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Department of the Treasury 2020 Internal Instructions for Form 1040-NR U.S. Nonresident Alien Income Return

Contents Page Contents Page Contents Page Form 1040-NR Redesign Helpful Effectively Connected Instructions for Schedule 1 Hints ...... 2 Income (ECI) ...... 18 (Form 1040)—Additional Affordable Care Act—What You Payments ...... 24 Income and Adjustments Need To Know ...... 5 Refund ...... 25 to Income ...... 31 What's New ...... 5 Amount You Owe ...... 25 Instructions for Schedule 2 Where To Find Your Lines on (Form 1040)—Additional Third Party Designee ...... 26 ...... 33 Redesigned 2020 Form Sign Your Return ...... 26 1040-NR ...... 6 Instructions for Schedule 3 Assemble Your Return ...... 26 Filing Requirements ...... 7 (Form 1040)—Additional 2020 Tax Table ...... 27 Credits and Payments ..... 34 Resident or Nonresident Alien ...... 11 2020 Tax Computation Instructions for Schedule A Worksheet ...... 27 (Form 1040-NR) ...... 35 When and Where Should You File? ...... 13 General Information ...... 28 Instructions for Schedule NEC (Form 1040-NR) ..... 39 Election To Be Taxed as a Keeping Records ...... 28 Resident Alien ...... 14 Amending Your Return ...... 28 Instructions for Schedule OI (Form 1040-NR) ...... 42 Dual-Status Taxpayers ...... 14 Death of a Taxpayer ...... 28 TeleTax ...... 44 How To Report Income ...... 15 Past Due Returns ...... 28 Disclosure, Privacy Act, and Line Instructions ...... 17 How To Get Tax Help ...... 28 Paperwork Reduction Act Filing Status ...... 17 Interest and Penalties ...... 30 Notice ...... 44 Name and Address ...... 17 Refund Information ...... 30 Index ...... 47 Dependents ...... 18 Section references are to the unless otherwise noted.

Form 1040-NR Redesign Everyone files the new Form 1040-NR!

Use the base form and Schedule OI... only the schedules that are right for you!

A NEC 1040-NR OI

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Form 1040-NR Redesign Helpful Hints

For 2020, you will no longer use Form 1040-NR-EZ as you may have in the past. Instead, you will use the redesigned Form 1040-NR. The lines on Form 1040-NR have been rearranged so that, in most instances, they are for the same tax items as the lines on 2020 Form 1040 or 1040-SR. The table, Where To Find Your Lines on Redesigned 2020 Form 1040-NR, following the What’s New, later, shows where lines have moved.

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. Certain lines formerly found on Form 1040-NR are now on those schedules.

Schedules A, NEC, and OI, which in years prior to 2020 were pages 3, 4, and 5 of Form 1040-NR, are now separate schedules called Schedule A (Form 1040-NR), Schedule NEC (Form 1040-NR), and Schedule OI (Form 1040-NR), respectively. You will still need to complete the applicable items on Schedule OI (Form 1040-NR) and include that schedule with your redesigned Form 1040-NR. CAUTION: There are now 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).

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 Forms 1040 and 1040-SR. Throughout these instructions, you are directed to go to the Instructions for Forms 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 table Where To Find Your Lines on Redesigned 2020 Form 1040-NR has a single asterisk by the lines for which the Instructions for Forms 1040 and 1040-SR are to be applied without any exceptions. For the rest of the lines, there are exceptions. 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 , the credit for other dependents, and the additional ; 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. Return for Estates and Trusts, than with the Instructions for Forms 1040 and 1040-SR, 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 Schedule 1 (Form 1040), Part I award money, or gambling winnings. Have any deductions to claim, such as student loan interest deduction, self-employment tax, or educator Schedule 1 (Form 1040), Part II expenses. Owe 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 Schedule 2 (Form 1040), Part II or other qualified retirement plans and tax-favored accounts. Can claim a nonrefundable credit other than the child tax credit or the credit for other dependents, such as Schedule 3 (Form 1040), Part I the or general business credit. Can claim a refundable credit other than 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. Have other payments, such as an amount paid with a request for an extension to file, excess social Schedule 3 (Form 1040), Part II security tax withheld, or have a deferral of payments of tax (for certain Schedule H and Schedule SE filers).

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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 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.

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 the 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 the 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 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, clinics 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 a clinic 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).

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

makes doing your taxes faster and easier.

Have you tried IRS e-file? It’s the fastest way to get your refund and reduce errors. See Options for e-filing your returns below or visit IRS.gov for details.

Options for e-filing your returns—safely, quickly, and easily Why do 89% of Americans le their taxes electronically? • 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 15, 2021, 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- le.

IRS e-file: It’s Safe. It’s Easy. It’s Time. Joining the more than 135 million Americans who are already using e- le is easy. Just ask your tax preparer or use commercial software. IRS e- le 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- led 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- le. If you are asked if you want to e- le, just give it a try. IRS e- le 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. The IRS uses the latest encryption technology and does not store the bank account number you use to submit your payment. When you use any of the IRS electronic payment options, 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 con rmation from the IRS. It’s easy, secure, and much quicker than mailing in a check or money order. Go to IRS.gov/Payments to see all your electronic payment options.

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Affordable Care Act—What tax years ending on or after imposed for the period beginning on You Need To Know December 31, 2020, unless filing for a March 27, 2020, and ending dual status taxpayer, a fiscal-year December 31, 2020. For more See Affordable Care Act—What You taxpayer, a trust, or an estate. For information, see the instructions for Need To Know in the Instructions for these and other exceptions, see Schedule SE or Schedule H. For Forms 1040 and 1040-SR for details. Notice 2020-70. information on reporting the deferral, What's New Qualified disability trusts. The see Exception 2 in the instructions for exemption amount for a qualified Schedule 3, , later. Future developments. For the latest disability trust increased to $4,300 for Credits for sick and family leave information about developments 2020. for certain self-employed individu- related to Form 1040-NR and its als. The Families First Coronavirus instructions, such as legislation Charitable contributions. Students or business apprentices eligible for Relief Act (FFCRA) helps enacted after they were published, go self-employed individuals affected by to IRS.gov/Form1040NR. the benefits of Article 21(2) of the United States-India Income Tax coronavirus by providing paid sick Married filing status change. At the Treaty who have elected to use the leave and paid family leave credits top of page 1 of Form 1040-NR, the standard deduction may qualify to equivalent to those that employers filing status "Married" has been take a deduction for charitable cash provide their employees for qualified changed to "Married filing separately." contributions of up to $300 ($150 if sick leave wages and qualified family Select Married filing separately if you married filing separately). See leave wages paid for leave taken during the period beginning April 1, are married even if you are not Line 10b, later. separated from your spouse. But see 2020, and ending March 31, 2021. Married Filing Separately, later, for an Deductible IRA contributions. You For more information, see the exception. no longer need to be younger than Instructions for Form 7202, Credits for age 701/2 to take a deduction for your Sick Leave and Family Leave for Form 1040-NR redesign. Refer to contributions to an IRA. Certain Self-Employed Individuals, Form 1040-NR Redesign Helpful and, in the Instructions for Forms Hints, earlier, for a comprehensive Coronavirus-related distributions. 1040 and 1040-SR, the instructions discussion of the redesign, including You may be eligible for special tax for Schedule 3, line 12b. the references to the Instructions for benefits if you withdrew amounts from Forms 1040 and 1040-SR that you will your retirement plan and you were Schedule LEP (Form 1040), Re- see throughout these instructions. impacted by the coronavirus. See quest for Change in Language Where To Find Your Lines on Form 8915-E for details. Preference. Schedule LEP is a new Redesigned 2020 Form 1040-NR, Coronavirus tax relief for certain form that allows taxpayers to state a later, showing where the former Form individuals. The Coronavirus Aid, preference to receive written 1040-NR lines are in the redesigned Relief, and Economic Security communications from the IRS in a Form 1040-NR, follows this section. (CARES) Act permits certain language other than English. For more information, including what languages Required e-filing. Tax return individuals who file Schedule SE or are available and how to file, see preparers must generally e-file Forms Schedule H to defer the payment of Schedule LEP. 1040-NR for taxable returns filed for 50% of the social security tax

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Where To Find Your Lines on Redesigned 2020 Form 1040-NR

Before you begin: • Line numbers in the 2nd column not followed by an asterisk indicate those lines for which the Instructions for Forms 1040 and 1040-SR must be read in conjunction with the exceptions listed for the line in these instructions and those lines whose instructions are found completely in these instructions. See, for example, line 1a and line 1b in the 2nd column of this table and also Line 1a and Line 1b, later. • Line numbers in the 2nd column followed by an asterisk indicate those lines whose instructions are found completely in the Instructions for Forms 1040 and 1040-SR. See, for example, line 4a in the 2nd column of this table and also Line 4a, later. • Line numbers in the 2nd column followed by two asterisks indicate those lines whose instructions are not found in the Instructions for Forms 1040 and 1040-SR or the Instructions for Form 1040-NR. The directions on the form for these lines are sufficient. See, for example, line 11 in the 2nd column of this table. 2019 Form 1040-NR line # Redesigned 2020 Form 1040-NR line # Line Description 8 1a Wages, salaries, tips, etc. Attach Form(s) W-2 9a 2b Interest, Taxable 9b 2a Interest, Tax-exempt 10a 3b Dividends, Ordinary 10b 3a Dividends, Qualified 11 Schedule 1, Refunds, credits, or offsets of state and local income taxes, Taxable - - Schedule 1, Leave blank. Alimony received is reported on Schedule NEC for Form 1040-NR filers. 12 1b Scholarship and fellowship grants from Form(s) 1042-S or required statement 13 Schedule 1, Business income or (loss) from Schedule C (Form 1040) 14 7 Capital gain or (loss) 15 Schedule 1, Gains or (losses), Other, from Form 4797 16a 4a* IRA distributions, Total 16b 4b* IRA distributions, Taxable amount 17a 5a Pensions and annuities, Total 17b 5b Pensions and annuities, Taxable amount - - 6 Reserved for future use 18 Schedule 1, Rental real estate, royalties, , trusts, etc., from Schedule E (Form 1040) 19 Schedule 1, Farm income or (loss) from Schedule F (Form 1040) 20 Schedule 1, * Unemployment compensation 21 Schedule 1, Income, Other. List type and amount 22 1c Total income exempt by a treaty from page 5, Schedule OI, Item L (1(e)) 23 9** Total effectively connected income 24 Schedule 1, * Educator expenses 25 Schedule 1, line 12* Health savings account deduction 26 Schedule 1, line 13* Moving expenses for members of the Armed Forces from Form 3903 27 Schedule 1, * Deductible part of self-employment tax from Schedule SE (Form 1040) 28 Schedule 1, * Self-employed SEP, SIMPLE, and qualified plans 29 Schedule 1, line 16 Self-employed health insurance deduction 30 Schedule 1, line 17* Penalty on early withdrawal of savings - - Schedule 1, line 18 Leave blank. Form 1040-NR filers can not claim a deduction for alimony paid. - - 10b $300 ($150 if Married filing separately) above-the-line charitable deduction 31 10c Scholarship and fellowship grants exclusion 32 Schedule 1, line 19 IRA deduction 33 Schedule 1, line 20 Student loan interest deduction - - Schedule 1, line 21 Leave blank. Form 1040-NR filers can not claim a deduction for tuition and fees. Schedule 1, line 22 Adjustments to income write-ins, except for performing artists expenses 34 Schedule 1, line 11 Performing artists expenses 35 11** Adjusted gross income 36 - - Reserved for future use 37 12 Itemized deductions from Schedule A 38 13a* Qualified business income deduction from Form 8995 or Form 8995-A 39 13b Exemptions for estates and trusts only 41 15** Taxable income 42 16 Tax 43 Schedule 2, line 1 from Form 6251 44 Schedule 2, line 2 Excess advance premium tax credit repayment from Form 8962 46 Schedule 3, line 1 Foreign tax credit. Attach Form 1116 if required 47 Schedule 3, line 2* Credit for child and dependent care expenses from Form 2441 - - Schedule 3, line 3 Leave blank. Form 1040-NR filers cannot claim a credit for education credits. 48 Schedule 3, line 4 Retirement savings contributions credit from Form 8880 49 19 Child tax credit and credit for other dependents

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Where To Find Your Lines on Redesigned 2020 Form 1040-NR (Continued)

2019 Form 1040-NR line # Redesigned 2020 Form 1040-NR line # Line Description 50 Schedule 3, line 5* Residential energy credits from Form 5695 51 Schedule 3, lines 6a to 6c Credits from Form 3800, Form 8801, or other form 52 21** Nonrefundable credits total 54 23a** Tax on income not effectively connected with a U.S. trade or business from Schedule NEC, line 15 55 Schedule 2, line 4** Self-employment tax from Schedule SE (Form 1040) 56 Schedule 2, line 5 Social security and Medicare tax—Unreported—from Form 4137 or 8919 57 Schedule 2, line 6* IRAs, other qualified retirement plans, etc.—Additional tax 58 23c Transportation tax 59a Schedule 2, line 7a* Household employment taxes from Schedule H (Form 1040) 59b Schedule 2, line 7b* First-time homebuyer credit repayment from Form 5405 60 Schedule 2, lines 8a & 8c Taxes from Form 8959 or other source 61 24** Tax after credits 25a and 25b* Federal income tax withheld from Form(s) W-2 and 1099 62a 25c Federal income tax withheld from forms other than Forms W-2, 1099, 8805, 8288-A, and 1042-S 62b 25e Federal income tax withheld from Form(s) 8805 62c 25f Federal income tax withheld from Form(s) 8288-A 62d 25g Federal income tax withheld from Form(s) 1042-S 63 26 Current-year estimated tax payments from current year and amount applied from prior-year return - - 27 Reserved for future use 64 28 Additional child tax credit from Schedule 8812 65 Schedule 3, line 8 Net premium tax credit from Form 8962 66 Schedule 3, Amount paid with request for extension to file 67 Schedule 3, line 10 Excess social security and tier 1 RRTA tax withheld 68 Schedule 3, line 11* Credit for federal tax on fuels. Attach Form 4136 69 Schedule 3, lines 12a, 12c, and 12d Credits from Form 2439, 8885, or other form 70 29 Credit for amount paid with Form 1040-C - - 30 Reserved for future use 71 33** Total payments 72 34 Overpayment 73a 35a Amount of line 72 you want refunded to you 73b through 73d 35b through 35d Banking information for direct deposit 73e 35e Refund check mailed to a different address outside the United States 74 36* Amount of line 72 you want applied to your 2020 estimated tax 75 37 Amount owed 76 38 Estimated tax penalty

1. You were a nonresident alien are single or a qualifying widow(er), Filing Requirements student, teacher, or trainee who was and your gross income for 2020 was temporarily present in the United less than or equal to $12,400 if single Do You Have To File? States under an “F,” “J,” “M,” or “Q” ($24,800 if a qualifying widow(er)). File Form 1040-NR if any of the visa, and you have no income that is See chapter 5 of Pub. 519 for more conditions in Table A. Who Must File subject to tax under section 871 (that details on these treaty benefits. Form 1040-NR, later, apply to you. is, the income items listed on page 1 3. You were a partner in a U.S. You must still meet (1), (2), or of Form 1040-NR, lines 1a, 1b, 2b, 3b, that was not engaged in a ! (3) below to be exempt from 4b, 5b, 7, and 8, and Schedule NEC trade or business in the United States CAUTION filing a 2020 Form 1040-NR. (Form 1040-NR), lines 1 through 12). during 2020 and your Schedule K-1 2. You were a student or business (Form 1065) includes only income Exceptions. You do not need to file apprentice who was eligible for the from U.S. sources reportable on Form 1040-NR if you meet (1), (2), or benefits of Article 21(2) of the United Schedule NEC (Form 1040-NR), lines (3) below. States-India Income , you 1 through 12.

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If the partnership withholds money back. For example, you should d. Health coverage tax credit. ! taxes on this income in 2021 file if one of the following applies. CAUTION and the tax withheld and 1. You are eligible to get a refund You should also consider filing a reported in box 10 of Form 1042-S is of any federal income tax withheld. return if you received a Form 1099-B less or more than the tax due on the 2. You are engaged in a U.S. trade (or substitute statement). See Pub. income, you will need to file Form or business and are eligible for any of 501 for more details. 1040-NR for 2021 to pay the the following credits. underwithheld tax or claim a refund of the overwithheld tax. a. Additional child tax credit. b. Credit for federal tax on fuels. Even if you do not otherwise c. Premium tax credit. TIP have to file a return, you should file one if you can get

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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 2020. 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. However, if you have no gross income* for 2020, 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 2020 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 7b, 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 8, later. 4. You received HSA, Archer (MSA), or Medicare Advantage MSA distributions. 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 Forms 1040 and 1040-SR only as necessary. ! CAUTION 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 3520- A. 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 Canada, Mexico, or South Korea; or a Married filing separately, you cannot payments of the premium tax cred- student or business apprentice take the premium tax credit unless it. See Requirement to reconcile eligible for the benefits of Article 21(2) you meet the criteria of one of the advance payments of the premium tax of the United States-India Income Tax exceptions under Married taxpayers in credit under Filing Requirements in Treaty. See Pub. 974. the Instructions for Form 8962. the Instructions for Forms 1040 and Exception 2. You cannot use Filing a deceased person's return. 1040-SR for details. advance payments made for your The personal representative must file Exception 1. If you are filing Form spouse, as a Form 1040-NR filer the return for a deceased person who 1040-NR, you can claim the premium cannot file a joint return. was required to file a return for 2020. tax credit for dependents only if you A personal representative can be an Exception 3. If your filing status at executor, administrator, or anyone are a U.S. national; resident of the top of page 1 on Form 1040-NR is

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who is in charge of the deceased page 1. If your income is not exempt Example. Mary is a nonresident person's property. from tax by treaty, leave the rest of alien individual. The only U.S. source Filing for an estate or trust. If you page 1 blank. If your income is income she received during the year are filing Form 1040-NR for a exempt from tax by treaty, enter the was as follows. 4 dividend payments. nonresident alien estate or trust, exempt income on line 1c and leave • 12 interest payments. change the form to reflect the the rest of page 1 blank. • provisions of subchapter J, chapter 1, Page 2—Lines 23a and 24. Enter All payments were reported to Mary of the Internal Revenue Code. You on line 23a the tax on income not on Form(s) 1042-S. On one of the may find it helpful to refer to Form effectively connected with a U.S. dividend payments, the withholding 1041 and its instructions for some trade or business from agent incorrectly withheld at a rate of purposes when completing the Form Schedule NEC, line 15. Enter your 30% (instead of 15%). There were no 1040-NR rather than looking to these total income tax liability on line 24. other withholding discrepancies. Mary instructions for details. Line 25b. Enter the total amount of must report all four dividend U.S. tax withheld from Form(s) 1099. payments. She is not required to If you are filing Form 1040-NR report any of the interest payments. ! for a foreign trust, you may Line 25g. Enter the total amount of CAUTION have to file Form 3520-A, U.S. tax withheld on income not Note. Payments of gross proceeds Annual Information Return of Foreign effectively connected with a U.S. from the sale of securities or regulated Trust With a U.S. Owner, on or before trade or business from Form(s) futures contracts are generally the 15th day of the 3rd month after the 1042-S. exempt from U.S. tax. If you received end of the trust’s tax year. For more Line 33. Add lines 25d, 25e, 25f, such payments and they were information, see the Instructions for 25g, 26, and 32. This is the total tax subjected to backup withholding, Form 3520-A. you have paid. specify the type of payment on line 12 and show the amount in column (d). Simplified Procedure for Lines 34 and 35a. Enter the difference between line 24 and Lines 13 through 15. Complete Claiming Certain Refunds line 33. This is your total refund. these lines as instructed on the form. You can use this procedure only if you You can have the refund deposited Schedule OI (Form 1040-NR). You meet all of the following conditions for into more than one account. See must answer all questions. For item L, the tax year. Lines 35a through 35e—Amount identify the country, tax treaty You were a nonresident alien. • refunded to you, later, for more article(s) under which you are You were not engaged in a trade or • details. applying for a refund of tax, the business in the United States at any number of months in prior years that time. Line 35e. You may be able to have you claimed the treaty benefit, and the You had no income that was your refund check mailed to an • amount of exempt income in the effectively connected with the conduct address that is not shown on page 1. current year. Also attach Form 8833 if of a U.S. trade or business. See Line 35e, later, for more details. required. • Your U.S. income tax liability was Signature. You must sign and date fully satisfied through withholding of your tax return. See Sign Your Return, Note. If you are claiming a reduced tax at source. later. rate of, or exemption from, tax based You are filing Form 1040-NR solely • Schedule NEC (Form 1040-NR), on a tax treaty, you must generally be to claim a refund of U.S. tax withheld lines 1a through 12. Enter the a resident for income tax purposes of at source under chapter 3 or tax amounts of gross income you the particular treaty country within the withheld under chapter 4 (FATCA). received from dividends, dividend meaning of the treaty and you cannot Example. John is a nonresident equivalents, interest, royalties, have a or alien individual. The only U.S. source pensions, annuities, and other fixed base in the United States. You income he received during the year income. If any income you received can download the complete text of was dividend income from U.S. was subject to backup withholding or most U.S. tax treaties at IRS.gov. Go stocks. The dividend income was withholding at source, you must to IRS.gov, enter "tax treaties" in the reported to him on Form(s) 1042-S. include all gross income of that type search box at the top of the page, and On one of the dividend payments, the that you received. The amount of click on United States Income agent incorrectly withheld each type of income should be shown Treaties - A to Z. Technical at a rate of 30% (instead of 15%). in the column under the appropriate explanations for many of those John is eligible to use the simplified U.S. , if any, that applies to treaties are also available at that site. procedure. that type of income in your particular If you are claiming an exemption circumstances. from tax under chapter 4, you must If you meet all of the conditions qualify for a reduced rate of, or listed earlier for the Simplified Method If you are entitled to a reduced rate exemption from, tax for chapter 3 for the tax year, complete Form of, or exemption from, withholding on purposes unless the payment is not 1040-NR as follows. the income pursuant to a tax treaty, the appropriate rate of U.S. tax is the an amount subject to chapter 3 Page 1. Enter your name, identifying same as the treaty rate. Use column withholding. See Regulations section number (defined in Identifying (d) if the appropriate tax rate is other 1.1441-2(a). Number, later), and all address than 30%, 15%, or 10%, including 0%. information requested at the top of

