Do I need an ITIN to file a 1040-NR?

Yes, it's required. The ITIN is the primary tax identifier for an NRA. Without it, the IRS cannot process the return. If you don't have an ITIN, we file Form W-7 together with the 1040-NR. Through a CAA, filing takes 6-8 weeks versus 11-16 if you send your passport directly to the IRS.

How do treaty benefits reduce my tax?

A tax treaty between the US and your country can reduce the withholding tax from the default 30% to the treaty rate (often 10-15%) on dividends, royalties, and certain types of interest income. To use a treaty benefit you need to: 1) File Form W-8BEN with your broker/payer in advance. 2) State the treaty article on the 1040-NR via Form 8833. The withholding tax refund comes through filing the 1040-NR.

What are ECI and FDAP?

ECI (Effectively Connected Income) is income from a US trade or business (for example, LLC business income, US-based services). It is taxed at the regular graduated US rates, just like for US persons. FDAP (Fixed, Determinable, Annual or Periodic) is passive income: dividends, interest, royalties, rent (when there is no ECI election). It is taxed at 30% withholding or the treaty rate. An NRA investing in US stocks = FDAP. An NRA with a US LLC business = ECI.

How much does 1040-NR preparation cost?

$250-450 for a typical 1040-NR (single income source, no complex treaty position). $450-700 for a complex one (multiple sources, treaty disclosure, US property sale FIRPTA). +$150 if we file the ITIN in parallel. A free 30-minute consultation for an exact estimate.

Kateryna Dzhevaga·IRS CAA · Authorized IRS e-file Provider·Federal practice (all 50 states)·EN · RU · UK

1040-NR Preparation

Form 1040-NR for US Nonresidents

A return for non-resident aliens with US-source income: LLC owners, US rental real estate, dividends from US stocks. Treaty benefits to reduce withholding from 30% to the treaty rate.

Schedule your 1040-NR

Who Must File a 1040-NR

Form 1040-NR is filed by non-resident aliens (NRA) — foreign nationals who are NOT US citizens or Green Card holders and have not met the substantial presence test. Who typically files a 1040-NR: \u2022 Owners of a US LLC from abroad with profit (a single-member LLC is a pass-through to the owner; a multi-member LLC gives K-1 distributions) \u2022 Foreign landlords of US real estate (rental income is subject to 30% withholding or net basis with an election) \u2022 Recipients of US dividends and royalties (FDAP income — 30% withholding or the treaty rate) \u2022 Foreign students on an F/J/M visa with US-source scholarship/stipend \u2022 Individuals who sold US-situs property (FIRPTA withholding of 15% applies) The main difference from the 1040: only US-source income is taxed, with no worldwide reporting. But there are also meaningfully fewer deductions/credits — no standard deduction (except for certain treaty exemptions), no most itemized deductions, and no child tax credit. Often a 1040-NR is filed in order to obtain a refund of withholding tax. For example, a broker withheld 30% on dividends, but under the US-Russia treaty (when active) the rate was 10%. The 20% refund can only be obtained by filing a 1040-NR.

The 1040-NR Preparation Process

From consultation to e-file. 1-3 weeks.

Determining eligibility and treaty

We confirm that you are an NRA (have not met substantial presence). If there is a tax treaty between the US and your country of residence, we determine which treaty benefits apply (reduced withholding, exemption for certain types of income).

ITIN check

An ITIN is required to file a 1040-NR. If you don't have one yet, we file Form W-7 together with the return (I do this as a CAA partner, without sending your original passport to the IRS).

Return preparation

Form 1040-NR + applicable schedules: NEC (effectively connected income), OI (other items), 8833 (treaty position disclosure). If there is US rental property, Schedule E. If there is an LLC, Schedule C or K-1. An FBAR is not required for an NRA — only for US persons.

Filing and refund

Filed by mail to the IRS (electronic filing for 1040-NR is limited). If you're due a refund, it arrives as a check to your foreign address or via wire transfer (slower). The refund timeframe is 12-16 weeks.

Need an ITIN?

You can't file a 1040-NR without an ITIN — I file Form W-7 as a CAA →

FAQ — Form 1040-NR

Key questions about 1040-NR preparation for nonresidents

June 15 of the following year (NRAs get an automatic 2-month extension from the standard April 15). You can extend further to October 15 via Form 4868. But this is an extension to file, NOT to pay — the tax must be paid by April 15 to avoid interest and penalties.

Ready to file your 1040-NR?

Schedule a consultation — we'll define your tax situation, treaty benefits, and whether you need an ITIN.

Schedule a consultation