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US Internal Revenue Service: i1040nre--1995

US Internal Revenue Service: i1040nre--1995

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Cat. No. 21718P
Paperwork Reduction Act Notice.—
Weask for the information on this form tocarry out the Internal Revenue laws of theUnited States. You are required to give usthe information. We need it to ensure thatyou are complying with these laws and toallow us to figure and collect the rightamount of tax.The time needed to complete and filethis form will vary depending on individualcircumstances. The estimated average timeis:
1 hr., 19 min.;
Learning about the law or the form,
Preparing the form,
1 hr., 30 min.;and
Copying, assembling, and sendingthe form to the IRS,
35 min.If you have comments concerning theaccuracy of these time estimates orsuggestions for making this form simpler,we would be happy to hear from you. Youcan write to the Tax Forms Committee,Western Area Distribution Center, RanchoCordova, CA 95743-0001.
you can callthe IRS with your suggestions at1-800-829-9043 and leave a recordedmessage 24 hours a day, 7 days a week.
send your return to this address.Instead, see
Where To File
on page 2.
May I Use Form 1040NR-EZ?
You can use Form 1040NR-EZ if
all ten
ofthe following apply.
You do not claim any dependents.
You cannot be claimed as adependent on another person’s U.S. taxreturn (such as your parent’s return).
You were under age 65 on January 1,1996, and not blind at the end of 1995.
You had
wages, salaries, tips,taxable refunds of state and local incometaxes, and scholarship or fellowship grants.
If you had taxable interest or dividend income, you 
use this form.
Your taxable income (line 13 of Form1040NR-EZ) is less than $50,000.
You cannot claim any adjustments toincome
scholarship and fellowshipgrants excluded.
You cannot claim any tax credits.
If you were married, you cannot claiman exemption for your spouse.
If you itemize, the only deduction youcan claim is for state and local incometaxes.
The only other taxes you owe aresocial security and Medicare tax on tipincome not reported to your employer orhousehold employment taxes.If you cannot use Form 1040NR-EZ, youmust use Form 1040NR.
General Instructions
Items To Note
Earned Income Credit.—
If you were anonresident alien for any part of 1995, you
claim this credit unless you aremarried to a U.S. citizen or resident alienand elect to be taxed as a resident alienfor all of 1995. For details on the election,see page 2.
Direct Deposit of Refund.
If you have arefund on line 23 of your 1995 Form1040NR-EZ, you may be able to have itdirectly deposited into your bank accountinstead of receiving a check. Use new
Form 8888,
Direct Deposit of Refund, todo so. See the instructions for line 23 onpage 5 for details.
Household Employment Taxes.—
Employment taxes on wages paid tohousehold employees are reported onForm 1040NR-EZ, line 16, using new
Schedule H (Form 1040).
If you paidsomeone to work in or around your home,you may owe employment taxes. See theinstructions for line 16 on page 4.If you paid these taxes in 1994, youshould receive a separate package inJanuary containing Schedule H, Form W-2,and other items.
Tax Law Changes.—
For more details, get
Pub. 553,
Highlights of 1995 Tax Changes.
Other Reporting Requirements.—
If youmeet the closer connection to a foreigncountry exception to the substantialpresence test or exclude days of presencein the United States for purposes of thattest, you must file a statement containingcertain information. This rule does notapply to foreign government-relatedindividuals who exclude days of presencein the United States. For details, get
Closer Connection ExceptionStatement for Aliens, or
Form 8843,
Statement for Exempt Individuals andIndividuals With a Medical Condition.Certain dual resident taxpayers who claimtax treaty benefits must file
Form 8833,
Treaty-Based Return Position DisclosureUnder Section 6114 or 7701(b), or a similarstatement. A dual resident taxpayer is onewho is a resident of both the United Statesand another country under each country’stax laws.
United States–India Income TaxTreaty.—
Residents of India who werestudents or business apprentices presentin the United States for educational ortraining purposes may be able to takeexemptions for their spouse anddependents under this treaty. But theymust use Form 1040NR to do so. Fordetails, get
Pub. 519,
U.S. Tax Guide forAliens.
Additional Information
If you need more information, our freepublications may help you. Pub. 519 willbe the most important, but the followingpublications may also help.
Pub. 552,
Recordkeeping for Individuals
Pub. 597,
Information on the UnitedStates–CanadaIncome Tax Treaty
Pub. 901,
U.S. Tax Treaties
Pub. 910,
Guide to Free Tax Services(includes a list of all publications)These free publications and the formsand schedules you will need are availableon request from the Internal RevenueService. If you have a foreign address,send your order to either: Eastern AreaDistribution Center, P.O. Box 25866,Richmond, VA 23286-8107, U.S.A.; orWestern Area Distribution Center, RanchoCordova, CA 95743-0001, U.S.A.,whichever is closer.
