File Form 1040 if you meet the substantial presence test or hold a green card, since it covers worldwide income. File Form 1040NR if you are a nonresident alien with US-source income only, since it covers a narrower set of deductions and credits.
When it comes to filing taxes in the United States, two forms come into play: the 1040 and the 1040NR.
These forms serve as the foundation for individual tax returns but apply to different groups of taxpayers. Getting the right one matters for accurate, compliant filing.
At Universal Tax Professionals, we help clients determine the correct form and handle the full US expat tax services their situation requires, wherever they live.
Key Summary: 1040 vs 1040NR
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Form 1040 is for residents, citizens, and green card holders, and covers worldwide income.
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Form 1040NR is for nonresident aliens, and covers US-source income only.
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The substantial presence test, not citizenship alone, often decides which form applies.
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Moving to or from the US mid-year may require a dual-status return combining both forms.
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Form 1040 is due April 15, with a June 15 extension for those abroad. Form 1040NR’s deadline depends on US withholding.
1040 vs 1040NR: Side-by-Side Comparison
| Form 1040 | Form 1040NR | |
| Who files it | US citizens, green card holders, and residents who meet the substantial presence test | Nonresident aliens with US-source income |
| Income reported | Worldwide income | US-source income only |
| Deductions and credits | Full range, including standard deduction, EITC, Child Tax Credit | Limited, no EITC, restricted standard deduction |
| Filing deadline | April 15 (June 15 automatic extension if living abroad) | April 15 if wages had US withholding, June 15 if not |
| Treaty benefits | Not applicable in the same way | Can claim tax treaty benefits on certain income |
Form 1040: The Standard Resident Return
Form 1040, the “US Individual Income Tax Return,” is the standard filing for US residents and citizens, including Americans living abroad. It captures income from every source: wages, self-employment, dividends, interest, capital gains, and foreign income.
Since 2018, the IRS no longer uses the simplified 1040A or 1040EZ forms. Everyone who files a resident return uses the standard Form 1040.
Deductions and Credits Available on Form 1040
Form 1040 gives taxpayers access to the full range of deductions and credits. Common deductions include mortgage interest, student loan interest, and medical expenses above a certain threshold.
Available credits include the Earned Income Tax Credit and the Child Tax Credit, both of which directly reduce the tax owed rather than just taxable income.
Schedules That Support Form 1040
Form 1040 relies on supporting schedules to capture different types of income and deductions.
- Schedule A covers itemized deductions, useful for anyone with significant medical costs, charitable contributions, or state and local taxes.
- Schedule B covers interest and dividends
- Schedule C covers business income
- Schedule D covers capital gains and losses.
Need Help With Your US Tax Return?
Whether you need to file Form 1040, Form 1040-NR, or aren’t sure which applies, we’ll guide you through the process and prepare your return accurately.
Form 1040NR: Built for Nonresident Aliens
Form 1040NR, the “US Nonresident Alien Income Tax Return,” is for taxpayers who do not meet the substantial presence test and do not hold a green card. It exists to capture US-source income only, not income earned anywhere else in the world.
Since 2020, the 1040NR-EZ has also been discontinued, so nonresident aliens use the standard 1040NR regardless of how simple their situation is.
What Counts as US-Source Income
Form 1040NR focuses on income earned within the US. This includes wages, salaries, business income, dividends, and interest sourced inside US borders.
Nonresident aliens report this income to stay compliant with US tax law, even though their worldwide income stays outside the scope of the form.
Deductions and Credits Are More Limited
Form 1040NR offers fewer deductions and credits than Form 1040.
Nonresident aliens generally cannot claim the standard deduction the same way residents can, and they do not qualify for credits like the EITC. Tax treaties can offset some of this, letting eligible nonresident aliens reduce or eliminate US tax on specific types of income.
Which Test Determines Your Filing Status
The substantial presence test is what decides whether you file as a resident or nonresident.
You meet it if you were physically present in the US for at least 31 days during the current year, and 183 days total when you add the current year’s days, one-third of the prior year’s days, and one-sixth of the days from two years before that.
Meeting this test, or holding a green card, means you file Form 1040. Falling short of it means you likely file Form 1040NR instead.
Not Sure Which Form Applies To You?
Our tax professionals can confirm your residency status and file the correct form the first time.
What If You Were a Resident for Only Part of the Year
Some taxpayers do not fit cleanly into either category.
If you moved to the US partway through the year, or moved abroad and gave up US tax residency partway through the year, you may need to file as a dual-status alien.
A dual-status return combines elements of both forms, one covering your period as a resident and one covering your period as a nonresident.
Dual-status filing comes with its own rules on deductions and filing status, and it trips up a lot of first-year movers.
Filing Deadlines for Each Form
Form 1040 is due April 15, with an automatic extension to June 15 for taxpayers living outside the US.
Form 1040NR is due April 15 if your US wages had tax withheld, or June 15 if they did not.
Missing either deadline, or discovering past returns were filed on the wrong form, does not have to mean penalties. If you have unfiled or incorrect prior returns, filing under the Streamlined Filing Compliance Procedures can help you get caught up without the standard failure-to-file penalties.
How to File Form 1040 or Form 1040NR
You can file either form through:
- E-file. The fastest method, available through IRS-approved software or a tax professional who offers e-filing.
- File a paper return using the mailing address listed in the IRS instructions for your situation. The address can vary depending on your state and whether a payment is included.
- Authorized private delivery service. The IRS permits certain courier services as an alternative to mail.
Double-check every entry and attachment before submitting.
