U.S. Tax Filing Checklist for Foreign Individuals With U.S. Income

If you are not a U.S. citizen or green card holder and you have income from U.S. sources, start with three questions: Are you a nonresident or a resident for tax purposes? Is your income effectively connected with a U.S. business, or is it passive income subject to withholding? And do you also have information-reporting obligations through a U.S. company? The checklist below walks through each step.

Step 1: Confirm your U.S. tax residency status

• Count your days in the United States for the current year and the two prior years (substantial presence test).
• Check whether you held a green card at any time during the year.
• Review whether an exception applies (for example, certain students, teachers or diplomats) or whether a treaty tie-breaker may apply.
• Note your arrival and departure dates — a dual-status year may apply if you moved.

Step 2: List every U.S. income source

• Wages or service fees for work performed in the United States (Form W-2 or 1099 / 1042-S).
• Dividends, royalties and other passive income (Form 1042-S).
• Rental income from U.S. real estate, and whether you made a net-basis election.
• Income or distributions from a U.S. LLC, partnership or corporation (K-1, 8805, 1042-S).
• Sales of U.S. real estate (FIRPTA withholding, Form 8288-A).
• Scholarships, prizes or pension payments from U.S. sources.

Step 3: Separate federal income tax from information reporting

Income tax is what you owe on income. Information returns tell the IRS about ownership and transactions. A foreign individual may have no income tax due and still need, for example, a Form 5472 filed by their single-member LLC. Keep the two lists separate so nothing is overlooked.

Step 4: Gather documents

• Passport and visa details, and U.S. entry/exit history.
• SSN or ITIN — or plan to apply for an ITIN with Form W-7 alongside the return.
• Forms 1042-S, W-2, 1099, K-1, 8805 and 8288-A received.
• Copies of Forms W-8BEN you gave to U.S. payers.
• Rental records: rents received, expenses, property tax, mortgage interest and depreciation basis.
• Business records and bank statements for any U.S. company you own.
• Prior-year U.S. returns, if any.

Step 5: Check treaty benefits

Determine whether the United States has an income tax treaty with your country of residence and whether it reduces withholding on dividends, royalties, pensions or other income. Treaty-based positions may need to be disclosed on Form 8833. Not every country has a treaty, and treaty terms vary.

Step 6: Determine which return to file

• Form 1040-NR — most nonresident individuals with effectively connected income, or who want a refund of over-withheld tax.
• Form 1040 — if you are a U.S. tax resident for the full year.
• Dual-status return — if you became or stopped being a resident during the year.
• Company returns — Form 5472/pro forma 1120, Form 1065 or Form 1120 if you own a U.S. entity.
• State returns — if the income is connected to a state with an income tax.

Step 7: Note the deadlines

• April 15 — Form 1040-NR if you received U.S. wages subject to withholding; Form 1120/5472 for calendar-year corporations and foreign-owned single-member LLCs.
• March 15 — Form 1065 for calendar-year partnerships.
• June 15 — Form 1040-NR for nonresidents without U.S. wages subject to withholding.
• Extensions are available but must be filed by the original due date, and they extend the time to file — not the time to pay.

Step 8: Keep records for future years

Keep copies of returns, 1042-S forms, W-8BENs and supporting documents for at least several years. Good records make next year's return faster and support refund claims, treaty positions and any IRS questions.

Practical example

Elena lives in Israel. She receives U.S. dividends through a broker, owns a rental condo in Fort Lauderdale, and has a single-member LLC selling online. Her checklist: confirm she is a nonresident (fewer than 183 weighted days), collect her 1042-S, review whether the Israel treaty rate was applied, gather rental income and expenses and consider the net-basis election, ensure her LLC files Form 5472 with a pro forma 1120, and file Form 1040-NR reporting the rental income (and any effectively connected business income) by the applicable deadline. She also checks whether Florida imposes any state income tax — it does not on individuals.

Sources and official references

• IRS — Taxation of Nonresident Aliens
• IRS Publication 519, U.S. Tax Guide for Aliens
• IRS — About Form 1040-NR
• IRS — Individual Taxpayer Identification Number (ITIN)
• IRS — About Form W-8BEN
• IRS — About Form 1042-S
• IRS — United States Income Tax Treaties A to Z