Nonresident Alien Tax (Form 1040-NR) & ITIN
US income but no US residency? We prepare your Form 1040-NR, obtain your ITIN without mailing your passport, and handle FIRPTA, rentals, and treaty refunds — all from IRS Enrolled Agents.
Nonresidents with US Income We Serve
Whether you own a US rental from abroad, are selling US property under FIRPTA, study on an F-1 visa, or need to recover tax withheld on US investments or gambling winnings — we have filed your exact situation before.
Foreign Owners of US Rental Property
If you live abroad and own a US rental — a Florida condo, a Manhattan apartment, or a vacation home you rent out — you must file Form 1040-NR to report the income. By default, the IRS taxes your gross rents at a flat 30% with no deductions. Most owners are far better off making the IRC §871(d) election to treat the rental as income effectively connected to a US trade or business, which lets you deduct mortgage interest, property tax, depreciation, insurance, and management fees and pay tax only on net profit. We make the election, prepare the return, and file the required Schedule E.
Foreign Sellers of US Real Estate (FIRPTA)
When a foreign person sells US real property, FIRPTA requires the buyer to withhold 15% of the gross sale price — not the gain — and remit it to the IRS. On a $600,000 sale that is $90,000 held back, often far more than the actual tax owed. We help you apply for a withholding certificate on Form 8288-B to reduce or eliminate the withholding before closing, and we file your 1040-NR after the sale to report the real gain and claim a refund of the excess withheld.
F-1 / J-1 Students & Scholars
International students and scholars on F, J, M, or Q visas are generally nonresident aliens for their first years in the US and are exempt from the Substantial Presence Test day-count. You must file Form 1040-NR if you have US income and Form 8843 even if you have none. Many students also qualify for tax-treaty exemptions on scholarships, fellowships, or wages under their home country's treaty with the US. We file the correct forms, claim treaty benefits, and keep you compliant with your visa terms.
Foreign Investors with US-Source Income
Dividends, interest, and other fixed or determinable income from US sources paid to nonresidents are subject to 30% withholding — reported to you on Form 1042-S — unless a treaty reduces the rate. If too much was withheld, or if you had effectively connected income or capital gains that require reconciliation, a 1040-NR lets you claim the treaty rate and recover the difference. We read your 1042-S forms, apply the correct treaty article, and file to recover over-withheld tax.
Canadians with US Gambling Winnings
US casinos withhold 30% on jackpot and tournament winnings paid to nonresidents, issued on Form 1042-S. Canada holds a unique position: under Article XXII of the US-Canada tax treaty, Canadian residents can net their gambling losses against winnings and recover the withholding by filing Form 1040-NR with an ITIN — an option not available to residents of most other countries. This ties directly into our US-Canada practice, and we handle the ITIN application and refund claim together as one engagement.
Need only an ITIN? See our dedicated ITIN application service. Canadian with US ties? Our US-Canada cross-border practice handles both sides of the border together.
US Tax for Nonresidents, Explained
Nonresident taxation runs on its own rulebook — a different form, a different income scope, and two separate tax regimes that determine whether you pay a flat 30% or graduated rates on a net basis.
Who Is a Nonresident Alien
You are a nonresident alien if you are not a US citizen and do not meet either the Green Card Test or the Substantial Presence Test for the year. The Substantial Presence Test counts your days in the US over a three-year weighted window: all days this year, one-third of last year's days, and one-sixth of the year before. F, J, M, and Q visa holders get to exclude their days for a set number of years, which keeps them nonresident even during long stays. Getting this classification right is the first fork in the road — it determines whether you file Form 1040 or Form 1040-NR, and whether the US taxes your worldwide income or only your US-source income.
US-Source Income Is All That Is Taxed
Unlike US citizens and residents, who are taxed on worldwide income, nonresident aliens are only taxed by the US on income that is US-source or effectively connected with a US trade or business. Rents from US property, wages for work performed in the US, dividends from US corporations, and gains on US real estate are all in scope. Your foreign salary, foreign bank interest, and foreign investments are generally outside the US net. The challenge is correctly sourcing each item of income and separating income that is effectively connected (taxed at graduated rates on a net basis) from FDAP income (taxed at a flat 30% or treaty rate on a gross basis).
Two Tax Buckets: ECI vs. FDAP
Form 1040-NR splits your income into two buckets with two completely different tax regimes. Effectively Connected Income (ECI) — such as wages, business profits, and net rental income under a §871(d) election — is taxed at the same graduated rates that apply to US residents, after deductions. Fixed, Determinable, Annual, or Periodical income (FDAP) — such as dividends, interest, royalties, and gambling winnings — is taxed at a flat 30% on the gross amount, reduced only if a treaty applies. Placing income in the wrong bucket either overpays tax or invites an IRS adjustment.
