
use commercial software. IRS e-file is the safest, most secure way to transmit your tax return to the IRS. Since
1990, the IRS has processed more than 1 billion e-filed tax returns safely and securely. There’s no paper return
to be lost or stolen.
Most tax return preparers are now required to use IRS e-file. If you are asked if you want to e-file, just give it a try.
IRS e-file is now the norm, not the exception.

IRS.gov is the gateway to all electronic services offered by the IRS, as well as the spot to download forms at
IRS.gov/Forms.

Make your tax payments electronically—it’s easy.
You can make electronic payments online, by phone, or from a mobile device. Paying electronically
is safe and secure. It puts you in control of paying your tax bill and gives you peace of mind. You
determine the payment date, and you will receive an immediate confirmation from the IRS. It’s fast,
simple, and secure. Go to IRS.gov/Payments to see all your electronic payment options.

-4-

Instructions for Form 1040-NR (2021)

Affordable Care Act—What
You Need To Know
See Affordable Care Act—What You
Need To Know in the Instructions for
Form 1040 for details.

Future developments. For the latest
information about developments
related to Form 1040-NR and its
instructions, such as legislation
enacted after they were published, go
to IRS.gov/Form1040NR.

For more information, see the
instructions for Form 7202 and
Schedule 3, Line 13b.
Extension and expansion of credits for sick and family leave. The
American Rescue Plan Act of 2021,
enacted on March 11, 2021 (ARP)
provides that certain self-employed
individuals can claim credits for up to
10 days of “paid sick leave,” and up to
60 days of “paid family leave,” if they
are unable to work or telework due to
circumstances related to coronavirus.
Self-employed individuals may claim
these credits for the period beginning
on April 1, 2021, and ending
September 30, 2021. For more
information, see the instructions for
Form 7202 (and Schedule 3,
Line 13h, later).

expenses eligible for the credit has
increased, along with the income limit
at which the credit begins phasing
out. Additionally, for taxpayers who
receive dependent care benefits from
their employer, the dollar limit of the
exclusion amount increases for 2021.
For more information, see the
Instructions for Form 2441 and Pub.
503.

DRAFT AS OF
January 19, 2022

What's New

Qualified disability trusts. The
exemption amount for a qualified
disability remains at $4,300 for 2021.

Charitable contributions. Students
or business apprentices eligible for
the benefits of Article 21(2) of the
United States-India Income Tax
Treaty who have elected to use the
standard deduction may qualify to
take a deduction for charitable cash
contributions of up to $300 for the
2021 tax year. See Line 12b, later.

Due date of return. File Form
1040-NR by April 18, 2022, if you
were an employee and received
wages subject to U.S. income tax
withholding. The due date is April 18,
instead of April 15, because of the
Emancipation Day holiday in the
District of Columbia—even if you don't
live in the District of Columbia.
Virtual currency. If, in 2021, you
engaged in a transaction involving
virtual currency, you will need to
answer "Yes" to the question on
page 1 of Form 1040-NR. See Virtual
Currency in the Instructions for Form
1040 for information on transactions
involving virtual currency. Do not
leave this field blank. The question
must be answered by all taxpayers,
not just taxpayers who engaged in a
transaction involving virtual currency.
Credits for sick and family leave
for certain self-employed individuals. The Families First Coronavirus
Response Act (FFCRA) helped
self-employed individuals affected by
coronavirus by providing paid sick
leave and paid family leave credits
equivalent to those that employers are
required to provide their employees
for qualified sick leave wages and
qualified family leave wages. The
COVID-related Tax Relief Act of 2020
extended the period during which
individuals can claim these credits.
Instructions for Form 1040-NR (2021)

Form 9000, Alternative Media Preference. Beginning in 2021,
taxpayers with print disabilities can
use Form 9000, Alternative Media
Preference, to elect to receive notices
from the IRS in an alternative format
including Braille, large print, audio,
and electronic. You can attach Form
9000 to your Form 1040-NR or you
can mail it separately. For more
information, see Form 9000.
All taxpayers now eligible for Identity Protection PIN. Beginning in
2021, the IRS Identity Protection PIN
(IP PIN) Opt-In Program has been
expanded to all taxpayers who can
properly verify their identity. An IP PIN
helps prevent your social security
number from being used to file a
fraudulent federal income tax return.
You can use the Get An IP PIN tool on
IRS.gov to request an IP PIN, file
Form 15227 if your income is $72,000
or less, or make an appointment to
visit a Taxpayer Assistance Center.
Direct deposit now available for returns filed late. You can now
receive a direct deposit of your refund
even if you file your 2021 return after
November 30, 2022.
Expanded dependent care assistance. ARP expanded the child and
dependent care tax credit for 2021 by
making it refundable for certain
taxpayers and making it larger. For
2021, the dollar limit on qualifying
expenses increases to $8,000 for one
qualifying person and $16,000 for two
or more qualifying persons. The rules
for calculating the credit have also
changed; the percentage of qualifying
-5-

Child tax credit. Under ARP, the
child tax credit has been enhanced for
2021. The child tax credit has been
extended to qualifying children under
age 18. Depending on modified
adjusted gross income, you may
receive an enhanced credit amount of
up to $3,600 for a qualifying child
under age 6 and up to $3,000 for a
qualifying child over age 5 and under
age 18. The enhanced credit amount
begins to phase out where modified
adjusted gross income exceeds
$150,000 in the case of a qualifying
widow(er) and $75,000 in all other
cases. But see the exceptions in
Line 19, later, for Form 1040-NR filers.
If you lived in the United States for
more than half the year, the child tax
credit will be fully refundable even if
you don't have earned income. See
the exception in Line 28, later, for
more details. If you don't meet this
residency requirement, your child tax
credit will be a combination of a
nonrefundable child tax credit and a
refundable additional child tax credit,
as was the case in 2020. The credit
for other dependents has not been
enhanced and is figured as it was in
2020.

Changes to Schedule 8812 (Form
1040). Because of the changes
made by ARP, detailed discussion of
the child tax credit, and how to figure
your child tax credit and credit for
other dependents, which were
previously part of the Instructions for
Form 1040 has been moved to the
Instructions for Schedule 8812 (Form
1040). If you are claiming the
nonrefundable child tax credit,
refundable child tax credit, additional
child tax credit, or credit for other
dependents, complete Schedule 8812
(Form 1040) and attach it to your
Form 1040-NR. But see the
exceptions in Line 19 and Line 28,
later, for more details.
Premium tax credit (PTC). ARP
expanded the PTC by eliminating the
limitation that a taxpayer's household

income may not exceed 400% of the
Federal Poverty Line and generally
increases the credit amounts. In
addition, in 2021, if you receive
unemployment compensation, you
are generally eligible to claim the PTC
if you meet the other requirements.
For more information, see Pub. 974
and Form 8962 and its instructions.
But see the exception in Line 9, later,
for more details.

services, the IRS is using ID.me, a
trusted technology provider. The new
process is one more step the IRS is
taking to ensure that taxpayer
information is provided only to the
person who legally has a right to the
data. Taxpayers using the new
mobile-friendly verification procedure
can gain entry to existing IRS online
services such as the Child Tax Credit
Update Portal, Online Account, Get
Transcript Online, Get an Identity
Protection PIN (IP PIN), and Online
Payment Agreement. Additional IRS
applications will transition to the new
method over the next year. Each
online service will also provide
information that will instruct taxpayers
on the steps they need to follow for
access to the service. You can also
see IR-2021-228 for more information.

Form 1040-NR. Refer to Form
1040-NR Helpful Hints, earlier, for a
comprehensive discussion of these
instructions, including the references
to the Instructions for Form 1040 that
you see throughout these instructions.
Required e-filing. Tax return
preparers must generally e-file Forms
1040-NR for tax returns filed for tax
years ending on or after December
31, 2020, unless filing for a dual status
taxpayer, a fiscal-year taxpayer, a
trust, or an estate. For these and other
exceptions, see Notice 2020-70.

DRAFT AS OF
January 19, 2022

Forgiveness of Paycheck Protection Program (PPP) Loans. The
forgiveness of a PPP Loan creates
tax-exempt income, so you don't need
to report the income on Form
1040-NR, but you do need to report
certain information related to your
PPP Loan. To find out how to report
information related to your Loan, see
Forgiveness of Paycheck Protection
Program (PPP) Loans, under Income,
in the Instructions for Form 1040.
Identity verification. The IRS
launched an improved identity
verification and sign-in process that
enables more people to securely
access and use IRS online tools and
applications. To provide verification

Reminders
Married filing status. At the top of
page 1 of Form 1040-NR, select the
filing status Married filing separately if
you are married even if you are not
separated from your spouse. But see
Married Filing Separately, later, for an
exception.

-6-

Deductible IRA contributions. You
no longer need to be younger than
age 701/2 to take a deduction for your
contributions to an IRA.
Schedule LEP (Form 1040), Request for Change in Language
Preference. Schedule LEP allows
taxpayers to state a preference to
receive written communications from
the IRS in a language other than
English. For more information,
including which languages are
available and how to file, see
Schedule LEP.

Instructions for Form 1040-NR (2021)

Filing Requirements
Do You Have To File?

File Form 1040-NR if any of the
conditions in Table A. Who Must File
Form 1040-NR, later, apply to you.

!

You must still meet (1), (2), or
(3) below to be exempt from
filing a 2021 Form 1040-NR.

benefits of Article 21(2) of the United
States-India Income Tax Treaty, you
are single or a qualifying widow(er),
and your gross income for 2021 was
less than or equal to $12,550 if single
($25,100 if a qualifying widow(er)).
See chapter 5 of Pub. 519 for more
details on these treaty benefits.
3. You were a partner in a U.S.
partnership that was not engaged in a
trade or business in the United States
during 2021 and your Schedule K-1
(Form 1065) includes only income
from U.S. sources reportable on
Schedule NEC (Form 1040-NR), lines
1 through 12.

Even if you do not otherwise

TIP have to file a return, you

should file one if you can get
money back. For example, you should
file if one of the following applies.
1. You are eligible to get a refund
of any federal income tax withheld.
2. You are engaged in a U.S. trade
or business and are eligible for any of
the following credits.
a. Additional child tax credit.
b. Credit for federal tax on fuels.
c. Premium tax credit.
d. Health coverage tax credit.
e. Refundable child tax credit.
f. Refundable child and
dependent care expenses.

DRAFT AS OF
January 19, 2022

CAUTION

Exceptions. You do not need to file
Form 1040-NR if you meet (1), (2), or
(3) below.
1. 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 under section 871 (that
is, the income items listed on page 1
of Form 1040-NR, lines 1a, 1b, 2b, 3b,
4b, 5b, 7, and 8, and Schedule NEC
(Form 1040-NR), lines 1 through 12).
2. You were a student or business
apprentice who was eligible for the

Instructions for Form 1040-NR (2021)

If the partnership withholds
taxes on this income in 2022
CAUTION and the tax withheld and
reported in box 10 of Form 1042-S is
less or more than the tax due on the
income, you will need to file Form
1040-NR for 2022 to pay the
underwithheld tax or claim a refund of
the overwithheld tax.

!

-7-

You should also consider filing a
return if you received a Form 1099-B
(or substitute statement). See Pub.
501 for more details.

Table A. Who Must File Form 1040-NR
You must file Form 1040-NR if any of the following conditions apply to you.
1. You were a nonresident alien engaged in a trade or business in the United States during 2021. You must file even if:
a. You have no income from a trade or business conducted in the United States,
b. You have no U.S. source income, or
c. Your income is exempt from U.S. tax under a tax treaty or any section of the Internal Revenue Code.

DRAFT AS OF
January 19, 2022

However, if you have no gross income* for 2021, do not complete the schedules for Form 1040-NR other than Schedule OI (Form 1040-NR).
Instead, attach a list of the kinds of exclusions you claim and the amount of each.
2. You were a nonresident alien not engaged in a trade or business in the United States during 2021 and:

a. You received income from U.S. sources that is reportable on Schedule NEC, lines 1 through 12; and
b. Not all of the U.S. tax that you owe was withheld from that income.
3. You owe any special taxes, including any of the following.

a. Alternative minimum tax.
b. Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. (If you are filing a return
only because you owe this tax, you can file Form 5329 by itself.)
c. Household employment taxes. (If you are filing a return only because you owe these taxes, you can file Schedule H (Form 1040) by itself.)
d. 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.
e. Recapture of first-time homebuyer credit. See the instructions for Schedule 2, line 10, later.
f. 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 (HSAs). See the instructions for Schedule 2, line 13, or Schedule 2,
line 17d, later.
4. You received HSA, Archer Medical Savings Account (MSA), or Medicare Advantage MSA distributions. See the instructions for Schedule 2,
line 17c, Schedule 2, line 17e, or Schedule 2, line 17f, later.
5. 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. See the instructions for Schedule 2, line 4, later.
6. Advance payments of the premium tax credit were made for you or a dependent who enrolled in coverage through the Marketplace. You or
whoever enrolled you should have received Form(s) 1095-A showing the amount of the advance payments.
7. Advance payments of the health coverage tax credit were made for you, your spouse, or a dependent. You or whoever enrolled you should have
received Form(s) 1099-H showing the amount of the advance payments.
8. You are the personal representative for a deceased person who would have had to file Form 1040-NR. A personal representative can be an
executor, administrator, or anyone who is in charge of the deceased person's property.
9. You represent an estate or trust that has to file Form 1040-NR. Change the form to reflect the provisions of subchapter J, chapter 1,
of the Internal Revenue Code. You may find it helpful to refer to Form 1041 and its instructions when completing the Form 1040-NR.
Refer to the Instructions for Form 1040 only as necessary.

!

If you are filing Form 1040-NR for a foreign trust, you may have to file Form 3520-A, Annual Information Return of Foreign Trust With a
U.S. Owner, on or before the 15th day of the 3rd month after the end of the trust’s tax year. For more information, see the Instructions for Form 3520A.
CAUTION

10. You held a qualified investment in a qualified opportunity fund (QOF) at any time during the year. You must file your return with Form 8997
attached. See the instructions for Form 8997 for additional reporting requirements.
11. You are a dual-resident taxpayer and you would like to be treated as a nonresident of the United States for purposes of figuring your income tax
liability. You may need to file your return with a Form 8833 attached. See the Instructions for Form 8833 for additional information.
* Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax. In most cases, it
includes only income from U.S. sources. Gross income includes gains, but not losses, from asset transactions. Gross income from a business
means, for example, the amount on Schedule C (Form 1040), line 7; or Schedule F (Form 1040), line 9. But, in figuring gross income, do not reduce
your income by any losses, including any loss on Schedule C (Form 1040), line 7; or Schedule F (Form 1040), line 9.

Requirement to reconcile advance
payments of the premium tax credit. See Requirement to reconcile
advance payments of the premium tax
credit under Filing Requirements in
the Instructions for Form 1040 for
details.
Exception 1. If you are filing Form
1040-NR, you can claim the premium
tax credit for dependents only if you

are a U.S. national; resident of
Canada, Mexico, or South Korea; or a
student or business apprentice
eligible for the benefits of Article 21(2)
of the United States-India Income Tax
Treaty. See Pub. 974.
Exception 2. You cannot use
advance payments made for your
spouse, as a Form 1040-NR filer
cannot file a joint return.
-8-

Exception 3. If your filing status at
the top of page 1 on Form 1040-NR is
Married filing separately, you cannot
take the premium tax credit unless
you meet the criteria of one of the
exceptions under Married taxpayers in
the Instructions for Form 8962.
Filing a deceased person's return.
The personal representative must file
the return for a deceased person who
Instructions for Form 1040-NR (2021)

was required to file a return for 2021.
A personal representative can be an
executor, administrator, or anyone
who is in charge of the deceased
person's property.
Filing for an estate or trust. If you
are filing Form 1040-NR for a
nonresident alien estate or trust,
change the form to reflect the
provisions of subchapter J, chapter 1,
of the Internal Revenue Code. You
may find it helpful to refer to Form
1041 and its instructions for some
purposes when completing the Form
1040-NR rather than looking to these
instructions for details.

Page 1 of Form 1040-NR. Enter
your name, identifying number
(defined in Identifying Number, later),
and all address information requested
at the top of page 1. If your income is
not exempt from tax by treaty, leave
the rest of page 1 blank. If your
income is exempt from tax by treaty,
enter the exempt income on line 1c
and leave the rest of page 1 blank.

specify the type of payment on line 12
and show the amount in column (d).
Lines 13 through 15 of
Schedule NEC (Form 1040-NR).
Complete these lines as instructed on
the form.
Page 2 of Form 1040-NR—Lines
23a through 35e and signature.
Provide the information indicated
below.

DRAFT AS OF
January 19, 2022

If you are filing Form 1040-NR
for a foreign trust, you may
CAUTION have to file Form 3520-A,
Annual Information Return of Foreign
Trust With a U.S. Owner, on or before
the 15th day of the 3rd month after the
end of the trust’s tax year. For more
information, see the Instructions for
Form 3520-A.

!

the tax year, complete Form 1040-NR
and Schedules NEC and OI (Form
1040-NR) as follows.

Simplified Procedure for
Claiming Certain Refunds

You can use this procedure only if you
meet all of the following conditions for
the tax year.
• You were a nonresident alien.
• You were not engaged in a trade or
business in the United States at any
time.
• You had no income that was
effectively connected with the conduct
of a U.S. trade or business.
• Your U.S. income tax liability was
fully satisfied through withholding of
tax at source.
• You are filing Form 1040-NR solely
to claim a refund of U.S. tax withheld
at source under chapter 3 or tax
withheld under chapter 4 (FATCA).
Example. John is a nonresident
alien individual. The only U.S. source
income he received during the year
was dividend income from U.S.
stocks. The dividend income was
reported to him on Form(s) 1042-S.
On one of the dividend payments, the
withholding agent incorrectly withheld
at a rate of 30% (instead of 15%).
John is eligible to use the simplified
procedure.
How To Complete Form 1040-NR
Using the Simplified Procedure
If you meet all of the conditions listed
earlier for the Simplified Procedure for
Instructions for Form 1040-NR (2021)

Schedule NEC (Form 1040-NR).
Complete the lines on this form as
indicated below.

Lines 1a through 15 of
Schedule NEC (Form 1040-NR).
Enter the amounts of gross income
you received from dividends, dividend
equivalents, interest, royalties,
pensions, annuities, and other
income. If any income you received
was subject to backup withholding or
withholding at source, you must
include all gross income of that type
that you received. The amount of
each type of income should be shown
in the column under the appropriate
U.S. tax rate, if any, that applies to
that type of income in your particular
circumstances.
If you are entitled to a reduced rate
of, or exemption from, withholding on
the income pursuant to a tax treaty,
the appropriate rate of U.S. tax is the
same as the treaty rate. Use column
(d) if the appropriate tax rate is other
than 30%, 15%, or 10%, including 0%.

Example. Mary is a nonresident
alien individual. The only U.S. source
income she received during the year
was as follows.
• 4 dividend payments.
• 12 interest payments.
All payments were reported to Mary
on Form(s) 1042-S. On one of the
dividend payments, the withholding
agent incorrectly withheld at a rate of
30% (instead of 15%). There were no
other withholding discrepancies. Mary
must report all 4 dividend payments.
She is not required to report any of the
interest payments.
Note. Payments of gross proceeds
from the sale of securities or regulated
futures contracts are generally
exempt from U.S. tax. If you received
such payments and they were
subjected to backup withholding,
-9-

Line 23a. Enter on line 23a the tax
on income not effectively connected
with a U.S. trade or business from
Schedule NEC, line 15.

Line 24. Enter your total income
tax liability on line 24.

Line 25b. Enter the total amount
of U.S. tax withheld from Form(s)
1099.

Line 25g. Enter the total amount
of U.S. tax withheld on income not
effectively connected with a U.S.
trade or business from Form(s)
1042-S.
Line 33. Add lines 25d, 25e, 25f,
25g, 26, and 32. This is the total tax
you have paid.
Lines 34 and 35a. Enter the
difference between line 24 and
line 33. This is your total refund.
You can have the refund deposited
into more than one account. See
Lines 35a Through 35e—Amount
Refunded to You, later, for more
details.
Line 35e. You may be able to
have your refund check mailed to an
address that is not shown on page 1.
See Line 35e, later, for more details.
Signature. You must sign and
date your tax return. See Sign Your
Return, later.
Schedule OI (Form 1040-NR). You
must answer all questions. For item L,
identify the country, tax treaty
article(s) under which you are
applying for a refund of tax, the
number of months in prior years that
you claimed the treaty benefit, and the
amount of exempt income in the
current year. Also attach Form 8833 if
required.
Note. If you are claiming a reduced
rate of, or exemption from, tax based
on a tax treaty, you must generally be
a resident for income tax purposes of
the particular treaty country within the

meaning of the treaty and you cannot
have a permanent establishment or
fixed base in the United States. You
can download the complete text of
most U.S. tax treaties at IRS.gov. Go
to IRS.gov, enter "tax treaties" in the
search box at the top of the page, and
click on United States Income Tax
Treaties - A to Z. Technical
explanations for many of those
treaties are also available at that site.
If you are claiming an exemption
from tax under chapter 4, you must
qualify for a reduced rate of, or
exemption from, tax for chapter 3
purposes unless the payment is not
an amount subject to chapter 3
withholding. See Regulations section
1.1441-2(a).

If you are claiming an exemption
from withholding on a distribution from
a mutual fund or real estate
investment trust (REIT) with respect to
its stock because the distribution was
designated as long-term capital gain
or a nondividend distribution, you
must attach a statement that identifies
the mutual fund or REIT and provides
the basis for the claim.
If you are claiming an exemption
from withholding on a distribution from
a U.S. corporation with respect to its
stock because, in your particular
circumstances, the transaction
qualifies as a redemption of stock
under section 302, you must attach a
statement that describes the
transaction and presents the facts
necessary to establish that the
payment was a complete redemption,
a disproportionate redemption, or not
essentially equivalent to a dividend.

Exchange Visitors in chapter 8 of Pub.
519, U.S. Tax Guide for Aliens.
Other reporting requirements. You
may also have to file other forms,
including the following.
• Form 8833, Treaty-Based Return
Position Disclosure Under Section
6114 or 7701(b).
• Form 8840, Closer Connection
Exception Statement for Aliens.
• Form 8843, Statement for Exempt
Individuals and Individuals With a
Medical Condition.
• Form 8938, Statement of Specified
Foreign Financial Assets.

DRAFT AS OF
January 19, 2022

Documentation. You must attach
acceptable proof of the withholding for
which you are claiming a refund. If you
are claiming a refund of backup
withholding tax based on your status
as a nonresident alien, you must
attach a copy of the Form 1099 that
shows the income and the amount of
backup withholding. If you are
claiming a refund of U.S. tax withheld
at source under chapter 3 or tax
withheld under chapter 4, you must
attach a copy of the Form 1042-S that
shows the income and the amount of
U.S. tax withheld. Attach the forms to
the left margin of page 1.

Items To Note
Special rules for former U.S. citizens and former U.S. long-term
residents. If you renounced your
U.S. citizenship or terminated your
long-term resident status, you may be
subject to special rules. See Special
Rules for Former U.S. Citizens and
Former U.S. Long-Term Residents
(Expatriates), later.

Interest payments on foreign
bearer obligations issued on
CAUTION or after March 19, 2012, are
not eligible for the portfolio interest
exception to withholding. For more
information, see Interest in Pub. 519
and Pub. 515.

Self-employment tax. You must pay
self-employment tax on your
self-employment income if an
international social security
agreement in effect between your
country of tax residence and the
United States provides that you are
covered under the U.S. social security
system. Enter the tax on Schedule 2
(Form 1040), line 4. See Line 4 under
Instructions for Schedule 2, later, for
additional information. Enter the
deductible part of your
self-employment tax on Schedule 1
(Form 1040), line 15. Attach
Schedule SE (Form 1040). See the
Instructions for Schedule SE (Form
1040) for additional information.

Withholding on distributions. If
you are claiming an exemption from
withholding on a distribution from a
U.S. corporation with respect to its
stock because the corporation had
insufficient earnings and profits to
support dividend treatment, you must
attach a statement that identifies the
distributing corporation and provides
the basis for the claim.

Social security or Medicare taxes
withheld in error. If you are a
foreign student or exchange visitor on
an F-1, J-1, M-1, or Q visa, and social
security or Medicare taxes were
withheld on your wages in error, you
may want to file Form 843, Claim for
Refund and Request for Abatement,
to request a refund of these taxes. For
more information, see Students and

Additional Information
Portfolio interest. If you are claiming
a refund of U.S. tax withheld from
portfolio interest, include a description
of the relevant debt obligation,
including the name of the issuer,
CUSIP number (if any), interest rate,
and the date the debt was issued.

!

-10-

Dual-resident taxpayer holding
specified foreign financial assets.
Special reporting requirements for
Form 8938 apply to dual-resident
taxpayers holding specified foreign
financial assets and taxed for all or a
portion of the year as nonresident
aliens under Regulations section
301.7701(b)-7. For more information,
see the Instructions for Form 8938, in
particular, Special rule for dual
resident taxpayers under Who Must
File.

