If your income isn’t exempt from tax by treaty, leave the rest of page 1 blank. The dividend income was reported to Alex on Form(s) 1042-S. The only U.S. source income Alex received during the year was dividend income from U.S. stocks. Gains and losses from the sale or exchange of U.S. real property interests are taxed as if you’re engaged in a trade or business in the United States. You may find it helpful to refer to Form 1041 and its instructions for some purposes when completing the Form 1040-NR rather than looking to these instructions for details.

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They can file a joint return even if only one had income or if they didn’t live together all year. A deceased taxpayer’s social security number shouldn’t be used for tax years after the year of death, except for estate tax return purposes. If your spouse died in 2024 and you didn’t remarry in 2024, or if your spouse died in 2025 before filing a return for 2024, you can file a joint return. If the deceased taxpayer didn’t have to file a return but had tax withheld, a return must be filed to get a refund. If you changed your name because of marriage, divorce, etc., be sure to report the change to the Social Security Administration (SSA) before filing your return.

In Line 8c, enter any cancelled debt for which you received a copy of IRS Form 1099-C. The Line 8 instructions contains a variety of other income items. For taxpayers who itemize deductions, follow the instructions provided on IRS Form 1099-G.

For more information about IRAs, see Pub. For details, including how to figure the minimum required distribution, see Pub. If you don’t receive the minimum distribution amount, you may have to pay an additional tax on the amount that should have been distributed. If more than one exception applies, include a statement showing the amount of each exception, instead of making an entry next to line 4b. If eligible, you can generally elect to exclude an HFD from your income once in your lifetime. If all or part of the distribution is a health savings account (HSA) funding distribution (HFD), enter the total distribution on line 4a.

Form 5329: Your Guide to Managing Retirement Penalties

• If your return is more than 60 days late, the minimum penalty will be $510 or the amount of any tax you owe, whichever is smaller.
• The amount on line 26 is entered on Form 1040-NR, line 10.
• However, you must have earned income to contribute to an IRA.

Form 1040 Schedule B is used to report interest and ordinary dividends received during the tax year. Tax schedules are essential tools used by taxpayers to calculate their tax obligations based on various types of income and deductions. Taxpayers have the right to expect appropriate action will be taken against employees, return preparers, and others who wrongfully use or disclose taxpayer return information. Similarly, tax return preparation fees and other out-of-pocket costs vary extensively depending on the tax situation of the taxpayer, the type of software or professional preparer used, and the geographic location.

Line 1b—Household Employee Wages Not Reported on Form(s) W-2

See Line 8p under Instructions for Schedule 1 in the Instructions for Form 1040 for details on the section 461(l) excess business loss adjustment. The foreign earned income exclusion and housing exclusion from Form 2555 don’t apply to Form 1040-NR filers. Gambling winnings entered on line 8b must be from an effectively connected U.S. trade or business. See Lines 8a Through 8z under Instructions for Schedule 1 in the Instructions for Form 1040 for details on other income, but see Line 8a through Line 8z below for exceptions. Use Schedule F (Form 1040) to figure the amount to enter on line 6 and attach Schedule F (Form 1040) to your return.

Line 12–Itemized Deductions or Standard Deduction

You must include the required information even if you filed it with your return in an earlier year. The custodial parent or another taxpayer, if eligible, can claim the child for the earned income credit and these other benefits. However, this doesn’t allow the noncustodial parent to claim head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the earned income credit. Check the “Married filing separately” box in the Filing Status section on page 1 of Form 1040 or 1040-SR if you are married, at the end of 2024, and file a separate return. A married couple filing jointly report their combined income and deduct their combined allowable expenses on one return.

Decoding Rental Income: A Complete Guide to Schedule E

• Although you may owe your tax return preparer a fee for preparing your return, don’t have any part of your refund deposited into the preparer’s account to pay the fee.
• Your nontaxable Medicaid waiver payments may have been reported to you on Form(s) W-2, box 12, with Code II.
• Don’t include any income that you elected to treat as effectively connected and included on Schedule 1 (Form 1040), line 5.
• For calendar year 2024, Andrea earned $40,000 from the teaching position, which is exempt from income tax per the tax treaty between the United States and Italy.
• Information provided on Forbes Advisor is for educational purposes only.

