Form 1040-NR: Non-Resident Income Tax Return, Treaty Claims, and Filing Deadlines

Who Files 1040-NR

Form 1040-NR is the federal income-tax return for non-resident aliens with US-source income. Required for: NRAs with effectively-connected US-source income (most W-2 wages), NRAs with US-source FDAP income that wasn't fully withheld at the 30% rate, and certain trust / estate / partnership filings.

F-1 / J-1 students often file 1040-NR even with low income because of treaty claims or Form 8843 obligations. See IRS Form 1040-NR overview.

Restricted Deductions

NRAs filing 1040-NR cannot take the standard deduction (except India treaty students under Article 21(2)) and cannot file head of household. Itemized deductions on Schedule A are limited to certain categories: state/local taxes, charitable contributions to US charities, casualty losses (limited).

The standard deduction prohibition makes treaty claims especially valuable for India / China students and short-term assignees who can use treaty provisions.

India Treaty Article 21(2)

The US-India income tax treaty Article 21(2) is the most-used provision for non-resident filers. It allows Indian students and business apprentices in the US to claim the standard deduction on Form 1040-NR — for tax year 2025 (filed 2026), the single-filer standard deduction is $15,750.

The election is made via Schedule A of 1040-NR with proper treaty disclosure. Other treaty exceptions exist (China Article 19, Korea Article 21) but India 21(2) is the most common.

Schedule NEC — FDAP Income

Schedule NEC (Not Effectively Connected) handles US-source FDAP (Fixed, Determinable, Annual, Periodical) income — interest, dividends, capital gains, royalties — that wasn't fully withheld at the source. The 30% statutory rate applies, but tax treaties commonly reduce it (often to 15% or 0%).

Schedule NEC is separate from the regular tax computation. Many F-1 / J-1 filers don't have FDAP income; their entire return is on the regular schedule.

Filing Deadlines

NRA filing deadlines split based on income type:

• April 15 — for filers with W-2 wages subject to US withholding
• June 15 — for filers without W-2 wages (typical for self-employed NRAs)
• October 15 — automatic extension via Form 4868 (must file by April 15 / June 15 to claim)

Form 8843 (exempt-individual statement) follows the same deadline as 1040-NR, or April 15 / June 15 for 8843-only filers.

Form 8833 Treaty Disclosure

Some treaty claims require Form 8833 (Treaty-Based Return Position Disclosure). Required when treaty position would change tax by more than $10,000 or when explicitly required by the treaty article. Most India 21(2) student claims don't trigger 8833 because the deduction amount is below the threshold.

Penalty for non-disclosure when 8833 is required: $1,000 per failure (or $10,000 for corporations). Filers using software like Sprintax or GLACIER usually have 8833 generated automatically when required.

Cross-Pillar Reading

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