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Documentation. You must attach transaction and presents the facts Special reporting requirements for acceptable proof of the withholding for necessary to establish that the Form 8938 apply to dual resident which you are claiming a refund. If you payment was a complete redemption, taxpayers holding specified foreign are claiming a refund of backup a disproportionate redemption, or not financial assets and taxed for all or a withholding tax based on your status essentially equivalent to a dividend. portion of the year as nonresident as a nonresident alien, you must aliens under Regulations section attach a copy of the Form 1099 that Items To Note 301.7701(b)-7. For more information, see the Instructions for Form 8938, in shows the income and the amount of Special rules for former U.S. citi- particular, Special rule for dual backup withholding. If you are zens and former U.S. long-term resident taxpayers under Who Must claiming a refund of U.S. tax withheld residents. If you renounced your File. at source under chapter 3 or tax U.S. citizenship or terminated your withheld under chapter 4, you must long-term resident status, you may be attach a copy of the Form 1042-S that subject to special rules. See Special Additional Information shows the income and the amount of Rules for Former U.S. Citizens and If you need more information, our free U.S. tax withheld. Attach the forms to Former U.S. Long-Term Residents publications may help you. Pub. 519 the left margin of page 1. (Expatriates), later. will be the most beneficial, but the following publications may also help. Self-employment tax. You must pay Additional Information self-employment tax on your Pub. 501 Dependents, Standard Portfolio interest. If you are claiming self-employment income if an Deduction, and Filing Information a refund of U.S. tax withheld from international social security Pub. 525 Taxable and Nontaxable Income portfolio interest, include a description agreement in effect between your Pub. 529 Miscellaneous Deductions of the relevant debt obligation, country of tax residence and the Pub. 597 Information on the United United States provides that you are States–Canada Income Tax including the name of the issuer, Treaty CUSIP number (if any), interest rate, covered under the U.S. social security and the date the debt was issued. system. Enter the tax on Schedule 2 (Form 1040), line 4. See Line 4 under Interest payments on foreign Instructions for Schedule 2, later, for These free publications and the bearer obligations issued on ! additional information. Enter the forms and schedules you will need are CAUTION or after March 19, 2012, are deductible part of your available from the IRS. You can not eligible for the portfolio interest self-employment tax on Schedule 1 download them at IRS.gov. Also see exception to withholding. For more (Form 1040), line 14. Attach How To Get Tax Help, later, for other information, see Interest in Pub. 519 Schedule SE (Form 1040). See the ways to get them (as well as and Pub. 515. Instructions for Schedule SE (Form information on receiving IRS assistance in completing the forms). Withholding on distributions. If 1040) for additional information. you are claiming an exemption from Social security or Medicare taxes You can download the complete withholding on a distribution from a withheld in error. If you are a text of most U.S. tax treaties at U.S. corporation with respect to its foreign student or exchange visitor on IRS.gov. Go to IRS.gov, enter "tax stock because the corporation had an F-1, J-1, M-1, or Q visa, and social treaties" in the search box at the top of insufficient earnings and profits to security or Medicare taxes were the page, and click on United States support dividend treatment, you must withheld on your wages in error, you Income Tax Treaties - A to Z. attach a statement that identifies the may want to file Form 843, Claim for Technical explanations for many of distributing corporation and provides Refund and Request for Abatement, those treaties are also available at the basis for the claim. to request a refund of these taxes. For that site. more information, see Students and If you are claiming an exemption Resident Alien or from withholding on a distribution from Exchange Visitors in chapter 8 of Pub. a mutual fund or real estate 519, U.S. Tax Guide for Aliens. Nonresident Alien investment trust (REIT) with respect to Other reporting requirements. You If you are not a citizen of the United its stock because the distribution was may also have to file other forms, States, specific rules apply to designated as long-term capital gain including the following. determine if you are a resident alien or or a nondividend distribution, you • Form 8833, Treaty-Based Return a nonresident alien for tax purposes. must attach a statement that identifies Position Disclosure Under Section Generally, you are considered a the mutual fund or REIT and provides 6114 or 7701(b). resident alien if you meet either the the basis for the claim. • Form 8840, Closer Connection green card test or the substantial If you are claiming an exemption Exception Statement for Aliens. presence test for 2020. (These tests from withholding on a distribution from • Form 8843, Statement for Exempt are explained in Green Card Test and a U.S. corporation with respect to its Individuals and Individuals With a Substantial Presence Test, later.) stock because, in your particular Medical Condition. Even if you do not meet either of these circumstances, the transaction • Form 8938, Statement of Specified tests, you may be able to choose to qualifies as a redemption of stock Foreign Financial Assets. be treated as a U.S. resident for part under section 302, you must attach a of 2020. See First-Year Choice in Dual resident taxpayer holding statement that describes the chapter 1 of Pub. 519 for details. specified foreign financial assets.

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Generally, you are considered a • A letter stating your intent to 1. Days you commute to work in nonresident alien for the year if you abandon your resident status. the United States from a residence in are not a U.S. resident under either of Canada or Mexico if you regularly these tests. However, see The USCIS Alien Registration commute from Canada or Mexico. Dual-Resident Taxpayer, later, if you Receipt Card is also referred to as a “green card.” 2. Days you are in the United are a resident of the United States States for less than 24 hours when under these tests but are eligible to When filing by mail, you must send you are in transit between two places claim benefits as a resident of a your filing by certified mail, return outside the United States. foreign country under a U.S. income receipt requested (or the foreign 3. Days you were temporarily in tax treaty. equivalent), and keep a copy and the United States as a regular crew proof that it was mailed and received. For more details on resident and member of a foreign vessel engaged nonresident status, the tests for Until you have proof your in transportation between the United residence, and the exceptions to ! letter was received, you States and a foreign country or a them, see chapter 1 of Pub. 519. CAUTION remain a resident for tax possession of the United States purposes even if the USCIS would not unless you otherwise engaged in Green Card Test recognize the validity of your green trade or business on such day. You are a resident for tax purposes if card because it is more than 10 years 4. Days you intend, but are you were a lawful permanent resident old or because you have been absent unable, to leave the United States (immigrant) of the United States at from the United States for a period of because of a medical condition that any time during 2020. (Also see time. arose while you were in the United Dual-Status Taxpayers, later.) In most States. cases, you are a lawful permanent For more details, including special 5. Days you are in the United resident if the USCIS (or its rules that apply if you give up your States under a NATO visa as a predecessor organization, INS) has green card after holding it in at least 8 member of a force or civilian issued you an alien registration card, of the prior 15 years, see Green Card component to NATO. However, this also known as a green card. Test in chapter 1 of Pub. 519. Also exception does not apply to an see USCIS.gov/i-407. You continue to have resident immediate family member who is status under this test unless the status Substantial Presence Test present in the United States under a is taken away from you or is You are considered a U.S. resident if NATO visa. A dependent family administratively or judicially you meet the substantial presence member must count every day of determined to have been abandoned. test for 2020. You meet this test if you presence for purposes of the substantial presence test. An administrative or judicial were physically present in the United determination of abandonment of States for at least: 6. Days you are an exempt resident status may be initiated by 1. 31 days during 2020; and individual (defined next). you, the USCIS, or a U.S. consular 2. 183 testing days during the You may need to file Form officer. 3-year period of 2020, 2019, and 8843 to exclude days of Your resident status is considered 2018, as calculated using the presence in the United States to have been taken away from you if following chart. if you meet (4) or (6) above. For more the U.S. Government issues you a information on the requirements, see final administrative or judicial order of (a) (b) (c) (d) Form 8843 (and also Form 8843 exclusion or deportation. When your Year Days of Multiplier Testing COVID-19 Medical Condition Travel physical days resident alien status is considered to Exception (Rev. Proc. 2020-20 presence (multiply Exception)) in chapter 1 of Pub. 519. have been administratively or (b) times judicially determined to be abandoned (c)) Exempt individual. For purposes of depends on who initiates the 2020 1.000 the substantial presence test, an determination. 2019 0.333 exempt individual is anyone in one of If the USCIS or U.S. consular the following categories. officer initiates this determination, 2018 0.167 • An individual temporarily present in your resident status will be considered Total testing days (add column the United States as a foreign to be abandoned when the final (d)) ...... government-related individual under administrative order of abandonment an “A” or “G” visa, other than is issued. If you initiate the individuals holding “A-3” or “G-5” determination, your resident status is Generally, you are treated as class visas. considered to be abandoned when present in the United States on any • A teacher or trainee who is you file either of the following day that you are physically present in temporarily present under a “J” or “Q” documents—along with your USCIS the country at any time during the day. visa, who substantially complies with Alien Registration Receipt Card—with However, there are exceptions to this the requirements of the visa. the USCIS or a U.S. consular officer. rule. In general, do not count the • A student who is temporarily • USCIS Form I-407 (Record of following as days of presence in the present under an “F,” “J,” “M,” or “Q” Abandonment of Lawful Permanent United States for the substantial visa, who substantially complies with Resident Status). presence test. the requirements of the visa.

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• A professional athlete who is Form 8840 in chapter 1 of Pub. 519. month after the tax year ends. If you temporarily in the United States to Each spouse must file a separate file for a nonresident alien estate or compete in a charitable sports event. Form 8840 to claim the closer trust that does not have an office in connection exception. the United States, file the return by the Note. Alien individuals with “Q” visas 15th day of the 6th month after the tax are treated as students, teachers, or Dual-Resident Taxpayer year ends. trainees and, as such, are exempt individuals for purposes of the You are a dual-resident taxpayer if Note. If the due date for filing falls on substantial presence test if they you are a resident of both the United a Saturday, Sunday, or legal holiday, otherwise qualify. “Q” visas are issued States and a foreign country under file by the next business day. to aliens participating in certain each country's tax laws. If the income tax treaty between the United States If you were serving in, or in support international cultural exchange of, the U.S. Armed Forces in a programs. and that foreign country contains a provision for resolving conflicting designated combat zone or See chapter 1 of Pub. 519 for more claims of residence ( referred to contingency operation, you may be details regarding exempt individuals as “tie-breaker” rules), and you able to file later. See Pub. 3 for and days of presence in the United determine that you are a resident of details. States for the substantial presence the foreign country under that If you e-file your return, there is no test. provision, you can be treated as a need to mail it. However, if you You cannot be an exempt nonresident of the United States for choose to mail it instead, filing ! individual indefinitely. purposes of figuring out your income instructions and addresses are at the CAUTION Generally, you will not be an tax liability if you file a Form 1040-NR end of these instructions. exempt individual as a teacher or and attach a Form 8833, Where To File next provides the trainee in 2020 if you were exempt as Treaty-Based Return Position current address for mailing your a teacher, trainee, or student for any Disclosure Under Section 6114 or return. Use these addresses for part of 2 of the preceding 6 years. You 7701(b). A dual-resident taxpayer Forms 1040-NR filed in 2021. The will not be an exempt individual as a may also be eligible for U.S. address for returns filed after 2021 student in 2020 if you were exempt as competent authority assistance. See may be different. See IRS.gov/ a teacher, trainee, or student for any Rev. Proc. 2015-40, 2015-35 I.R.B. Form1040NR for any updates. part of more than 5 calendar years. 236, or its successor. You can However, there are exceptions to download the complete text of most Where To File these limits. See Substantial U.S. tax treaties at IRS.gov. Go to E-file. If you e-file your return, there is Presence Test in chapter 1 of Pub. IRS.gov, enter “tax treaties” in the no need to mail it. See the e-file page, 519 for more information. search box at the top of the page, and earlier, or IRS.gov for more click on United States Income Tax information. However, if you choose Treaties - A to Z. Technical to mail it, filing instructions and Closer Connection to Foreign explanations for many of those addresses are below. Country treaties are also available at that site. Individuals. If you are not enclosing Even though you would otherwise a payment, mail Form 1040-NR to: meet the substantial presence test, When and Where Should you can be treated as a nonresident You File? Department of the Treasury alien if you: Internal Revenue Service • Were present in the United States Individuals. If you were an employee and received wages subject to U.S. Austin, TX 73301-0215 for fewer than 183 days during 2020, U.S.A. • Establish that during 2020 you had income tax withholding, file Form a tax home in a foreign country, and 1040-NR by the 15th day of the 4th • Establish that during 2020 you had month after your tax year ends. A If enclosing a payment, mail Form a closer connection to one foreign return for the 2020 calendar year is 1040-NR to: due by April 15, 2021. country in which you had a tax home Internal Revenue Service If you file after this date, you may than to the United States unless you P.O. Box 1303 have to pay interest and penalties. had a closer connection to two foreign Charlotte, NC 28201-1303 See Interest and Penalties, later. countries. U.S.A. If you did not receive wages as an You are not eligible for the closer employee subject to U.S. income tax connection exception if you have an withholding, file Form 1040-NR by the Estates and trusts. If you are not application pending for adjustment of 15th day of the 6th month after your enclosing a payment, mail Form status to that of a lawful permanent tax year ends. A return for the 2020 1040-NR to: resident or if you have applied, or calendar year is due by June 15, Department of the Treasury have taken steps to apply, for lawful 2021. permanent residence. See chapter 1 Internal Revenue Service of Pub. 519 for more information. Estates and trusts. If you file for a Kansas City, MO 64999 nonresident alien estate or trust that U.S.A. You must file a fully completed has an office in the United States, file Form 8840 with the IRS to claim the the return by the 15th day of the 4th closer connection exception. See

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If enclosing a payment, mail Form If you make this election, you sign the Form 1040-NR. If you are not 1040-NR to: ! may forfeit the right to claim enclosing a payment, mail your return CAUTION benefits otherwise available and statement to: Internal Revenue Service under a U.S. tax treaty. For more P.O. Box 1303 information about the benefits that Department of the Treasury Charlotte, NC 28201-1303 might otherwise be available, see the Internal Revenue Service U.S.A. specific treaty. Austin, TX 73301-0215 U.S.A. What if you cannot file on time? Dual-Status Taxpayers See What if You Can't File on Time? If enclosing a payment, mail your in the Instructions for Forms 1040 and If you elect to be taxed as a return to: 1040-SR. resident alien (discussed in Election To Be Taxed as a Internal Revenue Service Private Delivery Services Resident Alien, earlier), the special P.O. Box 1303 instructions and restrictions discussed Charlotte, NC 28201-1303 See Private Delivery Services in the U.S.A. Instructions for Forms 1040 and here do not apply. 1040-SR for details on private delivery If you were a nonresident on the services. Dual-Status Year A dual-status year is one in which you last day of the tax year, file Form Exception. Do not use the mailing change status between nonresident 1040-NR. Enter “Dual-Status Return” addresses in those instructions. Use and resident alien. Different U.S. across the top and attach a statement the mailing addresses in Where To income tax rules apply to each status. showing your income for the part of File, earlier. the year you were a U.S. resident. Most dual-status years are the You can use Form 1040 or 1040-SR Election To Be Taxed as a years of arrival or departure. Before as the statement; enter “Dual-Status Resident Alien you arrive in the United States, you Statement” across the top. Do not You can elect to be taxed as a U.S. are a nonresident alien. After you sign the Form 1040 or 1040-SR. If you resident for the whole year if all of the arrive, you may or may not be a are not enclosing a payment, mail following apply. resident, depending on the your return and statement to: circumstances. • You were married. Department of the Treasury • Your spouse was a U.S. citizen or If you become a U.S. resident, you Internal Revenue Service resident alien on the last day of the stay a resident until you leave the Austin, TX 73301-0215 tax year. United States or are no longer a lawful U.S.A. • You file a joint return for the year of permanent resident of the United the election using Form 1040 or States. You may become a If enclosing a payment, mail your 1040-SR. nonresident alien when you leave if return to: you meet both of the following To make this election, you must conditions. Internal Revenue Service attach the statement described in • After leaving (or after your last day P.O. Box 1303 Nonresident Spouse Treated as a of lawful permanent residency if you Charlotte, NC 28201-1303 Resident in chapter 1 of Pub. 519 to met the green card test, defined U.S.A. your return. Do not use Form earlier) and for the remainder of the 1040-NR. calendar year of your departure, you Statements. Any statement you file If you make the election to be have a closer connection to a foreign with your return must show your treated as a resident alien, your country than to the United States. name, address, and identifying worldwide income for the whole year • During the next calendar year, you number (defined in Identifying must be included and will be taxed are not a U.S. resident under either Number, later). under U.S. tax laws. You must agree the green card test or the substantial presence test, defined earlier. Former U.S. long-term residents to keep the records, books, and other are required to file Form 8854, Initial information needed to figure the tax. If See chapter 1 of Pub. 519 for more and Annual Expatriation Statement, you made the election in an earlier information. with their dual-status return for the last year, you can file a joint return or What and Where To File for a year of U.S. residency. To determine separate return for 2020. If you file a if you are a former U.S. long-term separate return, use Form 1040 or Dual-Status Year resident, see Expatriation Tax in 1040-SR. You must include your If you were a U.S. resident on the last chapter 4 of Pub. 519. worldwide income for the whole year day of the tax year, file Form 1040 or whether you file a joint or separate 1040-SR. Enter “Dual-Status Return” Income Subject to Tax for return. across the top and attach a statement Dual-Status Year showing your income for the part of As a dual-status taxpayer not filing a the year you were a nonresident. You joint return, you are taxed on income can use Form 1040-NR as the from all sources for the part of the statement; enter “Dual-Status year you were a resident alien. Statement” across the top. Do not

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Generally, you are taxed on income Tax credits. You cannot take the line 16; and the tax on the only from U.S. sources for the part of earned income credit, the credit for noneffectively connected income on the year you were a nonresident alien. the elderly or disabled, or any Form 1040-NR, line 23a. Include any However, all income effectively education credit unless you elect to net investment income tax from Form connected with the conduct of a trade be taxed as a resident alien (see 8960 for the part of the year you were or business in the United States is Election To Be Taxed as a Resident a U.S. resident on Schedule 2 (Form taxable. Alien, earlier) instead of a dual-status 1040), line 8, and check box b. See Income you received as a taxpayer. Form 8960 and its instructions for more details. dual-status taxpayer from sources See chapter 6 of Pub. 519 for outside the United States while a information on other credits. Credit for taxes paid. You are resident alien is taxable even if you allowed a credit against your U.S. became a nonresident alien after How To Figure Tax for a income tax liability for certain taxes receiving it and before the close of the Dual-Status Year you paid, or are considered to have tax year. Conversely, income you When you figure your U.S. tax for a paid, or that were withheld from your received from sources outside the dual-status year, you are subject to income. These include the following. United States while a nonresident different rules for the part of the year 1. Tax withheld from wages alien is not taxable in most cases you were a resident and the part of earned in the United States and taxes even if you became a resident alien the year you were a nonresident. withheld at the source from various after receiving it and before the close items of income from U.S. sources of the tax year. Income from U.S. All income for the period of residence and all income that is other than wages. This includes U.S. sources is generally taxable whether tax withheld on dispositions of U.S. you received it while a nonresident effectively connected with a trade or business in the United States for the real property interests. alien or a resident alien (unless • When filing Form 1040 or 1040-SR, specifically exempt under the Internal period of nonresidence, after allowable deductions, is combined show the total tax withheld on Form Revenue Code or a tax treaty 1040 or 1040-SR, line 25d. Enter provision). and taxed at the same rates that apply to U.S. citizens and residents. For the amounts from the attached statement Restrictions for Dual-Status period of residence, allowable (Form 1040-NR, lines 25d through Taxpayers deductions include all deductions on 25g) in the column to the right of Schedule A (Form 1040), including line 25d on Form 1040 or 1040-SR, Standard deduction. You cannot medical expenses, real property and identify and include them in the take the standard deduction even for taxes, and certain interest. amount on line 25d on Form 1040 or the part of the year you were a 1040-SR. resident alien. Note. Schedule A (Form 1040) is not • When filing Form 1040-NR, show Head of household. You cannot use the same as Schedule A (Form the total tax withheld on Form the Head of household Tax Table 1040-NR). 1040-NR, lines 25d through 25g. Enter the amount from the attached column or Section D of the Tax See the Instructions for Schedule A Computation Worksheet in the statement (Form 1040 or 1040-SR, (Form 1040). Those instructions are line 25d) in the column to the right of Instructions for Forms 1040 and not the same as the Instructions for 1040-SR. line 25d on Form 1040-NR, and Schedule A (Form 1040-NR), which identify and include it in the amount Joint return. You cannot file a joint appear later in these instructions. on line 25d on Form 1040-NR. return unless you elect to be taxed as Income that is not effectively a resident alien (see Election To Be 2. Estimated tax paid with Form connected with a trade or business in 1040-ES or Form 1040-ES (NR). Taxed as a Resident Alien, earlier) the United States for the period of instead of a dual-status taxpayer. 3. Tax paid with Form 1040-C at nonresidence is subject to the flat the time of departure from the United Tax rates. If you were married and a 30% rate or lower treaty rate. No States. When filing Form 1040 or nonresident of the United States for all deductions are allowed against this 1040-SR, include the tax paid with or part of the tax year and you do not income. Form 1040-C with the total payments make the election discussed earlier to If you were a resident alien on the on line 33 on Form 1040 or 1040-SR. be taxed as a resident alien, you must last day of the tax year and you are Identify the payment in the area to the use the Married filing separately filing Form 1040 or 1040-SR, include left of the entry. column in the Tax Table or Section C the tax on the noneffectively of the Tax Computation Worksheet in connected income on Schedule 2 How To Report Income on the Instructions for Forms 1040 and (Form 1040), line 8c. Enter “1040-NR” 1040-SR to figure your tax on income Form 1040-NR as the code on the space provided. effectively connected with a U.S. Community Income trade or business. If you were married, If you are filing Form 1040-NR, If either you or your spouse (or both you cannot use the Table enter the tax from the Tax Table, Tax you and your spouse) was a column or Section A of the Tax Computation Worksheet, Qualified nonresident alien at any time during Computation Worksheet in the Dividends and Capital Gain Tax the tax year and you had community Instructions for Forms 1040 and Worksheet, Schedule D Tax income during the year, treat the 1040-SR. But see Married Filing Worksheet, Schedule J (Form 1040), community income according to the Separately, later, for an exception. or Form 8615 on Form 1040-NR,