If you irs schedule 1 2 and 3 want to figure the credit yourself, enter the amount from line 4b on line 6 of this worksheet. Are you self-employed, a member of the clergy, or have church employee income and filing Schedule SE? If your EIC for a year after 1996 was reduced or disallowed, see “Form 8862, who must file”, earlier, to find out if you must file Form 8862 to take the credit for 2024. This is your earned income credit. Be sure you use the correct column for your filing status and the number of qualifying children you have who have a valid SSN. Be sure you use the correct column for your filing status and the number of qualifying children you have who have a valid SSN as defined earlier.

Key State Tax Deadlines You Shouldn’t Miss

U.S. source dividends also include dividend equivalent payments. Include all dividend equivalent payments received with respect to section 871(m) transactions on line 1c. The following list gives only a general idea of the types of income to include on Schedule NEC. The withholding tax rate may be lower or the income may be exempt if your country of tax residence and the United States have a treaty setting lower rates. The tax must be withheld by the person who pays the income.

In addition to any other penalties, the law imposes a penalty of $5,000 for filing a frivolous return. It applies to any unpaid tax on the return. If you pay your taxes late, the penalty is usually ½ of 1% of the unpaid amount for each month or part of a month the tax isn’t paid. If your return is more than 60 days late, the minimum penalty will be $510 or the amount of any tax you owe, whichever is smaller.

See Form 8615 under Line 16—Tax in the Instructions for Form 1040 for details on Form 8615. You aren’t eligible for the foreign earned income exclusion, housing exclusion, or housing deduction on Form 2555. They do not apply to persons filing Form 1040-NR. If they must use the Standard Deduction Worksheet for Dependents—Line 12 in the Instructions for Form 1040, they should enter the amount on the same line of Form 1040-NR as they are directed to enter it on Form 1040 or 1040-SR. See Line 7—Capital Gain or (Loss) in the Instructions for Form 1040 for details on capital gain or loss. See Lump-Sum Distributions under Lines 5a and 5b in the Instructions for Form 1040 for details on lump-sum distributions.

Lines 6a Through 6z—Other Nonrefundable Credits

Enter the personal use part of any credit for new clean vehicles. Enter any credit for the elderly or the disabled. The net elective payment election amount from Form 3800, Part III, line 6, column (j) is reported on Schedule 3, line 13c. If you made qualified energy efficiency improvements to your main home located in the United States in 2024, you may be able to take the energy efficient home improvement credit. If you made energy saving improvements to one or more homes that you used as a residence during 2024, you may be able to take the residential clean energy credit. However, you can’t take the credit if either of the following applies.

Forgiveness of Paycheck Protection Program (PPP) Loans

Enter the deductible part of your self-employment tax on Schedule 1 (Form 1040), line 15. See Line 4 under Instructions for Schedule 2, later, for additional information. Enter the tax on Schedule 2 (Form 1040), line 4. Special rules for former U.S. citizens and former U.S. long-term residents. For more information, see Interest Income in chapter 3 of Pub.

Enter any jury duty pay and see the instructions for line 24a. Complete the Foreign Earned Income Tax Worksheet if you enter an amount on Form 2555, line 45. The amount from Form 2555, line 45, will be subtracted from the other amounts of income listed on lines 8a through 8c and lines 8e through 8z.

See Line 2 under Instructions for Schedule 3 in the Instructions for Form 1040 for details on the credit for child and dependent care expenses. See Line 17z under Instructions for Schedule 2 in the Instructions for Form 1040 for details on other taxes. See Line 17h under Instructions for Schedule 2 in the Instructions for Form 1040 for details on income you received from a nonqualified deferred compensation plan that fails to meet the requirements of section 409A. See Line 16 under Instructions for Schedule 2 in the Instructions for Form 1040 for details on recapture of low-income housing credit from Form 8611. See Line 14 under Instructions for Schedule 2 in the Instructions for Form 1040 for details on interest on tax due on installment income from the sale of certain residential lots and timeshares. See Line 13 under Instructions for Schedule 2 in the Instructions for Form 1040 for details on uncollected social security and Medicare or RRTA tax on tips or group-term life insurance from Form W-2, box 12.