Additional Information

If you need more information, our free
publications may help you. Pub. 519
will be the most beneficial, but the
following publications may also help.
Pub. 501 Dependents, Standard
Deduction, and Filing Information
Pub. 525 Taxable and Nontaxable Income
Pub. 529 Miscellaneous Deductions
Pub. 597 Information on the United
States–Canada Income Tax
Treaty

These free publications and the
forms and schedules you will need are
available from the IRS. You can
download them at IRS.gov. Also see
How To Get Tax Help, later, for other
ways to get them (as well as
information on receiving IRS
assistance in completing the forms).
You can download the complete
text of most U.S. tax treaties at
IRS.gov. Go to IRS.gov, enter "tax
treaties" in the search box at the top of
the page, and click on United States
Income Tax Treaties - A to Z.
Technical explanations for many of
those treaties are also available at
that site.

Instructions for Form 1040-NR (2021)

Resident Alien or
Nonresident Alien

If you are not a citizen of the United
States, specific rules apply to
determine if you are a resident alien or
a nonresident alien for tax purposes.
Generally, you are considered a
resident alien if you meet either the
green card test or the substantial
presence test for 2021. (These tests
are explained in Green Card Test and
Substantial Presence Test, later.)
Even if you do not meet either of these
tests, you may be able to choose to
be treated as a U.S. resident for part
of 2021. See First-Year Choice in
chapter 1 of Pub. 519 for details.

depends on who initiates the
determination.
If the USCIS or U.S. consular
officer initiates this determination,
your resident status will be considered
to be abandoned when the final
administrative order of abandonment
is issued. If you initiate the
determination, your resident status is
considered to be abandoned when
you file either of the following
documents—along with your USCIS
Alien Registration Receipt Card—with
the USCIS or a U.S. consular officer.
• USCIS Form I-407 (Record of
Abandonment of Lawful Permanent
Resident Status).
• A letter stating your intent to
abandon your resident status.

(a)
Year

(b)
Days of
physical
presence

(c)
Multiplier

2021

1.000

2020

0.333

2019

0.167

(d)
Testing
days
(multiply
(b) times
(c))

DRAFT AS OF
January 19, 2022

Generally, you are considered a
nonresident alien for the year if you
are not a U.S. resident under either of
these tests. However, see
Dual-Resident Taxpayer, later, if you
are a resident of the United States
under these tests but are eligible to
claim benefits as a resident of a
foreign country under a U.S. income
tax treaty.
For more details on resident and
nonresident status, the tests for
residence, and the exceptions to
them, see chapter 1 of Pub. 519.

Green Card Test

You are a resident for tax purposes if
you were a lawful permanent resident
(immigrant) of the United States at
any time during 2021. (Also see
Dual-Status Taxpayers, later.) In most
cases, you are a lawful permanent
resident if the USCIS (or its
predecessor organization, INS) has
issued you an alien registration card,
also known as a green card.
You continue to have resident
status under this test unless the status
is taken away from you or is
administratively or judicially
determined to have been abandoned.
An administrative or judicial
determination of abandonment of
resident status may be initiated by
you, the USCIS, or a U.S. consular
officer.

The USCIS Alien Registration
Receipt Card is also referred to as a
“green card.”
When filing by mail, you must send
your filing by certified mail, return
receipt requested (or the foreign
equivalent), and keep a copy and
proof that it was mailed and received.
Until you have proof your
letter was received, you
CAUTION remain a resident for tax
purposes even if the USCIS would not
recognize the validity of your green
card because it is more than 10 years
old or because you have been absent
from the United States for a period of
time.

!

For more details, see Green Card
Test in chapter 1 of Pub. 519. Also
see USCIS.gov/i-407.

Substantial Presence Test

You are considered a U.S. resident if
you meet the substantial presence
test for 2021. You meet this test if you
were physically present in the United
States for at least:
1. 31 days during 2021; and
2. 183 testing days during the
3-year period of 2021, 2020, and
2019, as calculated using the
following chart.

Your resident status is considered
to have been taken away from you if
the U.S. Government issues you a
final administrative or judicial order of
exclusion or deportation. When your
resident alien status is considered to
have been administratively or
judicially determined to be abandoned
Instructions for Form 1040-NR (2021)

Total testing days (add column
(d)) . . . . . . . . . . . . . . . .

Generally, you are treated as
present in the United States on any
day that you are physically present in
the country at any time during the day.
However, there are exceptions to this
rule. In general, do not count the
following as days of presence in the
United States for the substantial
presence test.
1. Days you commute to work in
the United States from a residence in
Canada or Mexico if you regularly
commute from Canada or Mexico.
2. Days you are in the United
States for less than 24 hours when
you are in transit between two places
outside the United States.
3. Days you were temporarily in
the United States as a regular crew
member of a foreign vessel engaged
in transportation between the United
States and a foreign country or a
possession of the United States
unless you otherwise engaged in
trade or business on such day.
4. Days you intend, but are
unable, to leave the United States
because of a medical condition that
arose while you were in the United
States.
5. Days you are in the United
States under a NATO visa as a
member of a force or civilian
component to NATO. However, this
exception does not apply to an
immediate family member who is
present in the United States under a
NATO visa. A dependent family
member must count every day of
presence for purposes of the
substantial presence test.
6. Days you are an exempt
individual (defined next).
You may need to file Form
8843 to exclude days of
CAUTION presence in the United States
if you meet (4) or (6) above. For more

!

-11-

information on the requirements, see
in chapter 1 of Pub. 519: Form 8843
and also, for the days of presence in
2020 under the substantial presence
test for tax years 2021 and 2022,
Form 8843 COVID-19 Medical
Condition Travel Exception (Rev.
Proc. 2020-20 Exception).

Closer Connection to Foreign
Country
Even though you would otherwise
meet the substantial presence test,
you can be treated as a nonresident
alien if you:
• Were present in the United States
for fewer than 183 days during 2021,
• Establish that during 2021 you had
a tax home in a foreign country, and
• Establish that during 2021 you had
a closer connection to one foreign
country in which you had a tax home
than to the United States unless you
had a closer connection to two foreign
countries.

the page, and click on United States
Income Tax Treaties - A to Z.
Technical explanations for many of
those treaties are also available at
that site.

When and Where Should
You File?

DRAFT AS OF
January 19, 2022

Exempt individual. For purposes of
the substantial presence test, an
exempt individual is anyone in one of
the following categories.
• An individual temporarily present in
the United States as a foreign
government-related individual under
an “A” or “G” visa, other than
individuals holding “A-3” or “G-5”
class visas.
• A teacher or trainee who is
temporarily present under a “J” or “Q”
visa, who substantially complies with
the requirements of the visa.
• A student who is temporarily
present under an “F,” “J,” “M,” or “Q”
visa, who substantially complies with
the requirements of the visa.
• A professional athlete who is
temporarily in the United States to
compete in a charitable sports event.

Note. Alien individuals with “Q” visas
are treated as students, teachers, or
trainees and, as such, are exempt
individuals for purposes of the
substantial presence test if they
otherwise qualify. “Q” visas are issued
to aliens participating in certain
international cultural exchange
programs.
See chapter 1 of Pub. 519 for more
details regarding exempt individuals
and days of presence in the United
States for the substantial presence
test.
You cannot be an exempt
individual indefinitely.
CAUTION Generally, you will not be an
exempt individual as a teacher or
trainee in 2021 if you were exempt as
a teacher, trainee, or student for any
part of 2 of the preceding 6 years. You
will not be an exempt individual as a
student in 2021 if you were exempt as
a teacher, trainee, or student for any
part of more than 5 calendar years.
However, there are exceptions to
these limits. See Substantial
Presence Test in chapter 1 of Pub.
519 for more information.

!

You are not eligible for the closer
connection exception if you have an
application pending for adjustment of
status to that of a lawful permanent
resident or if you have applied, or
have taken steps to apply, for lawful
permanent residence. See chapter 1
of Pub. 519 for more information.
You must file a fully completed
Form 8840 with the IRS to claim the
closer connection exception. See
Form 8840 in chapter 1 of Pub. 519.
Each spouse must file a separate
Form 8840 to claim the closer
connection exception.
Dual-Resident Taxpayer

You are a dual-resident taxpayer if
you are a resident of both the United
States and a foreign country under
each country's tax laws. If the income
tax treaty between the United States
and that foreign country contains a
provision for resolving conflicting
claims of residence (often referred to
as “tie-breaker” rules), and you
determine that you are a resident of
the foreign country under that
provision, you can be treated as a
nonresident of the United States for
purposes of figuring out your income
tax liability if you file a Form 1040-NR
and attach a Form 8833,
Treaty-Based Return Position
Disclosure Under Section 6114 or
7701(b). A dual-resident taxpayer
may also be eligible for U.S.
competent authority assistance. See
Rev. Proc. 2015-40, 2015-35 I.R.B.
236, available at IRS.gov/irb/
2015-35_IRB#RP-2015-40 or its
successor. You can download the
complete text of most U.S. tax treaties
at IRS.gov. Go to IRS.gov, enter “tax
treaties” in the search box at the top of
-12-

Individuals. If you were an employee
and received wages subject to U.S.
income tax withholding, file Form
1040-NR by the 15th day of the 4th
month after your tax year ends. A
return for the 2021 calendar year is
due by April 18, 2022.
If you file after this date, you may
have to pay interest and penalties.
See Interest and Penalties, later.
If you did not receive wages as an
employee subject to U.S. income tax
withholding, file Form 1040-NR by the
15th day of the 6th month after your
tax year ends. A return for the 2021
calendar year is due by June 15,
2022.
Estates and trusts. If you file for a
nonresident alien estate or trust that
has an office in the United States, file
the return by the 15th day of the 4th
month after the tax year ends. If you
file for a nonresident alien estate or
trust that does not have an office in
the United States, file the return by the
15th day of the 6th month after the tax
year ends.
Note. If the due date for filing falls on
a Saturday, Sunday, or legal holiday,
file by the next business day.
If you were serving in, or in support
of, the U.S. Armed Forces in a
designated combat zone or
contingency operation, you may be
able to file later. See Pub. 3 for
details.
If you e-file your return, there is no
need to mail it. However, if you
choose to mail it instead, filing
instructions and addresses are at the
end of these instructions.
Where To File next provides the
current address for mailing your
return. Use these addresses for
Forms 1040-NR filed in 2022. The
address for returns filed after 2022
may be different. See IRS.gov/
Form1040NR for any updates.

Where To File
E-file. If you e-file your return, there is
no need to mail it. See You can
Instructions for Form 1040-NR (2021)

electronically file (e-file) your Form
1040-NR, earlier, or IRS.gov for more
information. However, if you choose
to mail it, filing instructions and
addresses are below.
Individuals. If you are not enclosing
a payment, mail Form 1040-NR to:

• You file a joint return for the year of
the election using Form 1040 or
1040-SR.
To make this election, you must
attach the statement described in
Nonresident Spouse Treated as a
Resident in chapter 1 of Pub. 519 to
your return. Do not use Form
1040-NR.

nonresident alien when you leave if
you meet both of the following
conditions.
• After leaving (or after your last day
of lawful permanent residency if you
met the green card test, defined
earlier) and for the remainder of the
calendar year of your departure, you
have a closer connection to a foreign
country than to the United States.
• During the next calendar year, you
are not a U.S. resident under either
the green card test or the substantial
presence test, defined earlier.

DRAFT AS OF
January 19, 2022

Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0215
U.S.A.

If enclosing a payment, mail Form
1040-NR to:
Internal Revenue Service
P.O. Box 1303
Charlotte, NC 28201-1303
U.S.A.

Estates and trusts. If you are not
enclosing a payment, mail Form
1040-NR to:
Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999
U.S.A.
If enclosing a payment, mail Form
1040-NR to:
Internal Revenue Service
P.O. Box 1303
Charlotte, NC 28201-1303
U.S.A.
What if you cannot file on time?
See What if You Can't File on Time?
in the Instructions for Form 1040.

Private Delivery Services

See Private Delivery Services in the
Instructions for Form 1040 for details
on private delivery services.

Exception. Do not use the mailing
addresses in those instructions. Use
the mailing addresses in Where To
File, earlier.

Election To Be Taxed as a
Resident Alien

You can elect to be taxed as a U.S.
resident for the whole year if all of the
following apply.
• You were married.
• Your spouse was a U.S. citizen or
resident alien on the last day of the
tax year.

Instructions for Form 1040-NR (2021)

If you make the election to be
treated as a resident alien, your
worldwide income for the whole year
must be included on a Form 1040 or
1040-SR and will be taxed under U.S.
tax laws. You must agree to keep the
records, books, and other information
needed to figure the tax. You must file
a joint return for the year 2021 if 2021
is the year in which you made the
election. If you made the election in an
earlier year, you can file a joint return
or separate return for 2021. You must
include your worldwide income for the
whole year whether you file a joint or
separate return. See Nonresident
Spouse Treated as a Resident in
chapter 1 of Pub. 519.
If you make this election, you
may forfeit the right to claim
CAUTION benefits otherwise available
under a U.S. tax treaty. For more
information about the benefits that
might otherwise be available, see the
specific treaty.

!

Dual-Status Taxpayers
If you elect to be taxed as a
resident alien (discussed in
CAUTION Election To Be Taxed as a
Resident Alien, earlier), the special
instructions and restrictions discussed
here do not apply.

!

Dual-Status Year

A dual-status year is one in which you
change status between nonresident
and resident alien. Different U.S.
income tax rules apply to each status.
Most dual-status years are the
years of arrival or departure. Before
you arrive in the United States, you
are a nonresident alien. After you
arrive, you may or may not be a
resident, depending on the
circumstances.
If you become a U.S. resident, you
stay a resident until you leave the
United States or are no longer a lawful
permanent resident of the United
States. You may become a
-13-

See chapter 1 of Pub. 519 for more
information.

What and Where To File for a
Dual-Status Year

If you were a U.S. resident on the last
day of the tax year, file Form 1040 or
1040-SR. Enter “Dual-Status Return”
across the top and attach a statement
showing your income for the part of
the year you were a nonresident. You
can use Form 1040-NR as the
statement; enter “Dual-Status
Statement” across the top. Do not
sign the Form 1040-NR. If you are not
enclosing a payment, mail your return
and statement to:
Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0215
U.S.A.
If enclosing a payment, mail your
return to:
Internal Revenue Service
P.O. Box 1303
Charlotte, NC 28201-1303
U.S.A.
If you were a nonresident on the
last day of the tax year, file Form
1040-NR. Enter “Dual-Status Return”
across the top and attach a statement
showing your income for the part of
the year you were a U.S. resident.
You can use Form 1040 or 1040-SR
as the statement; enter “Dual-Status
Statement” across the top. Do not
sign the Form 1040 or 1040-SR. If you
are not enclosing a payment, mail
your return and statement to:
Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0215
U.S.A.

If enclosing a payment, mail your
return to:
Internal Revenue Service
P.O. Box 1303
Charlotte, NC 28201-1303
U.S.A.

Head of household. You cannot use
the Head of household Tax Table
column or Section D of the Tax
Computation Worksheet in the
Instructions for Form 1040.
Joint return. You cannot file a joint
return unless you elect to be taxed as
a resident alien (see Election To Be
Taxed as a Resident Alien, earlier)
instead of a dual-status taxpayer.

Note. Schedule A (Form 1040) is not
the same as Schedule A (Form
1040-NR).
See the Instructions for Schedule A
(Form 1040). Those instructions are
not the same as the Instructions for
Schedule A (Form 1040-NR), which
appear later in these instructions.

DRAFT AS OF
January 19, 2022

Statements. Any statement you file
with your return must show your
name, address, and identifying
number (defined in Identifying
Number, later).
Former U.S. long-term residents
are required to file Form 8854, Initial
and Annual Expatriation Statement,
with their dual-status return for the last
year of U.S. residency. To determine
if you are a former U.S. long-term
resident, see Expatriation Tax in
chapter 4 of Pub. 519.

Income Subject to Tax for
Dual-Status Year

As a dual-status taxpayer not filing a
joint return, you are taxed on income
from all sources for the part of the
year you were a resident alien.
Generally, you are taxed on income
only from U.S. sources for the part of
the year you were a nonresident alien.
However, all income effectively
connected with the conduct of a trade
or business in the United States is
taxable.
Income you received as a
dual-status taxpayer from sources
outside the United States while a
resident alien is taxable even if you
became a nonresident alien after
receiving it and before the close of the
tax year. Conversely, income you
received from sources outside the
United States while a nonresident
alien is not taxable in most cases
even if you became a resident alien
after receiving it and before the close
of the tax year. Income from U.S.
sources is generally taxable whether
you received it while a nonresident
alien or a resident alien (unless
specifically exempt under the Internal
Revenue Code or a tax treaty
provision).

Restrictions for Dual-Status
Taxpayers
Standard deduction. You cannot
take the standard deduction even for
the part of the year you were a
resident alien.

Tax rates. If you were married and a
nonresident of the United States for all
or part of the tax year and you do not
make the election discussed earlier to
be taxed as a resident alien, you must
use the Married filing separately
column in the Tax Table or Section C
of the Tax Computation Worksheet in
the Instructions for Form 1040 to
figure your tax on income effectively
connected with a U.S. trade or
business. If you were married, you
cannot use the Single Tax Table
column or Section A of the Tax
Computation Worksheet in the
Instructions for Form 1040. But see
Married Filing Separately, later, for an
exception.
Tax credits. You cannot take the
earned income credit, the credit for
the elderly or disabled, or any
education credit unless you elect to
be taxed as a resident alien (see
Election To Be Taxed as a Resident
Alien, earlier) instead of a dual-status
taxpayer.
See chapter 6 of Pub. 519 for
information on other credits.

How To Figure Tax for a
Dual-Status Year

When you figure your U.S. tax for a
dual-status year, you are subject to
different rules for the part of the year
you were a resident and the part of
the year you were a nonresident.
All income for the period of
residence and all income that is
effectively connected with a trade or
business in the United States for the
period of nonresidence, after
allowable deductions, is combined
and taxed at the same rates that apply
to U.S. citizens and residents. For the
period of residence, allowable
deductions include all deductions on
Schedule A (Form 1040), including
medical expenses, real property
taxes, and certain interest.

-14-

Income that is not effectively
connected with a trade or business in
the United States for the period of
nonresidence is subject to the flat
30% rate or lower treaty rate. No
deductions are allowed against this
income.
If you were a resident alien on the
last day of the tax year and you are
filing Form 1040 or 1040-SR, include
the tax on the noneffectively
connected income on Schedule 2
(Form 1040), line 17o.

If you are filing Form 1040-NR,
enter the tax from the Tax Table, Tax
Computation Worksheet, Qualified
Dividends and Capital Gain Tax
Worksheet, Schedule D Tax
Worksheet, Schedule J (Form 1040),
or Form 8615 on Form 1040-NR,
line 16; and the tax on the
noneffectively connected income on
Form 1040-NR, line 23a. Include any
net investment income tax from Form
8960 for the part of the year you were
a U.S. resident on Schedule 2 (Form
1040), line 12. See Form 8960 and its
instructions for more details.
Credit for taxes paid. You are
allowed a credit against your U.S.
income tax liability for certain taxes
you paid, or are considered to have
paid, or that were withheld from your
income. These include the following.
1. Tax withheld from wages
earned in the United States and taxes
withheld at the source from various
items of income from U.S. sources
other than wages. This includes U.S.
tax withheld on dispositions of U.S.
real property interests.
• When filing Form 1040 or 1040-SR,
show the total tax withheld on Form
1040 or 1040-SR, line 25d. Enter
amounts from the attached statement
(Form 1040-NR, lines 25d through
25g) in the column to the right of
line 25d on Form 1040 or 1040-SR,
and identify and include them in the
amount on line 25d on Form 1040 or
1040-SR.
• When filing Form 1040-NR, show
the total tax withheld on Form
Instructions for Form 1040-NR (2021)

1040-NR, lines 25d through 25g.
Enter the amount from the attached
statement (Form 1040 or 1040-SR,
line 25d) in the column to the right of
line 25d on Form 1040-NR, and
identify and include it in the amount
on line 25d on Form 1040-NR.
2. Estimated tax paid with Form
1040-ES or Form 1040-ES (NR).
3. Tax paid with Form 1040-C at
the time of departure from the United
States. When filing Form 1040 or
1040-SR, include the tax paid with
Form 1040-C with the total payments
on line 33 on Form 1040 or 1040-SR.
Identify the payment in the area to the
left of the entry.

Kinds of Income

You must divide your income for the
tax year into the following three
categories.
1. Income effectively connected
with a U.S. trade or business. This
income is taxed at the same rates that
apply to U.S. citizens and residents.
Report this income on page 1 of Form
1040-NR. Pub. 519 describes this
income in greater detail.
2. U.S. income not effectively
connected with a U.S. trade or
business. This income is taxed at
30% unless a treaty between your
country of residence (as defined
under the treaty) and the United
States has set a lower rate that
applies to you. Report this income on
Schedule NEC (Form 1040-NR). Pub.
519 describes this income in greater
detail.

and Form 1040-NR, line 7. Also, net
gains may be subject to the
alternative minimum tax. See Line 1
under Instructions for Schedule 2,
later. See Real Property Gain or Loss
in chapter 4 of Pub. 519 for more
information.

Income You Can Elect To Treat
as Effectively Connected With a
U.S. Trade or Business

DRAFT AS OF
January 19, 2022

How To Report Income on
Form 1040-NR
Community Income

If either you or your spouse (or both
you and your spouse) was a
nonresident alien at any time during
the tax year and you had community
income during the year, treat the
community income according to the
applicable community property laws
except as follows.
• Earned income of a spouse, other
than trade or business income or
partnership distributive share income.
The spouse whose services produced
the income must report it on his or her
separate return.
• Trade or business income, other
than partnership distributive share
income. Treat this income as received
by the spouse carrying on the trade or
business and report it on that
spouse's return.
• Partnership distributive share
income (or loss). Treat this income (or
loss) as received by the spouse who
is the partner and report it on that
spouse's return.
• Income derived from the separate
property of one spouse that is not
earned income, trade or business
income, or partnership distributive
share income. The spouse with the
separate property must report this
income on his or her separate return.
Use Form 8958, Allocation of Tax
Amounts Between Certain Individuals
in Community Property States, to
figure the portion of the income
allocated to you. Attach your
completed Form 8958 to your tax
return. See Pub. 555, Community
Property, for more details.
Instructions for Form 1040-NR (2021)

Note. Use line 23c to report the 4%
tax on U.S. source gross
transportation income.
3. Income exempt from U.S. tax.
If the income is exempt from tax by
treaty, complete item L of Schedule OI
(Form 1040-NR) and line 1c on
page 1 of Form 1040-NR.
Virtual currency. See Virtual
Currency in the Instructions for Form
1040.
Income from a sharing (or gig)
economy activity. If you use one of
the many online platforms available to
provide goods and services, you may
be involved in what is known as the
sharing (or gig) economy. If you
receive income from a sharing (or gig)
economy activity, it is generally
taxable even if you do not receive a
Form 1099-MISC, Miscellaneous
Information; Form W-2, Wage and
Tax Statement; or some other income
statement. To learn more about this
income, go to IRS.gov/Sharing or
IRS.gov/Gig.

Dispositions of U.S. Real
Property Interests

Gain or loss on the disposition of a
U.S. real property interest (see Pub.
519 for definition) is taxed as if the
gain or loss were effectively
connected with the conduct of a U.S.
trade or business.

Report gains and losses on the
disposition of U.S. real property
interests on Schedule D (Form 1040)
-15-

You can elect to treat some items of
income as effectively connected with
a U.S. trade or business. The election
applies to all income from real
property located in the United States
and held for the production of income
and to all income from any interest in
such property. This includes:
• Gains from the sale or exchange of
such property or an interest therein,
but see the Tip below;
• Gains on the disposal of timber,
coal, or iron ore with a retained
economic interest;
• Rents from real estate; or
• Rents and royalties from mines, oil
or gas wells, or other natural
resources.
You do not need to make an

TIP election to treat gain from the

disposition of a U.S. real
property interest as effectively
connected income. Dispositions of
U.S. real property interests are
automatically treated as effectively
connected income. See Dispositions
of U.S. Real Property Interests,
earlier.

To make the election, attach a
statement to your return for the year of
the election. Include the following
items in your statement.
1. That you are making the
election.
2. A complete list of all of your real
property, or any interest in real
property, located in the United States
(including location). Give the legal
identification of U.S. timber, coal, or
iron ore in which you have an interest.
3. The extent of your ownership in
the real property.
4. A description of any substantial
improvements to the property.
5. Your income from the property.
6. The dates you owned the
property.
7. Whether the election is under
section 871(d) or a tax treaty.

8. Details of any previous
elections and revocations of the real
property election.
Note. Once made, the section 871
election will remain in effect until
revoked with the consent of the
Commissioner. A new section 871
election may not be made until after
the 5th year in which the revocation
occurs.

those instructions for guidance.
Exceptions are listed where
applicable.
• Some of the lines on Form
1040-NR have changed. See 2021
Form 1040-NR. See also the line
instructions for Form 1040-NR later.
• Some of the lines on Schedule 1
(Form 1040), Schedule 2 (Form
1040), and Schedule 3 (Form 1040)
have changed. See those schedules.
See also the instructions for those
schedules following the line
instructions for Form 1040-NR later.

