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Residency, citizenship, ITIN and Form 1040-NR

SEE 1 Chapter 2 · IRS outline 1A3, 3A7

Before you can tax someone you must know what kind of taxpayer they are. A citizen or resident is taxed on income from anywhere in the world; a nonresident only on US income. Nadia's clients this season include Arjun, an engineer on an H-1B visa, Sofia, an F-1 student, and Lars, a Swedish consultant who keeps flying in and out. Each one lands in a different box, and the box decides the form, the deductions and the rate.

In this chapter

1. Citizen, resident or nonresident: the two tests
2. Dual-status years and the elections that fix them
3. How nonresidents are taxed
4. Form 1040-NR: filing status and itemized deductions
5. ITINs, visas and what an ITIN does not do

This chapter has 5 lessons and 60 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• Green card and substantial presence tests
• resident, nonresident and dual-status aliens
• ITIN and Form W-7
• deductions on Form 1040-NR

Chapter 1: Getting started: prior returns, taxpayer data and IRS letters · Chapter 3: Filing requirements, due dates and filing status