Looking for a Form 1040nr Templates? Download it for free!

•

Dependent care benefits. If you

any or all of that amount is exempt by

Enter $0 on line 8. Because

received benefits for 2005 under your

treaty, do not include the treaty-exempt

section 117 amounts (tuition, fees,

employer’s dependent care plan, you

amount on line 5. Instead, include the

books, supplies, and equipment) were

must use Form 1040NR. The benefits

treaty-exempt amount on line 6 and

not included in box 2 of your

should be shown in your Form(s) W-2,

complete item J on page 2 of

Form 1042-S (and are not included on

box 10.

Form 1040NR-EZ.

line 5 of Form 1040NR-EZ), you cannot

exclude any of the section 117 amounts

Adoption benefits. If you received

Attach any Form(s) 1042-S you

on line 8.

employer-provided adoption benefits for

received from the college or institution.

•

Include on line 18 the $1,260 shown

2005, you must use Form 1040NR. The

If you did not receive a Form 1042-S,

in box 7 of Form 1042-S.

benefits should be shown in your

attach a statement from the college or

Form(s) W-2, box 12, with code T.

institution (on their letterhead) showing

Example 2. The facts are the same

Tax-exempt interest. Certain types

the details of the grant.

as in Example 1 except that you are a

of interest income from investments in

citizen of a country that has negotiated

For more information about

state and municipal bonds and similar

a tax treaty with the United States and

scholarships and fellowships in general,

instruments are not taxed by the United

you were a resident of that country

see Pub. 970.

States. If you received such tax-exempt

immediately before leaving for the

interest income, enter “TEI” and the

Example 1. You are a citizen of a

United States to attend ABC University.

amount of your tax-exempt interest on

country that has not negotiated a tax

Also, assume that, under the terms of

the dotted line next to line 3. Include

treaty with the United States. You are a

the tax treaty, all of your scholarship

any exempt-interest dividends from a

candidate for a degree at ABC

income is exempt from tax because

mutual fund or other regulated

University (located in the United

ABC University is a nonprofit

investment company. But do not

States). You are receiving a full

educational organization.

include interest earned on your IRA or

scholarship from ABC University. The

Note. Many tax treaties do not permit

Coverdell education savings account,

total amounts you received from ABC

an exemption from tax on scholarship

or interest from a U.S. bank, savings

University during 2005 are as follows:

or fellowship grant income unless the

and loan association, credit union, or

income is from sources outside the

similar institution (or from certain

Tuition and fees

$25,000

United States. If you are a resident of a

deposits with U.S. insurance

Books, supplies,

treaty country, you must know the

companies) that is exempt from tax

and equipment

1,000

terms of the tax treaty between the

under a tax treaty or under

Room and

United States and the treaty country to

section 871(i) because the interest is

board

9,000

claim treaty benefits on

not effectively connected with a U.S.

$35,000

Form 1040NR-EZ. See the instructions

trade or business. Do not add any

for item J, on page 9 for details.

tax-exempt interest to your line 3 total.

The Form 1042-S you received from

ABC University for 2005 shows $9,000

When completing Form 1040NR-EZ:

Line 4 — Taxable refunds, credits, or

•

in box 2 and $1,260 (14% of $9,000) in

offsets of state and local income

Enter $0 on line 5. The $9,000

box 7.

taxes. If you received a refund, credit,

reported to you in box 2 of

or offset of state or local income taxes

Form 1042-S is reported on line 6 (not

Note. Box 2 shows only $9,000

in 2005, you may receive a

line 5).

because withholding agents (such as

•

Form 1099-G. If you chose to apply

Enter $9,000 on line 6.

ABC University) are not required to

part or all of the refund to your 2005

•

report section 117 amounts (tuition,

Enter $0 on line 8. Because none of

estimated state or local income tax, the

fees, books, supplies, and equipment)

the $9,000 reported to you in box 2 of

amount applied is treated as received

on Form 1042-S.

Form 1042-S is included in your

in 2005.

income, you cannot exclude it on line 8.

When completing Form 1040NR-EZ:

•

For details on how to figure the

Enter on line 5 the $9,000 shown in

Include on line 18 any withholding

amount you must report as income, see

shown in box 7 of Form 1042-S.

box 2 of Form 1042-S.

Recoveries in Pub. 525.

Line 5 — Scholarship and fellowship

Student Loan Interest Deduction Worksheet — Line 9

grants. If you received a scholarship or

(keep for your records)

fellowship, part or all of it may be

taxable.

Before you begin:

If you were a degree candidate, the

•

See the instructions for line 9 on page 6.

amounts you used for expenses other

than tuition and course-related

1. Enter the total interest you paid in 2005 on qualified student

expenses (fees, books, supplies, and

loans (defined on page 6). Do not enter more than $2,500 . . . . 1.

equipment) are generally taxable. For

2. Enter the amount from Form 1040NR-EZ, line 7 2.

example, amounts used for room,

board, and travel are generally taxable.

3. Enter the amount from Form 1040NR-EZ, line 8 3.

4. Subtract line 3 from line 2 . . . . . . . . . . . . . . . . 4.

If you were not a degree candidate,

the full amount of the scholarship or

5. Is line 4 more than $50,000?

fellowship is generally taxable. Also,

No. Skip lines 5 and 6, enter -0- on line 7,

amounts received in the form of a

and go to line 8.

scholarship or fellowship that are

Yes. Subtract $50,000 from line 4 . . . . . . . . 5.

payment for teaching, research, or

6. Divide line 5 by $15,000. Enter the result as a decimal (rounded

other services are generally taxable as

to at least three places). If the result is 1.000 or more, enter

wages even if the services were

1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

required to get the grant.

7. Multiply line 1 by line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

If the grant was reported on

8. Student loan interest deduction. Subtract line 7 from line 1.

Form(s) 1042-S, you must generally

Enter the result here and on Form 1040NR-EZ, line 9 . . . . . . . . 8.

include the amount shown in Form(s)

1042-S, box 2, on line 5. However, if

-5-

Instructions for Form 1040NR-EZ

Instructions For Form 1040nr-Ez - U.s. Income Tax Return For Certain Nonresident Aliens With No Dependents - 2005 Page 5

Related Articles

Related forms

Related Categories