Form 1040NR US Tax Return
Do you need to reclaim overpaid US taxes?
-Have you had 30% US tax withheld on US source income? If yes, you may have overpaid significantly and can claim back the overpaid US tax by filing a 1040NR US tax return.
Most US payers will withhold a flat 30% US tax from payments to non resident aliens who do not have a valid Individual Taxpayer Identification number (ITIN). As a result, many non residents overpay the US tax required by a significant amount.
Tax treaties with the US allow for the tax to be reduced significantly and in some cases, down to zero.
Do you have a U.S. tax return filing obligation?
A TIN is required to file a U.S. tax return, where one is required. No tax return is required from foreign persons whose only income is fixed or determinable annual or periodic (FDAP) if the correct amount of tax was withheld (including tax treaty exemptions).
A tax return is required if the income was effectively connected to the conduct of U.S. trade or business (ECI) even if exempt by treaty.
There is an exception for non-resident aliens whose only income is wages and they do not exceed the personal exemption amount.
How to apply for a US tax refund?
File a form 1040NR with the appropriate tax treaty exemption and attach any tax withholding documents as proof of tax withheld.
Depending on the type of income, you may pay graduated income tax rates or be exempt under treaty. We file tax refund claims regularly for our clients, including State tax refunds.