FIRPTA Withholding on Property Sales
The Foreign Investment in Real Property Tax Act requires the buyer of US real estate from a foreign seller to withhold 15% of the gross sales price and send it to the IRS within 20 days of closing. Because the withholding is on the full price rather than the profit, it frequently exceeds the real tax on the gain — sometimes by tens of thousands of dollars. The remedy is a withholding certificate (Form 8288-B) filed before or at closing, which lets the IRS approve a reduced amount based on the actual expected gain. If the sale has already closed, you recover the excess by filing Form 1040-NR for the year of sale.
The ITIN Requirement (Form W-7)
You cannot file a 1040-NR, claim a treaty benefit, or receive a refund without a US taxpayer identification number. If you are not eligible for a Social Security Number, you need an Individual Taxpayer Identification Number (ITIN), applied for on Form W-7. The normal process requires mailing your original passport or certified copies to the IRS and waiting 7 to 11 weeks. As a Certifying Acceptance Agent workflow, Zenith can verify your identity documents directly so you never mail your original passport to the IRS — a major advantage for foreign clients who cannot risk losing their travel documents.
Tax Treaties Change the Numbers
The US has income tax treaties with roughly 65 countries, and each one can reduce or eliminate US tax on specific income types. Treaties commonly cut the 30% withholding on dividends to 15%, reduce or zero out tax on interest and royalties, exempt certain student and teacher income, and — in Canada's case — allow gambling losses to offset winnings. Claiming a treaty position usually requires attaching Form 8833 and citing the specific article. Applying the wrong article, or failing to disclose the position, is a common and costly error on self-prepared nonresident returns.
Filing Deadlines and Refund Windows
A nonresident who received wages subject to US withholding files by April 15; a nonresident with no wage withholding has until June 15. If you are only reclaiming over-withheld tax, you generally have up to three years from the original due date to file and still collect your refund — which is how many gambling-winnings and 1042-S refunds are recovered years later. Missing the three-year window means the IRS keeps the money permanently, so it pays to file promptly.
How We Help Nonresidents File
Every service is built for the specific mechanics of nonresident taxation — the elections, certificates, and treaty positions that determine what you actually owe.
Form 1040-NR Preparation
We prepare your nonresident return end to end — correctly sourcing each item of income, separating effectively connected income from FDAP income, applying the right treaty article, and claiming every deduction and credit you are entitled to. Whether your US income is a single rental, a batch of 1042-S forms, or a property sale, we file it accurately and defend the positions we take.
IRC §871(d) Net Rental Election
For foreign owners of US rental property, we make the §871(d) election so your rental is taxed on a net basis at graduated rates instead of 30% of gross rents. This lets you deduct mortgage interest, property taxes, depreciation, insurance, repairs, and management fees — often reducing your US tax to little or nothing while keeping you fully compliant. We file the election and the required Schedule E each year.
FIRPTA Withholding Certificates (Form 8288-B)
Before your US property closes, we file Form 8288-B to ask the IRS to approve a reduced FIRPTA withholding based on your actual expected gain rather than 15% of the full sale price. This keeps your cash at closing instead of tied up with the IRS for a year. When a sale has already closed with full withholding, we file your 1040-NR to reconcile the real gain and recover the excess.
ITIN Applications via Acceptance Agent Workflow
We prepare your Form W-7 and, through our Certifying Acceptance Agent workflow, verify your passport and identity documents directly so you never mail your original passport to the IRS. We bundle the W-7 with your tax return so the ITIN and the filing move through the IRS together. For clients whose only need is the ITIN itself, see our dedicated ITIN service.
F-1 / J-1 Student & Scholar Returns
We file Form 1040-NR and Form 8843 for international students and scholars, apply your home country's treaty exemptions to scholarships and wages, and keep your filing consistent with the exempt-individual rules that preserve your nonresident status. We also advise on the year you transition to resident status so the switch to Form 1040 is handled cleanly.
1042-S Withholding Recovery
If a US payer withheld 30% on your dividends, interest, royalties, or gambling winnings, we read your 1042-S forms, apply the correct treaty rate, and file Form 1040-NR to recover the over-withheld amount. For Canadian gamblers, we net your documented losses against winnings under the treaty to maximize the refund.
Tax Treaty Analysis (Form 8833)
We identify which of the roughly 65 US income tax treaties applies to you, determine the exact article and rate that governs each item of your income, and attach Form 8833 to disclose the position where required. Correct treaty application is frequently the difference between a 30% flat tax and a substantially lower — or zero — rate.
Effectively Connected Income & Business Filings
If you run a US trade or business, provide services in the US, or earn partnership income effectively connected to the US, we determine what is taxable on a net basis, prepare the supporting schedules, and coordinate any related withholding so your 1040-NR reflects the correct effectively connected income.
Prior-Year Refunds & Late Filings
Many nonresidents leave money with the IRS simply because they never filed. We prepare back-year 1040-NR returns within the three-year refund window to recover over-withheld tax on rentals, investments, and gambling winnings, and bring late filers into compliance before the window closes.
Nonresident Tax & ITIN Packages
Flat-fee pricing with no surprises. Every engagement includes direct communication with the IRS Enrolled Agent handling your case.