Resident Alien orNonresident Alien
If you are not a citizen of the UnitedStates, specific rules apply to determine ifyou are a resident alien or a nonresidentalien. Generally, you are considered aresident alien if you meet either the
greencard test
or the
substantial presence test
for 1995. If you do not meet either of thesetests for 1995 but you meet the substantialpresence test for 1996, you may be able tochoose to be treated as a resident alien forpart of 1995. But you must have beenphysically present in the United States forat least 31 days in a row during 1995 to doso. This choice does not apply if you meteither the green card test or the substantialpresence test for 1994. For more details,see Pub. 519.You are considered a nonresident alienfor the year if you are not a U.S. residentunder either of these tests. You are alsoconsidered a nonresident alien if youotherwise meet the substantial presencetest but you come under any of the threeexceptions described on page 2.For more details on resident andnonresident status, the tests for residenceand the exceptions to them, see Pub. 519.
Green Card Test.—
You are a resident fortax purposes if you were a lawfulpermanent resident (immigrant) of theUnited States at any time during 1995.
Substantial Presence Test.—
You areconsidered a U.S. resident if you meet thesubstantial presence test for 1995. You
Instructions for Form 1040NR-EZ
U.S. Income Tax Return for Certain Nonresident AliensWith No Dependents
Section references are to the Internal Revenue Code unless otherwise noted.
Department of the Treasury
Internal Revenue Service
Page 2
Instructions for Form 1040NR-EZ
meet this test if you were physicallypresent in the United States for at least:
31 days during 1995, and
183 days during the period 1995,1994, and 1993, counting all the days ofphysical presence in 1995 but only
thenumber of days of presence in 1994 andonly
the number of days in 1993.Generally, you are treated as present inthe United States on any day that you arephysically present in the country at anytime during the day.
The following are exceptionsto the substantial presence test.
1. Exempt individual.
You do not countdays for which you are an exemptindividual. In general, an exempt individualis an individual who is a:
foreign government-related individual,
teacher or trainee,
student, or
professional athlete who is temporarilyin the United States to compete in acharitable sports event.
Alien individuals with“Q”visasartreated as either students or teachers and trainees and, as such, are exempt individuals for purposes of the substantial presence test if they otherwise qualify.However, “Q”visaholders may only exclude days of presence after September 30, 1994.“Q”visasare issued to alienparticipating in certain international cultural exchange programs.
2. Medical condition.
You do not countany day that you intended to leave theUnited States but were unable to leavebecause of a medical condition or medicalproblem that arose while you were presentin the United States.
This exception does not apply to pre-existing medical conditions or problems. For more details, see Pub. 519.
3. Closer connection to foreigncountry.
Even though you would otherwisemeet the substantial presence test, you arenot treated as having met that test for1995 if you:
were present in the United States forfewer than 183 days during 1995,
establish that during 1995 you had atax home in a foreign country, and
establish that during 1995 you had acloser connection to one foreign country inwhich you had a tax home than to theUnited States unless you had a closerconnection to two foreign countries.
Who Must File
File Form 1040NR-EZ (or Form 1040NR) ifyou were a nonresident alien engaged in,or considered to be engaged in, a trade orbusiness in the United States during 1995.You must file even if—
none of your income came from a tradeor business conducted in the UnitedStates,
you have no income from U.S. sources,or
your income is exempt from U.S. tax.
If you were a nonresident alien student or trainee who was temporarily present in the United States under an“F,” “J,“M,”or“Q”visa,you are considered to be engaged in a trade or business in the United States and must file Form 1040NR-EZ (or Form 1040NR).
When To File
If you were an employee and receivedwages subject to U.S. income taxwithholding, file Form 1040NR-EZ by April15, 1996.If you did not receive wages as anemployee subject to U.S. income taxwithholding, file Form 1040NR-EZ by June17, 1996.
Extension of Time To File.—
If you cannotfile your return by the due date, you shouldfile
Form 4868,
Application for AutomaticExtension of Time To File U.S. IndividualIncome Tax Return. You must file Form4868 by the regular due date of the return.
Form 4868 does not extend the time to pay your income tax. The tax is due by the regular due date of the return.
Where To File
File Form 1040NR-EZ with the InternalRevenue Service Center, Philadelphia, PA19255, U.S.A.
Election To Be Taxed as aResident Alien
You can elect to be taxed as a U.S.resident for the whole year if either of thefollowing applies to you:
You were a nonresident alien on the lastday of the tax year, and your spouse wasa U.S. citizen or resident alien on the lastday of the tax year.
