Okay for this video i wanted to cover a simple example as to how to complete a 1040 nr which is a individual income tax return for a non-resident alien so in this example what we have here is we have john doe he's a cayman island citizen and tax resident so he lives there full time so he's not a us person in any respect however he has investments in u.s businesses which require him to file this return so what we're going to do is i have a full 1040 nr we'll go through this for john and then i also have a slide here which covers some of the background information on who needs to file and under what circumstances and then we have the fact pattern for john himself okay so if we're starting at the top here who needs to file this well generally the 1040 nr is filed by a non-resident alien individual it can be filed by a non-resident trust or a state but more often than not we have these filed by non-resident individuals and normally it's because of one of two types of filing obligation circumstances so the first one is the non-resident is engaged in u.s trade or business so we'll talk a little bit more about that later but effectively what this means is the non-resident has opened a business in the us and they have created a sufficient amount of nexus with the us to be subject to tax in the united states okay now the second obligation here is that the non-resident has u.s source income not connected with the u.s trader business this is often called u.s source for dap income fadap is fixed determinable annual or periodical income this is u.s source dividends interest rents...
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Video instructions and help with filling out and completing Form 1040 vs. Form 1040-nr-ez
Instructions and Help about Form 1040 vs. Form 1040-nr-ez
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