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applicable community property laws treaty, complete item L of Schedule OI You do not need to make an except as follows. (Form 1040-NR) and line 1c on TIP election to treat gain from the • Earned income of a spouse, other page 1 of Form 1040-NR. disposition of a U.S. real than trade or business income or property interest as effectively partnership distributive share income. Virtual currency. See Virtual connected income. Dispositions of The spouse whose services produced Currency in the Instructions for Forms U.S. real property interests are the income must report it on his or her 1040 and 1040-SR. automatically treated as effectively separate return. Income from a sharing (or gig) connected income. See Dispositions • Trade or business income, other economy activity. If you use one of of U.S. Real Property Interests, than partnership distributive share the many online platforms available to earlier. income. Treat this income as received provide goods and services, you may by the spouse carrying on the trade or be involved in what is known as the To make the election, attach a business and report it on that sharing (or gig) economy. If you statement to your return for the year of spouse's return. receive income from a sharing (or gig) the election. Include the following • Partnership distributive share economy activity, it is generally items in your statement. income (or loss). Treat this income (or taxable even if you do not receive a 1. That you are making the loss) as received by the spouse who Form 1099-MISC, Miscellaneous election. is the partner and report it on that Income; Form W-2, Wage and Tax 2. A complete list of all of your real spouse's return. Statement; or some other income property, or any interest in real Income derived from the separate • statement. To learn more about this property, located in the United States property of one spouse that is not income, go to IRS.gov/Sharing or (including location). Give the legal earned income, trade or business IRS.gov/Gig. identification of U.S. timber, coal, or income, or partnership distributive iron ore in which you have an interest. share income. The spouse with the Dispositions of U.S. Real separate property must report this Property Interests 3. The extent of your ownership in income on his or her separate return. Gain or loss on the disposition of a the real property. Use Form 8958, Allocation of Tax U.S. real property interest (see Pub. 4. A description of any substantial Amounts Between Certain Individuals 519 for definition) is taxed as if the improvements to the property. in Community Property States, to gain or loss were effectively 5. Your income from the property. figure the portion of the income connected with the conduct of a U.S. 6. The dates you owned the allocated to you. Attach your trade or business. property. completed Form 8958 to your tax Report gains and losses on the 7. Whether the election is under return. See Pub. 555, Community disposition of U.S. real property section 871(d) or a tax treaty. Property, for more details. interests on Schedule D (Form 1040) 8. Details of any previous Kinds of Income and Form 1040-NR, line 7. Also, net elections and revocations of the real gains may be subject to the You must divide your income for the property election. alternative minimum tax. See Line 1 tax year into the following three under Instructions for Schedule 2, categories. Note. Once made, the section 871 later. See Real Property Gain or Loss election will remain in effect until 1. Income effectively connected in chapter 4 of Pub. 519 for more revoked with the consent of the with a U.S. trade or business. This information. Commissioner. A new section 871 income is taxed at the same rates that election may not be made until after apply to U.S. citizens and residents. Income You Can Elect To Treat as Effectively Connected With a the 5th year in which the revocation Report this income on page 1 of Form occurs. 1040-NR. Pub. 519 describes this U.S. Trade or Business income in greater detail. You can elect to treat some items of Foreign Income Taxed by the 2. U.S. income not effectively income as effectively connected with United States connected with a U.S. trade or a U.S. trade or business. The election You may be required to report some business. This income is taxed at applies to all income from real income from foreign sources on your 30% unless a treaty between your property located in the United States U.S. return if the income is effectively country of residence (as defined and held for the production of income connected with a U.S. trade or under the treaty) and the United and to all income from any interest in business. For this foreign income to States has set a lower rate that such property. This includes: be treated as effectively connected applies to you. Report this income on • Gains from the sale or exchange of with a U.S. trade or business, you Schedule NEC (Form 1040-NR). Pub. such property or an interest therein, must have an office or other fixed 519 describes this income in greater but see the Tip below; place of business in the United States detail. • Gains on the disposal of timber, to which the income can be attributed. coal, or iron ore with a retained For more information, including a list Note. Use line 23c to report the 4% economic interest; of the types of foreign source income tax on U.S. source gross • Rents from real estate; or that must be treated as effectively transportation income. • Rents and royalties from mines, oil connected with a U.S. trade or 3. Income exempt from U.S. tax. or gas wells, or other natural business, see chapter 4 of Pub. 519. If the income is exempt from tax by resources.

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Special Rules for Former U.S. and the credit for other dependents, special circumstances, such as Citizens and Former U.S. are only available to residents of school, vacation, business, or medical Long-Term Residents Canada and Mexico and to U.S. care, count as time the child lived in nationals, and, to a limited extent, to the home. If the child was born or died (Expatriates) residents of South Korea and India. in 2020, you can still file as single as The expatriation tax provisions apply long as the home was that child's to certain U.S. citizens who have lost U.S. national. A U.S. national is an main home for more than half of the their citizenship and long-term individual who, although not a U.S. part of the year he or she was alive in residents who have ended their citizen, owes his or her allegiance to 2020. residency. You are a former U.S. the United States. U.S. nationals 5. You could have claimed the long-term resident if you were a lawful include American Samoans and child as a dependent or could claim permanent resident of the United Northern Mariana Islanders who the child except that the child's other States (green card holder) in at least 8 chose to become U.S. nationals parent claims him or her as a of the last 15 tax years ending with the instead of U.S. citizens. dependent under the rules for children year your residency ends. Single of divorced or separated parents. See For more information on the See Single in the Instructions for Form 8332, Release/Revocation of expatriation tax provisions, see Forms 1040 and 1040-SR for details Release of Claim to Exemption for Expatriation Tax in chapter 4 of Pub. on the Single filing status. Child by Custodial Parent. 519; the Instructions for Form 8854; Married Filing Separately Adopted child. An adopted child and Notice 2009-85 (for expatriation is always treated as your own child. after June 16, 2008), 2009-45 I.R.B. The "Married filing separately" An adopted child includes a child 598, available at IRS.gov/irb/ filing status replaces the lawfully placed with you for legal 2009-45_IRB#NOT-2009-85. former "Married" filing status. adoption. See Married Filing Separately in the Foster child. A foster child is any Line Instructions for Instructions for Forms 1040 and child placed with you by an authorized Form 1040-NR 1040-SR for details on the Married placement agency or by judgment, For 2020, there are three filing separately filing status. decree, or other order of any court of competent jurisdiction. ! important changes in these Exception. Married persons who live CAUTION line instructions. apart: Some married nonresident Qualifying Widow(er) • You need the 2020 Instructions for aliens who have a child and who do See Qualifying Widow(er) in the Forms 1040 and 1040-SR. not live with their spouse can file as Instructions for Forms 1040 and Throughout these line instructions, single. If you meet all five of the 1040-SR for details on the qualifying you will be referred to those following tests and you are a married widow(er) filing status. resident of Canada or Mexico, you are instructions for guidance. Exceptions Exception. You cannot check the are listed where applicable. a married U.S. national, you are a married resident of South Korea, or "Single" box, unless in addition to • The line numbering has changed. meeting the criteria in that section, To see where lines have moved, see you are a married student or business apprentice eligible for the benefits of you also satisfy the two criteria below Where To Find Your Lines on for 2020. Redesigned 2020 Form 1040-NR, Article 21(2) of the United States-India earlier. Income Tax Treaty, check the box for 1. You were a resident of Canada, • Some of the lines that used to be on the Single filing status at the top of Mexico, or South Korea, or were a the main Form 1040-NR are now on page 1 of Form 1040-NR. On U.S. national; or you were a student or Schedule 1 (Form 1040), Schedule 2 Schedule OI, enter your country of business apprentice from India (Form 1040), and Schedule 3 (Form residency (item B) or, if applicable, eligible for the benefits of Article 21(2) 1040). See those schedules. See also that you are a U.S. national (item A). of the United States-India Income Tax the instructions for those schedules 1. You file a separate return from Treaty. following these line instructions. your spouse. 2. You were a resident alien or 2. You paid over half the cost of U.S. citizen the year your spouse keeping up your home for 2020. died. This refers to your actual status, not the election that some nonresident Filing Status 3. You lived apart from your aliens can make to be taxed as U.S. The amount of your tax depends on spouse for the last 6 months of 2020. residents. your filing status. Before you decide Temporary absences for special which box to check, read the following circumstances, such as for business, explanations. For more information medical care, school, or military Name and Address about marital status, see Pub. 501. service, count as time lived in the Individuals Remember to provide your home. TIP country of residency, or that 4. Your home was the main home Enter your name, street address, city you are a U.S. national, on of your child, stepchild, or foster child or town, and country on the Schedule OI (Form 1040-NR), item A for more than half of 2020. Temporary appropriate lines. Include an or B, as applicable. Certain tax absences by you or the child for apartment number after the street benefits, such as the child tax credit

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address, if applicable. Check the box • If you are a J-1 exchange visitor, for “Individual.” you must also show your Form Income Effectively DS-2019. Estates and Trusts Connected With U.S. Trade Enter the name of the estate or trust IRS Individual Taxpayer or Business and check the box for “Estate or Identification Numbers (ITINs) The instructions for this section assume you have decided that the Trust.” You must include different See IRS Individual Taxpayer income involved is effectively information for estates and trusts that Identification Numbers (ITINs) for connected with a U.S. trade or are engaged in a trade or business in Aliens in the Instructions for Forms business in which you were engaged. the United States. 1040 and 1040-SR for details on The tax status of income also ITINs. Not engaged in a trade or busi- depends on its source. Under some ness. Attach a statement to Form Employer Identification Number circumstances, items of income from 1040-NR with your name, title, (EIN) foreign sources are treated as address, and the names and If you are filing Form 1040-NR for an effectively connected with a U.S. addresses of any U.S. grantors and trade or business. Other items are beneficiaries. estate or trust, enter the EIN of the estate or trust. If the entity does not reportable as effectively connected or Engaged in a trade or business in have an EIN, you must apply for one. not effectively connected with a U.S. the United States. Attach a For details on how to get an EIN, see trade or business, depending on how statement to Form 1040-NR with your Form SS-4, Application for Employer you elect to treat them. See chapter 4 name, title, address, and the names Identification Number, and its of Pub. 519. and addresses of all beneficiaries. instructions, which are available at Line 1a—Wages, Salaries, Tips, Name Change IRS.gov. Enter "SS-4" in the search etc. box. For more details, see IRS.gov/ See Line 1—Wages, Salaries, Tips, See Name Change in the Instructions Businesses/Small-Businesses-Self- etc. in the Instructions for Forms 1040 for Forms 1040 and 1040-SR if your Employed/How-To-Apply-for-an-EIN. name has changed. and 1040-SR for the types of income Virtual Currency includible on line 1a of Form Address Change 1040-NR. See Address Change in the See Virtual Currency in the Instructions for Forms 1040 and Instructions for Forms 1040 and Exception 1. Enter on line 1a of 1040-SR if your address has 1040-SR for details on virtual Form 1040-NR only the wages, changed. currency. salaries, tips, etc., effectively connected with a U.S. trade or P.O. Box business. Only U.S. source income is See P.O. Box in the Instructions for Dependents included on line 1a as effectively Forms 1040 and 1040-SR for See Dependents, Qualifying Child for connected wages. Do not include any information on P.O. boxes. Child Tax Credit, and Credit for Other income on line 1a of Form 1040-NR Dependents under Who Qualifies as that is not treated as effectively Foreign Address Your Dependent in the Instructions for connected to a U.S. trade or business See Foreign Address in the Forms 1040 and 1040-SR for details even if it is listed in Line 1 of the Instructions for Forms 1040 and on dependents. Instructions for Forms 1040 and 1040-SR if you have a foreign Exception. Only U.S. nationals and 1040-SR. address. residents of Canada and Mexico can Exception 2. Unlike on Form 1040 or Death of a Taxpayer claim a dependent on the same terms 1040-SR, do not include scholarship See Death of a Taxpayer under as U.S. citizens. Residents of South or fellowship grants on this line. Do General Information in the Instructions Korea and students or business not include scholarship and for Forms 1040 and 1040-SR if you apprentices from India who are fellowship grants reduced by any are filing a return for a deceased eligible for the benefits of Article 21(2) exclusion for those grants. taxpayer. of the United States-India Income Tax Scholarship and fellowship grants are Treaty may claim dependents on the reported on Form 1040-NR, line 1b; Identifying Number more limited terms described in the scholarship and fellowship chapter 5 of Pub. 519. No other exclusion is reported on Form Social Security Number (SSN) person filing a Form 1040-NR can 1040-NR, line 10c. See Social Security Number (SSN) in claim a qualifying dependent. the Instructions for Forms 1040 and Amounts Exempt Under a Treaty 1040-SR for information on SSNs. Rounding Off to Whole Wages, salaries, tips, etc., that you Exception. When you bring your Dollars claim are exempt from U.S. tax under an income tax treaty should not be Form SS-5 to your local SSA office: See Rounding Off to Whole Dollars in reported on line 1a. Instead, include • If you are an F-1 or M-1 student, the Instructions for Forms 1040 and these amounts on line 1c and you must also show your Form I-20; or 1040-SR. complete item L of Schedule OI (Form 1040-NR). Generally, if you submitted a properly completed Form 8233,

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Exemption From Withholding on exemption amount. All of Anna's 1040-NR). Also attach to Form Compensation for Independent (and wages from the internship were 1040-NR a statement that contains Certain Dependent) Personal withheld upon and reported in box 1 the following information. Services of a Nonresident Alien on her Form W-2. On her Form 1. The specific compensation or Individual, to claim an exemption from 1040-NR, Anna should report $3,000 the specific fringe benefit for which an withholding based on a treaty, your on line 1a, include $5,000 on line 1c, alternative method is used. employer would not have withheld tax and complete item L on Schedule OI 2. For each such item, the on the exempt amount and would (Form 1040-NR). Anna should attach alternative method used to allocate have reported the exempt amount on the Form W-2 to her Form 1040-NR. the source of the compensation. a Form 1042-S and not in box 1 of She should also attach a statement to Form W-2. However, if you did not her Form 1040-NR containing all 3. For each such item, a submit a Form 8233 to your employer information that would have otherwise computation showing how the or if you submitted a Form 8233 to been required on a Form 8233 to alternative allocation was computed. your employer but your employer justify the exemption claimed. 4. A comparison of the dollar withheld tax on the exempt amount amount of the compensation sourced because it could not readily determine Services Performed Partly Within within and outside the United States your eligibility for the exemption, you and Partly Outside the United under both the alternative method and can claim the exemption on Form States the time or geographical method for 1040-NR by reducing your line 1a determining the source. wages by the exempt amount. You If you performed services as an will need to complete item L on employee both inside and outside the You must keep documentation Schedule OI (Form 1040-NR) and United States, you must allocate your showing why the alternative method attach a statement to your return compensation between U.S. and more properly determines the source containing all information that would non-U.S. sources. of the compensation. have otherwise been required on a Form 8233 to explain your eligibility Compensation (other than certain Other Types of Income fringe benefits) is generally sourced for the exemption. See the examples The following types of income must on a time basis. To figure your U.S. next. also be included in the total on line 1a. source income, divide the number of All wages received as a household Example 1. Anna is a citizen of days you performed labor or personal • employee. An employer is not France who came to the United States services within the United States by required to provide a Form W-2 to you on an F-1 visa in 2019 for the primary the total number of days you if he or she paid you wages of less purpose of studying at an accredited performed labor or personal services than $2,200 in 2020. If you received university. In 2020, Anna completed a within and outside the United States. wages as a household employee and paid summer internship with a U.S. Multiply the result by your total you did not receive a Form W-2 company as part of her optional compensation (other than certain because an employer paid you less practical training. Anna earned $8,000 fringe benefits). from this internship. Under Article 21 than $2,200 in 2020, enter “HSH” and the amount not reported to you on a (Students and Trainees) of the Fringe Benefits income tax treaty with France, Anna Form W-2 on the dotted line next to can exempt up to $5,000 of personal Certain fringe benefits (such as line 1a. For information on services income from U.S. tax. Anna housing and educational expenses) employment taxes for household submitted a valid Form 8233 to her are sourced on a geographic basis. employees, see Tax Topic 756 at employer to claim an exemption from The source of the fringe benefit IRS.gov/TaxTopics. withholding for the portion of her compensation is generally your • Tip income you did not report to wages that is exempt under the treaty. principal place of work. The amount of your employer. This should include She received a Form 1042-S from her the fringe benefit compensation must any allocated tips shown in box 8 on employer showing the $5,000 exempt be reasonable and you must keep your Form(s) W-2 unless you can amount and a Form W-2 showing records that are adequate to support prove that your unreported tips are $3,000 of wages in box 1. On her the fringe benefit compensation. less than the amount in box 8. Allocated tips are not included as 2020 Form 1040-NR, Anna should You may be able to use an income in box 1. See Pub. 531, report $3,000 on line 1a, include TIP alternative method to Reporting Tip Income, for more $5,000 on line 1c, and complete item determine the source of your details. L on Schedule OI (Form 1040-NR). compensation and/or fringe benefits if Anna should attach both the Form the alternative method more properly Also include the value of any W-2 and the Form 1042-S to her determines the source of the noncash tips you received, such as return. compensation. tickets, passes, or other items of value. Although you do not report Example 2. The facts are the these noncash tips to your employer, For 2020, if your total same as above except that Anna did you must report them on line 1a. not realize she was eligible for a compensation (including fringe $5,000 exemption when she began benefits) is $250,000 or more and you work and did not submit a Form 8233 allocate your compensation using an to her employer claiming the alternative method, check the “Yes” boxes in item K of Schedule OI (Form

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You may owe social security age set by your employer. Disability For more information about ! and Medicare tax on pensions received after you reach scholarships and fellowships in CAUTION unreported tips. See Line 5 minimum retirement age and other general, see chapter 1 of Pub. 970. under Instructions for Schedule 2, payments shown on Form 1042-S or Example 1. You are a citizen of a later. Form 1099-R (other than payments country that does not have an income from an IRA*) are reported on lines 5a • Dependent care benefits, which tax treaty in force with the United and 5b. Payments from an IRA* are should be shown in box 10 of your States. You are a candidate for a reported on lines 4a and 4b. Form(s) W-2. But first complete Form degree at ABC University (located in • Corrective distributions from a 2441, Child and Dependent Care the United States). You are receiving retirement plan shown on Form Expenses, to see if you can exclude a full scholarship from ABC University. 1042-S or Form 1099-R of excess part or all of the benefits. You are not required to perform any elective deferrals or other excess • Employer-provided adoption services, such as teaching, research, contributions (plus earnings). But do benefits, which should be shown in or other services, to get the not include distributions from an IRA* box 12 of your Form(s) W-2 with code scholarship. The total amounts you on line 1a. Instead, report distributions T. But see the Instructions for Form received from ABC University during from an IRA on lines 4a and 4b. 8839, Qualified Adoption Expenses, 2020 are as follows. to find out if you can exclude part or all * This includes a Roth, SEP, or of the benefits. You may also be able SIMPLE IRA. Tuition and to exclude amounts if you adopted a • Wages from Form 8919, line 6. fees $25,000 child with special needs and the adoption became final in 2020. Missing or Incorrect Form W-2? Books, • Excess elective deferrals. The supplies, and See Missing or Incorrect Form W-2? equipment 1,000 amount deferred should be shown in in the Instructions for Forms 1040 and Room and box 12 of your Form W-2, and the 1040-SR if you are missing a Form board 9,000 “Retirement plan” box in box 13 W-2 or have an incorrect Form W-2. should be checked. If the total amount $35,000 you deferred for 2020 under all plans Line 1b—Scholarship and was more than $19,500 (excluding Fellowship Grants catch-up contributions as explained If you received a scholarship or The Form 1042-S you received from below), include the excess on line 1a. fellowship, part or all of it may be ABC University for 2020 shows This limit is (a) $13,500 if you have taxable. Amounts received in the form $9,000 in box 2 and $1,260 (14% of only SIMPLE plans, or (b) $22,500 for of a scholarship or fellowship that are $9,000) in box 10. section 403(b) plans if you qualify for payment for teaching, research, or Note. Box 2 shows only $9,000 the 15-year rule in chapter 4 of Pub. other services are generally taxable because withholding agents (such as 571. Although designated Roth as wages even if the services were ABC University) are not required to contributions are subject to this limit, required to get the scholarship or report section 117 amounts (tuition, do not include the excess attributable fellowship. to such contributions on line 1a. They fees, books, supplies, and equipment) are already included as income in If you were a degree candidate, the on Form 1042-S. amounts you used for expenses other box 1 of your Form W-2. Example 2. The facts are the than tuition and course-related A higher limit may apply to same as in Example 1, except that expenses (fees, books, supplies, and participants in section 457(b) deferred you are a citizen of a country that has equipment) are generally taxable. For compensation plans for the 3 years an income tax treaty in force with the example, amounts used for room, before retirement age. Contact your United States that includes a board, and travel are generally plan administrator for more provision that exempts scholarship taxable. information. income and you were a resident of If you were age 50 or older at the If you were not a degree candidate, that country for income tax purposes end of 2020, your employer may have the full amount of the scholarship or immediately before arriving in the allowed an additional deferral fellowship is generally taxable. United States to attend ABC (catch-up contributions) of up to University. Also, assume that, under If the grant was reported on the terms of the tax treaty, you are $6,500 ($3,000 for section 401(k)(11) Form(s) 1042-S, you must generally and SIMPLE plans). This additional present in the United States only include the amount shown in box 2 of temporarily to finish your degree, and deferral amount is not subject to the Form(s) 1042-S on line1b. However, if overall limit on elective deferrals. all of your scholarship income is any or all of that amount is exempt by exempt from tax because ABC You cannot deduct the treaty, do not include the University is a nonprofit educational amount deferred. It is not treaty-exempt amount on line 1b. organization. included as income in box 1 of Instead, include the treaty-exempt your Form W-2. amount on line 1c and complete item Note. Under some treaties, L of Schedule OI (Form 1040-NR). • Disability pensions shown on Form scholarship or fellowship grant income 1042-S or Form 1099-R if you have Attach any Form(s) 1042-S you is not exempt from tax if the income is not reached the minimum retirement received from the college or received in exchange for the institution. performance of services, such as