Article 21(2) of the United States-India
Income Tax Treaty, check the box for
the Single filing status at the top of
page 1 of Form 1040-NR. On
Schedule OI, enter your country of
residency (item B) or, if applicable,
that you are a U.S. national (item A).
1. You file a separate return from
your spouse.
2. You paid over half the cost of
keeping up your home for 2021.
3. You lived apart from your
spouse for the last 6 months of 2021.
Temporary absences for special
circumstances, such as for business,
medical care, school, or military
service, count as time lived in the
home.
4. Your home was the main home
of your child, stepchild, or foster child
for more than half of 2021. Temporary
absences by you or the child for
special circumstances, such as
school, vacation, business, or medical
care, count as time the child lived in
the home. If the child was born or died
in 2021, you can still file as single as
long as the home was that child's
main home for more than half of the
part of the year he or she was alive in
2021.
5. You could have claimed the
child as a dependent or could claim
the child except that the child's other
parent claims him or her as a
dependent under the rules for children
of divorced or separated parents. See
Form 8332, Release/Revocation of
Release of Claim to Exemption for
Child by Custodial Parent.

DRAFT AS OF
January 19, 2022

Foreign Income Taxed by the
United States

You may be required to report some
income from foreign sources on your
U.S. return if the income is effectively
connected with a U.S. trade or
business. For this foreign income to
be treated as effectively connected
with a U.S. trade or business, you
must have an office or other fixed
place of business in the United States
to which the income can be attributed.
For more information, including a list
of the types of foreign source income
that must be treated as effectively
connected with a U.S. trade or
business, see chapter 4 of Pub. 519.

Special Rules for Former U.S.
Citizens and Former U.S.
Long-Term Residents
(Expatriates)

The expatriation tax provisions apply
to certain U.S. citizens who have lost
their citizenship and long-term
residents who have ended their
residency. You are a former U.S.
long-term resident if you were a lawful
permanent resident of the United
States (green card holder) in at least 8
of the last 15 tax years ending with the
year your residency ends.

For more information on the
expatriation tax provisions, see
Expatriation Tax in chapter 4 of Pub.
519; the Instructions for Form 8854;
and Notice 2009-85 (for expatriation
after June 16, 2008), 2009-45 I.R.B.
598, available at IRS.gov/irb/
2009-45_IRB#NOT-2009-85.

Line Instructions for
Form 1040-NR

!

CAUTION

For 2021, there are three
important features of these
line instructions.

• You need the 2021 Instructions for
Form 1040. Throughout these line
instructions, you will be referred to

Filing Status

The amount of your tax depends on
your filing status. Before you decide
which box to check, read the following
explanations.
Remember to provide your

TIP country of residency, or that

you are a U.S. national, on
Schedule OI (Form 1040-NR), item A
or B, as applicable. Certain tax
benefits, such as the child tax credit
(nonrefundable and refundable) and
the credit for other dependents, are
only available to residents of Canada
and Mexico and to U.S. nationals,
and, to a limited extent, to residents of
South Korea and India.
U.S. national. A U.S. national is an
individual who, although not a U.S.
citizen, owes his or her allegiance to
the United States. U.S. nationals
include American Samoans and
Northern Mariana Islanders who
chose to become U.S. nationals
instead of U.S. citizens.

Single

See Single in the Instructions for Form
1040 for details on the Single filing
status.

Married Filing Separately

Your filing status is Married filing
separately if you are married, even if
you are not separated.

Exception. Married persons who live
apart: Some married nonresident
aliens who have a child and who do
not live with their spouse can file as
single. If you meet all five of the
following tests and you are a married
resident of Canada or Mexico, you are
a married U.S. national, you are a
married resident of South Korea, or
you are a married student or business
apprentice eligible for the benefits of
-16-

Adopted child. An adopted child
is always treated as your own child.
An adopted child includes a child
lawfully placed with you for legal
adoption.
Foster child. A foster child is any
child placed with you by an authorized
placement agency or by judgment,
decree, or other order of any court of
competent jurisdiction.

Qualifying Widow(er)

See Qualifying Widow(er) in the
Instructions for Form 1040 for details
on the qualifying widow(er) filing
status.
Exception. You cannot check the
"Qualifying widow(er)" box for 2021,
unless you also satisfy the two criteria
below.
Instructions for Form 1040-NR (2021)

1. For 2021, you were a resident
of Canada, Mexico, or South Korea,
or were a U.S. national; or you were a
student or business apprentice from
India eligible for the benefits of Article
21(2) of the United States-India
Income Tax Treaty.
2. You were a resident alien or
U.S. citizen the year your spouse
died. This refers to your actual status,
not the election that some nonresident
aliens can make to be taxed as U.S.
residents.

Death of a Taxpayer

Treaty may claim dependents on the
more limited terms described in
chapter 5 of Pub. 519. No other
person filing a Form 1040-NR can
claim a qualifying dependent.

Identifying Number

Rounding Off to Whole
Dollars

See Death of a Taxpayer under
General Information in the Instructions
for Form 1040 if you are filing a return
for a deceased taxpayer.

DRAFT AS OF
January 19, 2022

Name and Address
Individuals

Enter your name, street address, city
or town, and country on the
appropriate lines. Include an
apartment number after the street
address, if applicable. Check the box
for “Individual.”

Estates and Trusts

Enter the name of the estate or trust
and check the box for “Estate or
Trust.” You must include different
information for estates and trusts that
are engaged in a trade or business in
the United States.
Not engaged in a trade or business. Attach a statement to Form
1040-NR with your name, title,
address, and the names and
addresses of any U.S. grantors and
beneficiaries.
Engaged in a trade or business in
the United States. Attach a
statement to Form 1040-NR with your
name, title, address, and the names
and addresses of all beneficiaries.

Name Change

See Name Change in the Instructions
for Form 1040 if your name has
changed.

Address Change

See Address Change in the
Instructions for Form 1040 if your
address has changed.

P.O. Box

See P.O. Box in the Instructions for
Form 1040 for information on P.O.
boxes.

Social Security Number (SSN)

See Social Security Number (SSN) in
the Instructions for Form 1040 for
information on SSNs.

Exception. When you bring your
Form SS-5 to your local SSA office:
• If you are an F-1 or M-1 student,
you must also show your Form I-20; or
• If you are a J-1 exchange visitor,
you must also show your Form
DS-2019.

IRS Individual Taxpayer
Identification Numbers (ITINs)
See IRS Individual Taxpayer
Identification Numbers (ITINs) for
Aliens in the Instructions for Form
1040 for details on ITINs.

Employer Identification Number
(EIN)
If you are filing Form 1040-NR for an
estate or trust, enter the EIN of the
estate or trust. If the entity does not
have an EIN, you must apply for one.
For details on how to get an EIN, see
Form SS-4, Application for Employer
Identification Number, and its
instructions, which are available at
IRS.gov. Enter "SS-4" in the search
box. For more details, see IRS.gov/
Businesses/Small-Businesses-SelfEmployed/How-To-Apply-for-an-EIN.

Virtual Currency

See Virtual Currency in the
Instructions for Form 1040 for details
on virtual currency.

Dependents

See Dependents, Qualifying Child for
Child Tax Credit, and Credit for Other
Dependents under Who Qualifies as
Your Dependent in the Instructions for
Form 1040 for details on dependents.

See Foreign Address in the
Instructions for Form 1040 if you have
a foreign address.

Exception. Only U.S. nationals and
residents of Canada and Mexico can
claim a dependent on the same terms
as U.S. citizens. Residents of South
Korea and students or business
apprentices from India who are
eligible for the benefits of Article 21(2)
of the United States-India Income Tax

Instructions for Form 1040-NR (2021)

-17-

Foreign Address

See Rounding Off to Whole Dollars in
the Instructions for Form 1040.

Income Effectively
Connected With U.S. Trade
or Business
The instructions for this section
assume you have decided that the
income involved is effectively
connected with a U.S. trade or
business in which you were engaged.
The tax status of income also
depends on its source. Under some
circumstances, items of income from
foreign sources are treated as
effectively connected with a U.S.
trade or business. Other items are
reportable as effectively connected or
not effectively connected with a U.S.
trade or business, depending on how
you elect to treat them. See chapter 4
of Pub. 519.

Line 1a—Wages, Salaries, Tips,
etc.

See Line 1—Wages, Salaries, Tips,
etc. in the Instructions for Form 1040
for the types of income includible on
line 1a of Form 1040-NR.

Exception 1. Enter on line 1a of
Form 1040-NR only the wages,
salaries, tips, etc., effectively
connected with a U.S. trade or
business. Only U.S. source income is
included on line 1a as effectively
connected wages. Do not include any
income on line 1a of Form 1040-NR
that is not treated as effectively
connected to a U.S. trade or business
even if it is listed in Line 1 of the
Instructions for Form 1040.
Exception 2. Unlike on Form 1040 or
1040-SR, do not include scholarship
or fellowship grants on this line. Do
not include scholarship and
fellowship grants reduced by any
exclusion for those grants.
Scholarship and fellowship grants are
reported on Form 1040-NR, line 1b;
the scholarship and fellowship
exclusion is reported on Form
1040-NR, line 10c.

Amounts Exempt Under a Treaty
Wages, salaries, tips, etc., that you
claim are exempt from U.S. tax under
an income tax treaty should not be
reported on line 1a. Instead, include
these amounts on line 1c and
complete item L of Schedule OI (Form
1040-NR). Generally, if you submitted
a properly completed Form 8233,
Exemption From Withholding on
Compensation for Independent (and
Certain Dependent) Personal
Services of a Nonresident Alien
Individual, to claim an exemption from
withholding based on a treaty, your
employer would not have withheld tax
on the exempt amount and would
have reported the exempt amount on
a Form 1042-S and not in box 1 of
Form W-2. However, if you did not
submit a Form 8233 to your employer
or if you submitted a Form 8233 to
your employer but your employer
withheld tax on the exempt amount
because it could not readily determine
your eligibility for the exemption, you
can claim the exemption on Form
1040-NR by reducing your line 1a
wages by the exempt amount. You
will need to complete item L on
Schedule OI (Form 1040-NR) and
attach a statement to your return
containing all information that would
have otherwise been required on a
Form 8233 to explain your eligibility
for the exemption. See the examples
next.

Anna should attach both the Form
W-2 and the Form 1042-S to her
return.
Example 2. The facts are the
same as above except that Anna did
not realize she was eligible for a
$5,000 exemption when she began
work and did not submit a Form 8233
to her employer claiming the
exemption amount. All of Anna's
wages from the internship were
withheld upon and reported in box 1
on her Form W-2. On her Form
1040-NR, Anna should report $3,000
on line 1a, include $5,000 on line 1c,
and complete item L on Schedule OI
(Form 1040-NR). Anna should attach
the Form W-2 to her Form 1040-NR.
She should also attach a statement to
her Form 1040-NR containing all
information that would have otherwise
been required on a Form 8233 to
justify the exemption claimed.

You may be able to use an

TIP alternative method to

determine the source of your
compensation and/or fringe benefits if
the alternative method more properly
determines the source of the
compensation.

DRAFT AS OF
January 19, 2022

Example 1. Anna is a citizen of
France who came to the United States
on an F-1 visa in 2020 for the primary
purpose of studying at an accredited
university. In 2021, Anna completed a
paid summer internship with a U.S.
company as part of her optional
practical training. Anna earned $8,000
from this internship. Under Article 21
(Students and Trainees) of the
income tax treaty with France, Anna
can exempt up to $5,000 of personal
services income from U.S. tax. Anna
submitted a valid Form 8233 to her
employer to claim an exemption from
withholding for the portion of her
wages that is exempt under the treaty.
She received a Form 1042-S from her
employer showing the $5,000 exempt
amount and a Form W-2 showing
$3,000 of wages in box 1. On her
2021 Form 1040-NR, Anna should
report $3,000 on line 1a, include
$5,000 on line 1c, and complete item
L on Schedule OI (Form 1040-NR).

Services Performed Partly Within
and Partly Outside the United
States
If you performed services as an
employee both inside and outside the
United States, you must allocate your
compensation between U.S. and
non-U.S. sources.
Compensation (other than certain
fringe benefits) is generally sourced
on a time basis. To figure your U.S.
source income, divide the number of
days you performed labor or personal
services within the United States by
the total number of days you
performed labor or personal services
within and outside the United States.
Multiply the result by your total
compensation (other than certain
fringe benefits).
Fringe Benefits
Certain fringe benefits (such as
housing and educational expenses)
are sourced on a geographic basis.
The source of the fringe benefit
compensation is generally your
principal place of work. The amount of
the fringe benefit compensation must
be reasonable and you must keep
records that are adequate to support
the fringe benefit compensation.

-18-

For 2021, if your total
compensation (including fringe
benefits) is $250,000 or more and you
allocate your compensation using an
alternative method, check the “Yes”
boxes in item K of Schedule OI (Form
1040-NR). Also attach to Form
1040-NR a statement that contains
the following information.
1. The specific compensation or
the specific fringe benefit for which an
alternative method is used.
2. For each such item, the
alternative method used to allocate
the source of the compensation.
3. For each such item, a
computation showing how the
alternative allocation was computed.
4. A comparison of the dollar
amount of the compensation sourced
within and outside the United States
under both the alternative method and
the time or geographical method for
determining the source.
You must keep documentation
showing why the alternative method
more properly determines the source
of the compensation.
Missing or Incorrect Form W-2?
See Missing or Incorrect Form W-2?
in the Instructions for Form 1040 if you
are missing a Form W-2 or have an
incorrect Form W-2.

Line 1b—Scholarship and
Fellowship Grants

If you received a scholarship or
fellowship, part or all of it may be
taxable. Amounts received in the form
of a scholarship or fellowship that are
payment for teaching, research, or
other services are generally taxable
as wages even if the services were
required to get the scholarship or
fellowship.

If you were a degree candidate, the
amounts you used for expenses other
than tuition and course-related
expenses (fees, books, supplies, and
equipment) are generally taxable. For
example, amounts used for room,
Instructions for Form 1040-NR (2021)

board, and travel are generally
taxable.
If you were not a degree candidate,
the full amount of the scholarship or
fellowship is generally taxable.
If the grant was reported on
Form(s) 1042-S, you must generally
include the amount shown in box 2 of
Form(s) 1042-S on line1b. However, if
any or all of that amount is exempt by
treaty, do not include the
treaty-exempt amount on line 1b.
Instead, include the treaty-exempt
amount on line 1c and complete item
L of Schedule OI (Form 1040-NR).

United States that includes a
provision that exempts scholarship
income and you were a resident of
that country for income tax purposes
immediately before arriving in the
United States to attend ABC
University. Also, assume that, under
the terms of the tax treaty, you are
present in the United States only
temporarily to finish your degree, and
all of your scholarship income is
exempt from tax because ABC
University is a nonprofit educational
organization.

Attach any Form 1042-S you
received for treaty-exempt income. If
required, attach Form 8833. See
Treaty-based return position
disclosure, later.

Line 2a—Tax-Exempt Interest

See Line 2a—Tax-Exempt Interest in
the Instructions for Form 1040 for
details on tax-exempt interest.

DRAFT AS OF
January 19, 2022

Attach any Form(s) 1042-S you
received from the college or
institution.

For more information about
scholarships and fellowships in
general, see chapter 1 of Pub. 970.
Example 1. You are a citizen of a
country that does not have an income
tax treaty in force with the United
States. You are a candidate for a
degree at ABC University (located in
the United States). You are receiving
a full scholarship from ABC University.
You are not required to perform any
services, such as teaching, research,
or other services, to get the
scholarship. The total amounts you
received from ABC University during
2021 are as follows.
Tuition and
fees
Books,
supplies, and
equipment
Room and
board

$25,000
1,000
9,000
$35,000

The Form 1042-S you received from
ABC University for 2021 shows
$9,000 in box 2 and $1,260 (14% of
$9,000) in box 10.
Note. Box 2 shows only $9,000
because withholding agents (such as
ABC University) are not required to
report section 117 amounts (tuition,
fees, books, supplies, and equipment)
on Form 1042-S.
Example 2. The facts are the
same as in Example 1, except that
you are a citizen of a country that has
an income tax treaty in force with the
Instructions for Form 1040-NR (2021)

Note. Under some treaties,
scholarship or fellowship grant income
is not exempt from tax if the income is
received in exchange for the
performance of services, such as
teaching, research, or other services.
Also, many tax treaties do not permit
an exemption from tax on scholarship
or fellowship grant income unless the
income is from sources outside the
United States. If you are a resident of
a treaty country, you must know the
terms of the tax treaty between the
United States and the treaty country
to claim treaty benefits on Form
1040-NR. See the instructions for item
L of Schedule OI, later, for details.

When completing Form 1040-NR,
do the following.
• Enter $0 on line 1b. The $9,000
reported to you in box 2 of Form
1042-S is reported on line 1c (not
line 1b).
• Enter $9,000 on line 1c.
• Enter $0 on line 10c. Because none
of the $9,000 reported to you in box 2
of Form 1042-S is included in your
income, you cannot exclude it on
line 10c.
• Include on line 25g any withholding
shown in box 10 of Form 1042-S: here
$1,260.
• Provide all the required information
in item L of Schedule OI (Form
1040-NR).

Line 1c—Treaty-Exempt
Income

Report on line 1c the total of all your
income that is exempt from tax by an
income tax treaty, including both
effectively connected income and not
effectively connected income. Do not
include this exempt income on line 1a.
You must complete item L of
Schedule OI (Form 1040-NR) to
report income that is exempt from
U.S. tax.
-19-

Exception 1. The interest will not be
includible on line 2a of Form 1040-NR
unless it is effectively connected with
a trade or business. If the interest was
not effectively connected with a U.S.
trade or business and was U.S.
source, report it on Schedule NEC
(Form 1040-NR), line 2a, 2b, or 2c.
Exception 2. Do not include interest
from a U.S. bank, savings and loan
association, credit union, or similar
institution (or from certain deposits
with U.S. insurance companies) that is
exempt from tax under a tax treaty or
under section 871(i) because the
interest is not effectively connected
with a U.S. trade or business.

Line 2b—Taxable Interest

See Line 2b—Taxable Interest in the
Instructions for Form 1040.
Exception 1. Report on line 2b only
your taxable interest income from
assets effectively connected with a
U.S. trade or business.
Exception 2. If you received interest
not effectively connected with a U.S.
trade or business, report it on
Schedule NEC (Form 1040-NR)
unless it is tax exempt under a treaty
and the withholding agent did not
withhold tax on the payment. If the
interest is tax exempt under a treaty,
include the tax-exempt amount on
line 1c and complete item L of
Schedule OI (Form 1040-NR). If the
interest is tax exempt under a treaty
but the withholding agent withheld tax,
report the interest on Schedule NEC
(Form 1040-NR), line 2. Use column d
and show 0% for the appropriate rate
of tax. You can download the
complete text of most U.S. tax treaties
at IRS.gov. Go to IRS.gov, enter "tax
treaties" in the search box at the top of
the page, and click on United States
Income Tax Treaties - A to Z.
Technical explanations for many of
those treaties are also available at
that site.
Exception 3. Do not include on
line 2b interest from a U.S. bank,

savings and loan association, credit
union, or similar institution (or from
certain deposits with U.S. insurance
companies) that is exempt from tax
under a tax treaty or under section
871(i) because the interest is not
effectively connected with a U.S.
trade or business.

Exception 3. Attach Form 1042-S or
1099-R to Form 1040-NR if any
federal income tax was withheld.
Effectively Connected Pension
Distributions
If you performed services in the
United States, your income is
generally effectively connected with a
U.S. trade or business. (See section
864 for details and exceptions.)

Exception. On line 5b, include the
total pension or annuity payments
from box 2 of Form(s) 1042-S, if any,
with the total of payments from box 1
of Form(s) 1099-R.
Partially Taxable Pensions and
Annuities

DRAFT AS OF
January 19, 2022

Line 3a—Qualified Dividends

See Line 3a—Qualified Dividends in
the Instructions for Form 1040 for
details on qualified dividends.

Exception. Only report qualified
dividends effectively connected with a
trade or business on Form 1040-NR,
line 3a. If the qualified dividends were
not effectively connected with a U.S.
trade or business and were U.S.
source, report them on Schedule NEC
(Form 1040-NR), line 1a, 1b, or 1c.

Line 3b—Ordinary Dividends

See Line 3b—Ordinary Dividends in
the Instructions for Form 1040 for
details on ordinary dividends.
Exception. Only report ordinary
dividends effectively connected with a
trade or business on Form 1040-NR,
line 3b. If the ordinary dividends were
not effectively connected with a U.S.
trade or business and are U.S.
source, report them on Schedule NEC
(Form 1040-NR), line 1a, 1b, or 1c.

Lines 4a and 4b—IRA
Distributions

See Lines 4a and 4b—IRA
Distributions in the Instructions for
Form 1040 for details on IRA
distributions.

Lines 5a and 5b—Pensions and
Annuities

See Lines 5a and 5b—Pensions and
Annuities in the Instructions for Form
1040 for details on pensions and
annuities.

Exception 1. Only report pensions
and annuities effectively connected
with a trade or business on Form
1040-NR, lines 5a and 5b. If the
pensions and annuities were not
effectively connected with a U.S.
trade or business and were U.S.
source, report them on Schedule NEC
(Form 1040-NR), line 7.
Exception 2. In addition to entering
pension and annuity amounts from
box 1 of Form 1099-R, you may also
enter pension and annuity amounts
from box 2 of Form 1042-S.

If you worked in the United States
after December 31, 1986, the part of
each pension distribution that is
attributable to the services you
performed after 1986 is income that is
effectively connected with a U.S.
trade or business.

Example. You worked in the
United States from January 1, 1980,
through December 31, 1989 (10
years). You now receive monthly
pension payments from your former
U.S. employer's pension plan. 70% of
each payment is attributable to
services you performed during 1980
through 1986 (7 years) and 30% of
each payment is attributable to
services you performed during 1987
through 1989 (3 years). Include 30%
of each pension payment in the total
amount that you report on line 5a.
Include 70% of each payment in the
total amount that you report in the
appropriate column on Schedule NEC
(Form 1040-NR), line 7.
In most cases, the effectively
connected pension distribution will be
fully taxable in the United States, so
you must include it on line 5b.
However, in some situations, you can
report a lower amount on line 5b. The
most common situations are where:
• All or a part of your pension
payment is exempt from U.S. tax,
• A part of your pension payment is
attributable to after-tax contributions
to the pension plan, or
• The payment is rolled over to
another retirement plan.
See chapter 2 of Pub. 519; Pub.
575, Pension and Annuity Income; or
Pub. 939, General Rule for Pensions
and Annuities, for more information.
Fully Taxable Pensions and
Annuities
See Fully Taxable Pensions and
Annuities under Lines 5a and 5b in the
Instructions for Form 1040 for details.
-20-

See Partially Taxable Pensions and
Annuities under Lines 5a and 5b in the
Instructions for Form 1040 for details.
Exception 1. On line 5a, include the
total pension or annuity payments
from box 2 of Form(s) 1042-S, if any,
with the total of payments from box 1
of Form(s) 1099-R. If your Form
1042-S or Form 1099-R does not
show the taxable amount, you must
figure the taxable amount and include
that amount on line 5b. If your annuity
is paid under a qualified plan and your
annuity starting date was after July 1,
1986, see Simplified Method, later.

Exception 2. If your annuity is paid
under a nonqualified plan or paid
under a qualified plan and your
annuity starting date was before July
2, 1986, you must generally use the
General Rule. If you are required to
use the General Rule, you can ask the
IRS to figure the taxable part for a
$1,000 fee. For more information
about the General Rule, see Pub. 939.
If your Form 1099-R shows a
taxable amount, you can include that
amount on line 5b. But you may be
able to report a lower taxable amount
by using the General Rule or the
Simplified Method. If you received
Form 1042-S, you must figure the
taxable part by using the General Rule
or the Simplified Method.
Simplified Method
See Simplified Method under Lines 5a
and 5b in the Instructions for Form
1040 for details on the Simplified
Method.
Lump-Sum Distributions
See Lump-Sum Distributions under
Lines 5a and 5b in the Instructions for
Form 1040 for details on lump-sum
distributions.
Simplified Method
Worksheet—Lines 5a and 5b
See the Simplified Method
Worksheet—Lines 5a and 5b in the
Instructions for Form 1040.
Instructions for Form 1040-NR (2021)

Exception 1. On each line on which
a Form 1099-R (or a Form 1099-R,
box 1) total is entered, also include
the totals from your Forms 1042-S (or
Forms 1042-S, box 2).
Exception 2. Enter the amount on
the same line of Form 1040-NR as
you are directed to enter it on Form
1040 or 1040-SR.

take the standard deduction on Form
1040-NR, line 12a, instead of their
itemized deductions if they are eligible
for benefits under Article 21(2) of the
United States-India Income Tax
Treaty. They will enter, on Form
1040-NR, line 12a, the standard
deduction amount found for their filing
status on Form 1040 or 1040-SR. See
chapter 5 of Pub. 519 for details. Also
see Standard Deduction under
Line 12a—Itemized Deductions or
Standard Deduction in the Instructions
for Form 1040. If they must use the
Standard Deduction Worksheet for
Dependents—Line 12a in the
Instructions for Form 1040, they
should enter the amount on the same
line of Form 1040-NR as they are
directed to enter it on Form 1040 or
1040-SR.

!

CAUTION

You can't claim an exemption
deduction in 2021 if you are
an individual.

