Filing US tax returns; For a US citizen or resident alien (American living abroad), the rules for filing tax returns and the estimated tax payment are usually the same whether you’re in the United States or live abroad.
For non residents, you must pay income taxes to the IRS but only on the income that’s effectively connected to the United State.
On this Page:
- Ways To File US Income Tax Return Through IRS
- How to file our income tax return online
- Ways to obtain 1040 form
- Filling out the 1040 form
- Filing US Income tax return with IRS
- U.S. Tax Returns For Non Residents
- Eligibility for 1040NR or 1040NR-EZ form filing
Ways To File US Income Tax Return Through IRS
The field of US income tax return holds an important role. The IRS Tax Form 1040 is the standard federal income tax form. It is used for reporting Individual gross income like wages, interest or dividends received or self – employment income etc. There are separate rules identified for those living abroad. So, learning the art of preparing US tax returns for the Expats and non residents receiving US source income is mandatory.
How to file US income tax return online?
To file US income tax return online, you need to learn more about the Form 1040 which is standard federal income tax form used for reporting individual’s income. Also known as “the long form” it is known to be extensive and more detail oriented as compared to1040A or 1040EZ.
The form further focuses on itemize deductions, Net Investment tax, self – employment income , Foreign Tax credits , Foreign Income Exclusion etc. The Form 1040 for US Tax for US citizens living abroad might take a longer time to complete, it will definitely benefit taxpayers by providing them with more opportunities for lowering tax bills. There are multiple tax forms to choose from while filing federal income taxes.
Ways to obtain 1040 form:
There are multiple ways to obtain tax form 1040. You need to know that before filing US tax returns when living abroad, the most convenient and fastest option is by downloading tax form on a computer. The form is available in pdf format and can be downloaded irrespective of your location. The federal returns can be filled by mailing them to the appropriate mailing address provided by the IRS. For people living in the US, most of the local libraries and post offices might carry forms around tax time and you can also collect the forms from the IRS office or tax center.
Filling out the 1040 form:
Before you start filling up 1040 form or filing US tax returns when living abroad, you might need some of the information ready and by your side. Those are:
• Residency status and filing status
• Identification proof
• Social Security Numbers for not just you, but your spouse and dependents, if any
• Birth dates for you, dependents and spouse
• Copy of the past tax return
• Statements of earned wages
• Statements of dividends or interest from brokerages and banks
• Proof of tax credits, tax exclusions, and tax deductions
• Bank account number and routing number
Filing US Income tax return with IRS:
You can paper file your US income tax returns or e-file them from IRS website or through the help of an approved tax preparer. E- Filing your returns are the safest and fastest way to file your US income tax returns. It expedites your refund if you have opted for Direct Deposit in your US Bank accounts.
There are practically 3 different filing US US income tax returns methods to choose from
• Paper filing
• Tax preparation software
• Tax professional
Paper filing US income tax returns should be mailed it to IRS after completion. In case, for using tax preparation software, electronic filing might be a great option.
U.S. Tax Returns For Non Residents
If you are a non resident, you must pay income taxes to the IRS but only on the income that’s effectively connected to the United State, which usually includes the income you earn while in the United State.
Eligibility for 1040NR or 1040NR-EZ Form Filing
A non resident may be able to file U.S. income tax return Form 1040NR or 1040NR-EZ, if eligible.
Filing Form 1040-NR if you:
- Were a non-resident alien engaged in a business or trade in the US.
- Represented a deceased person who would have had to file Form 1040-NR.
- Represented an estate or trust that had to file Form 1040-NR.
Filing Form 1040-NR-EZ if you:
You may be able to file U.S. income tax return form 1040-NR-EZ if your only income from U.S. sources is wages, salaries, refunds, tips of state and local income taxes, scholarship or fellowship grants, and you don’t claim any dependents.
Just like resident U.S. citizen or resident alien, you can also claim to reduce your taxable income.
All nonresident tax return forms such as 1040NR or 1040NR-EZ, are available with guidelines on the IRS website. You can also contact us to get instruction on the nonresident tax return preparation process.