Tax Issues for Nonresident Aliens Workers: Forms 1040NR

Author: Marc J Strohl

Avoid Tax Pitfalls When Working with Nonresident Alien Clients
Tax practitioners often face nonresident alien income filing requirement challenges. This two-hour CPE will help you understand those challenges and properly file Form 1040-NR.

For nonresident aliens, tax advisors must understand the distinctions between a U.S. resident and a non-resident, dual-status or undocumented alien to resolve complex issues when preparing Form 1040NR. Immigration law presents unique challenges affecting the tax liability of non-resident aliens and individuals who are not citizens but do reside in the U.S. including taxpayer classification, determination of who should file, non-resident alien election, determination of dual status, how to report income and claim refunds, available deductions and limitations, treatment of spouse and dependents, filing due dates, and other common pitfalls.

Join experienced practitioner and speaker Marc J. Strohl, CPA, as he explores difficulties arising from tax preparation for nonresident aliens that often confound even the most experienced of tax professionals.

Publication Date: January 2021

Designed For
Tax and accounting professionals who work with expatriates and their employers on income taxation issues and return preparation.

Topics Covered

• U.S. Taxation System
• Consequences of filing as: U.S. Non/ Resident Alien
• The SPT- Resident vs. Nonresident Alien
• Ways Out of U.S. Tax Residency
• Residency Start and End Date
• Who Must File Form 1040NR:
  • Issues in completing Form 1040NR
  • Exceptions from filing Form 1040NR
• Filing as a U.S. Nonresident- Form 1040NR
• U.S. Source Income and Effectively Connected Rules
• Dual Status Filers
• Election as Resident Alien
• After Residency Ends
• IRS IRC Sec 893- Compensation of Employees of International Organizations and Foreign Governments
• State Residency Tax Considerations
• Income Tax Treaties
• Other Tidbits of Information

Learning Objectives

• Identify income tax reporting and planning issues relating to nonresident aliens with U.S.-source income
• Recognize how to properly prepare Form 1040-NR
• Identify how often the SPT must be continued to be met to remain a U.S. resident alien
• Recognize situations which would require the filing of Form 1040NR
• Describe the impact from the TCJA on the 1040NR Form
• Recognize how many elections are available to be treated as a U.S. resident alien

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of federal income taxation concepts.

Advance Preparation
None