Estates. Enter $600 on line 13b.
Trusts. If you are filing for a trust
whose governing instrument requires
it to distribute all of its income
currently, enter $300 on line 13b.
If you are filing for a qualified
disability trust (defined in section
642(b)(2)(C)(ii)), enter $4,300 on
line 13b.
If you are filing for any other trust,
enter $100 on line 13b.

DRAFT AS OF
January 19, 2022

Line 6—Reserved for Future
Use
Leave line 6 blank.

Exception. Unlike on Form 1040,
you report your social security
benefits on Schedule NEC (Form
1040-NR), line 8.

Line 7—Capital Gain or (Loss)

See Line 7—Capital Gain or (Loss) in
the Instructions for Form 1040 for
details on capital gain or loss.
Exception. Only report effectively
connected capital gains or losses
connected with a trade or business on
Form 1040-NR, line 7. If the capital
gains or losses were not effectively
connected with a U.S. trade or
business and were U.S. source,
report them on Schedule NEC (Form
1040-NR), line 16.

Lines 10a, 10b, 10c, and
10d—Adjustments to Income
Line 10b—Reserved for Future Use
Leave line 10b blank.
Line 10c
If you received a scholarship or
fellowship grant and were a degree
candidate, enter amounts used for
tuition and course-related expenses
(fees, books, supplies, and
equipment), but only to the extent the
amounts are included on line 1b. See
the examples in the instructions for
line 1b.

Lines 12a, 12b, and 12c
Line 12a—Itemized Deductions or
Standard Deduction
Enter the total itemized deductions, if
any, from line 8 of Schedule A (Form
1040-NR). See the instructions for
Schedule A, line 8, later, for more
details.
Standard deduction for certain
residents of India. Students or
business apprentices may be able to
Instructions for Form 1040-NR (2021)

Line 12b—Charitable Deduction
for Cash Contributions of Certain
Residents of India
See Line 12b under Lines 12a, 12b,
and 12c in the Instructions for Form
1040 for details on the charitable
deduction for cash contributions when
claiming the standard deduction.
Exception. This up-to-$300
charitable deduction for cash
contributions is only available to you if
you are a student or business
apprentice eligible for benefits under
Article 21(2) of the United States-India
Income Tax Treaty who has elected to
use the standard deduction.

Lines 13a, 13b, and 13c
Line 13a—Qualified Business
Income Deduction (Section 199A
Deduction)
See Line 13—Qualified Business
Income Deduction (Section 199A
Deduction) in the Instructions for Form
1040 for details on the qualified
business income deduction.
Exception. You must have income
effectively connected with a U.S.
trade or business.
Line 13b—Deduction for
Exemptions for Estates and Trusts
Only
A trust or estate can claim an
exemption only to the extent of its
income that is effectively connected
with a U.S. trade or business.

-21-

Line 16—Tax

See Line 16—Tax in the Instructions
for Form 1040 for details on taxes
includible on this line, and for whether
you must use the Tax Table or the Tax
Computation Worksheet in those
instructions to figure your tax.
Exception 1. If you are filing for an
estate or trust, use Tax Rate
Schedule W, later, to figure the tax.

Exception 2. Do not include on
line 16 any of the following that are
listed in those instructions. They do
not apply to persons filing Form
1040-NR.
• Tax due to making a section 962
election.
• Recapture of an education credit
from Form 8863.
• Tax from Form 8621.
• Any amounts due to section 965.
Exception 3. Do not use the Foreign
Earned Income Tax Worksheet. You
are not eligible for the foreign earned
income exclusion, housing exclusion,
or housing deduction on Form 2555.
Exception 4. The IRS will not figure
the tax for you.
Form 8615
See Form 8615 under Line 16—Tax in
the Instructions for Form 1040 for
details on Form 8615.
Exception 1. The child must have
more than $2,200 of unearned income
that is effectively connected with a
U.S. trade or business.
Exception 2. The Form 8615 must
be filed for a child even if the child is a
nonresident alien.

Schedule D Tax Worksheet
See Schedule D Tax Worksheet
under Line 16—Tax in the Instructions
for Form 1040 for details on the
worksheet.
Qualified Dividends and Capital
Gain Tax Worksheet

the Instructions for Schedule 8812
(Form 1040).
Exception. To claim the
nonrefundable child tax credit or the
credit for other dependents on Form
1040-NR in full, you must be a U.S.
national or a resident of Canada or
Mexico. Residents of South Korea
and India can claim the credits on
Form 1040-NR to the extent
described in Pub. 519. No other
persons filing Form 1040-NR can
claim the nonrefundable child tax
credit or the credit for other
dependents.

Schedule OI (Form 1040-NR) and
include the amount on line 1c of Form
1040-NR. If you are exempt from the
tax for any other reason, you must
attach a statement to Form 1040-NR
identifying your country of residence
and the law and provisions under
which you claim exemption from the
tax.

DRAFT AS OF
January 19, 2022

See Qualified Dividends and Capital
Gain Tax Worksheet under
Line 16—Tax in the Instructions for
Form 1040 for details on the
worksheet.

Exception 1. When applying the
discussion, including the Qualified
Dividends and Capital Gain Tax
Worksheet, to Form 1040-NR, you will
use the same lines of Form 1040-NR
that are used for Form 1040 or
1040-SR.
Exception 2. The Form 2555 and its
Foreign Earned Income Tax
Worksheet discussions, including
those in the Qualified Dividends and
Capital Gain Tax Worksheet, do not
apply to you. That form is not filed by
persons filing Form 1040-NR.

Exception 3. Estates and trusts,
when completing the Qualified
Dividends and Capital Gain Tax
Worksheet, must use Tax Rate
Schedule W, later, instead of the Tax
Table or the Tax Computation
Worksheet in the Instructions for Form
1040.
Schedule J (Form 1040)
See Schedule J under Line 16—Tax
in the Instructions for Form 1040.

Foreign Earned Income Tax
Worksheet—Line 16

Do not use the Foreign Earned
Income Tax Worksheet—Line 16
section under Line 16 in the
Instructions for Form 1040. That
worksheet is for persons filing Form
2555. Form 2555 is not filed by
persons filing Form 1040-NR.

Line 19—Nonrefundable Child
Tax Credit and Credit for Other
Dependent

See Line 19—Nonrefundable Child
Tax Credit and Credit for Other
Dependents in the Instructions for
Form 1040 for details on the
nonrefundable child tax credit and the
credit for other dependents. Also, see

Lines 23a Through 23d—Other
Taxes

Line 23c—Transportation Tax

If you owe this tax, you must attach
a statement to your return that
includes the information described in
chapter 4 of Pub. 519.

Payments

Line 25—Federal Income Tax
Withheld

Nonresident alien individuals are
subject to a 4% tax on U.S. source
gross transportation income that is not
effectively connected with a U.S.
trade or business. However, the term
“U.S. source gross transportation
income” does not include any such
income that is taxable in a possession
of the United States under the
provisions of the Internal Revenue
Code as applied to that possession.

Line 25a—Form(s) W-2

For purposes of this tax,
transportation income will be treated
as not effectively connected with the
conduct of a trade or business in the
United States unless:
1. You had a fixed place of
business in the United States involved
in the earning of transportation
income, and
2. At least 90% of your U.S.
source gross transportation income
was attributable to regularly
scheduled transportation. Or, in the
case of income from the leasing of a
vessel or aircraft, it was attributable to
a fixed place of business in the United
States. See chapter 4 of Pub. 519 for
rules, definitions, and exceptions.

Exception. Do not include tax
withheld on Form 8805, Form 8288-A,
and 1042-S on Form 1040-NR,
line 25c. The taxes withheld on those
forms are reported on Form 1040-NR,
lines 25e, 25f, and 25g, respectively.

You may be exempt from this tax
because of a treaty or an exchange of
notes between the United States and
the country of which you are a
resident. If the country of which you
are a resident does not impose tax on
the shipping or aircraft income of U.S.
persons, you may also be exempt
from this tax. If you are exempt from
the tax by treaty or exchange of notes,
complete Form 8833 and attach it to
this return. Also, complete item L of
-22-

See Line 25a—Form(s) W-2 in the
Instructions for Form 1040 for details.
Line 25b—Form(s) 1099
See Line 25b—Form(s) 1099 in the
Instructions for Form 1040 for details.
Line 25c—Other Forms
See Line 25c—Other Forms in the
Instructions for Form 1040 for details.

Line 25e—Form(s) 8805
Enter on line 25e any tax withheld by
a partnership and shown on Form(s)
8805. Attach a copy of all Form(s)
8805 to the back of your return.
Line 25f—Form(s) 8288-A
Enter on line 25f any tax withheld
under section 1445 (related to
dispositions of U.S. real property
interests) or under section 1446(f)(1)
(related to dispositions of interests in
partnerships engaged in the conduct
of a trade or business in the United
States) and shown on Form(s)
8288-A. Attach a copy of all Form(s)
8288-A to the front of your return.
Line 25g—Form(s) 1042-S
Enter on line 25g the total amount
shown as federal income tax withheld
under chapter 3 or 4 on your Form(s)
Instructions for Form 1040-NR (2021)

1042-S. The withholding credit should
be shown in box 10 of your Form(s)
1042-S. Attach Form(s) 1042-S to the
front of your return.
Be sure to attach to the front

TIP of your return a copy of all

Form(s) W-2, 1042-S,
SSA-1042S, RRB-1042S, and
8288-A. Attach to the front of your
return Form(s) 1099-R if tax was
withheld. Be sure to attach to the back
of your return Form(s) 8805. A foreign
trust or estate must also attach to the
back of Form 1040-NR copies of the
Form(s) 8805 it must furnish to its
beneficiaries with the Schedule(s) T
completed.

opportunity credit cannot be claimed
by persons filing Form 1040-NR.

Line 30—Reserved for Future
Use

Leave line 30 blank. Do not follow the
instructions in Line 30—Recovery
Rebate Credit in the Instructions for
Form 1040. The recovery rebate
credit cannot be claimed by persons
filing Form 1040-NR.

DRAFT AS OF
January 19, 2022

Refunds of taxes shown on
Forms 8805, 8288-A, or
CAUTION 1042-S may be delayed for up
to 6 months. See Refund Information,
later.

!

visas, and members of their
immediate families, as well as most
foreign students on “F”-visas, “J”visas, “M”-visas, and “Q”-visas. (In
each case, the individual must
comply with the terms of their visa
to avoid having days of presence
counted for purposes of meeting
the substantial presence test.) The
days of presence in the United States
of foreign government-related
individuals (a term which includes
employees of international
organizations such as the United
Nations) and members of their
immediate families are similarly
excluded from counting towards the
substantial presence test for the
duration of their qualifying
appointments. Further, under section
7701(b)(6), an individual who is a
resident of a foreign country having an
income tax treaty with the United
States and who elects for 2021 to be
treated as a nonresident of the United
States under the so-called treaty
“tie-breaker rule” may file as a
nonresident alien on Form 1040-NR,
even though they may have a
permanent abode within the United
States throughout 2021 and reside
here for more than 183 days during
the year. The individual does so by
filing Form 8833 with their Form
1040-NR for that year in the time and
manner provided in regulations. (The
tie-breaker rule allows an alien who
otherwise would be treated as a
resident of the United States for all or
part of tax year to be treated for such
year, for most purposes, as a
nonresident alien.)

Line 26—2021 Estimated Tax
Payments

See Line 26—2021 Estimated Tax
Payments in the Instructions for Form
1040 for details on 2021 estimated tax
payments.
Exception. Substitute "ITIN or SSN"
every place SSN is mentioned. For
the discussion in this section, you can
use an ITIN as well as an SSN.

Line 27—Reserved for Future
Use

Leave line 27 blank. Do not follow the
instructions in Lines 27a, 27b, and
27c—Earned Income Credit (EIC) in
the Instructions for Form 1040. The
earned income credit (EIC) cannot be
claimed by persons filing Form
1040-NR.

Line 28—Refundable Child Tax
Credit or Additional Child Tax
Credit

See Line 28—Refundable Child Tax
Credit or Additional Child Tax Credit in
the Instructions for Form 1040 for
details on the refundable child tax
credit and the additional child tax
credit.
Exception 1. The refundable child
tax credit is only available to
nonresident aliens whose principal
place of abode was within the United
States for more than one half of 2021.
Such individuals include teachers and
trainees present in the United States
under non-student “J”-visas and “Q”Instructions for Form 1040-NR (2021)

Exception 2. To claim the refundable
child tax credit or the additional child
tax credit in full, you must be a U.S.
national or a resident of Canada or
Mexico. Residents of South Korea
and India can claim the credits to the
extent described in Pub. 519. No
other persons filing Form 1040-NR
can claim the refundable child tax
credit or the additional child tax credit
even if they otherwise meet the
criteria for taking those credits.

Line 29—Credit for Amount
Paid With Form 1040-C

Enter any amount you paid with Form
1040-C for 2021. Do not follow the
instructions in Line 29—American
Opportunity Credit, in the Instructions
for Form 1040. The American
-23-

Refund

Line 34—Amount Overpaid

See Line 34—Amount Overpaid in the
Instructions for Form 1040 for details
on the amount overpaid.
Exception. The Injured Spouse
discussion does not apply to you. A
person filing Form 1040-NR cannot
file a joint return.

Lines 35a Through
35e—Amount Refunded to You

See Lines 35a Through 35d—Amount
Refunded to You in the Instructions for
Form 1040 for details on what to
report on lines 35a through 35d.

Exception 1. If you are having your
refund (or part of it) directly deposited
to a traditional IRA, Roth IRA, or
SEP-IRA, you must establish the IRA
at a U.S. bank or other financial
institution in the United States before
you request direct deposit.
Exception 2. If you request a refund
of tax withheld on a Form 1042-S,
Form 8805, or Form 8288-A, we may
need additional time to process the
refund. Allow up to 6 months for these
refunds to be issued.
Line 35e
If you want your refund mailed outside
the United States to an address not
listed on page 1 of Form 1040-NR,
enter that address on line 35e. See
Foreign Address, earlier, for
information on entering a foreign
address.
Note. If the address on page 1 of
Form 1040-NR is not in the United
States, you can enter an address in
the United States on line 35e.
However, if the address on page 1 of
Form 1040-NR is in the United States,
the IRS cannot mail a refund to a
different address in the United States.

Line 36—Applied to Your 2022
Estimated Tax
See Line 36—Applied to Your 2022
Estimated Tax in the Instructions for
Form 1040 for details.

Amount You Owe

Figuring the penalty. See Figuring
the Penalty under Line 38—Estimated
Tax Penalty in the Instructions for
Form 1040 for details on the
estimated tax penalty.

Identity Protection PIN

Third Party Designee

Phone Number and Email
Address

See Third Party Designee in the
Instructions for Form 1040 for details
on the third party designee.

See Identity Protection PIN in the
Instructions for Form 1040 for details
on Identity Protection Personal
Identification Numbers (IP PINs).

DRAFT AS OF
January 19, 2022

See Amount You Owe in the
Instructions for Form 1040 for details.

Line 37—Amount You Owe

See Line 37—Amount You Owe in the
Instructions for Form 1040 for details
on what to report on Form 1040-NR,
line 37.

Exception 1. If you want to pay
electronically but do not have a U.S.
bank account, go to IRS.gov/
Individuals/International-Taxpayers/
Foreign-Electronic-Payments for more
information.
Exception 2. If you are paying by
check or money order, the check or
money order must be drawn on a U.S.
financial institution.

Line 38—Estimated Tax Penalty

See Line 38—Estimated Tax Penalty
in the Instructions for Form 1040 for
details on the estimated tax penalty.

Exception. When computing the tax
shown on your return for the current
and prior year, use the same lines on
Form 1040-NR as are referred to for
Form 1040 or 1040-SR, except:
• Substitute “lines 25d through 25g”
for “line 25d” throughout, and
• Ignore the references to lines 27a
and 29.

Exception. The phone number you
enter for the designee must be a U.S.
phone number.

Sign Your Return

See Sign Your Return in the
Instructions for Form 1040 for details
on signing your return.

Exception 1. You can have an agent
in the United States prepare and sign
your return if you could not do so for
one of the following reasons.
• You were ill.
• You were not in the United States at
any time during the 60 days before the
return was due.
• Other reasons approved by the
IRS, which you explain in writing to:
Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0215
U.S.A.
Exception 2. The discussion of joint
returns does not apply to you. A
person filing Form 1040-NR cannot
file a joint return.

-24-

See Phone Number and Email
Address under Identity Protection PIN
in the Instructions for Form 1040 for
details on phone numbers and email
addresses.

Paid Preparer Must Sign
Your Return

See Paid Preparer Must Sign Your
Return in the Instructions for Form
1040 for details on paid preparers.

Assemble Your Return

See Assemble Your Return in the
Instructions for Form 1040 for details
on assembling your return.

Exception. Attach a copy of Forms
W-2, 1042-S, SSA-1042S,
RRB-1042S, 2439, and 8288-A to the
front of Form 1040-NR. If you
received a Form W-2c (a corrected
Form W-2), attach a copy of your
original Forms W-2 and any Forms
W-2c. Also attach Form(s) 1099-R to
the front of Form 1040-NR if tax was
withheld. Attach Form 8805 to the
back of your return. Enclose, but do
not attach, any payment.

Instructions for Form 1040-NR (2021)

2021 Tax Table

See the 2021 Tax Table in the
Instructions for Form 1040 to
determine your tax. For an example of
how to locate your tax for the Form
1040-NR, see the 2021 Form
1040-NR Sample Table below.

Exception 2. If you are filing for an
estate or trust, you must use Tax Rate
Schedule W, later, to figure your tax.
Exception 3. Because you cannot
file a joint return, use the 2021 Form
1040-NR Sample Table below instead
of the one under the 2021 Tax Table
in the Instructions for Form 1040.

Exception 1. If you must use the tax
computation worksheets based on the
line 16 instructions, use the Section A
Worksheet for Single, the Section B
Worksheet for Qualifying widow(er),
or the Section C Worksheet for
Married filing separately, as
applicable, and enter the amount on
Form 1040-NR, line 16.

DRAFT AS OF
January 19, 2022

Exception 1. Because you are filing
Form 1040-NR, you have only three
filing statuses: Single, Married filing
separately, or Qualified widow(er). Do
not use the amounts in the column for
Head of a household. Use the
amounts in the Married filing jointly
column only if you are a Qualified
widow(er).

2021 Tax Computation
Worksheet—Line 16

See the 2021 Tax Computation
Worksheet—Line 16 in the
Instructions for Form 1040.

Exception 2. As noted earlier, if you
are filing for an estate or trust, you
must use Tax Rate Schedule W, later,
to figure your tax.

2021 Form 1040-NR
Sample Table
Example. Mr. Brown’s filing status is married filing separately. His
taxable income on Form 1040-NR, line 15, is $25,300. First, he finds the
$25,300–25,350 taxable income line. Next, he finds the column for
married filing separately and reads down the column. The amount shown
where the taxable income line and filing status column meet is $2,840.
This is the tax amount he should enter in the entry space on Form
1040-NR, line 16.

Sample Table
At
But
Least Less
Than

Single

25,200
25,250
25,300
25,350

2,828
2,834
2,840
2,846

25,250
25,300
25,350
25,400

Married Married Head
of a
filing
filing
housejointly* sepahold
rately

Your tax is—
2,629 2,828
2,635 2,834
2,641 2,840
2,647 2,846

Extract of tax table to illustrate example.

Instructions for Form 1040-NR (2021)

-25-

2,743
2,749
2,755
2,761

General Information
The IRS Mission
Provide America's taxpayers top-quality service by helping them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.

DRAFT AS OF
January 19, 2022

How To Avoid Common
Mistakes

See How To Avoid Common Mistakes
in the Instructions for Form 1040.

Exception 1. Be sure to enter your
identifying number (SSN or ITIN) on
page 1 of Form 1040-NR. Be sure to
enter the SSN, ITIN, or ATIN of your
dependents under Dependents on
page 1 of Form 1040-NR.

Exception 2. Information about
standard deductions only applies to
students and business apprentices
eligible for the benefits of Article 21(2)
of the United States-India Income Tax
Treaty.
Exception 3. You are not eligible to
claim an earned income credit as a
Form 1040-NR filer.
Exception 4. You can claim the
premium tax credit for dependents
only if you are a U.S. national;
resident of Canada, Mexico, or South
Korea; or a student or business
apprentice eligible for the benefits of
Article 21(2) of the United States-India
Income Tax Treaty. If your filing status
at the top of page 1 on Form 1040-NR
is Married filing separately, you
cannot take the premium tax credit
unless you meet the criteria of one of
the exceptions under Married
taxpayers in the Instructions for Form
8962.

Innocent Spouse Relief

Innocent Spouse Relief in the
Instructions for Form 1040 does not
apply to Form 1040-NR filers. Form
1040-NR filers can’t file a joint return.

Income Tax Withholding
and Estimated Tax
Payments for 2022

See Income Tax Withholding and
Estimated Tax Payments for 2022 in
the Instructions for Form 1040 for
more details.

For more information on

TIP withholding or estimated tax

payments, see chapter 8,
Paying Tax Through Withholding or
Estimated Tax, in Pub. 519.

Secure Your Tax Records
From Identity Theft

See Secure Your Tax Records From
Identity Theft in the Instructions for
Form 1040 for more details.

How Do You Make a Gift
To Reduce Debt Held By
the Public?

See How Do You Make a Gift To
Reduce Debt Held By the Public? in
the Instructions for Form 1040 for
more details.

How Long Should Records
Be Kept?

See How Long Should Records Be
Kept? in the Instructions for Form
1040 for more details.

How Do You Amend Your
Tax Return?
See Amended Return in the
Instructions for Form 1040 for more
details.

Need a Copy of Your Tax
Return?

See Need a Copy of Your Tax Return
Information? in the Instructions for
Form 1040 for more details.

Exception. If you are calling to get a
free transcript and you are outside the
United States, call 267-941-1000
(English-speaking only). This number
is not toll free.

Death of a Taxpayer

See Death of a Taxpayer in the
Instructions for Form 1040 for more
details.
-26-

Past Due Returns

See Past Due Returns in the
Instructions for Form 1040 for more
details.

How To Get Tax Help

If you have questions about a tax
issue; need help preparing your tax
return; or want to download free
publications, forms, or instructions, go
to IRS.gov to find resources that can
help you right away.
Preparing and filing your tax return. After receiving all your wage
and earnings statements (Forms W-2,
W-2G, 1099-R, 1099-MISC,
1099-NEC, etc.); unemployment
compensation statements (by mail or
in a digital format) or other
government payment statements
(Form 1099-G); and interest, dividend,
and retirement statements from banks
and investment firms (Forms 1099),
you have several options to choose
from to prepare and file your tax
return. You can prepare the tax return
yourself, see if you qualify for free tax
preparation, or hire a tax professional
to prepare your return.

!

CAUTION

6419.

For 2021, if you received
Advance Child Tax Credit
payments, refer to your Letter

Free options for tax preparation.
Go to IRS.gov to see your options for
preparing and filing your return online
or in your local community, if you
qualify, which include the following.
• VITA. The Volunteer Income Tax
Assistance (VITA) program offers free
tax help to people with
low-to-moderate incomes, persons
with disabilities, and
limited-English-speaking taxpayers
who need help preparing their own tax
returns. Go to IRS.gov/VITA,
download the free IRS2Go app, or call
800-906-9887 for information on free
tax return preparation.
• TCE. The Tax Counseling for the
Elderly (TCE) program offers free tax
Instructions for Form 1040-NR (2021)

help for all taxpayers, particularly
those who are 60 years of age and
older. TCE volunteers specialize in
answering questions about pensions
and retirement-related issues unique
to seniors. Go to IRS.gov/TCE,
download the free IRS2Go app, or call
888-227-7669 for information on free
tax return preparation.

• You may also be able to access tax
law information in your electronic filing
software.
Need someone to prepare your tax
return? There are various types of
tax return preparers, including tax
preparers, enrolled agents, certified
public accountants (CPAs), attorneys,
and many others who don’t have
professional credentials. If you
choose to have someone prepare
your tax return, choose that preparer
wisely. A paid tax preparer is:
• Primarily responsible for the overall
substantive accuracy of your return,
• Required to sign the return, and
• Required to include their preparer
tax identification number (PTIN).

IRS social media. Go to IRS.gov/
SocialMedia to see the various social
media tools the IRS uses to share the
latest information on tax changes,
scam alerts, initiatives, products, and
services. At the IRS, privacy and
security are our highest priority. We
use these tools to share public
information with you. Don’t post your
social security number (SSN) or other
confidential information on social
media sites. Always protect your
identity when using any social
networking site.

DRAFT AS OF
January 19, 2022

Using online tools to help prepare
your return. Go to IRS.gov/Tools for
the following.
• The Online EIN Application
(IRS.gov/EIN) helps you get an
employer identification number (EIN)
at no cost.
• The Tax Withholding Estimator
(IRS.gov/W4App) makes it easier for
everyone to pay the correct amount of
tax during the year. The tool is a
convenient, online way to check and
tailor your withholding. It’s more
user-friendly for taxpayers, including
retirees and self-employed
individuals. The features include the
following.
▶ Easy to understand language.
▶ The ability to switch between
screens, correct previous entries, and
skip screens that do not apply.
▶ Tips and links to help you
determine if you qualify for tax credits
and deductions.
▶ A progress tracker.
▶ A self-employment tax feature.
▶ Automatic calculation of taxable
social security benefits.
• The First-Time Homebuyer Credit
Account Look-up (IRS.gov/
HomeBuyer) tool provides information
on your repayments and account
balance.