You were a nonresident alien at thebeginning of the tax year, but you were aresident alien on the last day of the taxyear and your spouse was a U.S. citizen orresident alien on the last day of the taxyear. This also applies if both you and yourspouse were nonresident aliens at thebeginning of the tax year and both wereresident aliens at the end of the tax year.If you elect in 1995 to be taxed as aU.S. resident, you and your spouse mustfile a joint return for 1995 using Form 1040,1040A, or 1040EZ. To make this election,you must attach the statement describedin Pub. 519 to your return. Do not useForm 1040NR-EZ.Your worldwide income for the wholeyear must be included and will be taxedunder U.S. tax laws. You must agree tokeep the records, books, and otherinformation needed to figure the tax. If youmade the election in an earlier year, youmay file a joint return or separate return for1995. If you file a separate return, useForm 1040 or Form 1040A. Your worldwideincome for the whole year must beincluded whether you file a joint orseparate return.
Nonresident aliens who make this election may forfeit the right to claim benefits otherwise available under a U.S.tax treaty. For more details, get 
Pub. 901,
U.S. Tax Treaties, or refer to the specific treaty.
Dual-Status Taxpayers
If you elect to be taxed as a resident alien (discussed earlier), the special instructions and restrictions discussed here 
do not 
Dual-Status Tax Year
A dual-status year is one in which youchange status between nonresident andresident alien. Different U.S. income taxrules apply to each status.Most dual-status years are the years ofarrival or departure. Before you arrive inthe United States, you are a nonresidentalien. After you arrive, you may or may notbe a resident, depending on thecircumstances.If you become a U.S. resident, you staya resident until you leave the UnitedStates. You may become a nonresidentalien when you leave, if, after leaving (orafter your last day of lawful permanentresidency if you met the green card test)and for the remainder of the calendar yearof your departure, you have a closerconnection to a foreign country than to theUnited States, and, during the nextcalendar year, you are not a U.S. residentunder either the green card test or thesubstantial presence test. See Pub. 519.
What and Where To File for aDual-Status Year
If you were a U.S.
on the last dayof the tax year, file
Form 1040,
U.S.Individual Income Tax Return. Write“Dual-StatusReturn”acrossthe top andattach a statement showing your incomefor the part of the year you were anonresident. You may use Form1040NR-EZ as the statement; write“Dual-StatusStatement”acrossthe top.File your return and statement with theInternal Revenue Service Center,Philadelphia, PA 19255, U.S.A.If you were a
on the lastday of the tax year, file Form 1040NR-EZ.Write “Dual-StatusReturnacrossthe topand attach a statement showing yourincome for the part of the year you were aU.S. resident. You may use Form 1040 asthe statement; write“Dual-StatusStatement”acrossthe top. File your returnand statement with the Internal RevenueService Center, Philadelphia, PA 19255,U.S.A.
Any statement you file withyour return must show your name,address, and social security number(taxpayer identification number). You donot have to sign the statement. Yoursignature on the return is sufficientbecause it also applies to supportingstatements and schedules.
Income Subject to Tax forDual-Status Year
As a dual-status taxpayer not filing a jointreturn, you are taxed on income from all
Page 3
Instructions for Form 1040NR-EZ
sources for the part of the year you were aresident alien. Generally, you are taxed onincome only from U.S. sources for the partof the year you were a nonresident alien.However, all income that is considered tobe effectively connected with the conductof a trade or business in the United Statesis taxable.Income you received as a dual-statustaxpayer from sources outside the UnitedStates while a resident alien is taxableeven if you became a nonresident alienafter receiving it and before the close ofthe tax year. Conversely, income youreceived from sources outside the UnitedStates while a nonresident alien is nottaxable in most cases even if you becamea resident alien after receiving it and beforethe close of the tax year. Income from U.S.sources is taxable whether you received itwhile a nonresident alien or a residentalien.
Restrictions for Dual-StatusTaxpayers
Standard Deduction.—
You may not takethe standard deduction.
Head of Household.—
You may not usethe
Head of Household 
Tax Table columnor Tax Rate Schedule.
Joint Return.—
You may not file a jointreturn. However, see
Election To BeTaxed as a Resident Alien
on page 2.
Tax Rates.—
If you were married and anonresident of the United States for all orpart of the tax year and you do not makethe election to be taxed as a resident alienas discussed on page 2, you must use theTax Table column for
Married Filing Separately 
to figure your tax on incomethat is considered to be effectivelyconnected with a U.S. trade or business.You may not use the
Tax Tablecolumn.
Deduction for Exemptions.—
As adual-status taxpayer, you usually will beentitled to your own personal exemption.Subject to the general rules forqualification, you are allowed exemptionsfor your spouse in figuring taxable incomefor the part of the year you were a residentalien. The amount you may claim for theseexemptions is limited to your taxableincome (determined without regard toexemptions) for the part of the year youwere a resident alien. You may not useexemptions (other than your own) toreduce taxable income to below zero forthat period.Special rules apply for exemptions forthe part of the tax year a dual-statustaxpayer is a nonresident alien if thetaxpayer is a resident of Canada, Mexico,Japan, or the Republic of Korea, or is aU.S. national or a student or businessapprentice from India. See Pub. 519.
