Preparation of Form 1040-NR, U.S. Nonresident Alien Income Tax Return
Target Audience: CPAs, EAs, Annual Filing Season Program Participants
Field of Study: Taxation (NASBA); Federal Tax Law (IRS)
Seminar Level: Beginner
IMPORTANT INFORMATION REGARDING CONTINUING EDUCATION CREDIT: THE IRS ACCEPTS THIS SEMINAR FOR ONE (1) CONTINUING EDUCATION CREDIT FOR ENROLLED AGENTS (EA) AND ANNUAL FILING SEASON PROGRAM (AFSP) PARTICIPANTS. Others, PLEASE CONSULT WITH YOUR RESPECTIVE STATE LICENSING AGENCY REGARDING ACCEPTABILITY OF THIS CREDIT.
Note: the credit received from this seminar qualifies as continuing education that is required to obtain the voluntary AFSP – record of completion. however, this website does not offer the AFSP annual federal tax refresher (AFTR) course.
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DISCLAIMER: THIS WEBINAR WAS RECORDED ON August 05, 2020, AND THE INFORMATION WAS CORRECT AT THE TIME OF RECORDING.
In this session, we will review the Form 1040-NR, U.S. Nonresident Alien Income Tax Return, in detail with explanations to certain line items pointing out common errors and issues. We will also present a general overview of taxation of nonresident alien individuals and highlight relevant changes due to the Tax Cuts and Jobs Act. The session will conclude with a comprehensive example of a properly completed Form 1040-NR. A nonresident alien individual is generally subject to U.S. income tax only on his or her U.S. source income. A nonresident alien individual’s U.S. source income falls into two main categories: 1) Fixed or Determinable, Annual or Periodical (FDAP) income, and 2) Effectively Connected Income (ECI). The U.S. taxes these categories of income in two different manners; FDAP is taxed on a gross basis generally at a 30% rate, and ECI is taxed on a net basis at graduated rates. A nonresident alien individual with a filing requirement or who wants to claim a refund of over-withheld tax must timely file a Form 1040-NR to report income, and any allowable treaty benefits, deductions and credits. If eligible, a nonresident alien individual may file a Form 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents, instead of a Form 1040-NR.
By the end of this presentation you will be able to:
- List the categories of income reported on a 1040-NR
- Explain on which line a member of the Armed Services may claim moving expenses
- Prepare the section of the 1040-NR for Tax Credits and Other Taxes
- List types of income that is Effectively Connected with a U.S trade or business and reported on 1040-NR
- Name the Publication number for the U.S. Tax Guide for Aliens
No prerequisites or advanced preparation are required for this seminar.
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