Getting answers to your tax
law questions. On IRS.gov,
you can get up-to-date
information on current events and
changes in tax law.

• IRS.gov/Help: A variety of tools to
help you get answers to some of the
most common tax questions.
• IRS.gov/ITA: The Interactive Tax
Assistant, a tool that will ask you
questions and, based on your input,
provide answers on a number of tax
law topics.
• IRS.gov/Forms: Find forms,
instructions, and publications. You will
find details on 2021 tax changes and
hundreds of interactive links to help
you find answers to your questions.
Instructions for Form 1040-NR (2021)

Although the tax preparer always
signs the return, you're ultimately
responsible for providing all the
information required for the preparer
to accurately prepare your return.
Anyone paid to prepare tax returns for
others should have a thorough
understanding of tax matters. For
more information on how to choose a
tax preparer, go to Tips for Choosing
a Tax Preparer on IRS.gov.

Advance child tax credit payments. From July through December
2021, advance payments were sent
automatically to taxpayers with
qualifying children who met certain
criteria. The advance child tax credit
payments were early payments of up
to 50% of the estimated child tax
credit that taxpayers may properly
claim on their 2021 returns. Go to
IRS.gov/AdvCTC for more information
about these payments and how they
can affect your taxes.
Coronavirus. Go to IRS.gov/
Coronavirus for links to information on
the impact of the coronavirus, as well
as tax relief available for individuals
and families, small and large
businesses, and tax-exempt
organizations.
Employers can register to use
Business Services Online. The
Social Security Administration (SSA)
offers online service at SSA.gov/
employer for fast, free, and secure
online W-2 filing options to CPAs,
accountants, enrolled agents, and
individuals who process Form W-2,
Wage and Tax Statement, and Form
W-2c, Corrected Wage and Tax
Statement.
-27-

The following IRS YouTube
channels provide short, informative
videos on various tax-related topics in
English, Spanish, and ASL.
• Youtube.com/irsvideos.
• Youtube.com/irsvideosmultilingua.
• Youtube.com/irsvideosASL.

Watching IRS videos. The IRS
Video portal (IRSVideos.gov) contains
video and audio presentations for
individuals, small businesses, and tax
professionals.
Online tax information in other languages. You can find information on
IRS.gov/MyLanguage if English isn’t
your native language.
Free Over-the-Phone Interpreter
(OPI) Service. The IRS is committed
to serving our multilingual customers
by offering OPI services. The OPI
service is a federally funded program
and is available at Taxpayer
Assistance Centers (TACs), other IRS
offices, and every VITA/TCE return
site. OPI service is accessible in more
than 350 languages.
Accessibility Helpline available for
taxpayers with disabilities.
Taxpayers who need information
about accessibility services can call
833-690-0598. The Accessibility
Helpline can answer questions related
to current and future accessibility
products and services available in
alternative media formats (for
example, braille, large print, audio,
etc.).
Getting tax forms and publications. Go to IRS.gov/Forms to view,
download, or print all of the forms,
instructions, and publications you may
need. Or, you can go to IRS.gov/
OrderForms to place an order.
Getting tax publications and instructions in eBook format. You
can also download and view popular

tax publications and instructions
(including the Instructions for Form
1040) on mobile devices as eBooks at
IRS.gov/eBooks.
Note. IRS eBooks have been tested
using Apple's iBooks for iPad. Our
eBooks haven’t been tested on other
dedicated eBook readers, and eBook
functionality may not operate as
intended.

you can order your transcript by
calling 800-908-9946.
Reporting and resolving tax-related identity theft issues.
• Tax-related identity theft happens
when someone steals your personal
information to commit tax fraud. Your
taxes can be affected if your SSN is
used to file a fraudulent return or to
claim a refund or credit.
• The IRS doesn't initiate contact with
taxpayers by email, text messages,
telephone calls, or social media
channels to request personal or
financial information. This includes
requests for personal identification
numbers (PINs), passwords, or similar
information for credit cards, banks, or
other financial accounts.
• Go to IRS.gov/IdentityTheft, the IRS
Identity Theft Central webpage, for
information on identity theft and data
security protection for taxpayers, tax
professionals, and businesses. If your
SSN has been lost or stolen or you
suspect you’re a victim of tax-related
identity theft, you can learn what steps
you should take.
• Get an Identity Protection PIN (IP
PIN). IP PINs are six-digit numbers
assigned to taxpayers to help prevent
the misuse of their SSNs on
fraudulent federal income tax returns.
When you have an IP PIN, it prevents
someone else from filing a tax return
with your SSN. To learn more, go to
IRS.gov/IPPIN.

• Debit or Credit Card: Choose an
approved payment processor to pay
online or by phone.
• Electronic Funds Withdrawal:
Schedule a payment when filing your
federal taxes using tax return
preparation software or through a tax
professional.
• Electronic Federal Tax Payment
System: Best option for businesses.
Enrollment is required.
• Check or Money Order: Mail your
payment to the address listed on the
notice or instructions.
• Cash: You may be able to pay your
taxes with cash at a participating retail
store.
• Same-Day Wire: You may be able
to do same-day wire from your
financial institution. Contact your
financial institution for availability,
cost, and time frames.

DRAFT AS OF
January 19, 2022

Access your online account (individual taxpayers only). Go to
IRS.gov/Account to securely access
information about your federal tax
account.
• View the amount you owe and a
breakdown by tax year.
• See payment plan details or apply
for a new payment plan.
• Make a payment or view 5 years of
payment history and any pending or
scheduled payments.
• Access your tax records, including
key data from your most recent tax
return, your EIP amounts, and
transcripts.
• View digital copies of select notices
from the IRS.
• Approve or reject authorization
requests from tax professionals.
• View your address on file or
manage your communication
preferences.
Tax Pro Account. This tool lets your
tax professional submit an
authorization request to access your
individual taxpayer IRS.gov/
TaxProAccount.
Using direct deposit. The fastest
way to receive a tax refund is to file
electronically and choose direct
deposit, which securely and
electronically transfers your refund
directly into your financial account.
Direct deposit also avoids the
possibility that your check could be
lost, stolen, or returned undeliverable
to the IRS. Eight in 10 taxpayers use
direct deposit to receive their refunds.
If you don't have a bank account, go
to IRS.gov/DirectDeposit for more
information on where to find a bank or
credit union that can open an account
online.
Getting a transcript or copy of a
return. The quickest way to get a
copy of your tax transcript is to go to
IRS.gov/Transcripts. Click on either
“Get Transcript Online” or “Get
Transcript by Mail” to order a free
copy of your transcript. If you prefer,

Ways to check on the status of
your refund.
• Go to IRS.gov/Refunds.
• Download the official IRS2Go app
to your mobile device to check your
refund status.
• Call the automated refund hotline at
800-829-1954.
Note. The IRS can’t issue refunds
before mid-February 2022 for returns
that claimed the additional child tax
credit (ACTC). This applies to the
entire refund, not just the portion
associated with this credit.
Making a tax payment. Go to
IRS.gov/Payments for information on
how to make a payment using any of
the following options.
• IRS Direct Pay: Pay your individual
tax bill or estimated tax payment
directly from your checking or savings
account at no cost to you.

-28-

Note. The IRS uses the latest
encryption technology to ensure that
the electronic payments you make
online, by phone, or from a mobile
device using the IRS2Go app are safe
and secure. Paying electronically is
quick, easy, and faster than mailing in
a check or money order.
What if I can’t pay now? Go to
IRS.gov/Payments for more
information about your options.
• Apply for an online payment
agreement (IRS.gov/OPA) to meet
your tax obligation in monthly
installments if you can’t pay your
taxes in full today. Once you complete
the online process, you will receive
immediate notification of whether your
agreement has been approved.
• Use the Offer in Compromise PreQualifier to see if you can settle your
tax debt for less than the full amount
you owe. For more information on the
Offer in Compromise program, go to
IRS.gov/OIC.
Filing an amended return. You can
now file Form 1040-X electronically
with tax filing software to amend 2019
or 2020 Forms 1040 and 1040-SR. To
do so, you must have e-filed your
original 2019 or 2020 return.
Amended returns for all prior years
must be mailed. Go to IRS.gov/
Form1040X for information and
updates.
Checking the status of an amended return. Go to IRS.gov/WMAR to
track the status of Form 1040-X
amended returns.
Instructions for Form 1040-NR (2021)

Note. It can take up to 3 weeks from
the date you filed your amended
return for it to show up in our system,
and processing it can take up to 16
weeks.
Understanding an IRS notice or
letter you have received. Go to
IRS.gov/Notices to find additional
information about responding to an
IRS notice or letter.
You can use Schedule LEP,
Request for Change in Language
Preference, to state a preference to
receive notices, letters, or other
written communications from the IRS
in an alternative language, when
these are available. Once your
Schedule LEP is processed, the IRS
will determine your translation needs
and provide you translations when
available. If you have a disability
requiring notices in an accessible
format, see Form 9000.

Contacting your local IRS office.
Keep in mind, many questions can be
answered on IRS.gov without visiting
an IRS TAC. Go to IRS.gov/
LetUsHelp for the topics people ask
about most. If you still need help, IRS
TACs provide tax help when a tax
issue can’t be handled online or by
phone. All TACs now provide service
by appointment, so you’ll know in
advance that you can get the service
you need without long wait times.
Before you visit, go to IRS.gov/
TACLocator to find the nearest TAC
and to check hours, available
services, and appointment options.
Or, on the IRS2Go app, under the
Stay Connected tab, choose the
Contact Us option and click on “Local
Offices.”

• Go to IRS.gov and type
“nonresident alien” in the search box,
or
• Call 267-941-1000
(English-speaking only). This number
is not toll free.

Interest and Penalties

DRAFT AS OF
January 19, 2022

Instructions for Form 1040-NR (2021)

Taxpayer assistance outside the
United States. If you are outside the
United States and have tax questions:

-29-

See Interest and Penalties in the
Instructions for Form 1040 for more
details.

Refund Information

See Refund Information in the
Instructions for Form 1040 for more
details.

Exception. The processing of refund
requests of tax withheld and reported
on a Form 1042-S, Form 8805, or
Form 8288-A may require additional
time. Allow up to 6 months for these
refunds to be issued.

Instructions for Schedule
1 (Form 1040)—Additional
Income and Adjustments
to Income
General Instructions

instead of the State and Local Income
Tax Refund Worksheet—Schedule 1,
Line 1 in the Instructions for Form
1040.
Lines 2a and 2b—Alimony
Received

As noted in Form 1040-NR Helpful
Hints, earlier, you may need to use
Schedule 1 (Form 1040) if you have
additional income, such as business
or farm income or loss, unemployment
compensation, prize or award money,
or gambling winnings or any
deductions to claim, such as the
student loan interest deduction,
self-employment tax, or educator
expenses.

Leave lines 2a and 2b of Schedule 1
(Form 1040) blank. Do not follow the
instructions in Lines 2a and
2b—Alimony Received under
Instructions for Schedule 1 in the
Instructions for Form 1040. A person
filing Form 1040-NR does not report
alimony on lines 2a and 2b. You will
report any alimony received on
Schedule NEC (Form 1040-NR).

When completing a line on
Schedule 1 (Form 1040), look to the
instructions below for that line, which
may direct you to the Schedule 1
instructions found in the
Instructions for Form 1040 for
guidance.

Line 3—Business Income or (Loss)

in real estate mortgage investment
conduits (REMICs) on Schedule 1
(Form 1040), line 5. Use Schedule E
(Form 1040) to figure the amount to
enter on Schedule 1 (Form 1040),
line 5, and attach Schedule E (Form
1040) to your return. For more
information, see the Instructions for
Schedule E (Form 1040).

DRAFT AS OF
January 19, 2022

See the specific line
instructions below for any
CAUTION Exceptions. For example,
see Line 1 below, which has three
exceptions. Also, only use the
guidance for the filing status you
checked at the top of page 1 of Form
1040-NR. No other guidance under
Instructions for Schedule 1 in the
Instructions for Form 1040 will apply
to you.

!

Additional Income
Line 1—Taxable Refunds, Credits,
or Offsets of State and Local
Income Taxes
See Line 1 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details.
Exception 1. The state or local
income tax must be of a U.S. state or
local government.
Exception 2. Ignore the TIP. The
only reason none of your refund would
be taxable is, if in the year you paid
the state or local income tax, you did
not itemize deductions on Schedule A
(Form 1040-NR); or you were a
student or business apprentice
eligible for the benefits of the United
States-India Income Tax Treaty,
Article 21(2), and you elected to use
the standard deduction.
Exception 3. Use Itemized
Deduction Recoveries in Pub. 525

See Line 3 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on business
income or (loss).
Exception 1. Report only your
effectively connected income and
expenses from Schedule C (Form
1040).
Exception 2. Include any income
you received as a dealer in stocks,
securities, and commodities through
your U.S. office or dependent agent. If
you dealt in these items through an
independent agent, such as a U.S.
broker, custodian, or commissioned
agent, your income may not be
considered effectively connected with
a U.S. business.
Line 4—Other Gains or (Losses)
See Line 4 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on other gains
or (losses).
Exception. The assets must have
been used in a U.S. trade or business.
Line 5—Rental Real Estate,
Royalties, Partnerships, S
Corporations, Trusts, etc.
Form 1040-NR filers can't be
shareholders in S corporations. Even
though the text for line 5 on Schedule
1 (Form 1040) mentions S
corporation, the reference to S
corporations doesn’t apply to Form
1040-NR filers.
Report income or loss from rental
real estate, royalties, partnerships,
estates, trusts, and residual interests
-30-

If you are electing to treat

TIP income from real property

located in the United States
as effectively connected with a U.S.
trade or business, report the rental
income or loss on Schedule 1 (Form
1040), line 5. See Income You Can
Elect To Treat as Effectively
Connected With a U.S. Trade or
Business, earlier, for more details on
how to make the election. If you have
not made or do not make the election,
report the rental income on
Schedule NEC (Form 1040-NR),
line 6. See Income From Real
Property in chapter 4 of Pub. 519 for
more details.
Line 6—Farm Income or (Loss)
Report farm income and expenses on
line 6. Use Schedule F (Form 1040) to
figure the amount to enter on line 6
and attach Schedule F (Form 1040) to
your return. For more information, see
the Instructions for Schedule F (Form
1040). Also see Pub. 225, Farmer's
Tax Guide, for a list of important dates
that apply to farmers.

Line 7—Unemployment
Compensation
See Line 7 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on
unemployment compensation.
Lines 8a Through 8z—Other
Income
See Lines 8a Through 8z under
Instructions for Schedule 1 in the
Instructions for Form 1040 for details
on other income, but see Line 8a
through Line 8z below for exceptions.
Line 8a—Net operating loss (NOL)
deduction
See Line 8a under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on net operating
losses.
Instructions for Form 1040-NR (2021)

Line 8b—Gambling income
See Line 8b under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on gambling
income.
Exception. Income from gambling
entered on line 8b must be from an
effectively connected U.S. trade or
business. If it is not from an effectively
connected U.S. trade or business, but
is U.S. sourced, enter the income on
Schedule NEC (Form 1040-NR).

Line 8i—Activity not engaged in
for profit income

Line 8p—Taxable distributions
from an ABLE account

Leave Schedule 1 (Form 1040),
line 8i, blank. Form 1040-NR filers do
not include income on this line
because this income is not from a
trade of business. Include this income
on Schedule NEC (Form 1040-NR) on
the applicable line.

See Line 8p under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on taxable
distributions from an ABLE account.

DRAFT AS OF
January 19, 2022

Line 8c—Cancellation of debt

See Line 8c under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on cancellation
of debt.

Exception. For Form 1040-NR filers,
canceled debts in box 2 of Form
1042-S should be included on
Schedule 1 (Form 1040), line 8c.
Line 8d—Foreign earned income
exclusion and housing exclusion
from Form 2555
Leave Schedule 1 (Form 1040),
line 8d, blank. The foreign earned
income exclusion and housing
exclusion from Form 2555 do not
apply to Form 1040-NR filers.
Line 8e—Taxable Health Savings
Account distribution
See Line 8e under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on taxable HSA
distributions.
Line 8f—Alaska Permanent Fund
dividends
Leave Schedule 1 (Form 1040),
line 8f, blank. Alaska Permanent Fund
dividends do not apply to Form
1040-NR filers.
Line 8g—Jury duty pay
Leave Schedule 1 (Form 1040),
line 8g, blank. Jury duty pay does not
apply to Form 1040-NR filers.
Line 8h—Prizes and awards
See Line 8h under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on prizes and
awards.

Line 8j—Stock options

See Line 8j under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on stock
options.

Line 8k—Income from the rental of
personal property if you engaged
in the rental for profit but were not
in the business of renting such
property

Leave line 8k blank. Include this
income on Schedule NEC (Form
1040-NR), line 6.
Line 8l—Olympic and Paralympic
medals and USOC prize money
See Line 8l under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on Olympic and
Paralympic medals and USOC prize
money.
Exception. The medals and prize
money must be from your U.S. trade
or business.
Line 8m—Section 951(a) inclusion
Leave Schedule 1 (Form 1040),
line 8m, blank. The section 951(a)
inclusion does not apply to Form
1040-NR filers.
Line 8n—Section 951A(a)
inclusion
Leave Schedule 1 (Form 1040),
line 8n, blank. The section 951A(a)
inclusion does not apply to Form
1040-NR filers.
Line 8o—Section 461(l) excess
business loss adjustment
See Line 8o under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on section
461(l).

Exception. The prizes and awards
must be from your trade or business.
Instructions for Form 1040-NR (2021)

-31-

Line 8z—Other income

See Line 8z under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on other
income.

Exception 1. The bullet discussing
“reimbursements or other amounts
received for items deducted in an
earlier year” only applies to items
deducted on a Schedule A (Form
1040-NR). The items listed as
examples in the bullet in the
Instructions for Schedule 1 are only
deductible on Schedule A (Form
1040).
Exception 2. You will not have
Medicaid waiver payments that you
chose to include in earned income
unless you are a student or business
apprentice eligible for the benefits in
Article 21(2) of the United States-India
Income Tax Treaty.

Exception 3. Gifts or bequests you
receive from a foreign person are not
taxable regardless of the amount.

Adjustments to Income
Line 11—Educator Expenses
See Line 11 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on educator
expenses.
Line 12—Certain Business
Expenses of Reservists,
Performing Artists, and Fee-Basis
Government Officials
See Line 12 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on these
business expenses.
Exception 1. The expenses must be
related to your effectively connected
income.
Exception 2. Do not include
performing-arts-related expenses as a
write-in on line 8z of Schedule 1
(Form 1040). In 2019, these expenses
were a write-in on the line that is now
line 8z of Schedule 1 (Form 1040).

Line 13—Health Savings Account
(HSA) Deduction
See Line 13 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on the HSA
deduction.

only if you are a U.S. national;
resident of Canada, Mexico, or South
Korea; or a student or a business
apprentice eligible for the benefits of
Article 21(2) of the United States-India
Income Tax Treaty. If your filing status
at the top of page 1 on Form 1040-NR
is Married filing separately, you
cannot claim the premium tax credit
unless you also meet the criteria of
one of the exceptions under Married
taxpayers in the Instructions for Form
8962.

Exception 1. When reading that
section including when completing the
Student Loan Interest Deduction
Worksheet in that section, follow only
the guidance for the filing status you
checked at the top of page 1 of Form
1040-NR.

DRAFT AS OF
January 19, 2022

Line 14—Moving Expenses of
Members of the Armed Forces

See Line 14 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on these
moving expenses.
Line 15—Deductible Part of
Self-Employment Tax

See Line 15 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on the
deductible part of self-employment
tax.
Line 16—Self-Employed SEP,
SIMPLE, and Qualified Plans
See Line 16 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on
self-employed SEP, SIMPLE, and
qualified plans.
Line 17—Self-Employed Health
Insurance Deduction
See Line 17 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on the
self-employed health insurance
deduction.

Exception 1. The rules for a
shareholder in an S corporation do not
apply to you. Nonresident aliens
cannot be shareholders in an S
corporation.
Exception 2. The discussion of the
Schedule A medical expense
deduction on line 3 of the
Self-Employed Health Insurance
Deduction Worksheet does not apply
to you. Your Schedule A (which is
called Schedule A (Form 1040-NR))
does not have a line for medical
expense deductions.
Exception 3. Form 2555 discussions
do not apply to you. You are not
eligible for the foreign earned income
and foreign housing benefits on Form
2555.
Exception 4. You can claim the
premium tax credit for dependents

Line 18—Penalty on Early
Withdrawal of Savings

See Line 18 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on the penalty
on early withdrawal of savings.

Lines 19a, 19b, and 19c—Alimony
Paid
Leave lines 19a, 19b, and 19c blank
on Schedule 1 (Form 1040). You are
not eligible for an alimony deduction if
you are filing Form 1040-NR.
Line 20—IRA Deduction
See Line 20 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on the IRA
deduction.
Exception 1. When reading that
section, including when completing
the IRA Deduction Worksheet, follow
only the guidance for the filing status
you checked at the top of page 1 of
Form 1040-NR.
Exception 2. Do not use your
spouse's earned income, or your or
your spouse's alimony and separate
maintenance payments, when
determining whether you can take the
IRA deduction.
Exception 3. Do not apply Form
2555, Foreign Earned Income,
discussions to your situation. You
cannot file that form.

Exception 2. If you checked the
Married filing separately box at the top
of page 1 of Form 1040-NR, you
cannot take the student loan interest
deduction.
Line 22—Reserved for future use.

Leave line 22 blank.

Line 23—Archer MSA Deduction

See Line 23 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on the Archer
MSA deduction.
Line 24
See Line 24a through Line 24z below
for details and exceptions.
Line 24a—Jury duty pay

Leave Schedule 1 (Form 1040),
line 24a, blank. Jury duty pay does
not apply to Form 1040-NR filers.
Line 24b—Personal property rental
expenses
Leave Schedule 1 (Form 1040),
line 24b, blank unless the expenses
arise from a U.S. trade or business.
Form 1040-NR filers cannot deduct
expenses from the rental of personal
property engaged in for profit, but not
as part of a U.S. trade or business.
Line 24c—Nontaxable amount of
the value of Olympic and
Paralympic medals and USOC
prize money reported on line 8l

Exception 4. You must have taxable
compensation effectively connected
with a U.S. trade or business.

See Line 24c under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on the
nontaxable amount of the value of
Olympic and Paralympic medals and
USOC prize money.

Line 21—Student Loan Interest
Deduction

Line 24d—Reforestation
amortization and expenses

See Line 21 under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on the student
loan interest deduction.
-32-

See Line 24d under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on

Instructions for Form 1040-NR (2021)

resforestation amortization and
expenses.
Line 24e—Repayment of
supplemental unemployment
benefits under the Trade Act of
1974

Line 24j—Housing deduction from
Form 2555

Instructions for Form 1040 will apply
to you.

Leave Schedule 1 (Form 1040),
line 24j, blank. Housing deduction
from Form 2555 does not apply to
Form 1040-NR filers.

Specific Instructions
Line 1—Alternative Minimum Tax
(AMT)
See Line 1 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on the
alternative minimum tax.

DRAFT AS OF
January 19, 2022

See Line 24e under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on repayment of
supplemental unemployment benefits
under the Trade Act of 1974.
Line 24f—Contributions to section
501(c)(18)(D) pension plans

See Line 24f under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on contributions
to section 501(c)(18)(D) pension
plans.

Line 24g—Contributions by certain
chaplains to section 403(b) plans
See Line 24g under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on contributions
by certain chaplains to section 403(b)
plans.
Line 24h—Attorney fees and court
costs for actions involving certain
unlawful discrimination claims
See Line 24h under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on attorney fees
and court costs for actions involving
certain unlawful discrimination claims.
Exception. Do not include on
line 24h attorney fees and court costs
for actions involving certain unlawful
discrimination claims to the extent the
gross income from such actions is not
effectively connected.
Line 24i—Attorney fees and court
costs you paid in connection with
an award from the IRS for
information you provided that
helped the IRS detect tax law
violations
See Line 24i under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on attorney fees
and court costs you paid in
connection with an award from the
IRS for information you provided that
helped the IRS detect tax law
violations.
Instructions for Form 1040-NR (2021)

Line 24k—Excess deductions of
section 67(e) expenses from
Schedule K-1 (Form 1041)

See Line 24k under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on excess
deductions of section 67(e) expenses
from Schedule K-1 (Form 1041).
Line 24z—Other Adjustments. List
type and amount
See Line 24z under Instructions for
Schedule 1 in the Instructions for
Form 1040 for details on other
adjustments.