Form 1040-NR
Single US-income source + treaty position
- Form 1040-NR with required schedules
- US-source income sourcing (ECI vs. FDAP)
- One treaty position (Form 8833 if needed)
- 1042-S withholding recovery
- Form 8843 for students/scholars
- Refund claim for over-withheld tax
- E-file or paper file to the IRS
ITIN Application
Form W-7 via Certifying Acceptance Agent workflow
- Form W-7 preparation and review
- Identity verification — no mailing your passport
- Bundled with your 1040-NR filing
- Supporting documentation package
- Treaty-benefit or refund basis established
- IRS correspondence handling
- 7-11 week processing guidance
FIRPTA Certificate / Refund
Form 8288-B + property-sale 1040-NR (or Custom)
- Form 8288-B withholding certificate
- Reduced withholding based on actual gain
- Coordination with closing / title agent
- 1040-NR reporting the real gain
- Refund of excess FIRPTA withholding
- Multi-owner and multi-property quotes
- Custom pricing for complex sales
Elections, Certificates & Treaty Positions
Nonresident tax is won or lost on a handful of specific provisions. We apply each one to move your income into the lowest lawful tax regime.
Net Rental Election
By default, a nonresident's US rental income is taxed at a flat 30% of gross rents with no deductions allowed. The §871(d) election treats the rental activity as income effectively connected with a US trade or business, which unlocks graduated tax rates and the full range of deductions — mortgage interest, depreciation, property tax, insurance, repairs, and management fees. For most foreign landlords this election reduces US tax dramatically, often to zero in the early years when depreciation and interest are highest. We make and document the election as a standard part of every foreign-rental return.
Withholding Certificate Relief
FIRPTA's 15% withholding is calculated on the gross sale price of US real estate, not the gain, so it routinely exceeds the actual tax owed. Filing Form 8288-B before closing asks the IRS to approve a reduced withholding based on the seller's real expected gain, keeping your money out of IRS limbo. When a sale has already closed at full withholding, the excess is recovered by filing Form 1040-NR for the year of sale. Either path requires an ITIN, which we obtain as part of the engagement.
Canada Gambling-Loss Netting
US casinos withhold 30% on nonresident gambling winnings. Under Article XXII of the US-Canada tax treaty, Canadian residents are uniquely permitted to deduct their gambling losses against their winnings — a benefit residents of most treaty countries do not receive. By filing Form 1040-NR with an ITIN and documenting losses, Canadians can recover much or all of the withheld tax. This connects directly to our US-Canada cross-border practice, and we handle the ITIN and refund as one filing.
Treaty-Based Return Positions
The US maintains income tax treaties with roughly 65 countries, each of which can reduce the standard 30% withholding on dividends, interest, royalties, and other FDAP income, or exempt specific student, teacher, and pension income. Claiming a reduced rate generally requires attaching Form 8833 to disclose the treaty article being relied upon. We identify the governing article for each income item, apply the correct rate, and file the disclosure so the position holds up under IRS review.
Exempt-Individual Status for Students
F, J, M, and Q visa holders are treated as exempt individuals whose US days do not count toward the Substantial Presence Test for a set number of years — which is what keeps students and scholars classified as nonresident aliens. Preserving that status requires filing Form 8843 every year, even in years with no US income at all. We file Form 8843 alongside any required 1040-NR so your nonresident status and visa compliance stay intact through your studies.
How Our Nonresident Filing Process Works
From your first consultation to your refund or filed return — we handle the ITIN, the forms, and the IRS correspondence for you.
Free Consultation
We confirm your nonresident status, identify your US-source income, and map out which forms, elections, and treaty positions apply to your situation.
ITIN & Documents
If you need an ITIN, we verify your passport directly — no mailing originals — and prepare Form W-7. We provide a checklist for your 1042-S, closing statements, or rental records.
Preparation
We prepare your 1040-NR, make the §871(d) or treaty elections, file any FIRPTA Form 8288-B, and calculate your refund or balance due with the correct ECI/FDAP treatment.
Review and File
You review the return with your Enrolled Agent. Once approved, we file to the IRS, submit the ITIN application together, and track your refund through to payment.
Related Services
Nonresident filings often connect to a broader set of international tax needs. Explore the specialties that pair with your 1040-NR.
ITIN Applications
Standalone Form W-7 ITIN help through our Certifying Acceptance Agent workflow — no mailing your passport.
US-Canada Cross-Border
Both 1040 and T1 filed together, with treaty optimization for dual citizens, snowbirds, and Canadians with US income.
FBAR Filing
FinCEN Form 114 reporting for foreign financial accounts, coordinated with your US return.
Expat Taxes
US citizens and Green Card holders living abroad — foreign earned income exclusion, foreign tax credits, and streamlined filing.
Individual Tax
Standard Form 1040 preparation for US residents and citizens once you transition from nonresident status.
Nonresident Alien Tax & ITIN FAQs
Answers to the most common questions from foreign property owners, FIRPTA sellers, international students, and investors filing US returns.
Harsh Agarwal, EA · IRS Enrolled Agent
Reviewed for accuracy by Zenith Financial Advisors
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