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teaching, research, or other services. Exception 2. Do not include interest line 3a. If the qualified dividends were Also, many tax treaties do not permit from a U.S. bank, savings and loan not effectively connected with a U.S. an exemption from tax on scholarship association, credit union, or similar trade or business and were U.S. or fellowship grant income unless the institution (or from certain deposits source, report them on Schedule NEC income is from sources outside the with U.S. insurance companies) that is (Form 1040-NR), line 1a, 1b, or 1c. United States. If you are a resident of exempt from tax under a tax treaty or Line 3b—Ordinary Dividends a treaty country, you must know the under section 871(i) because the See Line 3b—Ordinary Dividends in terms of the tax treaty between the interest is not effectively connected the Instructions for Forms 1040 and United States and the treaty country with a U.S. trade or business. to claim treaty benefits on Form 1040-SR for details on ordinary 1040-NR. See the instructions for item Line 2b—Taxable Interest dividends. L of Schedule OI, later, for details. See Line 2b—Taxable Interest in the Exception. Only report ordinary Instructions for Forms 1040 and When completing Form 1040-NR, dividends effectively connected with a 1040-SR. do the following. trade or business on Form 1040-NR, • Enter $0 on line 1b. The $9,000 Exception 1. Report on line 2b only line 3b. If the ordinary dividends were reported to you in box 2 of Form your taxable interest income from not effectively connected with a U.S. 1042-S is reported on line 1c (not assets effectively connected with a trade or business and are U.S. line 1b). U.S. trade or business. source, report them on Schedule NEC (Form 1040-NR), line 1a, 1b, or 1c. • Enter $9,000 on line 1c. Exception 2. If you received interest • Enter $0 on line 10c. Because none not effectively connected with a U.S. Lines 4a and 4b—IRA of the $9,000 reported to you in box 2 trade or business, report it on Distributions of Form 1042-S is included in your Schedule NEC (Form 1040-NR) income, you cannot exclude it on See Lines 4a and 4b—IRA unless it is tax exempt under a treaty Distributions in the Instructions for line 10c. and the withholding agent did not • Include on line 25g any withholding Forms 1040 and 1040-SR for details withhold tax on the payment. If the on IRA distributions. shown in box 10 of Form 1042-S. interest is tax exempt under a treaty, • Provide all the required information include the tax-exempt amount on Lines 5a and 5b—Pensions and in item L of Schedule OI (Form line 1c and complete item L of Annuities 1040-NR). Schedule OI (Form 1040-NR). If the See Lines 5a and 5b—Pensions and Line 1c—Treaty-Exempt interest is tax exempt under a treaty Annuities in the Instructions for Forms Income but the withholding agent withheld tax, 1040 and 1040-SR for details on report the interest on Schedule NEC Report on line 1c the total of all your pensions and annuities. (Form 1040-NR), line 2. Use column d income that is exempt from tax by an and show 0% for the appropriate rate Exception 1. Only report pensions income tax treaty, including both of tax. You can download the and annuities effectively connected effectively connected income and not complete text of most U.S. tax treaties with a trade or business on Form effectively connected income. Do not at IRS.gov. Go to IRS.gov, enter "tax 1040-NR, lines 5a and 5b. If the include this exempt income on line 1a. treaties" in the search box at the top of pensions and annuities were not You must complete item L of the page, and click on United States effectively connected with a U.S. Schedule OI (Form 1040-NR) to Income Tax Treaties - A to Z. trade or business and were U.S. report income that is exempt from Technical explanations for many of source, report them on Schedule NEC U.S. tax. those treaties are also available at (Form 1040-NR), line 7. Attach any Form 1042-S you that site. Exception 2. In addition to entering received for treaty-exempt income. If Exception 3. Do not include on pension and annuity amounts from required, attach Form 8833. See line 2b interest from a U.S. bank, box 1 of Form 1099-R, you may also Treaty-based return position savings and loan association, credit enter pension and annuity amounts disclosure, later. union, or similar institution (or from from box 2 of Form 1042-S. Line 2a—Tax-Exempt Interest certain deposits with U.S. insurance Exception 3. Attach Form 1042-S or See Line 2a—Tax-Exempt Interest in companies) that is exempt from tax 1099-R to Form 1040-NR if any the Instructions for Forms 1040 and under a tax treaty or under section federal income tax was withheld. 1040-SR for details on tax-exempt 871(i) because the interest is not interest. effectively connected with a U.S. Effectively Connected Pension trade or business. Distributions Exception 1. The interest will not be includible on line 2a of Form 1040-NR Line 3a—Qualified Dividends If you performed services in the unless it is effectively connected with See Line 3a—Qualified Dividends in United States, your income is a trade or business. If the interest was the Instructions for Forms 1040 and generally effectively connected with a not effectively connected with a U.S. 1040-SR for details on qualified U.S. trade or business. (See section trade or business and was U.S. dividends. 864 for details and exceptions.) source, report it on Schedule NEC Exception. Only report qualified (Form 1040-NR), line 2a, 2b, or 2c. If you worked in the United States dividends effectively connected with a after December 31, 1986, the part of trade or business on Form 1040-NR,

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each pension distribution that is Exception 1. On line 5a, include the Line 6—Reserved for Future attributable to the services you total pension or annuity payments Use performed after 1986 is income that is from box 2 of Form(s) 1042-S, if any, Leave line 6 blank. effectively connected with a U.S. with the total of payments from box 1 trade or business. of Form(s) 1099-R. If your Form Exception. Unlike on Form 1040, Example. You worked in the 1042-S or Form 1099-R does not you report your social security United States from January 1, 1980, show the taxable amount, you must benefits on Schedule NEC (Form through December 31, 1989 (10 figure the taxable amount and include 1040-NR), line 8. years). You now receive monthly that amount on line 5b. If your annuity Line 7—Capital Gain or (Loss) is paid under a qualified plan and your pension payments from your former See Line 7—Capital Gain or (Loss) in annuity starting date was after July 1, U.S. employer's pension plan. 70% of the Instructions for Forms 1040 and 1986, see Simplified Method, later. each payment is attributable to 1040-SR for details on capital gain or services you performed during 1980 Exception 2. If your annuity is paid loss. Report effectively connected through 1986 (7 years) and 30% of under a nonqualified plan or paid capital gains or losses connected with each payment is attributable to under a qualified plan and your a trade or business on Form services you performed during 1987 annuity starting date was before July 1040-NR, line 7. If the capital gains or through 1989 (3 years). Include 30% 2, 1986, you must generally use the losses were not effectively connected of each pension payment in the total General Rule. If you are required to with a U.S. trade or business and amount that you report on line 5a. use the General Rule, you can ask the were U.S. source, report them on Include 70% of each payment in the IRS to figure the taxable part for a Schedule NEC (Form 1040-NR), total amount that you report in the $1,000 fee. For more information line 16. appropriate column on Schedule NEC about the General Rule, see Pub. 939. (Form 1040-NR), line 7. Exception. Only report effectively If your Form 1099-R shows a In most cases, the effectively connected capital gains or losses taxable amount, you can include that connected with a trade or business on connected pension distribution will be amount on line 5b. But you may be fully taxable in the United States, so Form 1040-NR, line 7. If the capital able to report a lower taxable amount gains or losses were not effectively you must include it on line 5b. by using the General Rule or the However, in some situations, you can connected with a U.S. trade or Simplified Method. If you received business and were U.S. source, report a lower amount on line 5b. The Form 1042-S, you must figure the most common situations are where: report them on Schedule NEC (Form taxable part by using the General Rule 1040-NR), line 16. • All or a part of your pension or the Simplified Method. payment is exempt from U.S. tax, Lines 10a, 10b, 10c, and A part of your pension payment is • Simplified Method 10d—Adjustments to Income attributable to after-tax contributions to the pension plan, or See Simplified Method under Lines 5a Line 10b • The payment is rolled over to and 5b in the Instructions for Forms See Line 10b under Lines 10a, 10b, another retirement plan. 1040 and 1040-SR for details on the and 10c—Adjustments to Income in See chapter 2 of Pub. 519; Pub. Simplified Method. the Instructions for Forms 1040 and 575, Pension and Annuity Income; or 1040-SR for details. Lump-Sum Distributions Pub. 939, General Rule for Pensions Exception. The up-to-$300 and Annuities, for more information. See Lump-Sum Distributions under (up-to-$150 if married filing Lines 5a and 5b in the Instructions for separately) charitable deduction for Fully Taxable Pensions and Forms 1040 and 1040-SR for details cash contributions is only available to Annuities on lump-sum distributions. you if you are a student or business apprentice eligible for benefits under See Fully Taxable Pensions and Article 21(2) of the United States-India Annuities under Lines 5a and 5b in the Simplified Method Income Tax Treaty who has elected to Instructions for Forms 1040 and Worksheet—Lines 5a and 5b use the standard deduction. 1040-SR for details. See the Simplified Method Worksheet—Lines 5a and 5b in the Exception. On line 5b, include the Line 10c total pension or annuity payments Instructions for Forms 1040 and from box 2 of Form(s) 1042-S, if any, 1040-SR. If you received a scholarship or fellowship grant and were a degree with the total of payments from box 1 Exception 1. On each line on which candidate, enter amounts used for of Form(s) 1099-R. a Form 1099-R (or a Form 1099-R, tuition and course-related expenses box 1) total is entered, also include (fees, books, supplies, and the totals from your Forms 1042-S (or Partially Taxable Pensions and equipment), but only to the extent the Forms 1042-S, box 2). Annuities amounts are included on line 1b. See See Partially Taxable Pensions and Exception 2. Enter the amount on the examples in the instructions for Annuities under Lines 5a and 5b in the the same line of Form 1040-NR as line 1b. Instructions for Forms 1040 and you are directed to enter it on Form 1040-SR for details. 1040 or 1040-SR.

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Line 12—Itemized Deductions If you are filing for a qualified Forms 1040 and 1040-SR for details Enter the total itemized deductions disability trust (defined in section on the worksheet. from line 8 of Schedule A (Form 642(b)(2)(C)(ii)), enter $4,300 on Exception 1. When applying the 1040-NR). See the instructions for line 13b. discussion, including the Qualified Schedule A, line 8, later, for more If you are filing for any other trust, Dividends and Capital Gain Tax details. enter $100 on line 13b. Worksheet, to Form 1040-NR, you will Standard deduction for certain Line 16—Tax use the same lines of Form 1040-NR residents of India. Students or that are used for Form 1040 or See Line 16—Tax in the Instructions 1040-SR. business apprentices may be able to for Forms 1040 and 1040-SR for take the standard deduction on Form details on taxes includible on this line, Exception 2. The Form 2555 and its 1040-NR, line 12, instead of their and for whether you must use the Tax Foreign Earned Income Tax itemized deductions if they are eligible Table or the Tax Computation Worksheet discussions, including for benefits under Article 21(2) of the Worksheet to compute your tax. those in the Qualified Dividends and United States-India Income Tax Capital Gain Tax Worksheet, do not Treaty. They will enter the standard Exception 1. If you are filing for an apply to you. That form is not filed by deduction amount found for their filing estate or trust, Rate persons filing Form 1040-NR. status on Form 1040 or 1040-SR. See Schedule W, later, to figure the tax. Exception 3. Estates and trusts, chapter 5 of Pub. 519 for details. Also Exception 2. Do not include on when completing the Qualified see Standard Deduction under line 16 any of the following that are Dividends and Capital Gain Tax Line 12—Deductions or Standard listed in those instructions. They do Worksheet, must use Tax Rate Deduction in the Instructions for not apply to persons filing Form Schedule W, later, instead of the Tax Forms 1040 and 1040-SR. If they 1040-NR. must use the Standard Deduction Table or the Tax Computation • Tax due to making a section 962 Worksheet in the Instructions for Worksheet for Dependents—Line 12 election. Forms 1040 and 1040-SR. in the Instructions for Forms 1040 and • Recapture of an education credit 1040-SR, they should enter the from Form 8863. Schedule J (Form 1040) amount on the same line of Form • Tax from Form 8621. 1040-NR as they are directed to enter • Any amounts due to section 965. See Schedule J under Line 16—Tax it on Form 1040 or 1040-SR. in the Instructions for Forms 1040 and Exception 3. Do not use the Foreign 1040-SR. Lines 13a, 13b, and 13c Earned Income Tax Worksheet. You Line 13a—Qualified Business are not eligible for the foreign earned Foreign Earned Income Tax income exclusion, housing exclusion, Income Deduction (Section 199A Worksheet or housing deduction on Form 2555. Deduction) Do not use the Foreign Earned Exception 4. The IRS will not figure Income Tax Worksheet in the See Line 13—Qualified Business the tax for you. Instructions for Forms 1040 and Income Deduction (Section 199A 1040-SR. That worksheet is for Deduction) in the Instructions for Form 8615 persons filing Form 2555. Form 2555 Forms 1040 and 1040-SR for details is not filed by persons filing Form on the qualified business income See Form 8615 under Line 16—Tax in 1040-NR. deduction. the Instructions for Forms 1040 and 1040-SR for details on Form 8615. Line 19—Child Tax Credit and Exception. You must have income effectively connected with a U.S. Exception 1. The child's $2,200 of Credit for Other Dependents trade or business. unearned income must be effectively See Line 19—Child Tax Credit and connected with a U.S. trade or Credit for Other Dependents in the Line 13b—Deduction for business. Instructions for Forms 1040 and 1040-SR for details on the child tax Exemptions for Estates and Trusts Exception 2. The Form 8615 must credit and the credit for other be filed for a child even if the child is a Only dependents, including the 2020 Child nonresident alien. A trust or estate can claim an Tax Credit and Credit for Other exemption only to the extent of its Dependents Worksheet. income that is effectively connected Schedule D Tax Worksheet Exception 1. To claim the child tax with a U.S. trade or business. See Schedule D Tax Worksheet credit or the credit for other You can't claim an exemption under Line 16—Tax in the Instructions dependents on Form 1040-NR in full, deduction in 2020 if you are for Forms 1040 and 1040-SR for you must be a U.S. national or a ! details on the worksheet. CAUTION an individual. resident of Canada or Mexico. Residents of South Korea and India Estates. Enter $600 on line 13b. Qualified Dividends and Capital can claim the credits on Form Trusts. If you are filing for a trust Gain Tax Worksheet 1040-NR to the extent described in whose governing instrument requires See Qualified Dividends and Capital Pub. 519. No other persons filing it to distribute all of its income Gain Tax Worksheet under Form 1040-NR can claim the child tax currently, enter $300 on line 13b. Line 16—Tax in the Instructions for

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credit or the credit for other include the amount on line 1c of Form Line 25g—Form(s) 1042-S dependents. 1040-NR. If you are exempt from the Enter on line 25g the total amount Exception 2. When applying the tax for any other reason, you must shown as federal income tax withheld discussion, including the worksheet, attach a statement to Form 1040-NR under chapter 3 or 4 on your Form(s) to Form 1040-NR, you will use the identifying your country of residence 1042-S. The withholding credit should same lines of Form 1040-NR that are and the law and provisions under be shown in box 10 of your Form(s) used for Form 1040 or 1040-SR. which you claim exemption from the 1042-S. Attach Form(s) 1042-S to the tax. front of your return. Exception 3. The Form 2555 and Form 4563 discussions, including If you owe this tax, you must attach Be sure to attach to the front those in the Child Tax Credit and a statement to your return that TIP of your return a copy of Credit for Other Dependents includes the information described in Form(s) W-2, 1042-S, Worksheet, do not apply to you. Pub. 519. SSA-1042S, RRB-1042S, and Those forms are not filed by persons 8288-A. Attach to the front of your filing Form 1040-NR. return Form(s) 1099-R if tax was Payments withheld. Be sure to attach to the back Lines 23a Through 23d—Other Lines 25a Through of your return Form(s) 8805. A foreign Taxes 25g—Federal Income Tax trust or estate must also attach to the Line 23c—Transportation Tax Withheld back of Form 1040-NR copies of the Form(s) 8805 it must furnish to its Nonresident alien individuals are Line 25a—Form(s) W-2 beneficiaries with the Schedule(s) T subject to a 4% tax on U.S. source completed. gross transportation income that is not See Line 25a—Form(s) W-2 in the effectively connected with a U.S. Instructions for Forms 1040 and 1040-SR for details. Refunds of taxes shown on trade or business. However, the term Forms 8805, 8288-A, or “U.S. source gross transportation ! CAUTION 1042-S may be delayed for up Line 25b—Form(s) 1099 income” does not include any such to 6 months. See Refund Information, income that is taxable in a possession See Line 25b—Form(s) 1099 in the later. of the United States under the Instructions for Forms 1040 and provisions of the Internal Revenue 1040-SR for details. Line 26—2020 Estimated Tax Code as applied to that possession. Payments Line 25c—Other Forms For purposes of this tax, See Line 26—2020 Estimated Tax transportation income will be treated See Line 25c—Other Forms in the Payments in the Instructions for as not effectively connected with the Instructions for Forms 1040 and Forms 1040 and 1040-SR for details conduct of a trade or business in the 1040-SR for details. on 2020 estimated tax payments. United States unless: Exception. Do not include tax Exception. Substitute "ITIN or SSN" 1. You had a fixed place of withheld on Form 8805, Form 8288-A, every place SSN is mentioned. For business in the United States involved and 1042-S on Form 1040-NR, the discussion in this section, you can in the earning of transportation line 25c. The taxes withheld on those use an ITIN as well as an SSN. income, and forms are reported on Form 1040-NR, lines 25e, 25f, and 25g, respectively. Line 27—Reserved for Future 2. At least 90% of your U.S. Use source gross transportation income was attributable to regularly Line 25e—Form(s) 8805 Leave line 27 blank. Do not follow the instructions in Line 27—Earned scheduled transportation. Or, in the Enter on line 25e any tax withheld by Income Credit in the Instructions for case of income from the leasing of a a partnership and shown on Form(s) Forms 1040 and 1040-SR. The vessel or aircraft, it was attributable to 8805. Attach a copy of all Form(s) earned income credit (EIC) cannot be a fixed place of business in the United 8805 to the back of your return. States. See chapter 4 of Pub. 519 for claimed by persons filing Form 1040-NR. rules, definitions, and exceptions. Line 25f—Form(s) 8288-A Enter on line 25f any tax withheld Line 28—Additional Child Tax You may be exempt from this tax Credit because of a treaty or an exchange of under section 1445 (related to notes between the United States and dispositions of U.S. real property See Line 28—Additional Child Tax the country of which you are a interests) or under section 1446(f)(1) Credit in the Instructions for Forms resident. If the country of which you (related to dispositions of interests in 1040 and 1040-SR for details on the are a resident does not impose tax on partnerships engaged in the conduct additional child tax credit. the shipping or aircraft income of U.S. of a trade or business in the United Exception. To claim the additional persons, you may also be exempt States) and shown on Form(s) child tax credit in full, you must be a from this tax. If you are exempt from 8288-A. Attach a copy of all Form(s) U.S. national or a resident of Canada the tax by treaty or exchange of notes, 8288-A to the front of your return. or Mexico. Residents of South Korea complete Form 8833 and attach it to and India can claim the credits to the this return. Also, complete item L of extent described in Pub. 519. No Schedule OI (Form 1040-NR) and

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other persons filing Form 1040-NR listed on page 1 of Form 1040-NR, • tax on insider stock can claim the additional child tax enter that address on line 35e. See compensation of an expatriated credit. Foreign address, earlier, for corporation, information on entering a foreign • Uncollected social security and Line 29—Credit for Amount address. Medicare or RRTA tax on tips or Paid With Form 1040-C group-term life insurance, and Enter any amount you paid with Form Note. If the address on page 1 of • Look-back interest due under 1040-C for 2020. Do not follow the Form 1040-NR is not in the United section 167(g) or 460(b). instructions in Line 29—American States, you can enter an address in Opportunity Credit, in the Instructions the United States on line 35e. When figuring the amount on for Forms 1040 and 1040-SR. The However, if the address on page 1 of line 24, include household American opportunity credit cannot be Form 1040-NR is in the United States, employment taxes (Schedule 2 (Form claimed by persons filing Form the IRS cannot mail a refund to a 1040), line 7a) only if the total of lines 1040-NR. different address in the United States. 25d through 25g is more than zero or you would owe the penalty even if you Line 30—Reserved for Future Line 36—Applied to Your 2021 did not include those taxes. Estimated Tax Use Exception. You will not owe the Leave line 30 blank. Do not follow the See Line 36—Applied to Your 2021 penalty if your 2019 tax return was for instructions in Line 30—Recovery Estimated Tax, in the Instructions for a tax year of 12 full months and either Rebate Credit, in the Instructions for Forms 1040 and 1040-SR for details. of the following applies. Forms 1040 and 1040-SR. The 1. You had no tax shown on your recovery rebate credit cannot be Amount You Owe 2019 return and you were a U.S. claimed by persons filing Form citizen or resident for all of 2019. 1040-NR. See Amount You Owe in the Instructions for Forms 1040 and 2. The total of lines 25d through 1040-SR for details. 25g, 26, and 29; and Schedule 3 Refund Line 37—Amount You Owe (Form 1040), line 10, on your 2020 Line 34—Amount Overpaid return is at least 100% of the tax See Line 37—Amount You Owe, in shown on your 2019 return. (But see See Line 34—Amount Overpaid in the the Instructions for Forms 1040 and the Caution below.) Your estimated Instructions for Forms 1040 and 1040-SR for details on what to report tax payments for 2020 must have 1040-SR for details on the amount on Form 1040-NR, line 37. been made on time and for the overpaid. Exception 1. If you want to pay required amount. Exception. The Injured Spouse electronically but do not have a U.S. If your 2019 adjusted gross discussion does not apply to you. A bank account, go to IRS.gov/ income was over $150,000 Individuals/International-Taxpayers/ ! person filing Form 1040-NR cannot CAUTION (over $75,000 if you checked file a joint return. Foreign-Electronic-Payments for more filing status Married for 2019), item (2) information. Lines 35a Through applies only if the total of lines 25d 35e—Amount Refunded to You Exception 2. If you are paying by through 25g, 26, and 29; and check or money order, the check or Schedule 3 (Form 1040), line 10, on See Lines 35a Through 35d—Amount money order must be drawn on a U.S. your 2020 tax return is at least 110% Refunded to You, in the Instructions financial institution. of the tax shown on your 2019 return. for Forms 1040 and 1040-SR for This rule does not apply to farmers details on what to report on lines 35a Line 38—Estimated Tax Penalty and fishermen. through 35d. You may owe this penalty if: Exception 1. If you are having your • Line 37 is at least $1,000 and it is For most people, the “tax shown on refund (or part of it) directly deposited more than 10% of the tax shown on your 2019 return” is the amount on to a traditional IRA, Roth IRA, or your return, or your 2019 Form 1040-NR, line 61, SEP-IRA, you must establish the IRA • You did not pay enough estimated minus the total of any amounts shown at a U.S. bank or other financial tax by any of the due dates. This is on lines 64, 65, and 68 and Forms institution in the United States before true even if you are due a refund. 8828, 4137, 5329 (Parts III through IX you request direct deposit. For most people, the “tax shown on only), 8885, and 8919. Exception 2. If you request a refund your return” is the amount on your Also, subtract from line 61 any: of tax withheld on a Form 1042-S, 2020 Form 1040-NR, line 24, minus • Tax on an excess parachute Form 8805, or Form 8288-A, we may the total of any amounts shown on payment, need additional time to process the line 28; Schedule 3 (Form 1040), lines • Excise tax on insider stock refund. Allow up to 6 months for these 8 and 11; and Forms 7202 (lines 24 compensation of an expatriated refunds to be issued. and 35), 8828, 4137, 5329 (Parts III corporation, through IX only), 8885, and 8919. • Uncollected social security and Line 35e Also, subtract from line 24 any: Medicare or RRTA tax on tips or • Tax on an excess parachute group-term life insurance, and If you want your refund mailed outside payment, the United States to an address not • Look-back interest due under section 167(g) or 460(b).