Instructions for Schedule
2 (Form 1040)—Additional
Taxes
General Instructions

As noted in Form 1040-NR Helpful
Hints, earlier, you may need to use
Schedule 2 (Form 1040) if you owe
the alternative minimum tax (AMT) or
need to make an excess advance
premium tax credit repayment, or you
owe other taxes, such as
self-employment tax, household
employment taxes, or additional tax
on IRAs or other qualified retirement
plans and tax-favored accounts.
For guidance when completing a
line on Schedule 2 (Form 1040), look
to the instructions below for that line,
which may direct you to the Schedule
2 instructions found in the
Instructions for Form 1040 for
guidance. Also see General
Instructions under Instructions for
Schedule 2 in the Instructions for
Form 1040 for an overview.
See the specific line
instructions below for any
CAUTION Exceptions. For example,
see Line 1 below, which has four
exceptions. Also, only use the
guidance for the filing status you
checked at the top of page 1 of Form
1040-NR. No other guidance under
Instructions for Schedule 2 in the

!

-33-

Exception 1. For estates and
trusts only. If you are filing for an
estate or trust, do the following.
• Use Schedule I (Form 1041) and its
instructions to find out if you owe the
alternative minimum tax. Do not use
the Instructions for Form 1040 to
figure whether you owe the alternative
minimum tax.
• If you disposed of a U.S. real
property interest at a gain, you must
make a special computation to see if
you owe this tax. For details, see
Nonresident Aliens in the Instructions
for Form 6251.
Exception 2. Only use the guidance
for the filing status you checked at the
top of page 1 of Form 1040-NR. No
other guidance in Line 1, Alternative
Minimum Tax, in the Instructions for
Schedule 2 found in the Instructions
for Form 1040 will apply to you.

Exception 3. The following in the list
under Exception in Line 1 under
Instructions for Schedule 2 in the
Instructions for Form 1040 do not
apply to you.
• The reference to income (or loss)
from S corporations. Nonresident
aliens cannot be shareholders in an S
corporation.
• Investment interest expense
reported on Form 4952 cannot apply
to you. Nonresident aliens do not file
Form 4952.
• Net qualified disaster loss unless
you are a student or business
apprentice eligible for benefits under
Article 21(2) of the United States-India
Income Tax Treaty and you reported a
standard deduction on Schedule A
(Form 1040-NR), line 7.
Exception 4. On line 2 of the
Worksheet To See if You Should Fill
in Form 6251—Schedule 2, Line 1,
enter the amount from Schedule A
(Form 1040-NR), line 1b. Do not enter
the amount from line 7.

Line 2—Excess Advance Premium
Tax Credit Repayment
See Line 2 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on the excess
advance premium tax credit
repayment.

Line 6—Uncollected Social
Security and Medicare Tax From
Form 8919
See Line 6 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on uncollected
social security and Medicare tax on
wages from Form 8919.

Line 13—Uncollected Social
Security and Medicare or RRTA
Tax on Tips or Group-Term Life
Insurance
See Line 13 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on uncollected
social security and Medicare or RRTA
tax on tips or group-term life
insurance from Form W-2, box 12.

DRAFT AS OF
January 19, 2022

Exception. You can claim the
premium tax credit for dependents
only if you are a U.S. national;
resident of Canada, Mexico, or South
Korea; or a student or a business
apprentice eligible for the benefits of
Article 21(2) of the United States-India
Income Tax Treaty. If your filing status
at the top of page 1 on Form 1040-NR
is Married filing separately, you
cannot claim the premium tax credit
unless you meet the criteria of one of
the exceptions under Married
taxpayers in the Instructions for Form
8962.
Line 4—Self-Employment Tax
Enter the amount of any taxes from
Schedule SE (Form 1040). See the
Instructions for Schedule SE (Form
1040) for more information.
If you are a self-employed
nonresident alien, you must pay
self-employment tax only if an
international social security
agreement (often called a totalization
agreement) in effect determines that
you are covered under the U.S. social
security system. See the Instructions
for Schedule SE (Form 1040) for
information about international social
security agreements. Information
about totalization agreements is
available at IRS.gov. Enter
“totalization agreement” in the search
box there. You can also find
information at SSA.gov/international
under “International Agreements.”
If you are not required to pay
self-employment tax but do so
CAUTION anyway, you will not be
eligible to receive social security
benefits.

!

Line 5—Social Security and
Medicare Tax From Form 4137
See Line 5 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on social
security and Medicare tax on
unreported tip income from Form
4137.

Exception. Enter the amount from
line 6 of Form 8919 on Form
1040-NR, line 1a, as Form 8919,
line 6, says.

Line 8—Additional Tax on IRAs,
Other Qualified Retirement Plans,
etc.

See Line 8 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on additional tax
on IRAs, other qualified retirement
plans, etc.
Line 9—Household Employment
Taxes
See Line 9 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on household
employment taxes.
Line 10—First-Time Homebuyer
Credit Repayment
See Line 10 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on first-time
homebuyer credit repayment.
Line 11—Additional Medicare Tax
See Line 11 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on the
Additional Medicare Tax from Form
8959.
Line 12—Net Investment Income
Tax
See Line 12 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on the net
investment income tax from Form
8960.
Exception. You are only liable for the
net investment income tax if you are a
dual-status taxpayer (see Dual-Status
Taxpayers, earlier). You may owe this
tax for the part of the year you were a
U.S. resident (see Form 8960 and its
instructions).

-34-

Line 14—Interest on Tax Due on
Installment Income From the Sale
of Certain Residential Lots and
Timeshares
See Line 14 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on interest on
tax due on installment income from
the sale of certain residential lots and
timeshares.
Line 15—Interest on The Deferred
Tax on Gain From Certain
installment Sales With a Sales
Price Over $150,000
See Line 15 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on interest on
the deferred tax on gain from certain
installment sales with a sales price
over $150,000.

Line 16—Recapture of Low-Income
Housing Credit From Form 8611
See Line 16 under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on recapture of
low-income housing credit from Form
8611.
Lines 17a Through 17z—Other
Additional Taxes
See Line 17a through Line 17z below
for details and exceptions.
Line 17a—Recapture of other
credits
See Line 17a under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on recapture of
other credits.
Line 17b—Recapture of federal
mortgage subsidy
See Line 17b under Instructions for
Schedule 2 in the Instructions for
Instructions for Form 1040-NR (2021)

Form 1040 for details on recapture of
federal mortgage subsidy.
Line 17c—Additional tax on HSA
distributions
See Line 17c under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on additional tax
on HSA distributions.

Line 17i—Compensation you
received from a nonqualified
deferred compensation plan
described in section 457A
See Line 17i under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on
compensation you received from a
nonqualified deferred compensation
plan described in section 457A.

connected income (that is, your
income not effectively connected with
a U.S. trade or business) on Form
1040-NR, line 23a. See Instructions
for Schedule NEC (Form 1040-NR),
later.
Line 17p—Any interest from Form
8621, line 16f, relating to
distributions from, and
dispositions of, stock of a section
1291 fund

DRAFT AS OF
January 19, 2022

Line 17d—Additional tax on an
HSA

See Line 17d under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on additional tax
on an HSA.
Line 17e—Additional tax on Archer
MSA distributions from Form 8853

See Line 17e under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on additional tax
on Archer MSA distributions from
Form 8853.
Line 17f—Additional tax on
Medicare Advantage MSA
distributions from Form 8853
See Line 17f under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on additional tax
on Medicare Advantage MSA
distributions from Form 8853.
Line 17g—Recapture of a
charitable contribution deduction
related to a fractional interest in
tangible personal property
See Line 17g under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on recapture of
a charitable contribution deduction
related to a fractional interest in
tangible personal property.
Line 17h—Income you received
from a nonqualified deferred
compensation plan that fails to
meet the requirements of section
409A
See Line 17h under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on income you
received from a nonqualified deferred
compensation plan that fails to meet
the requirements of section 409A.

Instructions for Form 1040-NR (2021)

Line 17j—Section 72(m)(5) excess
benefits tax
See Line 17j under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on the section
72(m)(5) excess benefits tax.
Line 17k—Golden parachute
payments
See Line 17k under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on golden
parachute payments.
Line 17l—Tax on accumulation
distribution of trusts
See Line 17l under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on tax on
accumulation distribution of trusts.
Line 17m—Excise tax on insider
stock compensation from an
expatriated corporation

See Line 17m under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on excise tax on
insider stock compensation from an
expatriated corporation.
Line 17n—Look-back interest
under section 167(g) or 460(b)
from Form 8697 or 8866
See Line 17n under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on look-back
interest under section 167(g) or
460(b) from Form 8697 or 8866.
Line 17o—Tax on non-effectively
connected income for any part of
the year you were a nonresident
alien from Form 1040-NR
Leave Schedule 2, line 17o, blank,
unless you are a dual-status taxpayer.
If you are not a dual-status taxpayer,
enter the tax on your noneffectively
-35-

Leave Schedule 2, line 17p, blank.
Persons filing Form 1040-NR do not
file Form 8621.
Line 17q—Any interest from Form
8621, line 24
Leave Schedule 2, line 17q, blank.
Persons filing Form 1040-NR do not
file Form 8621.
Line 17z—Any other taxes
See Line 17z under Instructions for
Schedule 2 in the Instructions for
Form 1040 for details on other taxes.
Line 19—Additional Tax From
Schedule 8812 (Form 1040)
See the Instructions for Schedule
8812 (Form 1040).
Exception. Schedule 8812 (Form
1040) can only be filed by residents of
Canada, Mexico, and South Korea,
and business apprentices and
students who are eligible for the
benefits of Article 21(2) of the United
States-India income Tax Treaty.
Line 20—Section 965 Net Tax
Liability Installment From Form
965-A
Leave Schedule 2 (Form 1040),
line 20, blank. Persons filing Form
1040-NR cannot have a section 965
net tax liability installment from Form
965-A.

Instructions for Schedule
3 (Form 1040)—Additional
Credits and Payments
General Instructions

As noted in Form 1040-NR Helpful
Hints, earlier, you may need to use
Schedule 3 (Form 1040) if you can
claim a nonrefundable credit (other
than the nonrefundable child tax credit

or the credit for other dependents),
such as the foreign tax credit or
general business credit; or a
refundable credit (other than the
refundable child tax credit or the
additional child tax credit), such as the
net premium tax credit, health
coverage tax credit, or qualified sick
and family leave credits from
Schedule H or Schedule SE. You may
also need Schedule 3 (Form 1040) if
you have other payments, such as an
amount paid with a request for an
extension to file, excess social
security tax withheld, or have a
deferral of payments of tax (for certain
Schedule H and Schedule SE filers).
When completing a line of
Schedule 3 (Form 1040), look to the
instructions below for that line, which
may direct you to the Schedule 3
instructions found in the
Instructions for Form 1040 for
guidance. Also see General
Instructions under Instructions for
Schedule 3 in the Instructions for
Form 1040 for an overview.

(Form 1040), line 2. Otherwise, see
Form 1116 to see whether you can
take the credit. For details on foreign
income taxed by the United States,
see Foreign Income Taxed by the
United States, earlier.
Exception 3. If you are an estate or
trust taking the foreign tax credit, you
must complete Form 1116. Exception
2 above is only for individual
taxpayers.

Lines 6a Through 6z—Other
Nonrefundable Credits
See Line 6a through Line 6z below for
details and exceptions.
Line 6a—General business credit
from Form 3800

DRAFT AS OF
January 19, 2022

See the specific line
instructions below for any
CAUTION Exceptions. For example,
see Line 1 below, which has five
exceptions. Also, only use the
guidance for the filing status you
checked at the top of page 1 of Form
1040-NR. No other guidance under
Instructions for Schedule 3 in the
Instructions for Form 1040 will apply
to you.

!

Specific Instructions
Line 1—Foreign Tax Credit
See Line 1 under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the foreign
tax credit.
Exception 1. The TIP, requiring you
to see the instructions for Schedule 3
(Form 1040), line 3, does not apply to
you. You cannot make a section 962
election.
Exception 2. If you meet all five
requirements in Line 1 under
Instructions for Schedule 3 in the
Instructions for Form 1040 and the
income for which you are taking the
foreign tax credit is income taxed by
the United States, enter on Schedule
3 (Form 1040), line 1, the smaller of
(a) your total foreign taxes, or (b) the
total of the amounts on Form
1040-NR, line 16, and Schedule 2

Exception 4. Only use the guidance
for the filing status you checked at the
top of page 1 of Form 1040-NR. No
other guidance in Line 1 under
Instructions for Schedule 3 in the
Instructions for Form 1040 will apply
to you.

Exception 5. The discussion of Form
4563 and Puerto Rico sourced
income does not apply to you.

Line 2—Credit for Child and
Dependent Care Expenses
See Line 2 under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the credit for
child and dependent care expenses.
Line 3—Education Credits
Leave Schedule 3 (Form 1040), line 3,
blank. Persons filing Form 1040-NR
cannot claim education credits.
Line 4—Retirement Savings
Contributions Credit (Saver's
Credit)
See Line 4 under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the
retirement savings contributions credit
(saver's credit).
Exception. Only use the guidance
for the filing status you checked at the
top of page 1 of Form 1040-NR. No
other guidance in Line 4 under
Instructions for Schedule 3 in the
Instructions for Form 1040 will apply
to you.
Line 5—Residential Energy Credits
See Line 5 under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the
residential energy credits: the
nonbusiness energy property credit
and the residential energy efficient
property credit.
-36-

See Line 6a under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the general
business credit.
Line 6b—Credit for prior year
minimum tax from Form 8801

See Line 6b under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the credit
prior year minimum tax from Form
8801.
Line 6c—Adoption credit from
Form 8839
See Line 6c under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the adoption
credit from Form 8839.
Line 6d—Credit for the elderly or
disabled from Schedule R (Form
1040)
Leave Schedule 3 (Form 1040),
line 6d, blank. The credit for the
elderly or disabled from Schedule R
does not apply to Form 1040-NR
filers.
Line 6e—Alternative motor vehicle
credit from Form 8910
See Line 6e under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the
alternative motor vehicle credit from
Form 8910.
Line 6f—Qualified plug-in motor
vehicle credit from Form 8936
See Line 6f under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the qualified
plug-in motor vehicle credit from Form
8936.
Line 6g—Mortgage interest credit
from Form 8396
See Line 6g under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the mortgage
interest credit from Form 8396.
Instructions for Form 1040-NR (2021)

Line 6h—District of Columbia
first-time homebuyer credit from
Form 8859
See Line 6h under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the District of
Columbia first-time homebuyer credit
from Form 8859.

Line 9—Net Premium Tax Credit
See Line 9 under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the net
premium tax credit.
Exception. You can claim the
premium tax credit for dependents
only if you are a U.S. national;
resident of Canada, Mexico, or South
Korea; or a student or a business
apprentice eligible for the benefits of
Article 21(2) of the United States-India
Income Tax Treaty.
If your filing status at the top of
page 1 on Form 1040-NR is Married
filing separately, you cannot claim the
net premium tax credit unless you
meet the criteria of one of the
exceptions under Married taxpayers in
the Instructions for Form 8962.

Lines 13a Through 13z—Other
Payments and Refundable Credits
See Line 13b through Line 13z below
for details and exceptions.
Line 13b—Qualified sick and
family leave credits from
Schedule(s) H and Form(s) 7202
for leave taken before April 1, 2021

DRAFT AS OF
January 19, 2022

Line 6i—Qualified electric vehicle
credit from Form 8834

See Line 6i under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the qualified
electric vehicle credit from Form 8834.
Line 6j—Alternative fuel vehicle
refueling property credit from
Form 8911

See Line 6j under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on alternative
fuel vehicle refueling property credit
from Form 8911.
Line 6k—Credit to holders of tax
credit bonds from Form 8912

Line 10—Amount Paid With
Request for Extension To File
See Line 10 under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the amount
paid with a request for extension to
file.

See Line 6k under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on credit to
holders of tax credit bonds from Form
8912.

Exception. The discussion of Form
2350 does not apply to you. That form
is for U.S citizens and resident aliens
abroad.

Line 6l—Amount on Form 8978,
line 14

Line 11—Excess Social Security
and Tier 1 RRTA Tax Withheld

See Line 6l under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the amount
from Form 8978.
Exception. If you use the Negative
Form 8978 Adjustment
Worksheet—Schedule 3 (Line 6l), you
will use the same line of Form
1040-NR that is used for Form 1040
or 1040-SR.
Line 6z—Other nonrefundable
credits
See Line 6z under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on other
nonrefundable credits.

See Line 11 under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on excess
social security and tier 1 RRTA tax
withheld.
Exception. Only use the guidance
for the filing status you checked at the
top of page 1 of Form 1040-NR. No
other guidance in Line 11 under
Instructions for Schedule 3 in the
Instructions for Form 1040 will apply
to you. You cannot claim excess
social security or tier 1 RRTA tax
withheld for your spouse.
Line 12—Credit for Federal Tax on
Fuels

Exception. The discussion of the
section 962 election does not apply to
you. You cannot make that election.

See Line 12 under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the credit for
federal tax on fuels.

Instructions for Form 1040-NR (2021)

-37-

See Line 13b under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on qualified sick
and family leave credits from
Schedule(s) H and Form(s) 7202 for
leave taken before April 1, 2021.
Line 13d—Credit for repayment of
amounts included in income from
earlier years
See Line 13d under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the credit for
repayment of amounts included in
income from earlier years.
Line 13e—Reserved for future use
Leave Schedule 3 (Form 1040),
line 13e, blank.
Line 13f—Net section 965
inclusions
Leave Schedule 3 (Form 1040),
line 13f, blank. Net section 965
inclusions do not apply to Form
1040-NR filers.
Line 13g—Credit for child and
dependent care expenses from
Form 2441, line 10
See Line 13g under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on the credit for
child and dependent care expenses
from Form 2441, line 10.

Exception 1. The discussion
regarding Married filing jointly doesn’t
apply to Form 1040-NR filers. Form
1040-NR filers don’t have a Married
filing jointly filing status.
Exception 2. The credit for child and
dependent care expenses from Form
2441, line 10, is only available to
nonresident aliens whose principal
place of abode was within the United
States for more than one half of 2021.
Such individuals include teachers and
trainees present in the United States

under non-student “J”-visas and “Q”visas, and members of their
immediate families, as well as most
foreign students on “F”-visas, “J”visas, “M”-visas, and “Q”-visas. (In
each case, the individual must
comply with the terms of their visa
to avoid having days of presence
counted for purposes of meeting
the substantial presence test.) The
days of presence in the United States
of foreign government-related
individuals (a term which includes
employees of international
organizations such as the United
Nations) and members of their
immediate families are similarly
excluded from counting towards the
substantial presence test for the
duration of their qualifying
appointments. Further, under section
7701(b)(6), an individual who is a
resident of a foreign country having an
income tax treaty with the United
States and who elects for 2021 to be
treated as a nonresident of the United
States under the so-called treaty
“tie-breaker rule” may file as a
nonresident alien on Form 1040-NR,
even though they may have a
permanent abode within the United
States throughout 2021 and reside
here for more than 183 days during
the year. The individual does so by
filing Form 8833 with their Form
1040-NR for that year in the time and
manner provided in regulations. (The
tie-breaker rule allows an alien who
otherwise would be treated as a
resident of the United States for all or
part of the tax year to be treated for
such year, for most purposes, as a
nonresident alien.)

Exception. In Line 13z under
Instructions for Schedule 3 in the
Instructions for Form 1040, the
discussion of section 960 does not
apply to you. Persons filing Form
1040-NR cannot claim that credit.

see the instructions for Schedule 1,
line 1, earlier, in these instructions.
Safe harbor for certain charitable
contributions made in exchange
for a state or local income tax
credit. If you made a charitable
contribution in exchange for a state or
local income tax credit and your
charitable contribution deduction must
be reduced as a result of receiving or
expecting to receive the tax credit,
you may qualify for a safe harbor that
allows you to treat some or all of the
disallowed charitable contribution as a
payment of state and local income
taxes.
The safe harbor applies if you meet
the following conditions.
1. You made a cash contribution
to an entity described in section
170(c).
2. In return for the cash
contribution, you received a state or
local income tax credit.
3. You must reduce your
charitable contribution amount by the
amount of the state or local income
tax credit you receive.

DRAFT AS OF
January 19, 2022

Line 13h—Qualified sick and
family leave credits from
Schedule(s) H and Form(s) 7202
for leave taken after March 31,
2021
See Line 13h under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on qualified sick
and family leave credits from
Schedule(s) H and Form(s) 7202 for
leave taken after March 31, 2021.
Line 13z—Other payments and
refundable credits
See Line 13z under Instructions for
Schedule 3 in the Instructions for
Form 1040 for details on other
payments and refundable credits.

Instructions for
Schedule A (Form
1040-NR)—Itemized
Deductions

!

Before you begin:

CAUTION

• Do not use Schedule A (Form

1040-NR) with Form 1040 or Form
1040-SR. Use Schedule A (Form
1040-NR) only with Form 1040-NR.
Use Schedule A (Form 1040) with
Form 1040 or 1040-SR.
• Use only these instructions when
completing Schedule A (Form
1040-NR). Do not use the instructions
for any other Schedule A.
• Do not include on Schedule A
(Form 1040-NR) items deducted
elsewhere, such as on Form 1040-NR
or Schedule C, E, or F (Form 1040).

Note. Except as provided in
Exception next, include only
deductions and losses properly
allocated and apportioned to income
effectively connected with a U.S.
trade or business. Do not include
deductions and/or losses that relate to
exempt income or to income that is
not effectively connected with a U.S.
trade or business. See section 861(b).
Exception. You can deduct
certain charitable contributions and
casualty and theft losses even if they
do not relate to your effectively
connected income. See Gifts to U.S.
Charities and Casualty and Theft
Losses, later.

State and Local Income Taxes
Line 1a. You can deduct state and
local income taxes you paid or that
were withheld from your salary during
2021 on income connected with a
U.S. trade or business. If, during
2021, you received any refunds of, or
credits for, income tax paid in earlier
years, do not subtract them from the
amount you deduct here. Also, do not
reduce your deduction by any state or
local income tax refund or credit you
expect to receive for 2021. Instead,
-38-

If you meet these conditions, and to
the extent you apply the state or local
income tax credit to this or a prior
year's state or local income tax
liability, you may include this amount
on line 1a. To the extent you apply a
portion of the credit to offset your
state or local income tax liability in a
subsequent year (as permitted by
law), you may treat this amount as
state or local income tax paid in the
year the credit is applied.
For more information about this
safe harbor and examples, see Notice
2019-12 at IRS.gov/pub/irs-drop/
n-19-12.pdf.
Line 1b. The deduction for state and
local taxes is generally limited to
$10,000 ($5,000 if you checked
Married filing separately under Filing
Status on page 1 of Form 1040-NR).
On Schedule A (Form 1040-NR),
line 1b, enter the amount which is the
smaller of state and local income
taxes from line 1a and $10,000
($5,000 if you checked Married filing
separately under Filing Status on
page 1 of Form 1040-NR).

Instructions for Form 1040-NR (2021)

Gifts to U.S. Charities
For 2021, you may be able to

TIP elect a temporary suspension

of certain limitations that apply
to cash contributions made during the
year. See Pub. 526 for more
information.

• Most nonprofit educational
organizations, such as colleges, but
only if your contribution is not a
substitute for tuition or other
enrollment fees.
• Federal, state, and local
governments if the gifts are solely for
public purposes.

a separate gift. If you made donations
through payroll deductions, treat each
deduction from each paycheck as a
separate gift. See Pub. 526 if you
made a separate gift of $250 or more
through payroll deduction.
To be contemporaneous, you must
get the written acknowledgment from
the charitable organization by the date
you file your return or the due date
(including extensions) for filing your
return, whichever is earlier. Do not
attach the contemporaneous written
acknowledgment to your return.
Instead, keep it for your records.

DRAFT AS OF
January 19, 2022

Lines 2 Through 4

You can deduct contributions or gifts
you gave to U.S. organizations that
are religious, charitable, educational,
scientific, or literary in purpose. You
can also deduct what you gave to
U.S. organizations that work to
prevent cruelty to children or animals.
Certain whaling captains may be able
to deduct expenses paid in 2021 for
Native Alaskan subsistence bowhead
whale hunting activities. See Pub. 526
for details.
If you itemize your deductions, you
cannot claim the charitable deduction
for cash contributions of certain
residents of India on Form 1040-NR,
line 12b, for a gift to a charity. Claim
your charitable deduction on
Schedule A (Form 1040-NR).

To verify an organization's
charitable status, you can do the
following.
• Check with the organization to
which you made the donation. The
organization should be able to provide
you with verification of its charitable
status.
• Use our online search tool at
IRS.gov/TEOS to see if an
organization is eligible to receive
tax-deductible contributions (Pub. 78
data). Click on Tax Exempt
Organization Search.
Examples of U.S. qualified charitable organizations. Examples of U.S.
qualified charitable organizations
include the following.
• Churches, mosques, synagogues,
temples, and other religious
organizations.
• Boy Scouts, Boys and Girls Clubs
of America, CARE, Girl Scouts,
Goodwill Industries, Red Cross,
Salvation Army, United Way.
• Fraternal orders, if the gifts will be
used for the purposes listed under
Lines 2 Through 4 above.
• Veterans' and certain cultural
groups.
• Nonprofit hospitals and medical
research organizations.
Instructions for Form 1040-NR (2021)

Amounts you can deduct.
Contributions can be in cash,
property, or out-of-pocket expenses
you paid to do volunteer work for the
kinds of organizations described
earlier. If you drove to and from the
volunteer work, you can take the
actual cost of gas and oil or 14 cents a
mile. Add parking and tolls to the
amount you claim under either
method. But do not deduct any
amounts that were repaid to you.