How To Figure Tax for Dual-StatusTax Year
When you figure your U.S. tax for adual-status year, you are subject todifferent rules for the part of the year youwere a resident and the part of the yearyou were a nonresident.All income for the period of residenceand all income that is considered to beeffectively connected with a trade orbusiness in the United States for theperiod of nonresidence, after allowabledeductions, is added and taxed at thesame rates that apply to U.S. citizens andresidents.
You are allowed a credit againstyour U.S. income tax liability for certaintaxes you paid, are considered to havepaid, or that were withheld from yourincome. These include:
Tax withheld from wages earned inthe United States.
When filing Form 1040,
show the totaltax withheld on line 55. Enter amountsfrom the attached statement (Form1040NR-EZ, line 18) to the left of line 55and identify and include in the amount online 55.
When filing Form 1040NR-EZ,
show thetotal tax withheld on line 18. Enter theamount from the attached statement (Form1040, line 55) to the left of line 18 andidentify and include in the amount online 18.
Tax paid with
Form 1040-ES,
Estimated Tax for Individuals, or
Form1040-ES (NR),
U.S. Estimated Tax forNonresident Alien Individuals.
Tax paid with
Form 1040-C,
U.S.Departing Alien Income Tax Return, at thetime of departure from the United States.When filing Form 1040, include the taxpaid with Form 1040-C with the totalpayments on line 61. Identify the paymentin the area to the left of the entry.As a dual-status taxpayer, you generallymay claim tax credits using the same rulesthat apply to resident aliens.
Line Instructions forForm 1040NR-EZ
Name, Address, andIdentifying Number
P.O. Box.—
If your post office does notdeliver mail to your home and you have aP.O. box, enter your box number insteadof your present home address.
Foreign Address.—
If your address isoutside the United States or itspossessions or territories, enter theinformation in the following order: city,province or state, and country.
Do not
abbreviate the country name. Include thepostal code where applicable.
Identifying Number.—
If you are anonresident alien engaged in, orconsidered engaged in, a trade or businessin the United States, you must get ataxpayer identification number. Generally,this number is your social security number(SSN). Apply for your number using
which you can get at Social SecurityAdministration (SSA) offices. Fill it in andreturn it to the SSA. An incorrect ormissing SSN will delay your refund.If you do not have an SSN and are nototherwise required to get one, you can usean IRS-assigned identification number. Thisnumber is similar to an SSN but beginswith the number 9. If 1995 is the first yearyou are filing a tax return and you are nototherwise required to get an SSN, do notmake an entry in the space labeled“Identifyingor social security number.”When the IRS receives your return, you willbe assigned an identification number. Youmust use this number when you file taxreturns in the future or until you get anSSN.
Rounding Off to WholeDollars
You may round off cents to the nearestwhole dollar on your forms and schedules.This will make it easier to complete yourreturn. To do so, drop amounts under 50cents and increase amounts from 50 to 99cents to the next dollar. For example,$1.39 becomes $1 and $2.50 becomes $3.If you do round off, do so for allamounts. But if you have to add two ormore amounts to figure the amount toenter on a line, include cents when addingand only round off the total.
Youreceived two W-2 forms, one showingwages of $5,000.55 and one showingwages of $18,500.73. On Form1040NR-EZ, line 3, you would enter$23,501 ($5,000.55 + $18,500.73 =$23,501.28).
Lines 1 and 2—Filing Status.—
Theamount of your tax depends on your filingstatus. Before you decide which box tocheck, read the following explanation.
Were You Single or Married?—
If youwere married on December 31, consideryourself married for the whole year. If youwere single, divorced, or legally separatedunder a decree of divorce or separatemaintenance on December 31, consideryourself single for the whole year.
married persons who live apart 
may file as single. But they must have a child living with them and meet certain other tests to do so. For details, get 
Pub. 501,
Exemptions, Standard Deduction, and Filing Information.
If your spouse died in 1995, consideryourself married to that spouse for thewhole year, unless you remarried beforethe end of 1995.
Line 3—Wages, Salaries, Tips, etc.—
Enter the total of your effectivelyconnected wages, salaries, tips, etc.However,
do not
include amountsexempted under a tax treaty and reportedon Form 1040NR-EZ, Item J. Also includein this total:
Corrective distributions of excess salarydeferrals.
Corrective distributions of excesscontributions and excess aggregatecontributions to a retirement plan.
Disability pensions if you have notreached the minimum retirement age setby your employer.

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