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When figuring the amount on Third Party Designee information. Note that the IRS initiates line 61, include household See Third Party Designee in the most contacts through regular mail employment taxes only if the total of Instructions for Forms 1040 and delivered by the United States Postal lines 62a through 62d is more than 1040-SR for details on the third party Service. The IRS doesn't initiate zero or you would have owed the designee. contact with taxpayers by email or estimated tax penalty for 2019 even if telephone to request personal or you did not include those taxes. Exception. The phone number you financial information. enter for the designee must be a U.S. If the Exception just described phone number. You can report a phone scam to does not apply, see the Instructions the Treasury Inspector General for for Form 2210 for other situations in Tax Administration at IRS which you may be able to lower your Sign Your Return Impersonation Scam Reporting or the penalty by filing Form 2210. See Sign Your Return in the FTC using the FTC Complaint Figuring the penalty. If you choose Instructions for Forms 1040 and Assistant at FTC.gov. Add "IRS to figure the penalty yourself, use 1040-SR for details on signing your Telephone Scam" in the notes. Form 2210 (or Form 2210-F for return. You can report an unsolicited email farmers and fishermen). Exception 1. You can have an agent claiming to be from the IRS, or an in the United States prepare and sign Enter any penalty on line 38. Add IRS-related component like Electronic your return if you could not do so for the penalty to any tax due and enter Federal Tax Payment System, to the one of the following reasons. the total on line 37. IRS at [email protected]. You were ill. However, if you have an • You were not in the United States at overpayment on line 34, subtract the • For more information, go to any time during the 60 days before the penalty from the amount you would IRS.gov/Phishing and IRS.gov/ return was due. otherwise enter on line 35a or line 36. newsroom/how-to-know-its-really-the- Other reasons approved by the Lines 35a, 36, and 38 must equal • irs-calling-or-knocking-on-your-door. IRS, which you explain in writing to: line 34. Paid Preparer Must Sign If the penalty is more than the Department of the Treasury overpayment on line 34, enter -0- on Internal Revenue Service Your Return lines 35a and 36. Then, subtract Austin, TX 73301-0215 See Paid Preparer Must Sign Your line 34 from line 38 and enter the U.S.A. Return in the Instructions for Forms result on line 37. 1040 and 1040-SR for details on paid Exception 2. The discussion of joint preparers. Don't file Form 2210 with your returns does not apply to you. A return unless Form 2210 indicates person filing Form 1040-NR cannot that you must do so. Instead, keep it file a joint return. Assemble Your Return for your records. See Assemble Your Return in the Because Form 2210 is Identity Protection PIN Instructions for Forms 1040 and TIP complicated, you can leave See Identity Protection PIN in the 1040-SR for details on assembling line 38 blank and the IRS will Instructions for Forms 1040 and your return. figure the penalty and send you a bill. 1040-SR for details on Identity Exception. Attach a copy of Forms We will not charge you interest on the Protection Personal Identification W-2, 1042-S, SSA-1042S, penalty if you pay by the date Numbers (IP PINs). RRB-1042S, 2439, and 8288-A to the specified on the bill. If your income front of Form 1040-NR. If you varied during the year, the annualized Phone Number and Email received a Form W-2c (a corrected income installment method may Address Form W-2), attach a copy of your reduce the amount of your penalty. You have the option of entering your original Forms W-2 and any Forms But you must file Form 2210 because phone number and email address in W-2c. Also attach Form(s) 1099-R to the IRS cannot figure your penalty the spaces provided. There will be no the front of Form 1040-NR if tax was under this method. effect on the processing of your return withheld. Attach Form 8805 to the if you choose not to enter this back of your return.

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Married filing jointly column only if you Instructions for Forms 1040 and 2020 Tax Table are a Qualified widow(er). 1040-SR. See the 2020 Tax Table in the Exception 2. If you are filing for an Exception. If you must use the tax Instructions for Forms 1040 and estate or trust, you must use Tax Rate computation worksheets based on the 1040-SR to determine your tax. For an Schedule W, later, to figure your tax. line 16 instructions, use the Section A example of how to locate your tax for Worksheet for Single, the Section B the Form 1040-NR, see the 2020 Exception 3. Because you cannot Worksheet for Qualifying widow(er), Form 1040-NR Sample Table below. file a joint return, use the 2020 Form 1040-NR Sample Table below instead or the Section C Worksheet for Exception 1. Because you are filing of the one under the 2020 Tax Table Married filing separately, and enter Form 1040-NR, you have only three in the Instructions for Forms 1040 and the amount on Form 1040-NR, filing statuses: Single, Married filing 1040-SR. line 16. separately (formerly Married), or Qualified widow(er). Do not use the 2020 Tax Computation amounts in the column for Head of a Worksheet household. Use the amounts in the See the 2020 Tax Computation Worksheet—Line 16 in the

2020 Form 1040-NR Sample Table

Example. Mr. Brown’s filing status is married filing separately. His Sample Table taxable income on Form 1040-NR, line 15, is $25,300. First, he finds the At But Single Married Married Head $25,300–25,350 taxable income line. Next, he finds the column for Least Less ling ling of a married filing separately and reads down the column. The amount shown Than jointly* sepa- house- where the taxable income line and filing status column meet is $2,842. rately hold This is the tax amount he should enter in the entry space on Form Your tax is— 1040-NR, line 16. 25,200 25,250 2,830 2,632 2,830 2,745 25,250 25,300 2,836 2,638 2,836 2,751 25,300 25,350 2,842 2,644 2,842 2,757 25,350 25,400 2,848 2,650 2,848 2,763 Extract of tax table to illustrate example.

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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.

How To Avoid Common Mistakes Secure Your Tax Records How To Get Tax Help If you have questions about a tax See How To Avoid Common Mistakes From Identity Theft issue, need help preparing your tax in the Instructions for Forms 1040 and See Secure Your Tax Records From return, or want to download free 1040-SR. Identity Theft in the Instructions for Forms 1040 and 1040-SR for more publications, forms, or instructions, go Exception 1. Be sure to enter your details. to IRS.gov and find resources that can identifying number (SSN or ITIN) on help you right away. page 1 of Form 1040-NR. Be sure to Preparing and filing your tax re- enter the SSN, ITIN, or ATIN of your How Do You Make a Gift turn. After receiving all your wage dependents under Dependents on To Reduce Debt Held By and earnings statements (Form W-2, page 1 of Form 1040-NR. the Public? W-2G, 1099-R, 1099-MISC, Exception 2. Information about See How Do You Make a Gift To 1099-NEC, etc.); unemployment standard deductions only applies to Reduce Debt Held By the Public? in compensation statements (by mail or students and business apprentices the Instructions for Forms 1040 and in a digital format) or other eligible for the benefits of Article 21(2) 1040-SR for more details. government payment statements of the United States-India Income Tax (Form 1099-G); and interest, dividend, Treaty. and retirement statements from banks How Long Should Records Exception 3. You are not eligible to and investment firms (Forms 1099), claim an earned income credit as a Be Kept? you have several options to choose Form 1040-NR filer. See How Long Should Records Be from to prepare and file your tax Kept? in the Instructions for Forms return. You can prepare the tax return Exception 4. You can claim the 1040 and1040-SR for more details. yourself, see if you qualify for free tax premium tax credit for dependents preparation, or hire a tax professional only if you are a U.S. national; to prepare your return. resident of Canada, Mexico, or South How Do You Amend Your Korea; or a student or business Free options for tax preparation. Tax Return? Go to IRS.gov to see your options for apprentice eligible for the benefits of See Amended Return in the Article 21(2) of the United States-India preparing and filing your return online Instructions for Forms 1040 and or in your local community, if you Income Tax Treaty. If your filing status 1040-SR for more details. at the top of page 1 on Form 1040-NR qualify, which include the following. is Married filing separately, you • VITA. The Volunteer Income Tax cannot take the premium tax credit Need a Copy of Your Tax Assistance (VITA) program offers free unless you meet the criteria of one of Return? tax help to people with the exceptions under Married See Need a Copy of Your Tax Return low-to-moderate incomes, persons taxpayers in the Instructions for Form Information? in the Instructions for with disabilities, and 8962. Forms 1040 and 1040-SR for more limited-English-speaking taxpayers details. who need help preparing their own tax returns. Go to IRS.gov/VITA, Income Tax Withholding Exception 1. To get a free transcript, download the free IRS2Go app, or call and Estimated Tax if you are outside the United States, 800-906-9887 to find the nearest VITA Payments for 2021 call 267-941-1000 (English-speaking location for free tax return preparation. only). This number is not toll free. See Income Tax Withholding and • TCE. The Tax Counseling for the Estimated Tax Payments for 2021 in Elderly (TCE) program offers free tax the Instructions for Forms 1040 and Death of a Taxpayer help for all taxpayers, particularly 1040-SR for more details. those who are 60 years of age and See Death of a Taxpayer in the older. TCE volunteers specialize in For more information on Instructions for Forms 1040 and answering questions about pensions TIP withholding or estimated tax 1040-SR for more details. and retirement-related issues unique payments, see Paying Tax to seniors. Go to IRS.gov/TCE, Through Withholding or Estimated Past Due Returns download the free IRS2Go app, or call Tax in chapter 8 of Pub. 519. See Past Due Returns in the 888-227-7669 to find the nearest TCE Instructions for Forms 1040 and location for free tax return preparation. 1040-SR for more details.

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Using online tools to help prepare your tax return, choose that preparer • Youtube.com/irsvideosASL. wisely. A paid tax preparer is: your return. Go to IRS.gov/Tools for Watching IRS videos. The IRS Primarily responsible for the overall the following. • Video portal (IRSVideos.gov) contains • The Online EIN Application substantive accuracy of your return, video and audio presentations for Required to sign the return, and (IRS.gov/EIN) helps you get an • individuals, small businesses, and tax Required to include their preparer employer identification number (EIN). • professionals. • The Tax Withholding Estimator tax identification number (PTIN). (IRS.gov/W4App) makes it easier for Online tax information in other lan- Although the tax preparer always guages. You can find information on everyone to pay the correct amount of signs the return, you're ultimately tax during the year. The tool is a IRS.gov/MyLanguage if English is not responsible for providing all the your native language. convenient, online way to check and information required for the preparer tailor your withholding. It’s more to accurately prepare your return. Free interpreter service. user-friendly for taxpayers, including Anyone paid to prepare tax returns for Multilingual assistance, provided by retirees and self-employed others should have a thorough the IRS, is available at Taxpayer individuals. The features include the understanding of tax matters. For Assistance Centers (TACs) and other following. more information on how to choose a IRS offices. Over-the-phone • Easy to understand language. tax preparer, go to Tips for Choosing interpreter service is accessible in • The ability to switch between a Tax Preparer on IRS.gov. more than 350 languages. screens, correct previous entries, and Getting tax forms and publica- skip screens that do not apply. Coronavirus. Go to IRS.gov/ tions. Go to IRS.gov/Forms to view, Tips and links to help you Coronavirus for links to information on • download, or print all of the forms and determine if you qualify for tax credits the impact of the coronavirus, as well publications you may need. You can and deductions. as tax relief available for individuals also download and view popular tax A progress tracker. and families, small and large • publications and instructions A self-employment tax feature. businesses, and tax-exempt • (including the Instructions for Forms Automatic calculation of taxable organizations. • 1040 and 1040-SR) on mobile social security benefits. . Tax reform legislation devices as an eBook at no charge at The First Time Homebuyer Credit • affects individuals, businesses, and IRS.gov/eBooks. Or you can go to Account Look-up (IRS.gov/ tax-exempt and government entities. IRS.gov/OrderForms to place an HomeBuyer) tool provides information Go to IRS.gov/TaxReform for order. on your repayments and account information and updates on how this balance. legislation affects your taxes. Access your online account (indi- vidual taxpayers only). Go to Getting answers to your tax Employers can register to use IRS.gov/Account to securely access law questions. On IRS.gov, Business Services Online. The information about your federal tax you can get up-to-date Social Security Administration (SSA) account. information on current events and offers online service at SSA.gov/ View the amount you owe, pay changes in tax law. • employer for fast, free, and secure online, or set up an online payment • IRS.gov/Help: A variety of tools that online W-2 filing options to CPAs, agreement. will help you get answers to some of accountants, enrolled agents, and • Access your tax records online. the most common tax questions. individuals who process Form W-2, • Review your payment history. • IRS.gov/ITA: The Interactive Tax Wage and Tax Statement, and Form • Go to IRS.gov/SecureAccess to Assistant, a tool that will ask you W-2c, Corrected Wage and Tax review the required identity questions on a number of tax law Statement. authentication process. topics and provide answers. IRS social media. Go to IRS.gov/ Using direct deposit. The fastest IRS.gov/Forms: Find forms, • SocialMedia to see the various social way to receive a is to file instructions, and publications. You will media tools the IRS uses to share the electronically and choose direct find details on 2020 tax changes and latest information on tax changes, deposit, which securely and hundreds of interactive links to help scam alerts, initiatives, products, and electronically transfers your refund you find answers to your questions. services. At the IRS, privacy and directly into your financial account. You may also be able to access tax • security are paramount. We use these Direct deposit also avoids the law information in your electronic filing tools to share public information with possibility that your check could be software. you. Don’t post your SSN or other lost, stolen, or returned undeliverable confidential information on social to the IRS. Eight in 10 taxpayers use Need someone to prepare your tax media sites. Always protect your return? There are various types of direct deposit to receive their refunds. identity when using any social The IRS issues more than 90% of tax return preparers, including tax networking site. preparers, enrolled agents, certified refunds in less than 21 days. public accountants (CPAs), attorneys, The following IRS YouTube Getting a transcript or copy of a and many others who don’t have channels provide short, informative return. The quickest way to get a professional credentials. If you videos on various tax-related topics in copy of your tax transcript is to go to choose to have someone prepare English, Spanish, and ASL. IRS.gov/Transcripts. Click on either • Youtube.com/irsvideos. “Get Transcript Online” or “Get • Youtube.com/irsvideosmultilingua.

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Transcript by Mail” to order a copy of quick, easy, and faster than mailing in Checking the status of an amen- your transcript. If you prefer, you can a check or money order. Go to ded return. Go to IRS.gov/WMAR to order your transcript by calling IRS.gov/Payments for information on track the status of Form 1040-X 800-908-9946. how to make a payment using any of amended returns. Please note that it Reporting and resolving tax-rela- the following options. can take up to 3 weeks from the date ted identity theft issues. • IRS Direct Pay: Pay your individual you mailed your amended return for it • Tax-related identity theft happens tax bill or estimated tax payment to show up in our system, and when someone steals your personal directly from your checking or savings processing it can take up to 16 weeks. information to commit tax fraud. Your account at no cost to you. Debit or Credit Card: Choose an Understanding an IRS notice or taxes can be affected if your SSN is • approved payment processor to pay letter you have received. Go to used to file a fraudulent return or to online, by phone, and by mobile IRS.gov/Notices to find additional claim a refund or credit. device. information about responding to an • The IRS does not initiate contact Electronic Funds Withdrawal: IRS notice or letter. with taxpayers by email, text • Offered only when filing your federal messages, telephone calls, or social Contacting your local IRS office. taxes using tax preparation software media channels to request personal Keep in mind, many questions can be or through a tax professional. or financial information. This includes answered on IRS.gov without visiting Electronic Federal Tax Payment requests for personal identification • an IRS Taxpayer Assistance Center System: Best option for businesses. numbers (PINs), passwords, or similar (TAC). Go to IRS.gov/LetUsHelp for Enrollment is required. information for credit cards, banks, or the topics people ask about most. If Check or Money Order: Mail your other financial accounts. • you still need help, IRS TACs provide payment to the address listed on the • Go to IRS.gov/IdentityTheft, the IRS tax help when a tax issue cannot be notice or instructions. Identity Theft Central webpage, for handled online or by phone. All TACs Cash: You may be able to pay your information on identity theft and data • now provide service by appointment taxes with cash at a participating retail security protection for taxpayers, tax so you will know in advance that you store. professionals, and businesses. If your can get the service you need without SSN has been lost or stolen or you • Same-Day Wire: You may be able long wait times. Before you visit, go to suspect you’re a victim of tax-related to do same-day wire from your IRS.gov/TACLocator to find the identity theft, you can learn what steps financial institution. Contact your nearest TAC, check hours, available you should take. financial institution for availability, services, and appointment options. cost, and cut-off times. • Get an Identity Protection PIN (IP Or, on the IRS2Go app, under the PIN). IP PINs are six-digit numbers What if I can’t pay now? Go to Stay Connected tab, choose the assigned to eligible taxpayers to help IRS.gov/Payments for more Contact Us option and click on “Local prevent the misuse of their SSNs on information about your options. Offices.” fraudulent federal income tax returns. • Apply for an online payment Taxpayer assistance outside the When you have an IP PIN, it prevents agreement (IRS.gov/OPA) to meet United States. If you are outside the someone else from filing a tax return your tax obligation in monthly United States and have tax questions: with your SSN. To learn more, go to installments if you cannot pay your • Go to IRS.gov and type IRS.gov/IPPIN. taxes in full today. Once you complete “nonresident alien” in the search box, the online process, you will receive Checking on the status of your re- or immediate notification of whether your fund. • Call 267-941-1000 agreement has been approved. • Go to IRS.gov/Refunds. (English-speaking only). This number • The IRS cannot issue refunds • Use the Offer in Compromise Pre- is not toll free. Qualifier to see if you can settle your before mid-February 2021 for returns tax debt for less than the full amount that claim the additional child tax Interest and Penalties credit. This applies to the entire you owe. For more information on the See Interest and Penalties in the refund, not just the portion associated Offer in Compromise program, go to Instructions for Forms 1040 and with this credit. IRS.gov/OIC. 1040-SR for more details. • Download the official IRS2Go app Filing an amended return. You can to your mobile device to check your now file Form 1040-X electronically refund status. with tax filing software to amend 2019 Refund Information • Call the automated refund hotline at Forms 1040 and 1040-SR. To do so, See Refund Information in the 800-829-1954. you must have e-filed your original Instructions for Forms 1040 and Making a tax payment. The IRS 2019 return. Amended returns for all 1040-SR for more details. prior years must be mailed. See Tips uses the latest encryption technology Exception. The processing of refund to ensure your electronic payments for taxpayers who need to file an amended tax return and go to requests of tax withheld and reported are safe and secure. You can make on a Form 1042-S, Form 8805, or electronic payments online, by phone, IRS.gov/Form1040X for information and updates. Form 8288-A may require additional and from a mobile device using the time. Allow up to 6 months for these IRS2Go app. Paying electronically is refunds to be issued.

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Line 1 in the Instructions for Forms If you are electing to treat Instructions for Schedule 1040 and 1040-SR. TIP income from real property 1 (Form 1040)—Additional located in the United States Income and Adjustments Lines 2a and 2b—Alimony as effectively connected with a U.S. Received trade or business, report the rental to Income income or loss on Schedule 1 (Form Leave lines 2a and 2b of Schedule 1 General Instructions 1040), line 5. See Income You Can (Form 1040) blank. Do not follow the Elect To Treat as Effectively As noted in Form 1040-NR Redesign instructions in Lines 2a and Connected With a U.S. Trade or Helpful Hints, earlier, some of the 2b—Alimony Received under Business, earlier, for more details on lines formerly on Form 1040-NR have Instructions for Schedule 1 in the how to make the election. If you have been moved to Schedule 1 (Form Instructions for Forms 1040 and not made or do not make the election, 1040). You may need to use Schedule 1040-SR. A person filing Form report the rental income on 1 (Form 1040) if you have additional 1040-NR does not report alimony on Schedule NEC (Form 1040-NR), income, such as business or farm lines 2a and 2b. You will report any line 6. See Income From Real income or loss, unemployment alimony received on Schedule NEC Property in chapter 4 of Pub. 519 for compensation, prize or award money, (Form 1040-NR). more details. or gambling winnings or any deductions to claim, such as the Line 3—Business Income or (Loss) student loan interest deduction, Line 6—Farm Income or (Loss) self-employment tax, or educator See Line 3 under Instructions for Report farm income and expenses on expenses. Schedule 1 in the Instructions for Forms 1040 and 1040-SR for details. line 6. Use Schedule F (Form 1040) to When completing a line on figure the amount to enter on line 19 Schedule 1 (Form 1040), look to the Exception 1. Report only your and attach Schedule F (Form 1040) to instructions below for that line, which effectively connected income and your return. For more information, see may direct you to the Schedule 1 expenses on Schedule C (Form the Instructions for Schedule F (Form instructions found in the 1040). 1040). Also see Pub. 225, Farmer's Instructions for Forms 1040 and Exception 2. Include any income Tax Guide, for a list of important dates 1040-SR for guidance. you received as a dealer in stocks, that apply to farmers. See the specific line securities, and commodities through instructions below for any your U.S. office or dependent agent. If Line 7—Unemployment ! you dealt in these items through an CAUTION Exceptions. For example, Compensation independent agent, such as a U.S. see Line 1 below, which has three See Line 7 under Instructions for broker, custodian, or commissioned exceptions. Schedule 1 in the Instructions for agent, your income may not be Forms 1040 and 1040-SR for details considered effectively connected with Additional Income on unemployment compensation, a U.S. business. Line 1—Taxable Refunds, Credits, including unemployment or Offsets of State and Local compensation related to coronavirus Line 4—Other Gains or (Losses) relief. Income Taxes See Line 4 under Instructions for See Line 1 under Instructions for Schedule 1 in the Instructions for Line 8—Other Income Schedule 1 in the Instructions for Forms 1040 and 1040-SR for details See Line 8 under Instructions for Forms 1040 and 1040-SR for details. on other gains or (losses). Schedule 1 in the Instructions for Exception 1. The state or local Exception. The assets must have Forms 1040 and 1040-SR for details income tax must be of a U.S. state or been used in a U.S. trade or business. on other gains or (losses). local government. Exception 1. Use line 8 to report any Exception 2. Ignore the TIP. The Line 5—Rental Real Estate, other income effectively connected only reason none of your refund would Royalties, Partnerships, Trusts, with your U.S. business that is not be taxable is, if in the year you paid etc. reported elsewhere on your return or the state or local income tax, you did Report income or loss from rental real other schedules. Jury pay, not itemize deductions on Schedule A estate, royalties, partnerships, Alaska Permanent Fund dividends, (Form 1040-NR); or you were a estates, trusts, and residual interests and the net section 965 inclusion do student or business apprentice in real estate mortgage investment not apply to Form 1040-NR filers. eligible for the benefits of the United conduits (REMICs) on Schedule 1 States-India Income Tax Treaty and Exception 2. Only report "other (Form 1040), line 5. Use Schedule E income" that is effectively connected you elected to use the standard (Form 1040) to figure the amount to deduction. with a U.S. trade or business. "Other enter on Schedule 1 (Form 1040), income" does not include (and the Exception 3. Use Itemized line 5, and attach Schedule E (Form income must be reported on Deduction Recoveries in Pub. 525 1040) to your return. For more Schedule NEC (Form 1040-NR) if it instead of the State and Local Income information, see the Instructions for is): Tax Refund Worksheet—Schedule 1, Schedule E (Form 1040).