Gifts from which you benefit. If you
made a gift and received a benefit in
return, such as food, entertainment, or
merchandise, you can generally
deduct only the amount that is more
than the value of the benefit. But this
rule does not apply to certain
membership benefits provided in
return for an annual payment of $75 or
less or to certain items or benefits of
token value. For details, see Pub. 526.
Example. You paid $70 to a
charitable organization to attend a
fund-raising dinner and the value of
the dinner was $40. You can deduct
only $30.
Gifts of $250 or more. You can
deduct a gift of $250 or more only if
you have a contemporaneous written
acknowledgment from the charitable
organization showing the information
in (1) and (2) next.
1. The amount of any money
contributed and a description (but not
value) of any property donated.
2. Whether the organization did or
did not give you any goods or services
in return for your contribution. If you
did receive any goods or services, a
description and estimate of the value
must be included. If you received only
intangible religious benefits (such as
admission to a religious ceremony),
the organization must state this, but it
does not have to describe or value the
benefit.
In figuring whether a gift is $250 or
more, do not combine separate
donations. For example, if you gave
your church $25 each week for a total
of $1,300, treat each $25 payment as
-39-

Limit on the amount you can deduct. See Pub. 526 to figure the
amount of your deduction if any of the
following applies.
1. Your cash contributions or
contributions of ordinary income
property are more than 30% of the
amount on Form 1040-NR, line 11.
2. Your gifts of capital gain
property are more than 20% of the
amount on Form 1040-NR, line 11.
3. You gave gifts of property that
increased in value or gave gifts of the
use of property.

Amounts you cannot deduct.
• Certain contributions to charitable
organizations, to the extent that you
receive a state or local income tax
credit in return for your contribution.
See Pub. 526 for more details and
exceptions.
See Safe harbor for certain

TIP charitable contributions made

in exchange for a state or
local income tax credit, earlier, under
Line 1a, if your cash contribution is
disallowed because you received or
expected to receive a credit.

• An amount paid to or for the benefit
of a college or university in exchange
for the right to purchase tickets to an
athletic event in the college’s or
university's stadium.
• Travel expenses (including meals
and lodging) while away from home
performing donated services, unless
there was no significant element of
personal pleasure, recreation, or
vacation in the travel.
• Political contributions.
• Dues, fees, or bills paid to country
clubs, lodges, fraternal orders, or
similar groups.

• Cost of raffle, bingo, or lottery
tickets. But you may be able to deduct
these expenses on line 7. See Line 7,
later, for more information on
gambling losses.
• Value of your time or services.
• Value of blood given to a blood
bank.
• The transfer of a future interest in
tangible personal property. Generally,
no deduction is allowed until the entire
interest has been transferred.
• Gifts to individuals and groups that
are operated for personal profit.
• Gifts to foreign organizations. But
you may be able to deduct gifts to
certain U.S. organizations that
transfer funds to foreign charities and
certain Canadian, Israeli, and
Mexican charities. For details and
exceptions, see Pub. 526.
• Gifts to organizations engaged in
certain political activities that are of
direct financial interest to your trade or
business. See section 170(f)(9).
• Gifts to groups whose purpose is to
lobby for changes in the laws.
• Gifts to civic leagues, social and
sports clubs, labor unions, and
chambers of commerce.
• Value of benefits received in
connection with a contribution to a
charitable organization. See Pub. 526
for exceptions.
• Cost of tuition.

record must include the name of the
charity, date, and amount of the
contribution. If you made contributions
through payroll deduction, see Pub.
526 for information on the records you
must keep. Do not attach the record to
your tax return. Instead, keep it with
your other tax records.
For contributions of $250 or more,
you must also have a
contemporaneous written
acknowledgment from the charitable
organization. See Gifts of $250 or
more, earlier, for more information.
You will still need to keep a record of
when you made the cash contribution
if the contemporaneous written
acknowledgment does not include
that information.

deduction is limited, you may have a
carryover to next year. See Pub. 526
for more information.
Deduction for gifts other than by
cash or check limited. If your
deduction for the contributions of
property other than by cash or check
is limited, see Pub. 526 to figure the
amount you can deduct. Only enter on
line 3 the deductible value of your
contributions of property other than by
cash or check.

DRAFT AS OF
January 19, 2022

Line 2—Gifts by Cash or Check
Enter on line 2 the total value of gifts
you made in cash or by check
(including out-of-pocket expenses)
unless a limit on deducting gifts
applies to you. For more information
about the limits on deducting gifts,
see Limit on amount you can deduct,
earlier. If your deduction is limited,
you may have a carryover to next
year. See Pub. 526 for more
information.
Deduction for gifts by cash or
check limited. If your deduction for
the gifts you made in cash or by check
is limited, see Pub. 526 to figure the
amount you can deduct. Only enter on
line 2 the deductible value of gifts you
made in cash or by check.
Recordkeeping. For any
contribution made in cash, regardless
of the amount, you must maintain as a
record of the contribution a bank
record (such as a canceled check or
credit card statement) or a written
record from the charity. The written

Qualified Contributions
In general, you can elect to treat gifts
by cash or check as qualified
contributions if the gift was paid in
2021 to a qualified charitable
organization. This election isn't
available for contributions to an
organization described in section
509(a)(3) or for the establishment of a
new, or maintenance of an existing,
donor advised fund. For details, see
Pub. 526.
Qualified contributions are not
subject to a limitation based on a
percentage of adjusted gross income;
however, certain limits may apply if
your qualified contributions are more
than the amount on Form 1040-NR,
line 11, minus all other allowable
contributions. For details, see Pub.
526.
Include any contributions that you
elect to treat as qualified contributions
in the total amount reported on
Schedule A (Form 1040-NR), line 2.
Indicate the election by also entering
the amount of your qualified
contributions on the dotted line next to
the Schedule A (Form 1040-NR),
line 2, entry space.
Line 3—Other Than by Cash or
Check
Enter on line 3 the total value of your
contributions of property other than by
cash or check unless a limit on
deducting gifts applies to you. For
more information about the limits on
deducting gifts, see Limit on amount
you can deduct, earlier. If your
-40-

Valuing contributions of used
items. If you gave used items, such
as clothing or furniture, deduct their
fair market value at the time you gave
them. Fair market value is what a
willing buyer would pay a willing seller
when neither has to buy or sell and
both are aware of the conditions of the
sale. For more details on determining
the value of donated property, see
Pub. 561.
Deductions more than $500. If the
amount of your deduction is more
than $500, you must complete and
attach Form 8283. For this purpose,
the “amount of your deduction” means
your deduction before applying any
income limits that could result in a
carryover of contributions.
Contribution of motor vehicle,
boat, or airplane. If you deduct
more than $500 for a contribution of a
motor vehicle, boat, or airplane, you
must also attach a statement from the
charitable organization to your paper
return. The organization may use
Form 1098-C to provide the required
information.
If your total deduction is over
$5,000 ($500 for certain contributions
of clothing and household items (see
below)), you may also have to get
appraisals of the values of the
donated property.
See Form 8283 and its instructions
for details.

Contributions of clothing and
household items. A deduction for
these contributions will be allowed
only if the items are in good used
condition or better. However, this rule
does not apply to a contribution of any
single item for which a deduction of
more than $500 is claimed and for
which you include a qualified
appraisal and Form 8283 with your tax
return.

Instructions for Form 1040-NR (2021)

Recordkeeping. If you gave
property, you should keep a receipt or
written statement from the
organization you gave the property to,
or a reliable written record, that shows
the organization's name and address,
the date and location of the gift, and a
description of the property. For each
gift of property, you should also keep
reliable written records that include
the following.
• How you figured the property's
value at the time you gave it. If the
value was determined by an
appraisal, keep a signed copy of the
appraisal.
• The cost or other basis of the
property if you must reduce it by any
ordinary income or capital gain that
would have resulted if the property
had been sold at its fair market value.
• How you figured your deduction if
you chose to reduce your deduction
for gifts of capital gain property.
• Any conditions attached to the gift.
If the gift of property is $250 or
more, you must also have a
contemporaneous written
acknowledgment from the charitable
organization. See Gifts of $250 or
more, earlier, for more information.
Form 8283 doesn't satisfy the
contemporaneous written
acknowledgment requirement, and a
contemporaneous written
acknowledgment is not a substitute
for the other records you may need to
keep if you gave property.

Casualty and Theft Losses
Line 6—Casualty or Theft Loss(es)
Complete and attach Form 4684 to
figure the amount of your loss. Only
enter the amount from Form 4684,
line 18, on line 6.

apprentice from India who is eligible
for the benefits of Article 21(2) of the
United States-India Income Tax
Treaty, if you are electing the
standard deduction, and if you have a
net qualified disaster loss on Form
4684, line 15, you can claim an
increased standard deduction using
Schedule A (Form 1040-NR) by doing
the following.
1. List the amount from Form
4684, line 15, as “Net Qualified
Disaster Loss” on the dotted line next
to line 7 of your Schedule A (Form
1040-NR), and attach Form 4684 to
your Schedule A (Form 1040-NR).
2. List your standard deduction
amount as “Standard Deduction
Claimed With Qualified Disaster Loss”
on the dotted line next to line 7.
3. Combine the two amounts on
line 7 of your Schedule A (Form
1040-NR) and enter the sum on Form
1040-NR, line 12a.

DRAFT AS OF
January 19, 2022

If your total deduction for gifts
of property is over $500, you
CAUTION gave less than your entire
interest in the property, or you made a
qualified conservation contribution,
your records should contain additional
information. See Pub. 526 for details.

!

Line 4—Carryover From Prior Year
You may have contributions that you
could not deduct in an earlier year
because they exceeded the limits on
the amount you could deduct. In most
cases, you have 5 years to use
contributions that were limited in an
earlier year. The same limits apply this
year to your carryover amounts as
applied to those amounts in the earlier
year. After applying those limits, enter
the amount of your carryover that you
are allowed to deduct this year. See
Pub. 526 for details.

Instructions for Form 1040-NR (2021)

Do not enter a net qualified
disaster loss from Form 4684,
CAUTION line 15, on line 6. Instead,
enter that amount, if any, on line 7.
See Line 7, later, for information about
reporting a net qualified disaster loss.

!

You may be able to deduct part or
all of each loss caused by theft,
vandalism, fire, storm, or similar
causes; car, boat, and other
accidents; and corrosive drywall. You
may also be able to deduct money
you had in a financial institution but
lost because of the insolvency or
bankruptcy of the institution. See Pub.
547 for the limitations.

You can only deduct nonbusiness/
personal casualty or theft losses
attributable to a federally declared
disaster and only to the extent that:
1. The amount of each separate
casualty or theft loss is more than
$100; and
2. The total amount of all losses
during the year (reduced by the $100
limit discussed in (1)) is more than
10% of the amount shown on Form
1040-NR, line 11.
An exception to the rule
limiting the deduction for
CAUTION personal casualty and theft
losses to disaster losses applies
where you have personal casualty
gains not attributable to a federally
declared disaster. In this case, you
may deduct personal casualty losses
that are not attributable to a federally
declared disaster to the extent they
don't exceed your personal casualty
gains.

!

See the Instructions for Form 4684,
Casualties and Thefts, and Pub. 547,
Casualties, Disasters, and Thefts, for
more information.

Other Itemized Deductions
Line 7—Other
Increased standard deduction reporting for certain students and
business associates from India. If
you are a student or business
-41-

Do not enter an amount on any
other line of Schedule A (Form
1040-NR). For more information on
how to determine your increased
standard deduction, see Pub. 976.
Net qualified disaster loss reporting. If you have a net qualified
disaster loss on Form 4684, line 15, of
property located in the United States,
list the amount from Form 4684,
line 15, on the dotted lines next to
line 7 as "Net Qualified Disaster Loss"
and include with your other
miscellaneous deductions on line 7.
Also be sure to attach Form 4684.

!

CAUTION

Don't include your net
qualified disaster loss on
line 6.

Only certain expenses can be
deducted on this line. List the type
and amount of each such expense on
the dotted lines next to line 7 and
enter the total of these expenses on
line 7. If you are filing a paper return
and you cannot fit all your expenses
on the dotted lines next to line 7,
attach a statement instead showing
the type and amount of each expense.
Enter one total on line 7. Examples of
these expenses follow.
• Gambling losses effectively
connected with a U.S. trade or
business (gambling losses include,
but aren't limited to, the cost of
non-winning bingo, lottery, and raffle
tickets), but only to the extent of

gambling winnings reported on
Schedule 1 (Form 1040), line 8b.
• Casualty and theft losses of
income-producing property from Form
4684, lines 32 and 38b, or Form 4797,
line 18a.
• Deduction for repayment of
amounts under a claim of right if over
$3,000. See Pub. 525 for details.
• Certain unrecovered investment in
a pension.
• Impairment-related work expenses
of a disabled person.
For more details, see Pub. 529.

Exceptions. There are
exceptions to the general rule. The
withholding tax rate may be lower or
the income may be exempt if your
country of tax residence and the
United States have a treaty setting
lower rates. See Treaty Table 1, Tax
Rates on Income Other Than
Personal Service Income Under
Chapter 3, Internal Revenue Code,
and Income Tax Treaties, available at
IRS.gov/Individuals/InternationalTaxpayers/Tax-Treaty-Tables.
The 30% tax applies only to
amounts included in gross income.
For example, the tax applies only to
the part of a periodic annuity or
pension payment that is subject to tax.
It does not apply to the part that is a
return of your cost.

in income. If you received a payment
on an OID obligation, see Pub. 519.
4. Capital gains in excess of
capital losses from U.S. sources
during 2021. Include these gains only
if you were in the United States at
least 183 days during 2021.
5. Prizes, awards, and certain
gambling winnings. Proceeds from
lotteries, raffles, etc., are gambling
winnings (see Pub. 519 for
exceptions). You must report the full
amount of your winnings unless you
are a resident of Canada.

DRAFT AS OF
January 19, 2022

Total Itemized Deductions
Line 8

Enter the total of lines 1b, 5, 6, and 7
on line 8. Also enter this amount on
Form 1040-NR, line 12a.

Instructions for
Schedule NEC (Form
1040-NR)—Tax on Income
Not Effectively Connected
With a U.S. Trade or
Business
Do not use Schedule NEC
(Form 1040-NR) with Form
CAUTION 1040 or Form 1040-SR. Use
Schedule NEC (Form 1040-NR) only
with Form 1040-NR.

!

Enter your income in the row that
lists the correct category of income
and in the column that lists the correct
tax rate under a tax treaty or the
general U.S. tax rules. Use column (d)
if the income is subject to a 0% rate.
Include income only to the extent it is
U.S. source and not effectively
connected with the conduct of a trade
or business in the United States.
Withholding of tax at the source.
Tax must be withheld at the source on
income not effectively connected with
a U.S. trade or business that is paid to
nonresident aliens. The withholding is
generally at a 30% rate. The tax must
be withheld by the person who pays
the income. For details, see Pub. 519,
Pub. 515, and section 1441 and its
regulations.
Certain amounts paid for
guarantees of indebtedness issued
after September 27, 2010, are U.S.
source income. If the payments are
not made in connection with a U.S.
trade or business, tax must be
withheld.

Categories of Noneffectively
Connected Income

The following list gives only a general
idea of the types of income to include
on Schedule NEC. The instructions
for a specific line include more
information and any exceptions to
withholding. For more information,
see Pub. 519 and Pub. 515.
1. Income that is fixed or periodic,
such as interest (see below for
original issue discount), dividends,
rents, salaries, wages, premiums,
annuities, other compensation, or
certain alimony received (see the
Caution below). Other items of
income, such as royalties, may also
be subject to the 30% tax.
2. Gains, other than capital gains,
from the sale or exchange of patents,
copyrights, and other intangible
property.
Alimony you received
pursuant to a divorce or
CAUTION separation agreement entered
into on or before December 31,
2018, is income on your 2021 Form
1040-NR unless that agreement was
changed after December 31, 2018, to
expressly provide that alimony you
received isn't included in your income.
Alimony you received is not included
in your income if you entered into the
divorce or separation agreement after
December 31, 2018.

!

3. Original issue discount (OID). If
you sold or exchanged the obligation,
include in income the OID that
accrued while you held the obligation
minus the amount previously included
-42-

See Lines 10a Through

TIP 10c—Gambling

Winnings—Residents of
Canada and Line 11—Gambling
Winnings—Residents of Countries
Other Than Canada, later.

Lines 1a, 1b, and
1c—Dividends

Except as provided next, include all
dividends paid by U.S. corporations
on line 1a. Include all U.S. source
dividends paid by foreign corporations
on line 1b. Include all dividend
equivalent payments received with
respect to section 871(m)
transactions on line 1c. A dividend
includes a substitute dividend
payment made to the transferor of a
security in a securities lending
transaction or a sale-repurchase
transaction that would be treated as a
dividend if it were a distribution on the
transferred security.
Dividend equivalent payments.
Dividends also include all dividend
equivalent payments made after
September 13, 2010. Currently,
dividend equivalent payments include
(1) substitute dividends, (2) payments
made pursuant to a specified notional
principal contract, and (3) payments
made pursuant to a specified
equity-linked instrument that are
(directly or indirectly) contingent on, or
determined by reference to, the
payment of a dividend from U.S.
sources.
A notional principal contract that is
treated as a specified notional
principal contract as of January 1,
2017, will remain a specified notional
principal contract after January 1,
2017.
For payments made on or after
January 1, 2017, a notional principal
contract is a simple notional principal
Instructions for Form 1040-NR (2021)

contract under Regulations section
1.871-15(d)(2)(i) or a complex
notional principal contract under
Regulations section 1.871-15(d)(2)(ii).
In 2017 and 2018, a simple notional
principal contract that has a delta of
one with respect to an underlying
security when the notional principal
contract is issued is a specified
notional principal contract. Beginning
in 2019, these rules will also apply to
certain non-delta-one notional
principal contracts. Similar rules apply
to a complex notional principal
contract; however, a complex notional
principal contract is subject to the
substantial equivalence test rather
than the delta test. See Regulations
section 1.871-15(h) for rules relating
to the substantial equivalence test.
For more information on dividend
equivalent payments, see Pub. 519
and Pub. 515. For information on
payments with respect to notional
principal contracts and equity-linked
instruments, see Regulations section
1.871-15.

institution, and from certain deposits
with U.S. insurance companies.
• Portfolio interest on obligations
issued after July 18, 1984.
Interest payments on foreign
bearer obligations (bonds not
CAUTION issued in registered format
and held by non-U.S. holders) issued
on or after March 19, 2012, are not
eligible for the portfolio interest
exception to withholding.

!

Social security information. Social
security beneficiaries can now get a
variety of information from the SSA
website with a my Social Security
account, including getting a
replacement Form SSA-1099 or Form
SSA-1042S if needed. For more
information and to set up an account,
go to SSA.gov/myaccount.

DRAFT AS OF
January 19, 2022

Exceptions. The following items
of dividend income that you received
as a nonresident alien are generally
exempt from the 30% tax.
• Interest-related dividends received
from a mutual fund.
• Short-term capital gain dividends
from a mutual fund only if you were
present in the United States for less
than 183 days during the tax year.
• If a U.S. corporation in existence on
January 1, 2021, received most of its
gross income from the active conduct
of a foreign business, and continues
to receive most of its gross income
from the active conduct of a foreign
business, the part of the dividend
attributable to the foreign gross
income.
• U.S. source dividends paid by
certain foreign corporations.
For more information, including other
exceptions to withholding, see
Dividends in Pub. 519 and Pub. 515.

Lines 2a Through 2c—Interest

Include all interest on the appropriate
line 2a, 2b, or 2c.
Exceptions. The following items of
interest income that you received as a
nonresident alien are generally
exempt from the 30% tax.
• Interest from a U.S. bank, savings
and loan association, or similar

Instructions for Form 1040-NR (2021)

For more information, including
other exceptions to withholding, see
Interest in Pub. 519 and Pub. 515.

Line 6—Real Property Income
and Natural Resources
Royalties

Enter income from real property on
line 6. Do not include any income that
you elected to treat as effectively
connected and included on Schedule
1 (Form 1040), line 5. For more
information, see the instructions for
Schedule 1, line 5, earlier.

Line 8—Social Security
Benefits (and Tier 1 Railroad
Retirement Benefits Treated as
Social Security)

85% of the U.S. social security and
equivalent railroad retirement benefits
you received are taxable. This amount
is treated as U.S. source income not
effectively connected with a U.S.
trade or business. It is subject to the
30% tax rate, unless exempt or taxed
at a reduced rate under a U.S. tax
treaty. Social security benefits include
any monthly benefit under title II of the
Social Security Act or the part of a tier
1 railroad retirement benefit treated as
a social security benefit. They do not
include any Supplemental Security
Income (SSI) payments.
You should receive a Form
SSA-1042S showing the total social
security benefits paid to you in 2021
and the amount of any benefits you
repaid in 2021. If you received railroad
retirement benefits treated as social
security, you should receive a Form
RRB-1042S.
Enter 85% of the total amount from
box 5 of all of your Forms SSA-1042S
and Forms RRB-1042S in the
appropriate column of line 8 of
Schedule NEC. Attach a copy of each
Form SSA-1042S and RRB-1042S to
the front of Form 1040-NR.
-43-

Form RRB-1099 or Form
RRB-1042S. If you need a
replacement Form RRB-1099 or Form
RRB-1042S, call the Railroad
Retirement Board at 877-772-5772 or
go to RRB.gov.

Line 9—Capital Gain

Enter the amount from Schedule NEC
(Form 1040-NR), line 18.

Lines 10a Through
10c—Gambling
Winnings—Residents of
Canada

If you are a resident of Canada who is
not engaged in the trade or business
of gambling, enter all gambling
winnings on line 10a. Include
proceeds from lotteries and raffles.
Do not include winnings from
blackjack, baccarat, craps, roulette, or
big-6 wheel. You can deduct your
U.S. source gambling losses to the
extent of your U.S. source gambling
winnings. Enter your gambling losses
on line 10b. Enter your net gambling
income on line 10c, column (c). If
line 10b is more than line 10a,
enter -0- on line 10c. A net loss from
gambling activities is not deductible.

Line 11—Gambling
Winnings—Residents of
Countries Other Than Canada

Residents of one of the following
countries who are not engaged in the
trade or business of gambling enter all
gambling winnings on line 11, column
(d), specifying 0%: Austria, Belgium,
Bulgaria, Czech Republic, Denmark,
Finland, France, Germany, Hungary,
Iceland, Ireland, Italy, Japan, Latvia,
Lithuania, Luxembourg, the
Netherlands, Russia, Slovak
Republic, Slovenia, South Africa,
Spain, Sweden, Tunisia, Turkey,
Ukraine, and the United Kingdom.

Residents of Malta who are not
engaged in the trade or business of
gambling enter all gambling winnings
on line 11, column (a).

Example—John Maple
Schedule NEC Example—John Maple
Schedule NEC—Tax on Income Not Effectively Connected With a U.S. Trade or Business (see instructions)
Enter amount of income under the appropriate rate of tax. See instructions.

Nature of Income
1
a
b

Dividends and dividend equivalents:
Dividends paid by U.S. corporations
.
Dividends paid by foreign corporations .

(a) 10%

(b) 15%

(c) 30%

.
.

1a
1b

.

.

10c

.

.

11

12

Gambling—Residents of Canada only. Enter net income in column (c).
If zero or less, enter -0-.
5,000
Winnings
4,500
. . . . . . . . . . . . .
Losses
Gambling winnings—Residents of countries other than Canada.
Note: Losses not allowed . . . . . . . . . . . . . . .
Other (specify) ▶

13
14
15

12
Add lines 1a through 12 in columns (a) through (d) . . . . . . . . .
13
1,000
500
150
150
Multiply line 13 by rate of tax at top of each column . . . . . . . .
14
Tax on income not effectively connected with a U.S. trade or business. Add columns (a) through (d) of line 14. Enter the total here and on Form 1040-NR, line 23a ▶

11

%

DRAFT AS OF
January 19, 2022
.
.

a
b

%

1,000

.
.

10

(d) Other (specify)

.
.

.
.

.
.

.
.

Residents of other countries who
are not engaged in the trade or
business of gambling enter all
gambling winnings on line 11, column
(c).
Include proceeds from lotteries and
raffles. Do not include winnings from
blackjack, baccarat, craps, roulette, or
big-6 wheel. You cannot offset losses
against winnings and report the
difference unless the winnings and
losses are from the same session.
If you have winnings from

TIP blackjack, baccarat, craps,

roulette, or big-6 wheel, and
the casino gave you a Form 1042-S
showing that tax was withheld, enter
these winnings on line 11, column (d),
and enter 0% as the tax rate. You can
claim a refund of the tax.

Line 12—Other

Include all U.S. source income that
has not been reported on another line
or is not excluded from tax. This
includes prizes and awards. It also
includes the tax withheld pursuant to
section 5000C on specified federal
procurement payments.
Example. John Maple is a
resident of Canada who purchased
stock in XYZ, a U.S. corporation. In
2021, XYZ paid dividends of $1,000 to
John. The U.S. withholding tax rate on
these dividends is 30%. However,
Article X of the tax treaty between the
United States and Canada limits the
U.S. tax rate on these dividends to a
maximum rate of 15%. John filed
Form W-8BEN with XYZ to claim the

.
.

.
.

.
.

.
.

