Instructions For Form 1040nr-Ez - U.s. Income Tax Return For Certain Nonresident Aliens With No Dependents - 2017 Page 9

$156,900 if you checked filing status

not report the full amount to your

Note. Residents of India who were

box 2.

employer, you must pay the social

students or business apprentices may

security and Medicare or railroad

be able to take the standard deduction

Note. Residents of Canada, Mexico, or

retirement (RRTA) tax on the

instead of their itemized deductions. A

South Korea, and U.S. nationals, may

unreported tips.

special rule applies to students and

be able to claim exemptions for their

business apprentices who are eligible

Do not include the value of any

dependents and, if married, their

for the benefits of Article 21(2) of the

noncash tips, such as tickets or passes.

spouse. Residents of India who were

United States-India Income Tax Treaty.

You do not pay social security and

students or business apprentices also

You may be able to take the standard

Medicare taxes or RRTA tax on these

may be able to take exemptions for their

deduction along with a net disaster loss.

noncash tips.

spouse and dependents. However, you

See chapter 5 of Pub. 519 for details.

To figure the social security and

must use Form 1040NR if you want to

Medicare tax, use Form 4137. If you

Line 13—Exemption deduction. You

claim the additional exemptions.

owe RRTA tax, contact your employer.

can claim exemptions only to the extent

Line 15—Tax. Use the Tax Table, later

Your employer will figure and collect the

of your income that is effectively

in these instructions, to figure your tax.

RRTA tax.

connected with a U.S. trade or

Be sure you use the correct column.

business. Generally, you can take an

You may be charged a penalty

exemption of $4,050 for yourself. Use

Line 16—Unreported social security

equal to 50% of the social

the

Exemption Deduction

Worksheet,

and Medicare tax from Forms 4137

security and Medicare or RRTA

CAUTION

later, to figure the amount, if any, to

and 8919. Enter the total of any taxes

tax due on tips you received but did not

enter on line 13 if your adjusted gross

from Form 4137 and Form 8919. Check

report to your employer.

income from line 10 is more than:

the appropriate box(es).

$261,500 if you checked filing status

Form 8919. If you are an employee

Form 4137. If you received tips of

box 1, or

who received wages from an employer

$20 or more in any month and you did

Keep for Your Records

Itemized Deductions Worksheet—Line 11

1. Enter the amount of state and local income taxes you paid or that were withheld from your salary in 2017 . . . . . . . . . . . . . .

2. Multiply line 1 by 80% (0.80) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter the amount from Form 1040NR-EZ, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Enter $261,500 ($156,900 if you checked filing status box 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Is the amount on line 4 less than the amount on line 3? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

STOP. Your deduction is not limited. Enter the amount from line 1 above on Form

No.

1040NR-EZ, line 11.

Yes.

Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Multiply line 5 by 3% (0.03) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Enter the smaller of line 2 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. Total itemized deductions. Subtract line 7 from line 1. Enter the result here and on Form 1040NR-EZ, line 11.

Then, on the dotted line to the left of the line 12 entry space, enter “IDW” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exemption Deduction Worksheet—Line 13

Keep for Your Records

1. Is the amount on Form 1040NR-EZ, line 10, more than the amount shown on line 4 below for your filing status?

No.

Enter $4,050 on Form 1040NR-EZ, line 13.

STOP

Yes.

Go to line 3.

$4,050

2. Exemption amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter the amount from Form 1040NR-EZ, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Enter the amount shown below for the filing status box you checked on page 1 of Form 1040NR-EZ.

Box 1—$261,500

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Box 2—$156,900

5. Subtract line 4 from line 3. If the result is more than $122,500 ($61,250 if you checked filing status

box 2), STOP. You cannot take a deduction for your exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Divide line 5 by $2,500 ($1,250 if you checked filing status box 2). If the result is not a whole number,

increase it to the next higher whole number (for example, increase 0.0004 to 1) . . . . . . . . . . . . . . . . 6.

7. Multiply line 6 by 2% (0.02) and enter the result as a decimal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Multiply line 2 by the decimal on line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. Exemption deduction. Subtract line 8 from line 2. Enter the result here and on Form 1040NR-EZ, line 13 . . . . . . . . . . . . . . 9.

Instructions for Form 1040NR-EZ (2017)

-9-