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• Income from the rental of personal Line 12—Health Savings Account only if you are a U.S. national; property if you engaged in the rental (HSA) Deduction resident of Canada, Mexico, or South for profit but were not in the business Korea; or a student or a business of renting such property, or See Line 12 under Instructions for apprentice eligible for the benefits of • Gambling winnings when you are Schedule 1 in the Instructions for Article 21(2) of the United States-India not in the business of gambling. Forms 1040 and 1040-SR for details Income Tax Treaty. If your filing status on the HSA deduction. For details on gambling losses, see at the top of page 1 on Form 1040-NR the instructions for Schedule A (Form is Married filing separately, you Line 13—Moving Expenses of 1040-NR), line 7, later. cannot claim the premium tax credit Members of the Armed Forces unless you meet the criteria of one of Exception 3. Canceled debts. For See Line 13 under Instructions for the exceptions under Married Form 1040-NR filers, canceled debts Schedule 1 in the Instructions for taxpayers in the Instructions for Form in box 2 of Form 1042-S should be Forms 1040 and 1040-SR for details 8962. included on Schedule 1 (Form 1040), on these moving expenses. line 8. Line 17—Penalty on Early Exception 4. Income not effectively Line 14—Deductible Part of Withdrawal of Savings connected with a U.S. trade or Self-Employment Tax See Line 17 under Instructions for business. Report on Schedule NEC Schedule 1 in the Instructions for (Form 1040-NR) your other income See Line 14 under Instructions for Forms 1040 and 1040-SR for details that is U.S. source but that is not Schedule 1 in the Instructions for on the penalty on early withdrawal of effectively connected with a U.S. Forms 1040 and 1040-SR for details savings. trade or business. on the deductible part of self-employment tax. Exception 5. Medicaid waiver pay- Lines 18a, 18b, and 18c—Alimony ments to care provider. You will not Line 15—Self-Employed SEP, Paid have Medicaid waiver payments that you chose to include in earned SIMPLE, and Qualified Plans Leave lines 18a, 18b, and 18c blank income unless you are a student or See Line 15 under Instructions for on Schedule 1 (Form 1040). You are business apprentice eligible for the Schedule 1 in the Instructions for not eligible for an alimony deduction if benefits in Article 21(2) of the United Forms 1040 and 1040-SR for details you are filing Form 1040-NR. States-India Income Tax Treaty. on self-employed SEP, SIMPLE, and qualified plans. Line 19—IRA Deduction Exception 6. Nontaxable income. Gifts or bequests you receive from a See Line 19 under Instructions for foreign person are not taxable Line 16—Self-Employed Health Schedule 1 in the Instructions for regardless of the amount. Insurance Deduction Forms 1040 and 1040-SR for details See Line 16 under Instructions for on the IRA deduction. Adjustments to Income Schedule 1 in the Instructions for Exception 1. When reading that Forms 1040 and 1040-SR for details section, including when completing Line 10—Educator Expenses on the self-employed health insurance the IRA Deduction Worksheet, follow See Line 10 under Instructions for deduction. only the guidance for the filing status Schedule 1 in the Instructions for Exception 1. The rules for a you checked at the top of page 1 of Forms 1040 and 1040-SR for details shareholder in an S corporation do not Form 1040-NR. on educator expenses. apply to you. Nonresident aliens Exception 2. Do not use your cannot be shareholders in an S spouse's earned income, or your or Line 11—Certain Business corporation. your spouse's alimony and separate Expenses of Reservists, Exception 2. The discussion of the maintenance payments, when Performing Artists, and Fee-Basis Schedule A medical expense determining whether you can take the IRA deduction. Government Officials deduction in line 3 of the Self-Employed Health Insurance Exception 3. Do not apply Form See Line 11 under Instructions for Deduction Worksheet does not apply 2555, Foreign Earned Income, Schedule 1 in the Instructions for to you. Your Schedule A (which is discussions to your situation. You Forms 1040 and 1040-SR for details called Schedule A (Form 1040-NR)) cannot file that form. on these business expenses. does not have a line for medical Exception 4. You must have taxable Exception 1. The expenses must be expense deductions. compensation effectively connected related to your effectively connected Exception 3. Form 2555 discussions with a U.S. trade or business. income. do not apply to you. You are not Exception 2. Do not include eligible for the foreign earned income Line 20—Student Loan Interest performing-arts-related expenses as a and foreign housing benefits on Form Deduction write-in on line 22 of Schedule 1 2555. (Form 1040). In 2019, these expenses See Line 20 under Instructions for Exception 4. You can claim the were a write-in on the line that is now Schedule 1 in the Instructions for premium tax credit for dependents line 22 of Schedule 1 (Form 1040).

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Forms 1040 and 1040-SR for details premium tax credit repayment, or you • Investment interest expense on the student loan interest deduction. owe other taxes, such as reported on Form 4952 cannot apply Exception 1. When reading that self-employment tax, household to you. Nonresident aliens do not file section including when completing the employment taxes, or additional tax Form 4952. Net qualified disaster loss unless Student Loan Interest Deduction on IRAs or other qualified retirement • you are a student or business Worksheet in that section, follow only plans and tax-favored accounts. apprentice eligible for benefits under the guidance for the filing status you For guidance when completing a Article 21(2) of the United States-India checked at the top of page 1 of Form line on Schedule 2 (Form 1040), look Income Tax Treaty and you reported a 1040-NR. to the instructions below for that line, which may direct you to the Schedule standard deduction on Schedule A Exception 2. If you checked the 2 instructions found in the (Form 1040-NR), line 7. Married filing separately box at the top Instructions for Forms 1040 and Exception 4. Worksheet To See if of page 1 of Form 1040-NR, you 1040-SR for guidance. Also see You Should Fill in Form cannot take the student loan interest General Instructions under 6251—Schedule 2, Line 1: On line 1 deduction. Instructions for Schedule 2 in the of the worksheet, enter the amount Instructions for Forms 1040 and from Schedule A (Form 1040-NR), Line 21—Tuition and Fees 1040-SR for an overview. line 1b. Do not enter the amount from Leave line 21 blank. Persons filing See the specific line line 7. Form 1040-NR cannot take the tuition instructions below for any and fees deduction. ! CAUTION Exceptions. For example, Line 2—Excess Advance Premium see Line 1 below, which has four Tax Credit Repayment Line 22 exceptions. See Line 2 under Instructions for See Line 22 under Instructions for Schedule 2 in the Instructions for Schedule 1 in the Instructions for Specific Instructions Forms 1040 and 1040-SR for details Forms 1040 and 1040-SR for details Line 1—Alternative Minimum Tax on the excess advance premium tax on the write-in adjustments. See Line 1 under Instructions for credit repayment. Exception 1. Even though they are Schedule 2 in the Instructions for Exception. You can claim the listed in Line 22 under Instructions for Forms 1040 and 1040-SR for details premium tax credit for dependents Schedule 1 in the Instructions for on the alternative minimum tax. only if you are a U.S. national; Forms 1040 and 1040-SR, do not Exception 1. For estates and resident of Canada, Mexico, or South include on Schedule 1 (Form 1040), Korea; or a student or a business line 22: trusts only. If you are filing for an estate or trust, do the following. apprentice eligible for the benefits of • Deductible expenses related to Article 21(2) of the United States-India income from the rental of personal • Use Schedule I (Form 1041) and its instructions to find out if you owe the Income Tax Treaty. If your filing status property engaged in for profit, and at the top of page 1 on Form 1040-NR • Attorney fees and court costs for alternative minimum tax. Do not use the Instructions for Forms 1040 and is Married filing separately, you actions involving certain unlawful cannot claim the premium tax credit discrimination claims to the extent the 1040-SR to figure whether you owe the alternative minimum tax. unless you meet the criteria of one of gross income from such actions is not the exceptions under Married effectively connected. • If you disposed of a U.S. real property interest at a gain, you must taxpayers in the Instructions for Form Also jury duty pay does not apply to 8962. Form 1040-NR filers. make a special computation to see if you owe this tax. For details, see Exception 2. Performing-arts-related Nonresident Aliens in the Instructions Line 4—Self-Employment Tax expenses from Form 2106 are no for Form 6251. Enter the amount of any taxes from longer a write-in adjustment as they Exception 2. Only use the guidance Schedule SE (Form 1040). See the were in 2019. Report those expenses Instructions for Schedule SE (Form on Schedule 1 (Form 1040), line 11. for the filing status you checked at the top of page 1 of Form 1040-NR. No 1040) for more information. other guidance in Line 1, Alternative If you are a self-employed Minimum Tax, in the Instructions for Instructions for Schedule nonresident alien, you must pay Schedule 2 found in the Instructions 2 (Form 1040)—Additional self-employment tax only if an for Forms 1040 and 1040-SR will international social security Taxes apply to you. agreement (often called a totalization General Instructions Exception 3. The following in the list agreement) in effect determines that As noted in Form 1040-NR Redesign under Exception in Line 1 under you are covered under the U.S. social Helpful Hints, earlier, some of the Instructions for Schedule 2 in the security system. See the Instructions lines formerly on Form 1040-NR have Instructions for Forms 1040 and for Schedule SE (Form 1040) for been moved to Schedule 2 (Form 1040-SR do not apply to you. information about international social 1040). You may need to use Schedule • The reference to income (or loss) security agreements. Information 2 (Form 1040) if you owe the from S corporations. Nonresident about totalization agreements is alternative minimum tax (AMT) or aliens cannot be shareholders in an S available at IRS.gov. Enter need to make an excess advance corporation.

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“totalization agreement” in the search Instructions for Forms 1040 and When completing a line of box. You can also find information at 1040-SR will apply to you. Schedule 3 (Form 1040), look to the SSA.gov/international under Exception 2. Net Investment Income instructions below for that line, which “International Agreements.” Tax. You are only liable for the net may direct you to the Schedule 3 instructions found in the If you are not required to pay investment income tax if you are a Instructions for Forms 1040 and self-employment tax but do so dual-status taxpayer (see Dual-Status ! 1040-SR for guidance. Also see CAUTION anyway, you will not be Taxpayers, earlier). You may owe this General Instructions under eligible to receive social security tax for the part of the year you were a Instructions for Schedule 3 in the benefits. U.S. resident (see Form 8960 and its Instructions for Forms 1040 and instructions). 1040-SR for an overview. Exception 3. Do not include the Line 5—Unreported Social See the specific line Security and Medicare Tax From following on Schedule 2 (Form 1040), line 8. instructions below for any Forms 4137 and 8919 • The tax on your noneffectively Exceptions. For example, See Line 5 under Instructions for connected income (that is, your see Line 1 below, which has five Schedule 2 in the Instructions for income not effectively connected with exceptions. Forms 1040 and 1040-SR for details a U.S. trade or business). Enter your on unreported social security and tax on this income on Form 1040-NR, Specific Instructions Medicare tax from Forms 4137 and line 23a. See Instructions for Line 1—Foreign Tax Credit 8919. Schedule NEC (Form 1040-NR), later. See Line 1 under Instructions for Exception. Enter the amount from • Interest amounts from Form 8621. Schedule 3 in the Instructions for line 6 of Form 8919 on Form Persons filing Form 1040-NR do not Forms 1040 and 1040-SR for details 1040-NR, line 1a, as Form 8919, file Form 8621. on the foreign tax credit. line 6, says. Line 9—Section 965 Net Tax Exception 1. The TIP, requiring you to see the instructions for Schedule 3 Line 6—Additional Tax on IRAs, Liability Installment From Form (Form 1040), line 3, does not apply to Other Qualified Retirement Plans, 965-A you. You cannot make a section 962 etc. Leave Schedule 2 (Form 1040), line 9, election. See Line 6 under Instructions for blank. Persons filing Form 1040-NR Exception 2. If you meet all five Schedule 2 in the Instructions for cannot have a section 965 net tax requirements in Line 1 under Forms 1040 and 1040-SR for details liability installment from Form 965-A. Instructions for Schedule 3 in the on additional tax on IRAs, other Instructions for Forms 1040 and qualified retirement plans, etc. Instructions for Schedule 1040-SR and the income for which 3 (Form 1040)—Additional you are taking the foreign tax credit is Line 7a—Household Employment income taxed by the United States, Taxes Credits and Payments enter on Schedule 3 (Form 1040), line 1, the smaller of (a) your total See Line 7a under Instructions for General Instructions foreign taxes, or (b) the total of the Schedule 2 in the Instructions for As noted in Form 1040-NR Redesign amounts on Form 1040-NR, line 16, Forms 1040 and 1040-SR for details Helpful Hints, earlier, some of the and Schedule 2 (Form 1040), line 2. on household employment taxes. lines formerly on Form 1040-NR have Otherwise, see Form 1116 to see been moved to Schedule 3 (Form whether you can take the credit. For Line 7b—First-Time Homebuyer 1040). You may need to use Schedule details on foreign income taxed by the Credit Repayment 3 (Form 1040) if you can claim a United States, see Foreign Income nonrefundable credit other than the Taxed by the United States, earlier. See Line 7b under Instructions for child tax credit or the credit for other Schedule 2 in the Instructions for dependents, such as the foreign tax Exception 3. If you are an estate or Forms 1040 and 1040-SR for details credit or general business credit; or a trust taking the foreign tax credit, you on first-time homebuyer credit refundable credit other than the must complete Form 1116. Exception repayment. additional child tax credit, such as the 2 above is only for individual net premium tax credit, health taxpayers. Line 8—Other Taxes coverage tax credit, or qualified sick Exception 4. Only use the guidance See Line 8 under Instructions for and family leave credits from for the filing status you checked at the Schedule 2 in the Instructions for Schedule H or Schedule SE. You may top of page 1 of Form 1040-NR. No Forms 1040 and 1040-SR for details also need Schedule 3 (Form 1040) if other guidance in Line 1 under on other taxes. you have other payments, such as an Instructions for Schedule 3 in the amount paid with a request for an Exception 1. Only use the guidance Instructions for Forms 1040 and extension to file, excess social for the filing status you checked at the 1040-SR will apply to you. security tax withheld, or have a top of page 1 of Form 1040-NR. No deferral of payments of tax (for certain Exception 5. The discussion of Form other guidance in Line 8 under Schedule H and Schedule SE filers). 4563 and Puerto Rico sourced Instructions for Schedule 2 in the income does not apply to you.

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Line 2—Credit for Child and Line 8—Net Premium Tax Credit Line 12—Other Payments and Dependent Care Expenses See Line 8 under Instructions for Refundable Credits See Line 2 under Instructions for Schedule 3 in the Instructions for See Line 12 under Instructions for Schedule 3 in the Instructions for Forms 1040 and 1040-SR for details Schedule 3 in the Instructions for Forms 1040 and 1040-SR for details on the net premium tax credit. Forms 1040 and 1040-SR for details on the credit for child and dependent Exception. You can claim the on these other payments and credits. care expenses. premium tax credit for dependents Exception 1. In Line 12d under only if you are a U.S. national; Instructions for Schedule 3 in the Line 3—Education Credits resident of Canada, Mexico, or South Instructions for Forms 1040 and Leave Schedule 3 (Form 1040), line 3, Korea; or a student or a business 1040-SR, the discussions of section blank. Persons filing Form 1040-NR apprentice eligible for the benefits of 960 and of net section 965 inclusion cannot claim education credits. Article 21(2) of the United States-India do not apply to you. Persons filing Income Tax Treaty. Form 1040-NR cannot claim these Line 4—Retirement Savings If your filing status at the top of credits. Contributions Credit (Saver's page 1 on Form 1040-NR is Married Exception 2. In Line 12e under Credit) filing separately, you cannot claim the Instructions for Schedule 3 in the net premium tax credit unless you Instructions for Forms 1040 and See Line 4 under Instructions for meet the criteria of one of the Schedule 3 in the Instructions for 1040-SR, if you complete the Deferral exceptions under Married taxpayers in Worksheet for Schedule H or Forms 1040 and 1040-SR for details the Instructions for Form 8962. on the retirement savings Schedules SE filers, you will use the contributions credit (saver's credit). same lines of Form 1040-NR that are Line 9—Amount Paid With Request used for Form 1040 or 1040-SR. Exception. Only use the guidance for Extension To File for the filing status you checked at the See Line 9 under Instructions for top of page 1 of Form 1040-NR. No Instructions for Schedule 3 in the Instructions for other guidance in Line 4 under Forms 1040 and 1040-SR for details Schedule A (Form Instructions for Schedule 3 in the on the amount paid with a request for 1040-NR)—Itemized Instructions for Forms 1040 and extension to file. 1040-SR will apply to you. Deductions Exception. The discussion of Form Before you begin: 2350 does not apply to you. That form ! Line 5—Residential Energy Credits is for U.S citizens and resident aliens CAUTION See Line 5 under Instructions for abroad. • Do not use Schedule A (Form Schedule 3 in the Instructions for 1040-NR) with Form 1040 or Form Forms 1040 and 1040-SR for details Line 10—Excess Social Security 1040-SR. Use Schedule A (Form on the residential energy credits: the and Tier 1 RRTA Tax Withheld 1040-NR) only with Form 1040-NR. Use Schedule A (Form 1040) with nonbusiness energy property credit See Line 10 under Instructions for Form 1040 or 1040-SR. and the residential energy efficient Schedule 3 in the Instructions for Use only these instructions when property credit. Forms 1040 and 1040-SR for details • completing Schedule A (Form on excess social security and tier 1 1040-NR). Do not use the instructions Line 6—Other Credits RRTA tax withheld. for any other Schedule A. See Line 6 under Instructions for Exception. Only use the guidance • Do not include on Schedule A Schedule 3 in the Instructions for for the filing status you checked at the (Form 1040-NR) items deducted Forms 1040 and 1040-SR for details top of page 1 of Form 1040-NR. No elsewhere, such as on Form 1040-NR on these other credits. other guidance in Line 10 under or Schedule C, E, or F (Form 1040). Exception 1. The discussion of S Instructions for Schedule 3 in the corporations doesn't apply to you. You Instructions for Forms 1040 and Note. Except as provided in cannot be a shareholder in an S 1040-SR will apply to you. You cannot Exception next, include only corporation. claim excess social security or tier 1 deductions and losses properly RRTA tax withheld for your spouse. Exception 2. The discussion of the allocated and apportioned to income credit for the elderly or the disabled effectively connected with a U.S. Line 11—Credit for Federal Tax on does not apply to you. You cannot trade or business. Do not include claim that credit. Fuels deductions and/or losses that relate to See Line 11 under Instructions for exempt income or to income that is Exception 3. The discussion of the Schedule 3 in the Instructions for not effectively connected with a U.S. section 962 election does not apply to Forms 1040 and 1040-SR for details trade or business. See section 861(b). you. You cannot make that election. on the credit for federal tax on fuels. Exception. You can deduct certain charitable contributions and casualty and theft losses even if they do not relate to your effectively

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connected income. See Gifts to U.S. 2019-12 at IRS.gov/pub/irs-drop/ • Fraternal orders, if the gifts will be Charities and Casualty and Theft n-19-12.pdf. used for the purposes listed under Losses, later. Line 1b. The deduction for state and Lines 2 Through 4 above. local taxes is generally limited to • Veterans' and certain cultural State and Local Income Taxes $10,000 ($5,000 if you checked groups. Nonprofit hospitals and medical Married filing separately under Filing • Line 1a. You can deduct state and research organizations. Status on page 1 of Form 1040-NR). local income taxes you paid or that Most nonprofit educational On Schedule A (Form 1040-NR), • were withheld from your salary during organizations, such as colleges, but line 1b, enter the amount which is the 2020 on income connected with a only if your contribution is not a smaller of state and local income U.S. trade or business. If, during substitute for tuition or other taxes from line 1a and $10,000 2020, you received any refunds of, or enrollment fees. ($5,000 if you checked Married filing credits for, income tax paid in earlier Federal, state, and local separately under Filing Status on • years, do not subtract them from the governments if the gifts are solely for page 1 of Form 1040-NR). amount you deduct here. Also do not public purposes. reduce your deduction by any state or Gifts to U.S. Charities local income tax refund or credit you Amounts you can deduct. expect to receive for 2020. Instead, For 2020 and 2021, you may Contributions can be in cash, see the instructions for Schedule 1, TIP be able to elect a temporary property, or out-of-pocket expenses line 1, earlier, in these instructions. suspension of certain you paid to do volunteer work for the limitations that apply to cash kinds of organizations described Safe harbor for certain charitable contributions made during the year. earlier. If you drove to and from the contributions made in exchange See Pub. 526 for more information. volunteer work, you can take the for a state or local income tax actual cost of gas and oil or 14 cents a credit. If you made a charitable mile. Add parking and tolls to the contribution in exchange for a state or Lines 2 Through 4 amount you claim under either local income tax credit and your You can deduct contributions or gifts method. But do not deduct any charitable contribution deduction must you gave to U.S. organizations that amounts that were repaid to you. be reduced as a result of receiving or are religious, charitable, educational, Gifts from which you benefit. If you expecting to receive the tax credit, scientific, or literary in purpose. You made a gift and received a benefit in you may qualify for a safe harbor that can also deduct what you gave to return, such as food, entertainment, or allows you to treat some or all of the U.S. organizations that work to merchandise, you can generally disallowed charitable contribution as a prevent cruelty to children or animals. deduct only the amount that is more payment of state and local income Certain whaling captains may be able than the value of the benefit. But this taxes. to deduct expenses paid in 2020 for rule does not apply to certain The safe harbor applies if you meet Native Alaskan subsistence bowhead membership benefits provided in the following conditions. whale hunting activities. See Pub. 526 return for an annual payment of $75 or for details. 1. You made a cash contribution less or to certain items or benefits of to an entity described in section token value. For details, see Pub. 526. 170(c). To verify an organization's charitable status, you can do the Example. You paid $70 to a 2. In return for the cash following. charitable organization to attend a contribution, you received a state or Check with the organization to fund-raising dinner and the value of local income tax credit. • which you made the donation. The the dinner was $40. You can deduct 3. You must reduce your organization should be able to provide only $30. charitable contribution amount by the you with verification of its charitable Gifts of $250 or more. You can amount of the state or local income status. deduct a gift of $250 or more only if tax credit you receive. • Use our online search tool at you have a contemporaneous written If you meet these conditions, and to IRS.gov/TEOS to see if an acknowledgment from the charitable the extent you apply the state or local organization is eligible to receive organization showing the information income tax credit to this or a prior tax-deductible contributions (Pub. 78 in (1) and (2) next. year's state or local income tax data). Click on Tax Exempt Organization Search. 1. The amount of any money liability, you may include this amount contributed and a description (but not on line 1a. To the extent you apply a Examples of U.S. qualified charita- value) of any property donated. portion of the credit to offset your ble organizations. Examples of U.S. 2. Whether the organization did or state or local income tax liability in a qualified charitable organizations did not give you any goods or services subsequent year (as permitted by include the following. in return for your contribution. If you law), you may treat this amount as • Churches, mosques, synagogues, did receive any goods or services, a state or local income tax paid in the temples, and other religious description and estimate of the value year the credit is applied. organizations. must be included. If you received only For more information about this • Boy Scouts, Boys and Girls Clubs intangible religious benefits (such as safe harbor and examples, see Notice of America, CARE, Girl Scouts, admission to a religious ceremony), Goodwill Industries, Red Cross, the organization must state this, but it Salvation Army, United Way.