.
.

lower treaty rate, and XYZ correctly
withheld $150. In addition, John has
U.S. source gross gambling winnings
of $5,000 and U.S. source gambling
losses of $4,500. These items would
be reported on Schedule NEC as
shown in the example.

Lines 16 Through 18—Capital
Gains and Losses From Sales
or Exchanges of Property

Include these gains only if you were in
the United States at least 183 days
during 2021. They are not subject to
U.S. tax if you were in the United
States less than 183 days during the
tax year. In determining your net gain,
do not use the capital loss carryover.
Losses from sales or exchanges of
capital assets in excess of similar
gains are not allowed. Enter the
amount from line 18 on line 9. If you
had a gain or loss on disposing of a
U.S. real property interest, see
Dispositions of U.S. Real Property
Interests, earlier.

Instructions for
Schedule OI (Form
1040-NR)
Other Information
Do not use Schedule OI
(Form 1040-NR) with Form
CAUTION 1040 or Form 1040-SR. Use
Schedule OI (Form 1040-NR) only
with Form 1040-NR.

!

Answer all questions.

-44-

500

15

300

Item A

List all countries of which you were a
citizen or national during the tax year.

Item B

List the foreign country in which you
claimed residence for tax purposes
during the tax year.

Item C

If you have ever completed
immigration Form I-485 and submitted
the form to the U.S. Citizenship and
Immigration Services, or have ever
completed a Form DS-230 and
submitted it to the Department of
State, you have applied to become a
green card holder (lawful permanent
resident) of the United States.

Item D

If you checked “Yes” for D1 or D2, you
may be a U.S. tax expatriate and
special rules may apply to you. See
Expatriation Tax in chapter 4 of Pub.
519 for more information.

Item E

If you had a visa on the last day of the
tax year, enter your visa type.
Examples are the following.
• B-1 Visitor for business.
• F-1 Students—academic
institutions.
• H-1B Temporary worker with
specialty occupation.
• J-1 Exchange visitor.
If you do not have a visa, enter your
U.S. immigration status on the last
day of the tax year. For example, if
you entered under the visa waiver
Instructions for Form 1040-NR (2021)

program, enter “VWP” and the name
of the Visa Waiver Program Country.
If you were not present in the
United States on the last day of the
tax year, and you have no U.S.
immigration status, enter “Not present
in U.S.—No U.S. immigration status.”

Item I

If you filed a U.S. income tax return for
a prior year, enter the latest year for
which you filed a return and the form
number you filed.

Item J

If you are filing this return for a trust,
check the first “Yes” box. Check the
second “Yes” box if you checked the
first “Yes” box and at least one of the
following statements applies to the
trust.
• The trust (or any part of the trust) is
treated as a grantor trust under the
grantor trust rules (sections 671
through 679), whether or not the
person who is treated as the owner of
the trust is a U.S. person.
• The trust made a distribution or
loan to a U.S. person during the tax
year. A distribution (direct or indirect)
or loan includes the uncompensated
use of trust property (section 643(i)(2)
(E)).
• The trust received a contribution
from a U.S. person during the tax
year.

Line 1. If you are a resident of a
treaty country (that is, you qualify as a
resident of that country within the
meaning of the tax treaty between the
United States and that country), you
must know the terms of the tax treaty
between the United States and that
country to properly complete item L.
You can download the complete text
of most U.S. tax treaties at IRS.gov.
Enter “tax treaties” in the search box
and click on United States Income
Tax Treaties - A to Z. Technical
explanations for many of those
treaties are also available at that site.

DRAFT AS OF
January 19, 2022

Item F

If you ever changed your visa type or
U.S. immigration status, check the
“Yes” box. For example, you entered
the United States in 2020 on an F-1
visa as an academic student. On
August 21, 2021, you changed to an
H-1B visa as a teacher. You will check
the “Yes” box and enter on the dotted
line “Changed status from F-1 student
to H-1B teacher on August 21, 2021.”

Item G

Enter the dates you entered and left
the United States during 2021 on
short business trips or to visit family,
go on vacation, or return home briefly.
If you are a resident of Canada or
Mexico and commute to work in the
United States on more than 75% of
the workdays during your working
period, you are a regular commuter
and do not need to enter the dates
you entered and left the United States
during the year. Commute means to
travel to work and return to your
residence within a 24-hour period.
Check the appropriate box for Canada
or Mexico and skip to item H. See
Days of Presence in the United States
in chapter 1 of Pub. 519.
If you were in the United States on
January 1, enter 1/1 as the first date
you entered the United States. If you
were in the United States on
December 31, do not enter any date
departed.

Item H

Review your entry and passport
stamps or other records to count the
number of days you were actually
present in the United States during
the years listed. A day of presence is
any day that you are physically
present in the United States at any
time during the 24-hour period
beginning at 12:01 a.m. For the list of
exceptions to the days you must count
as actually present in the United
States, see Days of Presence in the
United States in chapter 1 of Pub.
519. If you were not in the United
States on any day of the year,
enter -0-.

Instructions for Form 1040-NR (2021)

See the Instructions for Form 3520.
A U.S. person is a U.S. citizen or
resident alien, a domestic partnership,
a domestic corporation, an estate
other than a foreign estate, or a
domestic trust. See Pub. 519 for more
information.

Item K

If you received total compensation of
$250,000 or more for 2021, check the
first “Yes” box. If you checked the first
“Yes” box, check the second “Yes”
box if you are using an alternative
method to determine the source of the
compensation. Total compensation
includes all compensation from
sources within and outside the United
States.
If you check the second “Yes” box,
you must attach a statement to your
return. For details about the statement
and the alternative method, see
Services Performed Partly Within and
Partly Outside the United States,
earlier.

Item L

If you are claiming exemption from
income tax under a U.S. income tax
treaty with a foreign country on Form
1040-NR, you must provide all the
information requested in item L.
-45-

Column (a), Country. Enter the
treaty country that qualifies you for
treaty benefits.
Column (b), Tax treaty article.
Enter the number of the treaty article
that exempts the income from U.S.
tax.
Column (c), Number of months
claimed in prior tax years. Enter
the number of months in prior tax
years for which you claimed an
exemption from U.S. tax based on the
specified treaty article.
Column (d), Amount of exempt
income in current tax year. Enter
the amount of income in the current
tax year that is exempt from U.S. tax
based on the specified treaty article.
Line (e), Total. Add the amounts
in column (d). Enter the total on
Schedule OI (Form 1040-NR), item L,
line 1e, and on Form 1040-NR,
page 1, line 1c. Do not include this
amount in the amount entered on
Form 1040-NR, page 1, line 1a or 1b.
Attach any Form 1042-S you
received for treaty-exempt income. If
required, attach Form 8833. See
Treaty-based return position
disclosure, later.
Example. Sara is a citizen of Italy
and was a resident there until
September 2020, when she moved to
the United States to accept a position
as a high school teacher at an
accredited public school. Sara came
to the United States on a J-1 visa
(Exchange visitor) and signed a
contract to teach for 2 years at this
U.S. school. She began teaching in
September 2020 and plans to
continue teaching through May 2022.
Sara's salary per school year is
$40,000. She plans to return to Italy in
June 2022 and resume her Italian

Example. Item L—Income Exempt From Tax by Treaty
(a) Country

(b) Tax treaty article

Italy

(c) Number of months
(d) Amount of exempt
claimed in prior tax years income in current tax year
20

4

$40,000

DRAFT AS OF
January 19, 2022

(e) Total. Enter this amount on Form 1040-NR, line 1c. Do not enter it on line 1a or
line 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
residence. For calendar year 2021,
Sara earned $40,000 from her
teaching position. She completes the
table in item L on her 2021 tax return
as shown in the example.
Line 2. Check “Yes” if you were
subject to tax in a foreign country on
any of the income reported in line 1,
column (d).
Line 3. Check “Yes” if you are
claiming tax treaty benefits pursuant
to a Competent Authority
determination allowing you to do so.
You must attach to your tax return a
copy of the Competent Authority
determination letter.
If you are claiming tax treaty
benefits and you failed to
CAUTION submit adequate
documentation to a withholding agent,
you must attach to your tax return all
information that would have otherwise
been required on the withholding tax
document (for example, all
information required on Form
W-8BEN (Individuals), Form
W-8BEN-E (Entities), or Form 8233).

!

Treaty-based return position disclosure. If you take the position that
a treaty of the United States overrides
or modifies any provision of the
Internal Revenue Code and that
position reduces (or potentially
reduces) your tax, you must generally
report certain information on Form
8833 and attach it to Form 1040-NR.
If you fail to report the required
information, you will be charged a
penalty of $1,000 for each failure,
unless you show that such failure is
due to reasonable cause and not
willful neglect. For more details, see
Form 8833 and its instructions.

Exceptions. You do not have to
file Form 8833 for any of the following.
See Pub. 519 for more items.
1. You claim a treaty that reduces
the withholding tax on interest,
dividends, rents, royalties, or other
fixed or determinable annual or
periodic income ordinarily subject to
the 30% rate.
2. You claim a treaty that reduces
or modifies the taxation of income
from dependent personal services,
pensions, annuities, social security
and other public pensions, or income
of artists, athletes, students, trainees,
or teachers. This includes taxable
scholarship and fellowship grants.
3. You claim an International
Social Security Agreement, or a
Diplomatic or Consular Agreement,
reduces or modifies the taxation of
income.
4. You are a partner in a
partnership or a beneficiary of an
estate or trust that reports the required
information on its return.
5. The payments or items of
income that are otherwise required to
be disclosed total no more than
$10,000.

Item M
Line 1. Check the box if 2021 is the
first year you are making an election
to treat income from real property
located in the United States as
effectively connected with a U.S.
trade or business under section
871(d). The election applies to all
income from real property located in
the United States and held for the
production of income and to all
income from any interest in that
property.

-46-

$40,000

The election will remain effective
for all future tax years unless you
revoke it. See chapter 4 of Pub. 519
for more details on how to make and
revoke this election.

Line 2. Check the box if:
1. You have made an election in a
previous tax year to treat income from
real property located in the United
States as effectively connected with a
U.S. trade or business under section
871(d), and
2. You haven’t revoked that
election.

Tax Topics

All topics are available in Spanish
(and most topics are available in
Chinese, Korean, Vietnamese, and
Russian).
You can read these Tax Topics at
IRS.gov/TaxTopics.
Tax information for aliens.
• 851—Resident and nonresident
aliens.
• 856—Foreign tax credit.
• 857—Individual taxpayer
identification number (ITIN)—Form
W-7.
• 858—Alien tax clearance.

Disclosure, Privacy Act,
and Paperwork Reduction
Act Notice

We ask for the information on this
form to carry out the Internal Revenue
laws of the United States. Sections
6001, 6011, and 6012(a) and their
regulations require that you give us
the information.
We need it to ensure that you are
complying with these laws and to
allow us to figure and collect the right
Instructions for Form 1040-NR (2021)

amount of tax. Section 6109 requires
you to provide your identifying
number. If you fail to provide the
requested information in a timely
manner, you may be charged
penalties and interest and be subject
to criminal prosecution. We may also
have to disallow the exemptions,
exclusions, credits, deductions, or
adjustments; this could make the tax
higher or delay any refund. Interest
may also be charged.

information needed to determine the
amount of or to collect the tax you
owe. We may disclose your tax
information to the Comptroller
General of the United States to permit
review of the Internal Revenue
Service. We may disclose your tax
information to committees of
Congress; federal, state, and local
child support agencies; and to other
federal agencies for purposes of
determining entitlement for benefits or
the eligibility for and the repayment of
loans. We may also disclose this
information to other countries under a
tax treaty, to federal and state
agencies to enforce federal nontax
criminal laws, or to federal law
enforcement and intelligence
agencies to combat terrorism. Keep
this notice with your records. It may
help you if we ask you for other
information. If you have any questions
about the rules for filing and giving
information, call or visit any Internal
Revenue Service office.

Don't send your Form 1040-NR to this
address. Instead, see Where To File,
earlier.
Although we cannot respond
individually to each comment
received, we do appreciate your
feedback and will consider your
comments as we revise our tax forms
and instructions.

DRAFT AS OF
January 19, 2022

This notice applies to all papers
you file with us, including this tax
return. It also applies to any questions
we need to ask to complete, correct,
or process your return; figure your tax;
and collect tax, interest, or penalties.
You are not required to provide the
information requested on a form that
is subject to the Paperwork Reduction
Act unless the form displays a valid
OMB control number. Books or
records relating to a form or its
instructions must be retained as long
as their contents may become
material in the administration of any
Internal Revenue law.

Generally, tax returns and return
information are confidential, as
required by section 6103. However,
section 6103 allows or requires the
Internal Revenue Service to disclose
or give the information shown on your
tax return to others as described in the
Code. For example, we may disclose
your tax information to the
Department of Justice, to enforce
federal civil and criminal tax laws, and
to cities, states, the District of
Columbia, and U.S. commonwealths
or possessions to carry out their tax
laws. We may disclose your tax
information to the Department of
Treasury and contractors for tax
administration purposes; and to other
persons as necessary to obtain

We Welcome Comments on
Forms

We try to create forms and
instructions that can be easily
understood. Often, this is difficult to
do because our tax laws are very
complex. For some people with
income mostly from wages, filling in
the forms is easy. For others who
have businesses, pensions, stocks,
rental income, or other investments, it
is more difficult.
We welcome your comments about
these instructions and your
suggestions for future editions. You
can send us comments through
IRS.gov/FormComments. Or you can
write to the:

Estimates of Taxpayer Burden

Reported time and cost burdens are
national averages and do not
necessarily reflect a “typical” case.
The estimated average time burden
for all taxpayers filing a Form
1040-NR is 12 hours, with an average
cost of $230 (see the amount in the
table below), per return. This average
includes all related forms and
schedules, across all preparation
methods and taxpayer activities.
Within these estimates, there is
significant variation in taxpayer
activity.

Out-of-pocket costs include any
expenses incurred by taxpayers to
prepare and submit their tax returns.
Examples include tax return
preparation and submission fees,
postage and photocopying costs, and
tax preparation software costs. Tax
preparation fees vary widely
depending on the tax situation of the
taxpayer, the type of professional
preparer, and the geographic area.
If you have comments concerning
the time and cost estimates, you can
contact us at either one of the
addresses shown under We Welcome
Comments on Forms, earlier.

Internal Revenue Service
Tax Forms and Publications
1111 Constitution Ave. NW
IR-6526
Washington, DC 20224
U.S.A.

Estimates of Taxpayer Burden
The table shows burden estimates as of November 2021 for taxpayers filing a 2021 Form 1040-NR tax return.
Form

Average Time Burden (Hours)

Average Cost*

1040-NR

13

$240

* Dollars rounded to the nearest $10.

Instructions for Form 1040-NR (2021)

-47-

Taxpayer Bill of Rights
All taxpayers have fundamental rights they should be aware of when dealing with the IRS. The Taxpayer Bill of Rights,
which the IRS adopted in June of 2014, takes existing rights in the tax code and groups them into the following 10
broad categories, making them easier to understand. Explore your rights and our obligations to protect them.
The right to be informed. Taxpayers have the right to know what they need to do to comply with the tax laws. They
are entitled to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices,
and correspondence. They have the right to be informed of IRS decisions about their tax accounts and to receive clear
explanations of the outcomes.

DRAFT AS OF
January 19, 2022

The right to quality service. Taxpayers have the right to receive prompt, courteous, and professional assistance in
their dealings with the IRS, to be spoken to in a way they can easily understand, to receive clear and easily
understandable communications from the IRS, and to speak to a supervisor about inadequate service.
The right to pay no more than the correct amount of tax. Taxpayers have the right to pay only the amount of tax
legally due, including interest and penalties, and to have the IRS apply all tax payments properly.
The right to challenge the IRS's position and be heard. Taxpayers have the right to raise objections and provide
additional documentation in response to formal IRS actions or proposed actions, to expect that the IRS will consider
their timely objections and documentation promptly and fairly, and to receive a response if the IRS does not agree with
their position.
The right to appeal an IRS decision in an independent forum. Taxpayers are entitled to a fair and impartial
administrative appeal of most IRS decisions, including many penalties, and have the right to receive a written
response regarding the Office of Appeals’ decision. Taxpayers generally have the right to take their cases to court.
The right to finality. Taxpayers have the right to know the maximum amount of time they have to challenge the IRS’s
position as well as the maximum amount of time the IRS has to audit a particular tax year or collect a tax debt.
Taxpayers have the right to know when the IRS has finished an audit.
The right to privacy. Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will
comply with the law and be no more intrusive than necessary, and will respect all due process rights, including search
and seizure protections, and will provide, where applicable, a collection due process hearing.
The right to confidentiality. Taxpayers have the right to expect that any information they provide to the IRS will not
be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action will be
taken against employees, return preparers, and others who wrongfully use or disclose taxpayer return information.
The right to retain representation. Taxpayers have the right to retain an authorized representative of their choice to
represent them in their dealings with the IRS. Taxpayers have the right to seek assistance from a Low Income
Taxpayer Clinic if they cannot afford representation.
The right to a fair and just tax system. Taxpayers have the right to expect the tax system to consider facts and
circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely.
Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial
difficulty or if the IRS has not resolved their tax issues properly and timely through its normal channels.
Learn more at IRS.gov/TaxpayerRights.

-48-

Instructions for Form 1040-NR (2021)

2021 Tax Rate Schedule for Estates and Trusts
Estates or Trusts. Use Schedule W below to figure your tax.
Schedule W
Estates or Trusts—Use this schedule for a nonresident
alien estate or trust

DRAFT AS OF
January 19, 2022

If line 15 is:

Over—

But not over—

$0

$2,650

The tax is:

Of the amount over—

............... 10%

$0

$2,650

$9,550

$265.00 + 24%

$2,650

$9,550

$13,050

$1,921.00 + 35%

$9,550

$13,050

------

$3,146.00 + 37%

$13,050

Instructions for Form 1040-NR (2021)

-49-

Index
A
Additional child tax credit 23
Additional tax on IRAs and other
qualified retirement plans 34
Additional tax on other qualified
retirement plans 34
Address, P.O. box. 17
Address change. 17
Address foreign:
Country. 17
Adjusted gross income 31
Alternative minimum tax 33
Amended return 26
Amount paid with request for
extension to file 37
Amount refunded to you 23
Amount You Owe 24
Annuities 20
Assistance (See Tax help)
Attachments to the return 24
Avoid Common Mistakes 26

Dispositions of United States real
property interests 15
Dividend income 20
Dividends 42
Dividend equivalent
payments 42
Exceptions 43
Dividends qualified 20
Dual-status taxpayers 13
Restrictions 14
Dual-Status Tax Year 13
How to figure tax for 14
Income subject to tax 14
What and where to file 13

Individual retirement arrangements
(IRAs) 32
Contributions to 32
Distributions from 20
Interest income 19, 43
Exceptions 43
Itemized deductions 21
Items to Note 10
Other reporting
requirements 10
Self-employment tax 10
Social security or Medicare
taxes withheld in error 10
Special rules for former U.S.
citizens and former U.S.
long-term residents 10

P
Past due tax returns filing 26
Payments:
Tax withholding 22
Penalties:
Early withdrawal of savings 32
Pensions 20
Premium tax credit 8
Repayment of excess
credit 34
Preparer, requirement to sign tax
return 24
Private delivery services 13
Protect your tax records from
identity theft 26
Publications (See Tax help)
Public debt, gift to reduce the 26

DRAFT AS OF
January 19, 2022

B
Business income or (loss):
Stocks, securities, and
commodities Income as a
dealer in 30
C
Capital gain distributions 21
Capital gain or (loss):
Exceptions 21
Casualty and theft losses 41
Charity, gifts to 39
Contributions you can
deduct 39
Contributions you cannot
deduct 39
Limit on the amount you can
deduct 39
Recordkeeping 40
Charity, other than by cash or
check 40
Clothing and household
items 40
Recordkeeping 41
Child and dependent care
expenses:
Credit for 36
Child tax credit:
Additional 23
Nonrefundable 22
Refundable 23
Community income 15
Competent Authority determination
requirement 46
Contributions, carryover From
Prior Year 41
Contributions to reduce debt held
by the public 26
Credit for federal tax on fuels 37
Credit for other dependent 22
Credits against tax 14
D
Daycare expenses:
Credit for 36
Death of a taxpayer 26
Decedents 8
Deduction for exemptions for
estates and trusts only 21
Estates 21
Trusts 21
Dependents 17
Disclosure, Privacy Act, and
Paperwork Reduction Act
Notice 46

E
Educator expenses 31
Effectively connected income 17
E-filing 4, 12
Election to be taxed as a resident
alien 13
Electronic filing 4, 12
Estates 9
Exemption for 21
Estimated tax payments for
2021 23
Estimated tax payments for
2022 26
Excess social security and Tier 1
RRTA tax withheld 37
Expatriates 16
Extension of time to file:
Amount paid with 37

K
Kinds of income 15

L
Lump-sum distributions 20
M
Mailing address 12
Medical insurance premiums,
Credit for 37
Miscellaneous deductions:
Other 41
Moving expenses 32

F
Farm income or (loss) 30
Filing status 16
Married 16
Single 16
First-time homebuyer credit
repayment 34
Foreign income taxed by the
United States 16
Foreign tax credit 36
Form 1040-C:
Credit for amount paid with 23
Form W-2 missing or incorrect 18
Free publications 10
Fringe benefits 18
G
Gains and (losses) 21
From U.S. real property
interests 15
Green card test 11
H
Health insurance premiums, Credit
for 37
Health savings account
deduction 32
Household employment taxes 34
How to report income on Form
1040-NR 15
I
Identity theft 26, 28
Income:
Fringe benefits 18
Not effectively connected with
a U.S. trade or business:
Schedule NEC 42
Other taxable income 30
To be reported 17
Income tax withholding (federal)
for 2022 26

N
Name and Address 17
Estates and trusts 17
Engaged in a trade or
business in the United
States 17
Not engaged in a trade or
business 17
Individuals 17
Name change 17
Net investment income tax 14
Noneffectively connected income:
Capital gain 43
Capital gains and losses from
sales or exchanges of
property 44
Categories of 42
Gambling winnings-Residents
of Canada 43
Gambling winnings-Residents
of countries other than
Canada 43
Other income 44
Railroad retirement benefits
(Tier 1) 43
Real property income and
natural resources
royalties 43
Social security benefits 43
Nonrefundable child tax credit 22
Nonresident aliens, defined 11
Green card test 11
Resident aliens, defined 11
Substantial presence test 11
O
One-half of self-employment tax
deduction 32
Options for e-filing 4
Other gains or (losses) 30
Other Nonrefundable Credits 37
Other payments 37

-50-

Q
Qualified business income
deduction (Section 199A
Deduction) 21
Qualifying widow(er) 16

R
Real property income election 15
Records, how long to keep 26
Refund 23
Refundable child tax credit 23
Refund information 29
Refund mailed 23
Refunds. Simplified procedure for
claiming certain refunds 9
Rental real estate, royalties,
partnerships, trusts, etc. 30
Reporting
requirements—Other 10
Residential energy credits:
Nonbusiness energy property
credit 36
Residential energy efficient
property credit 36
Retirement distributions (IRAs):
Annuities 20
Pensions 20
Retirement plan deduction,
self-employed 32
Retirement savings contributions
credit (saver's credit) 36
Rounding off to whole dollars 17
S
Salaries and wages 17
Sales or exchanges, capital
assets 21
Schedule A, itemized
deductions 38
Schedule D Tax Worksheet 22
Schedule NEC 42
Schedule OI, other information 44
Scholarship and fellowship
grants 21
Degree candidate 18
Nondegree candidate 18
Self-employed health insurance
deduction 32
Self-employed SEP, SIMPLE, and
qualified plans 32
Services performed partly in and
partly out the U.S. 18
Sharing economy (gig) income 15
Signature 24
State and local income taxes,
deduction for 38
Student loan interest
deduction 32

Substantial presence test:
Closer connection exception
for foreign students 11
Closer connection to a foreign
country 11
Exempt individual 11
T
Tax 21
Tax, qualified dividends and
capital gain tax worksheet 22
Taxable refunds, credits, or offsets
of state and local income
taxes 30
Tax and credits:
Other taxes:
Alternative minimum tax 33

Tax-exempt interest 19
Tax help 26
Taxpayer Advocate Service
(TAS) 3
Taxpayer Bill of Rights 48
Tax return information 26
Third party designee 24
Tier 1 RRTA tax withheld 37
Tip income 17
Transportation tax 22
Treaty-exempt income 19
Treaty-exempt income, report 45
Trusts 9
Trusts, exemption deduction
for 21

Unemployment compensation 30
Unreported social security and
Medicare tax:
Tip income Form 4137 34
Wages from an employer who
did not withhold social
security and Medicare tax
Form 8919 34
W
We welcome comments on
forms 47
What's New 5
When to file:
Estates and trusts 12
Individuals 12
Where to file:
Estates and Trusts 12

Individuals 12
Who must file 8
Withholding of tax at the source:
Exceptions 42
Write-in adjustments related to
your effectively connected
income:
Attorney fees and court costs:
Certain unlawful
discrimination
claims 32
Qualified performing artist
expenses have moved to
Schedule 1 (Form 1040),
line 11 32

DRAFT AS OF
January 19, 2022
U
U.S. national 16

-51-