Instructions For Form 1040nr-Ez 2004 (Page 4 of 21) in pdf

special instructions and restrictions

income that is considered to be

How To Figure Tax for

discussed here do not apply.

effectively connected with the conduct

Dual-Status Tax Year

of a trade or business in the United

Dual-Status Tax Year

When you figure your U.S. tax for a

States is taxable.

dual-status year, you are subject to

A dual-status year is one in which you

Income you received as a

different rules for the part of the year

change status between nonresident

dual-status taxpayer from sources

you were a resident and the part of the

and resident alien. Different U.S.

outside the United States while a

year you were a nonresident.

income tax rules apply to each status.

resident alien is taxable even if you

All income for the period of

Most dual-status years are the years

became a nonresident alien after

residence and all income that is

of arrival or departure. Before you

receiving it and before the close of the

considered to be effectively connected

arrive in the United States, you are a

tax year. Conversely, income you

with a trade or business in the United

nonresident alien. After you arrive, you

received from sources outside the

States for the period of nonresidence,

may or may not be a resident,

United States while a nonresident alien

after allowable deductions, is combined

depending on the circumstances.

is not taxable in most cases even if you

and taxed at the same rates that apply

became a resident alien after receiving

If you become a U.S. resident, you

to U.S. citizens and residents.

it and before the close of the tax year.

stay a resident until you leave the

Credit for taxes paid. You are allowed

Income from U.S. sources is taxable

United States. You may become a

a credit against your U.S. income tax

whether you received it while a

nonresident alien when you leave, if,

liability for certain taxes you paid, are

nonresident alien or a resident alien.

after leaving (or after your last day of

considered to have paid, or that were

lawful permanent residency if you met

withheld from your income. These

Restrictions for Dual-Status

the green card test) and for the

include:

remainder of the calendar year of your

Taxpayers

departure, you have a closer

1. Tax withheld from wages earned in

Standard deduction. You cannot take

connection to a foreign country than to

the United States and taxes withheld

the standard deduction.

the United States, and, during the next

at the source from scholarship

calendar year, you are not a U.S.

income from U.S. sources.

Head of household. You cannot use

resident under either the green card

the Head of Household Tax Table

test or the substantial presence test.

When filing Form 1040, show the

column or Tax Computation Worksheet.

See Pub. 519.

total tax withheld on line 63. Enter

amounts from the attached statement

Joint return. You cannot file a joint

What and Where To File for a

(Form 1040NR-EZ, line 18) to the

return unless you elect to be taxed as a

Dual-Status Year

right of line 63 and identify and

resident alien (see page 2) in lieu of

include in the amount on line 63.

If you were a U.S. resident on the last

these dual-status taxpayer rules.

day of the tax year, file Form 1040.

When filing Form 1040NR-EZ, show

Tax rates. If you were married and a

Enter “Dual-Status Return” across the

the total tax withheld on line 18.

nonresident of the United States for all

top and attach a statement showing

Enter the amount from the attached

or part of the tax year and you do not

your income for the part of the year you

statement (Form 1040, line 63) to the

make the election to be taxed as a

were a nonresident. You may use

resident alien as discussed on page 2,

right of line 18 and identify and

Form 1040NR-EZ as the statement;

you must use the Tax Table column for

include in the amount on line 18.

enter “Dual-Status Statement” across

Married Filing Separately to figure your

the top. File your return and statement

2. Estimated tax paid with

tax on income that is considered to be

with the Internal Revenue Service

Form 1040-ES or Form 1040-ES

effectively connected with a U.S. trade

Center, Philadelphia, PA 19255, U.S.A.

(NR).

or business. If married, you cannot use

If you were a nonresident on the last

the Single Tax Table column.

3. Tax paid with Form 1040-C at the

day of the tax year, file

time of departure from the United

Form 1040NR-EZ. Enter “Dual-Status

Deduction for exemptions. As a

States. When filing Form 1040,

Return” across the top and attach a

dual-status taxpayer, you usually will be

include the tax paid with

statement showing your income for the

entitled to your own personal

Form 1040-C with the total payments

part of the year you were a U.S.

exemption. Subject to the general rules

on line 70. Identify the payment in the

resident. You may use Form 1040 as

for qualification, you are allowed

area to the left of the entry.

the statement; enter “Dual-Status

exemptions for your spouse in figuring

Statement” across the top. File your

taxable income for the part of the year

return and statement with the Internal

you were a resident alien. The amount

Revenue Service Center, Philadelphia,

you may claim for these exemptions is

Line Instructions for

PA 19255, U.S.A.

limited to your taxable income

(determined without regard to

Statements. Any statement you file

Form 1040NR-EZ

exemptions) for the part of the year you

with your return must show your name,

were a resident alien. You cannot use

address, and identifying number

exemptions (other than your own) to

(defined below).

reduce taxable income to below zero

Identifying Number and

Income Subject to Tax for

for that period.

Address

Dual-Status Year

Tax credits. You cannot take the

As a dual-status taxpayer not filing a

earned income credit, the credit for the

Identifying number. You are generally

joint return, you are taxed on income

elderly or disabled, or an education

required to enter your social security

from all sources for the part of the year

credit unless you elect to be taxed as a

number (SSN). To apply for an SSN, fill

you were a resident alien. Generally,

resident alien (see page 2) in lieu of

in Form SS-5 and return it to the Social

you are taxed on income only from U.S.

these dual-status taxpayer rules. For

Security Administration (SSA). You can

sources for the part of the year you

information on other credits, see

get Form SS-5 online at

were a nonresident alien. However, all

chapter 6 of Pub. 519.

, from your local

-3-

Instructions for Form 1040NR-EZ

Instructions For Form 1040nr-Ez 2004 Page 4

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