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does not have to describe or value the there was no significant element of Recordkeeping. For any benefit. personal pleasure, recreation, or contribution made in cash, regardless vacation in the travel. In figuring whether a gift is $250 or of the amount, you must maintain as a • Political contributions. more, do not combine separate record of the contribution a bank • Dues, fees, or bills paid to country donations. For example, if you gave record (such as a canceled check or clubs, lodges, fraternal orders, or your church $25 each week for a total credit card statement) or a written similar groups. of $1,300, treat each $25 payment as record from the charity. The written • Cost of raffle, bingo, or lottery a separate gift. If you made donations record must include the name of the tickets. But you may be able to deduct through payroll deductions, treat each charity, date, and amount of the these expenses on line 7. See Line 7, deduction from each paycheck as a contribution. If you made contributions later, for more information on separate gift. See Pub. 526 if you through payroll deduction, see Pub. gambling losses. made a separate gift of $250 or more 526 for information on the records you • Value of your time or services. through payroll deduction. must keep. Do not attach the record to • Value of blood given to a blood your tax return. Instead, keep it with To be contemporaneous, you must bank. your other tax records. get the written acknowledgment from • The transfer of a future interest in For contributions of $250 or more, the charitable organization by the date tangible personal property. Generally, you must also have a you file your return or the due date no deduction is allowed until the entire contemporaneous written (including extensions) for filing your interest has been transferred. acknowledgment from the charitable return, whichever is earlier. Do not • Gifts to individuals and groups that organization. See Gifts of $250 or attach the contemporaneous written are operated for personal profit. more, earlier, for more information. acknowledgment to your return. • Gifts to foreign organizations. But You will still need to keep a record of Instead, keep it for your records. you may be able to deduct gifts to when you made the cash contribution certain U.S. organizations that Limit on the amount you can de- if the contemporaneous written transfer funds to foreign charities and duct. See Pub. 526 to figure the acknowledgment does not include certain Canadian, Israeli, and amount of your deduction if any of the that information. following applies. Mexican charities. For details and exceptions, see Pub. 526. 1. Your cash contributions or Gifts to organizations engaged in Qualified Contributions contributions of ordinary income • certain political activities that are of In general, you can elect to treat gifts property are more than 30% of the direct financial interest to your trade or by cash or check as qualified amount on Form 1040-NR, line 11. business. See section 170(f)(9). contributions if the gift was paid in 2. Your gifts of capital gain • Gifts to groups whose purpose is to 2020 to a qualified charitable property are more than 20% of the lobby for changes in the laws. organization. This election isn't amount on Form 1040-NR, line 11. • Gifts to civic leagues, social and available for contributions to an 3. You gave gifts of property that sports clubs, labor unions, and organization described in section increased in value or gave gifts of the chambers of commerce. 509(a)(3) or for the establishment of a use of property. • Value of benefits received in new, or maintenance of an existing, connection with a contribution to a donor advised fund. For details, see charitable organization. See Pub. 526 Pub. 526. Amounts you cannot deduct. for exceptions. • Certain contributions to charitable • Cost of tuition. Qualified contributions are not organizations, to the extent that you subject to a limitation based on a receive a state or local income tax Line 2—Gifts by Cash or Check percentage of adjusted gross income; credit in return for your contribution. however, certain limits may apply if Enter on line 2 the total value of gifts See Pub. 526 for more details and your qualified contributions are more you made in cash or by check exceptions. than the amount on Form 1040-NR, (including out-of-pocket expenses) line 11, minus all other allowable See Safe harbor for certain unless a limit on deducting gifts contributions. For details, see Pub. TIP charitable contributions made applies to you. For more information 526. in exchange for a state or about the limits on deducting gifts, local income tax credit, earlier, under see Limit on amount you can deduct, Include any contributions that you Line 1a, if your cash contribution is earlier. If your deduction is limited, elect to treat as qualified contributions disallowed because you received or you may have a carryover to next in the total amount reported on expected to receive a credit. year. See Pub. 526 for more Schedule A (Form 1040-NR), line 2. • An amount paid to or for the benefit information. Indicate the election by also entering of a college or university in exchange Deduction for gifts by cash or the amount of your qualified for the right to purchase tickets to an check limited. If your deduction for contributions on the dotted line next to athletic event in the college’s or the gifts you made in cash or by check the Schedule A (Form 1040-NR), university's stadium. is limited, see Pub. 526 to figure the line 2, entry space. • Travel expenses (including meals amount you can deduct. Only enter on and lodging) while away from home line 2 the deductible value of gifts you performing donated services, unless made in cash or by check.

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Line 3—Other Than by Cash or only if the items are in good used earlier year. The same limits apply this Check condition or better. However, this rule year to your carryover amounts as does not apply to a contribution of any applied to those amounts in the earlier Enter on line 3 the total value of your single item for which a deduction of year. After applying those limits, enter contributions of property other than by more than $500 is claimed and for the amount of your carryover that you cash or check unless a limit on which you include a qualified are allowed to deduct this year. See deducting gifts applies to you. For appraisal and Form 8283 with your tax Pub. 526 for details. more information about the limits on return. deducting gifts, see Limit on amount Casualty and Theft Losses you can deduct, earlier. If your Recordkeeping. If you gave deduction is limited, you may have a property, you should keep a receipt or Line 6—Casualty or Theft Loss(es) carryover to next year. See Pub. 526 written statement from the Complete and attach Form 4684 to for more information. organization you gave the property to, or a reliable written record, that shows figure the amount of your loss. Only Deduction for gifts other than by the organization's name and address, enter the amount from Form 4684, cash or check limited. If your the date and location of the gift, and a line 18, on line 6. deduction for the contributions of description of the property. For each Do not enter a net qualified property other than by cash or check gift of property, you should also keep disaster loss from Form 4684, is limited, see Pub. 526 to figure the reliable written records that include line 15, on line 6. Instead, amount you can deduct. Only enter on the following. enter that amount, if any, on line 7. line 3 the deductible value of your • How you figured the property's See Line 7, later, for information about contributions of property other than by value at the time you gave it. If the reporting a net qualified disaster loss. cash or check. value was determined by an Valuing contributions of used appraisal, keep a signed copy of the You may be able to deduct part or items. If you gave used items, such appraisal. all of each loss caused by theft, as clothing or furniture, deduct their • The cost or other basis of the vandalism, fire, storm, or similar fair market value at the time you gave property if you must reduce it by any causes; car, boat, and other them. Fair market value is what a ordinary income or capital gain that accidents; and corrosive drywall. You willing buyer would pay a willing seller would have resulted if the property may also be able to deduct money when neither has to buy or sell and had been sold at its fair market value. you had in a financial institution but both are aware of the conditions of the • How you figured your deduction if lost because of the insolvency or sale. For more details on determining you chose to reduce your deduction bankruptcy of the institution. See Pub. the value of donated property, see for gifts of capital gain property. 547 for the limitations. Pub. 561. • Any conditions attached to the gift. Deductions more than $500. If the If the gift of property is $250 or You can only deduct nonbusiness/ amount of your deduction is more more, you must also have a personal casualty or theft losses than $500, you must complete and contemporaneous written attributable to a federally declared attach Form 8283. For this purpose, acknowledgment from the charitable disaster and only to the extent that: the “amount of your deduction” means organization. See Gifts of $250 or 1. The amount of each separate your deduction before applying any more, earlier, for more information. casualty or theft loss is more than income limits that could result in a Form 8283 doesn't satisfy the $100; and contemporaneous written carryover of contributions. 2. The total amount of all losses acknowledgment requirement, and a during the year (reduced by the $100 Contribution of motor vehicle, contemporaneous written limit discussed in (1)) is more than boat, or airplane. If you deduct acknowledgment is not a substitute 10% of the amount shown on Form more than $500 for a contribution of a for the other records you may need to 1040-NR, line 11. motor vehicle, boat, or airplane, you keep if you gave property. must also attach a statement from the An exception to the rule charitable organization to your paper If your total deduction for gifts of property is over $500, you limiting the deduction for return. The organization may use ! personal casualty and theft CAUTION gave less than your entire Form 1098-C to provide the required losses to disaster losses applies information. interest in the property, or you made a qualified conservation contribution, where you have personal casualty If your total deduction is over your records should contain additional gains not attributable to a federally $5,000 ($500 for certain contributions information. See Pub. 526 for details. declared disaster. In this case, you of clothing and household items (see may deduct personal casualty losses below)), you may also have to get that are not attributable to a federally appraisals of the values of the Line 4—Carryover From Prior Year declared disaster to the extent they donated property. You may have contributions that you don't exceed your personal casualty See Form 8283 and its instructions could not deduct in an earlier year gains. for details. because they exceeded the limits on the amount you could deduct. In most See the Instructions for Form 4684, Contributions of clothing and Casualties and Thefts, and Pub. 547, household items. A deduction for cases, you have 5 years to use contributions that were limited in an Casualties, Disasters, and Thefts, for these contributions will be allowed more information.

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Other Itemized Deductions Total Itemized Deductions The 30% tax applies only to amounts included in gross income. Line 7—Other Line 8 For example, the tax applies only to Net qualified disaster loss report- Enter the total of lines 1b, 5, 6, and 7 the part of a periodic annuity or ing. If you have a net qualified on line 8. Also enter this amount on pension payment that is subject to tax. disaster loss on Form 4684, line 15, of Form 1040-NR, line 12. It does not apply to the part that is a property located in the United States, return of your cost. list the amount from Form 4684, Instructions for line 15, on the dotted lines next to Categories of Noneffectively line 7 as "Net Qualified Disaster Loss" Schedule NEC (Form Connected Income and include with your other 1040-NR)—Tax on Income The following list gives only a general miscellaneous deductions on line 7. Not Effectively Connected idea of the types of income to include Also be sure to attach Form 4684. If With a U.S. Trade or on Schedule NEC. The instructions you are a student or business Business for a specific line include more apprentice from India who is eligible information and any exceptions to for the benefits of Article 21(2) of the Do not use Schedule NEC withholding. For more information, United States-India Income Tax (Form 1040-NR) with Form see Pub. 519 and Pub. 515. Treaty and who is electing the 1040 or Form 1040-SR. Use standard deduction, see instead Net 1. Income that is fixed or periodic, Schedule NEC (Form 1040-NR) only such as interest (see below for loss in the Instructions for Form 4684; with Form 1040-NR. you will include the loss in your original issue discount), dividends, standard deduction amount. Enter your income in the row that rents, salaries, wages, premiums, lists the correct category of income annuities, other compensation, or Don't include your net and in the column that lists the correct certain alimony received (see the ! qualified disaster loss on tax rate under a tax treaty or the Caution below). Other items of CAUTION line 6. general U.S. tax rules. Use column (d) income, such as royalties, may also Only certain expenses can be if the income is subject to a 0% rate. be subject to the 30% tax. deducted on this line. List the type Include income only to the extent it is 2. Gains, other than capital gains, and amount of each such expense on U.S. source and not effectively from the sale or exchange of patents, the dotted lines next to line 7 and connected with the conduct of a trade copyrights, and other intangible enter the total of these expenses on or business in the United States. property. line 7. If you are filing a paper return Withholding of tax at the source. Alimony you received and you cannot fit all your expenses Tax must be withheld at the source on pursuant to a divorce or on the dotted lines next to line 7, income not effectively connected with separation agreement entered attach a statement instead showing a U.S. trade or business that is paid to into on or before December 31, the type and amount of each expense. nonresident aliens. The withholding is 2018, is income on your 2020 Form Enter one total on line 7. Examples of generally at a 30% rate. The tax must 1040-NR unless that agreement was these expenses follow. be withheld by the person who pays changed after December 31, 2018, to • Gambling losses effectively the income. For details, see Pub. 519, expressly provide that alimony you connected with a U.S. trade or Pub. 515, and section 1441 and its received isn't included in your income. business (gambling losses include, regulations. Alimony you received is not included but aren't limited to, the cost of Certain amounts paid for in your income if you entered into the non-winning bingo, lottery, and raffle guarantees of indebtedness issued divorce or separation agreement after tickets), but only to the extent of after September 27, 2010, are U.S. December 31, 2018. gambling winnings reported on source income. If the payments are Schedule 1 (Form 1040), line 8. not made in connection with a U.S. 3. Original issue discount (OID). If Casualty and theft losses of • trade or business, tax must be you sold or exchanged the obligation, income-producing property from Form withheld. include in income the OID that 4684, lines 32 and 38b, or Form 4797, accrued while you held the obligation line 18a. Exceptions. There are minus the amount previously included • Deduction for repayment of exceptions to the general rule. The in income. If you received a payment amounts under a claim of right if over withholding tax rate may be lower or on an OID obligation, see Pub. 519. $3,000. See Pub. 525 for details. the income may be exempt if your 4. Capital gains in excess of • Certain unrecovered investment in country of tax residence and the capital losses from U.S. sources a pension. United States have a treaty setting during 2020. Include these gains only • Impairment-related work expenses lower rates. See Treaty Table 1, Tax if you were in the United States at of a disabled person. Rates on Income Other Than least 183 days during 2020. For more details, see Pub. 529. Personal Service Income Under Chapter 3, Internal Revenue Code, 5. Prizes, awards, and certain and Income Tax Treaties, available at gambling winnings. Proceeds from IRS.gov/Individuals/International- lotteries, raffles, etc., are gambling Taxpayers/Tax-Treaty-Tables. winnings (see Pub. 519 for exceptions). You must report the full

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amount of your winnings unless you principal contracts. Similar rules apply For more information, including are a resident of Canada. to a complex notional principal other exceptions to withholding, see contract; however, a complex notional Interest in Pub. 519 and Pub. 515. See Lines 10a Through principal contract is subject to the TIP 10c—Gambling substantial equivalence test rather Line 6—Real Property Income Winnings—Residents of than the delta test. See Regulations and Natural Resources Canada and Line 11—Gambling section 1.871-15(h) for rules relating Royalties Winnings—Residents of Countries to the substantial equivalence test. Other Than Canada, later. Enter income from real property on For more information on dividend line 6. Do not include any income that Lines 1a, 1b, and equivalent payments, see Pub. 519 you elected to treat as effectively connected and included on Schedule 1c—Dividends and Pub. 515. For information on payments with respect to notional 1 (Form 1040), line 5. For more Except as provided next, include all principal contracts and equity-linked information, see the instructions for dividends paid by U.S. corporations instruments, see Regulations section Schedule 1, line 5, earlier. on line 1a. Include all U.S. source 1.871-15. dividends paid by foreign corporations Line 8—Social Security on line 1b. Include all dividend Exceptions. The following items Benefits (and Tier 1 Railroad equivalent payments received with of dividend income that you received Retirement Benefits Treated as respect to section 871(m) as a nonresident alien are generally Social Security) exempt from the 30% tax. transactions on line 1c. A dividend 85% of the U.S. social security and includes a substitute dividend • Interest-related dividends received from a mutual fund. equivalent railroad retirement benefits payment made to the transferor of a you received are taxable. This amount security in a securities lending • Short-term capital gain dividends from a mutual fund only if you were is treated as U.S. source income not transaction or a sale-repurchase effectively connected with a U.S. transaction that would be treated as a present in the United States for less than 183 days during the tax year. trade or business. It is subject to the dividend if it were a distribution on the 30% tax rate, unless exempt or taxed transferred security. • If a U.S. corporation in existence on January 1, 2020, received most of its at a reduced rate under a U.S. tax Dividend equivalent payments. gross income from the active conduct treaty. Social security benefits include Dividends also include all dividend of a foreign business, and continues any monthly benefit under title II of the equivalent payments made after to receive most of its gross income Social Security Act or the part of a tier September 13, 2010. Currently, from the active conduct of a foreign 1 railroad retirement benefit treated as dividend equivalent payments include business, the part of the dividend a social security benefit. They do not (1) substitute dividends, (2) payments attributable to the foreign gross include any Supplemental Security made pursuant to a specified notional income. Income (SSI) payments. principal contract, and (3) payments • U.S. source dividends paid by You should receive a Form made pursuant to a specified certain foreign corporations. SSA-1042S showing the total social equity-linked instrument that are For more information, including other security benefits paid to you in 2020 (directly or indirectly) contingent on, or exceptions to withholding, see and the amount of any benefits you determined by reference to, the Dividends in Pub. 519 and Pub. 515. repaid in 2020. If you received railroad payment of a dividend from U.S. retirement benefits treated as social sources. Lines 2a Through 2c—Interest security, you should receive a Form A notional principal contract that is Include all interest on the appropriate RRB-1042S. treated as a specified notional line 2a, 2b, or 2c. Enter 85% of the total amount from principal contract as of January 1, Exceptions. The following items of box 5 of all of your Forms SSA-1042S 2017, will remain a specified notional interest income that you received as a and Forms RRB-1042S in the principal contract after January 1, nonresident alien are generally appropriate column of line 8 of 2017. exempt from the 30% tax. Schedule NEC. Attach a copy of each For payments made on or after • Interest from a U.S. bank, savings Form SSA-1042S and RRB-1042S to January 1, 2017, a notional principal and loan association, or similar the front of Form 1040-NR. contract is a simple notional principal institution, and from certain deposits Social security information. Social contract under Regulations section with U.S. insurance companies. security beneficiaries can now get a 1.871-15(d)(2)(i) or a complex • Portfolio interest on obligations variety of information from the SSA notional principal contract under issued after July 18, 1984. website with a my Social Security Regulations section 1.871-15(d)(2)(ii). account, including getting a In 2017 and 2018, a simple notional Interest payments on foreign replacement Form SSA-1099 or Form principal contract that has a delta of ! bearer obligations (bonds not CAUTION SSA-1042S if needed. For more one with respect to an underlying issued in registered format information and to set up an account, security when the notional principal and held by non-U.S. holders) issued go to SSA.gov/myaccount. contract is issued is a specified on or after March 19, 2012, are not notional principal contract. Beginning eligible for the portfolio interest Form RRB-1099 or Form in 2019, these rules will also apply to exception to withholding. RRB-1042S. If you need a certain non-delta-one notional replacement Form RRB-1099 or Form RRB-1042S, call the Railroad

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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. (d) Other (specify) Nature of Income (a) 10% (b) 15% (c) 30% % % 1 Dividends and dividend equivalents: a Dividends paid by U.S. corporations ...... 1a 1,000 b Dividends paid by foreign corporations ...... 1b

10 Gambling—Residents of Canada only. Enter net income in column (c). If zero or less, enter -0-. a Winnings 5,000 b Losses 4,500 ...... 10c 500 11 Gambling winnings—Residents of countries other than Canada. Note: Losses not allowed ...... 11 12 Other (specify) ▶ 12 13 Add lines 1a through 12 in columns (a) through (d) ...... 13 1,000 500 14 Multiply line 13 by rate of tax at top of each column ...... 14 150 150 15 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 ▶ 15 300

