Form 1040-NR for Nonresident Aliens from India

Form 1040-NR is the U.S. income tax return for nonresident aliens, meaning people who are not U.S. citizens and who pass neither the green card test nor the substantial presence test for the year. Among Indian readers, that often means F-1 students in their first five calendar years, J-1 scholars, H-1B workers in a short first year, visiting parents with U.S. income, and NRIs who earn U.S. rent or dividends. The rules differ from Form 1040: income is divided into two types, the standard deduction is mostly unavailable and filing status choices are narrow. First check your status with the residency rules.

Who must file

You file Form 1040-NR if you were a nonresident alien who:

• was engaged in a U.S. trade or business during the year, even if the income was not from that business, you had no U.S. income, or your income was exempt, or
• had U.S. income whose tax was not fully paid by withholding at the source, or
• wants a refund of withheld tax or wants to claim deductions or credits.

You are not required to file in a few cases. One is an F, J, M or Q student, teacher or trainee with no taxable income. Another is an Indian student or apprentice eligible under Article 21(2) who is single (or a qualifying surviving spouse) and whose gross income is at or below the limit in the form instructions. A narrow rule for partners in U.S. partnerships also exists. The old rule excusing small wage earners from filing is no longer available, so a nonresident with a few thousand dollars of wages must still check. Even when no return is required, file if you can get money back.

Deadlines for tax years 2025 and 2026

An extension to file does not extend the time to pay. To claim deductions and credits you must file on time, which the IRS defines as within 16 months of the due date. If you are unsure whether you had U.S. business income, a protective return preserves your right to deductions. Form 1040-NR can be e-filed, and paid preparers generally must e-file it, except for certain cases such as dual-status returns.

How income is taxed

U.S.-source capital gains that are not connected with a U.S. business are exempt if you were in the U.S. fewer than 183 days, and taxed at 30% (or a lower treaty rate) on net gain if you were there 183 days or more. Income from outside the U.S., such as Indian salary or interest earned while you were a nonresident, is generally not taxed unless it is connected with a U.S. business. That changes once you become a resident, when worldwide income applies. Once you are a resident, see foreign tax credit on India income.

Deductions, credits and filing status

• Standard deduction. Nonresident aliens cannot claim it, with one exception: Indian students and business apprentices eligible for Article 21(2).
• Itemized deductions. Allowed mainly against effectively connected income, with limited exceptions for certain charitable gifts and casualty losses.
• Filing status. Married nonresidents generally use married filing separately rates, unless the election to treat a nonresident spouse as a resident applies.
• Credits and dependents. Education credits are generally unavailable. The child tax credit, credit for other dependents and dependents are limited to U.S. nationals, residents of Canada, Mexico and South Korea, and eligible Indian students and apprentices.

Claiming the India treaty

Schedule OI asks you to identify the treaty country, the article, the months of prior claims and the exempt income. Form 8833 is generally not needed for student income. For other treaty positions, see the treaty guide. If you cannot get a Social Security number, you apply for an ITIN with Form W-7 attached to your return. See ITIN for spouses and dependents.

Common mistakes

• Filing Form 1040 with resident software when you are a nonresident.
• Skipping the return because wages seem small.
• Forgetting Form 8843, or sending it late.
• Missing the Article 21(2) benefits for Indian students.
• Treating a short first-year H-1B stay as a full resident year without checking the tests.

How we can help

We determine your status, prepare Form 1040-NR or Form 1040, claim the India treaty benefits you qualify for and file the ITIN application when needed. See international students and OPT.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.