Retirement Board at 877-772-5772 or Republic, Slovenia, South Africa, 2020, XYZ paid dividends of $1,000 to go to RRB.gov. , Sweden, Tunisia, Turkey, John. The U.S. withholding tax rate on Ukraine, and the United Kingdom. these dividends is 30%. However, Line 9—Capital Gain Article X of the tax treaty between the Residents of Malta who are not Enter the amount from Schedule NEC United States and Canada limits the engaged in the trade or business of (Form 1040-NR), line 18. U.S. tax rate on these dividends to a gambling enter all gambling winnings maximum rate of 15%. John filed Lines 10a Through on line 11, column (a). 10c—Gambling Form W-8BEN with XYZ to claim the Residents of other countries who lower treaty rate, and XYZ correctly Winnings—Residents of are not engaged in the trade or withheld $150. In addition, John has Canada business of gambling enter all U.S. source gross gambling winnings If you are a resident of Canada who is gambling winnings on line 11, column of $5,000 and U.S. source gambling not engaged in the trade or business (c). losses of $4,500. These items would of gambling, enter all gambling Include proceeds from lotteries and be reported on Schedule NEC as winnings on line 10a. Include raffles. Do not include winnings from shown in the example. proceeds from lotteries and raffles. blackjack, baccarat, craps, roulette, or Lines 16 Through 18—Capital Do not include winnings from big-6 wheel. You cannot offset losses Gains and Losses From Sales blackjack, baccarat, craps, roulette, or against winnings and report the or Exchanges of Property big-6 wheel. You can deduct your difference unless the winnings and U.S. source gambling losses to the losses are from the same session. Include these gains only if you were in extent of your U.S. source gambling the United States at least 183 days winnings. Enter your gambling losses If you have winnings from during 2020. They are not subject to on line 10b. Enter your net gambling TIP blackjack, baccarat, craps, U.S. tax if you were in the United income on line 10c, column (c). If roulette, or big-6 wheel, and States less than 183 days during the line 10b is more than line 10a, the casino gave you a Form 1042-S tax year. In determining your net gain, enter -0- on line 10c. A net loss from showing that tax was withheld, enter do not use the capital loss carryover. gambling activities is not deductible. these winnings on line 11, column (d), Losses from sales or exchanges of and enter 0% as the tax rate. You can Line 11—Gambling capital assets in excess of similar claim a refund of the tax. gains are not allowed. Enter the Winnings—Residents of amount from line 18 on line 9. If you Countries Other Than Canada Line 12—Other had a gain or loss on disposing of a Residents of one of the following Include all U.S. source income that U.S. real property interest, see countries who are not engaged in the has not been reported on another line Dispositions of U.S. Real Property trade or business of gambling enter all or is not excluded from tax. This Interests, earlier. gambling winnings on line 11, column includes prizes and awards. It also (d), specifying 0%: Austria, Belgium, includes the tax withheld pursuant to Bulgaria, Czech Republic, Denmark, section 5000C on specified federal Finland, France, Germany, Hungary, procurement payments. Iceland, Ireland, Italy, Japan, Latvia, Example. John Maple is a Lithuania, Luxembourg, the resident of Canada who purchased Netherlands, Russia, Slovak stock in XYZ, a U.S. corporation. In

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Item F Item J Instructions for If you ever changed your visa type or If you are filing this return for a trust, Schedule OI, U.S. immigration status, check the check the first “Yes” box. Check the Other Information “Yes” box. For example, you entered second “Yes” box if you checked the the United States in 2019 on an F-1 first “Yes” box and at least one of the Do not use Schedule OI visa as an academic student. On following statements applies to the (Form 1040-NR) with Form ! August 21, 2020, you changed to an trust. CAUTION 1040 or Form 1040-SR. Use H-1B visa as a teacher. You will check The trust (or any part of the trust) is Schedule OI (Form 1040-NR) only • the “Yes” box and enter on the dotted treated as a grantor trust under the with Form 1040-NR. line “Changed status from F-1 student grantor trust rules (sections 671 Answer all questions. to H-1B teacher on August 21, 2020.” through 679), whether or not the person who is treated as the owner of Item G Item A the trust is a U.S. person. Enter the dates you entered and left List all countries of which you were a • The trust made a distribution or the United States during 2020 on citizen or national during the tax year. loan to a U.S. person during the tax short business trips or to visit family, year. A distribution (direct or indirect) Item B go on vacation, or return home briefly. or loan includes the uncompensated List the foreign country in which you If you are a resident of Canada or use of trust property (section 643(i)(2) claimed residence for tax purposes Mexico and commute to work in the (E)). during the tax year. United States on more than 75% of • The trust received a contribution from a U.S. person during the tax Item C the workdays during your working period, you are a regular commuter year. If you have ever completed and do not need to enter the dates immigration Form I-485 and submitted See the Instructions for Form 3520. you entered and left the United States the form to the U.S. Citizenship and during the year. Commute means to A U.S. person is a U.S. citizen or Immigration Services, or have ever travel to work and return to your resident alien, a domestic partnership, completed a Form DS-230 and residence within a 24-hour period. a domestic corporation, an estate submitted it to the Department of Check the appropriate box for Canada other than a foreign estate, or a State, you have applied to become a or Mexico and skip to item H. See domestic trust. See Pub. 519 for more green card holder (lawful permanent Days of Presence in the United States information. resident) of the United States. in chapter 1 of Pub. 519. Item K Item D If you were in the United States on If you received total compensation of If you checked “Yes” for D1 or D2, you January 1, enter 1/1 as the first date $250,000 or more for 2020, check the may be a U.S. tax expatriate and you entered the United States. If you first “Yes” box. If you checked the first special rules may apply to you. See were in the United States on “Yes” box, check the second “Yes” Expatriation Tax in chapter 4 of Pub. December 31, do not enter any date box if you are using an alternative 519 for more information. departed. method to determine the source of the Item E compensation. Total compensation Item H includes all compensation from If you had a visa on the last day of the Review your entry and passport sources within and outside the United tax year, enter your visa type. stamps or other records to count the States. Examples are the following. number of days you were actually • B-1 Visitor for business. present in the United States during If you check the second “Yes” box, • F-1 Students—academic the years listed. A day of presence is you must attach a statement to your institutions. any day that you are physically return. For details about the statement • H-1B Temporary worker with present in the United States at any and the alternative method, see specialty occupation. time during the 24-hour period Services Performed Partly Within and • J-1 Exchange visitor. beginning at 12:01 a.m. For the list of Partly Outside the United States, earlier. If you do not have a visa, enter your exceptions to the days you must count U.S. immigration status on the last as actually present in the United Item L day of the tax year. For example, if States, see Days of Presence in the If you are claiming exemption from you entered under the visa waiver United States in chapter 1 of Pub. income tax under a U.S. income tax program, enter “VWP” and the name 519. If you were not in the United treaty with a foreign country on Form of the Visa Waiver Program Country. States on any day of the year, 1040-NR, you must provide all the enter -0-. information requested in item L. If you were not present in the United States on the last day of the Item I Line 1. If you are a resident of a tax year, and you have no U.S. If you filed a U.S. income tax return for treaty country (that is, you qualify as a immigration status, enter “Not present a prior year, enter the latest year for resident of that country within the in U.S.—No U.S. immigration status.” which you filed a return and the form meaning of the tax treaty between the number you filed. United States and that country), you must know the terms of the tax treaty between the United States and that

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Example. Item L—Income Exempt From Tax by Treaty

(a) Country (b) Tax treaty article (c) Number of months (d) Amount of exempt claimed in prior tax years income in current tax year

Italy 20 4 $40,000

(e) Total. Enter this amount on Form 1040-NR, line 1c. Do not enter it on line 1a or line 1b ...... $40,000 country to properly complete item L. to the United States on a J-1 visa If you fail to report the required You can download the complete text (Exchange visitor) and signed a information, you will be charged a of most U.S. tax treaties at IRS.gov. contract to teach for 2 years at this penalty of $1,000 for each failure, Enter “tax treaties” in the search box U.S. school. She began teaching in unless you show that such failure is and click on United States Income September 2019 and plans to due to reasonable cause and not Tax Treaties - A to Z. Technical continue teaching through May 2021. willful neglect. For more details, see explanations for many of those Sara's salary per school year is Form 8833 and its instructions. treaties are also available at that site. $40,000. She plans to return to Italy in Exceptions. You do not have to June 2021 and resume her Italian Column (a), Country. Enter the file Form 8833 for any of the following. residence. For calendar year 2020, treaty country that qualifies you for See Pub. 519 for more items. Sara earned $40,000 from her treaty benefits. teaching position. She completes the 1. You claim a treaty that reduces Column (b), Tax treaty article. table in item L on her 2020 tax return the withholding tax on interest, Enter the number of the treaty article as shown in the example. dividends, rents, royalties, or other fixed or determinable annual or that exempts the income from U.S. Line 2. Check “Yes” if you were tax. periodic income ordinarily subject to subject to tax in a foreign country on the 30% rate. Column (c), Number of months any of the income reported in line 1, 2. You claim a treaty that reduces claimed in prior tax years. Enter column (d). or modifies the taxation of income the number of months in prior tax Line 3. Check “Yes” if you are from dependent personal services, years for which you claimed an claiming tax treaty benefits pursuant pensions, annuities, social security exemption from U.S. tax based on the to a Competent Authority and other public pensions, or income specified treaty article. determination allowing you to do so. of artists, athletes, students, trainees, Column (d), Amount of exempt You must attach to your tax return a or teachers. This includes taxable income in current tax year. Enter copy of the Competent Authority scholarship and fellowship grants. determination letter. the amount of income in the current 3. You claim an International tax year that is exempt from U.S. tax If you are claiming tax treaty Social Security Agreement, or a based on the specified treaty article. ! benefits and you failed to Diplomatic or Consular Agreement, Line (e), Total. Add the amounts CAUTION submit adequate reduces or modifies the taxation of in column (d). Enter the total on documentation to a withholding agent, income. Schedule OI (Form 1040-NR), item L, you must attach to your tax return all 4. You are a partner in a line 1e, and on Form 1040-NR, information that would have otherwise partnership or a beneficiary of an page 1, line 1c. Do not include this been required on the withholding tax estate or trust that reports the required amount in the amount entered on document (for example, all information on its return. information required on Form Form 1040-NR, page 1, line 1a or 1b. 5. The payments or items of W-8BEN (Individuals), Form income that are otherwise required to Attach any Form 1042-S you W-8BEN-E (Entities), or Form 8233). received for treaty-exempt income. If be disclosed total no more than required, attach Form 8833. See Treaty-based return position dis- $10,000. Treaty-based return position closure. If you take the position that Item M disclosure, later. a treaty of the United States overrides Example. Sara is a citizen of Italy or modifies any provision of the Line 1. Check the box if 2020 is the and was a resident there until Internal Revenue Code and that first year you are making an election September 2019, when she moved to position reduces (or potentially to treat income from real property the United States to accept a position reduces) your tax, you must generally located in the United States as as a high school teacher at an report certain information on Form effectively connected with a U.S. accredited public school. Sara came 8833 and attach it to Form 1040-NR. trade or business under section

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871(d). The election applies to all higher or delay any refund. Interest We Welcome Comments on income from real property located in may also be charged. Forms the United States and held for the This notice applies to all papers We try to create forms and production of income and to all you file with us, including this tax instructions that can be easily income from any interest in that return. It also applies to any questions understood. Often, this is difficult to property. we need to ask to complete, correct, do because our tax laws are very The election will remain effective or process your return; figure your tax; complex. For some people with for all future tax years unless you and collect tax, interest, or penalties. income mostly from wages, filling in revoke it. See chapter 4 of Pub. 519 You are not required to provide the the forms is easy. For others who for more details on how to make and information requested on a form that have businesses, pensions, stocks, revoke this election. is subject to the Paperwork Reduction rental income, or other investments, it Line 2. Check the box if: Act unless the form displays a valid is more difficult. OMB control number. Books or 1. You have made an election in a records relating to a form or its We welcome your comments about previous tax year to treat income from instructions must be retained as long these instructions and your real property located in the United as their contents may become suggestions for future editions. You States as effectively connected with a material in the administration of any can send us comments through U.S. trade or business under section Internal Revenue law. IRS.gov/FormComments. Or you can 871(d), and write to the: 2. You haven’t revoked that Generally, tax returns and return election. information are confidential, as Internal Revenue Service required by section 6103. However, Tax Forms and Publications section 6103 allows or requires the 1111 Constitution Ave. NW Tax Topics Internal Revenue Service to disclose IR-6526 All topics are available in Spanish or give the information shown on your Washington, DC 20224 (and most topics are available in tax return to others as described in the U.S.A. Chinese, Korean, Vietnamese, and Code. For example, we may disclose Russian). your tax information to the Don't send your Form 1040-NR to this Department of Justice, to enforce office. Instead, see Where To File, You can read these Tax Topics at federal civil and criminal tax laws, and earlier. IRS.gov/TaxTopics. to cities, states, the District of Although we cannot respond Tax information for aliens. Columbia, and U.S. commonwealths individually to each comment 851—Resident and nonresident or possessions to carry out their tax • received, we do appreciate your aliens. laws. We may disclose your tax feedback and will consider your 856—Foreign tax credit. information to the Department of • comments as we revise our tax forms 857—Individual taxpayer Treasury and contractors for tax • and instructions. identification number (ITIN)—Form administration purposes; and to other W-7. persons as necessary to obtain Estimates of Taxpayer Burden • 858—Alien tax clearance. information needed to determine the Reported time and cost burdens are amount of or to collect the tax you national averages and do not owe. We may disclose your tax Disclosure, Privacy Act, necessarily reflect a “typical” case. information to the Comptroller The estimated average time burden and Paperwork Reduction General of the United States to permit for all taxpayers filing a Form Act Notice review of the Internal Revenue 1040-NR is 12 hours, with an average Service. We may disclose your tax We ask for the information on this cost of $230 (see the amount in the information to committees of form to carry out the Internal Revenue table below), per return. This average Congress; federal, state, and local laws of the United States. Sections includes all related forms and child support agencies; and to other 6001, 6011, and 6012(a) and their schedules, across all preparation federal agencies for purposes of regulations require that you give us methods and taxpayer activities. determining entitlement for benefits or the information. Within these estimates, there is the eligibility for and the repayment of significant variation in taxpayer We need it to ensure that you are loans. We may also disclose this activity. complying with these laws and to information to other countries under a allow us to figure and collect the right tax treaty, to federal and state Out-of-pocket costs include any amount of tax. Section 6109 requires agencies to enforce federal nontax expenses incurred by taxpayers to you to provide your identifying criminal laws, or to federal law prepare and submit their tax returns. number. If you fail to provide the enforcement and intelligence Examples include tax return requested information in a timely agencies to combat terrorism. Keep preparation and submission fees, manner, you may be charged this notice with your records. It may postage and photocopying costs, and penalties and interest and be subject help you if we ask you for other tax preparation software costs. Tax to criminal prosecution. We may also information. If you have any questions preparation fees vary widely have to disallow the exemptions, about the rules for filing and giving depending on the tax situation of the exclusions, credits, deductions, or information, call or visit any Internal taxpayer, the type of professional adjustments; this could make the Service office. preparer, and the geographic area.

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If you have comments concerning contact us at either one of the the time and cost estimates, you can addresses shown under We Welcome Comments on Forms, earlier. 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.

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.

Estimates of Taxpayer Burden The table shows burden estimates as of October 2020, for taxpayers filing a 2020 Form 1040-NR tax return.

Form Average Time Burden (Hours) Average Cost* 1040-NR 12 $230 * Dollars rounded to the nearest $10.

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2020 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

If line 15 is: The tax is: Over— But not over— Of the amount over—

$0 $2,600 ...... 10% $0 2,600 9,450 $260.00 + 24% 2,600 9,450 12,950 1,904.00 + 35% 9,450 12,950 ------3,129.00 + 37% 12,950

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Index

Dependent care benefits 20 Not effectively connected with Dependents 18 a U.S. trade or business: A Disability pensions 20 Schedule NEC 39 O Additional deferral for section Disclosure, Privacy Act, and Other taxable income 31 One-half of self-employment tax 401(k)(11) and SIMPLE Paperwork Reduction Act Other types of 19 deduction 32 plans 20 Notice 44 Household wages 19 Options for e-filing 4 Additional tax on IRAs and other Dispositions of United States real Tip income 19 Other credits 35 qualified retirement plans 34 property interests 16 To be reported 18 Other gains or (losses) 31 Additional tax on other income 21 Income tax withholding (federal) Other payments 35 retirement plans 34 Dividends 40 for 2021 28 Address, P.O. box. 18 Dividend equivalent Individual retirement arrangements Address change. 18 payments 40 (IRAs) 32 P Address foreign: Exceptions 40 Contributions to 32 Past due tax returns filing 28 Country. 18 Dividends qualified 21 Distributions from 21 Payments: Adjusted gross income 32 Dual-status taxpayers 14 Interest income 21, 40 Tax withholding 24 Adoption expenses: Restrictions 15 Exceptions 40 Penalties: Employer-provided adoption Dual-Status Tax Year 14 Itemized deductions 23 Early withdrawal of savings 32 benefits 20 How to figure tax for 15 Items to Note 11 Pensions 21 Alternative minimum tax 33 Income subject to tax 14 Other reporting Premium tax credit 9 Amended return 28 What and where to file 14 requirements 11 Repayment of excess Amount paid with request for Self-employment tax 11 credit 33 extension to file 35 Preparer, requirement to sign tax Amount refunded to you 25 Social security or Medicare E taxes withheld in error 11 return 26 Amount You Owe 25 Special rules for former U.S. Private delivery services 14 Annuities 21 Educator expenses 32 Protect your tax records from Effectively connected income 18 citizens and former U.S. Assistance (See Tax help) long-term residents 11 identity theft 28 Attachments to the return 26 E-filing 4, 13 Publications (See Tax help) Avoid Common Mistakes 28 Election to be taxed as a resident alien 14 Public debt, gift to reduce the 28 Electronic filing 4, 13 K Estates 10 Kinds of income 16 B Exemption for 23 Q Business income or (loss): Estimated tax payments for Qualified business income Stocks, securities, and deduction (Section 199A commodities Income as a 2020 24 L Estimated tax payments for Lump-sum distributions 22 Deduction) 23 dealer in 31 2021 28 Qualifying widow(er) 17 Excess elective deferrals 20 Excess social security and Tier 1 C RRTA tax withheld 35 M R Capital gain distributions 22 Expatriates 17 Mailing address 13 Real property income election 16 Capital gain or (loss): Extension of time to file: Medical insurance premiums, Records, how long to keep 28 Exceptions 22 Amount paid with 35 Credit for 35 Refund 25 Casualty and theft losses 38 Miscellaneous deductions: Refund information 30 Charity, gifts to 36 Other 39 Moving expenses 32 Refund mailed 25 Contributions you can F Refunds. Simplified procedure for deduct 36 Farm income or (loss) 31 claiming certain refunds 10 Contributions you cannot Filing status 17 Rental real estate, royalties, deduct 37 Married 17 N partnerships, trusts, etc. 31 Limit on the amount you can Single 17 Name and Address 17 Reporting deduct 37 First-time homebuyer credit Estates and trusts 18 requirements—Other 11 Recordkeeping 37 repayment 34 Engaged in a trade or Residential energy credits: Charity, other than by cash or Foreign income taxed by the business in the United Nonbusiness energy property check 38 United States 16 States 18 credit 35 Clothing and household Foreign tax credit 34 Not engaged in a trade or Residential energy efficient items 38 Form 1040-C: business 18 property credit 35 Recordkeeping 38 Credit for amount paid with 25 Individuals 17 Retirement distributions (IRAs): Child and dependent care Form W-2 missing or incorrect 20 Name change 18 Annuities 21 expenses: Free publications 11 Net investment income tax 15 Pensions 21 Credit for 35 Fringe benefits 19 Noneffectively connected income: Retirement plan deduction, Child tax credit 23 Capital gain 41 self-employed 32 Child tax credit, additional 24 Capital gains and losses from Retirement savings contributions Community income 15 sales or exchanges of credit (saver's credit) 35 Competent Authority determination G property 41 Rounding off to whole dollars 18 requirement 43 Gains and (losses) 22 Categories of 39 Contributions, carryover From From U.S. real property Gambling winnings-Residents Prior Year 38 interests 16 of Canada 41 Contributions to reduce debt held Green card test 12 Gambling winnings-Residents S by the public 28 of countries other than Salaries and wages 18 Corrective distributions from a Canada 41 Sales or exchanges, capital retirement plan 20 H Other income 41 assets 22 Credit for federal tax on fuels 35 Health insurance premiums, Credit Railroad retirement benefits Schedule A, itemized Credits against tax 15 deductions 35 for 35 (Tier 1) 40 Schedule D Tax Worksheet 23 Health savings account Real property income and Schedule NEC 39 deduction 32 natural resources Schedule OI, other information 42 D Household employment taxes 34 royalties 40 Scholarship and fellowship Daycare expenses: How to report income on Form Social security benefits 40 grants 22 Credit for 35 1040-NR 15 Nonresident aliens, defined 11 Degree candidate 20 Death of a taxpayer 28 Green card test 12 Nondegree candidate 20 Decedents 9 Resident aliens, defined 11 Section 457(b) plans 20 Deduction for exemptions for I Substantial presence test 12 Self-employed health insurance estates and trusts only 23 Identity theft 28, 30 deduction 32 Estates 23 Income: Trusts 23 Fringe benefits 19

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Self-employed SEP, SIMPLE, and Taxable refunds, credits, or offsets Where to file: qualified plans 32 of state and local income Estates and Trusts 13 Services performed partly in and taxes 31 U Individuals 13 partly out the U.S. 19 Tax and credits: U.S. national 17 Who must file 9 Sharing economy (gig) income 16 Other taxes: Unemployment compensation 31 Withholding of tax at the source: Signature 26 Alternative minimum tax 33 Unreported social security and Exceptions 39 State and local income taxes, Tax-exempt interest 21 Medicare tax: Write-in adjustments related to deduction for 36 Tax help 28 Tip income Form 4137 34 your effectively connected Student loan interest Taxpayer Advocate Service Wages from an employer who income: deduction 32 (TAS) 3 did not withhold social Attorney fees and court costs: Substantial presence test: Taxpayer Bill of Rights 45 security and Medicare tax Certain unlawful Closer connection exception Tax return information 28 Form 8919 34 discrimination for foreign students 12 Third party designee 26 claims 33 Closer connection to a foreign Tier 1 RRTA tax withheld 35 Qualified performing artist country 12 Tip income 18 W expenses have moved to Exempt individual 12 Transportation tax 24 We welcome comments on Schedule 1 (Form 1040), Treaty-exempt income 21 forms 44 line 11 33 Treaty-exempt income, report 42 What's New 5 T Trusts 10 When to file: Tax 23 Trusts, exemption deduction Estates and trusts 13 Tax, qualified dividends and for 23 Individuals 13 capital gain tax worksheet 23

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