Does a U.S. Nonresident Alien Need to File a Tax Return?
If you’re a nonresident alien in the U.S. (read the meaning in the previous post) and you earned any income from U.S. sources — like wages, freelance work, or rental income — you likely must file a tax return, usually Form 1040-NR. Unlike U.S. residents, most nonresidents don’t get a standard deduction, so even a small amount of U.S. income can trigger filing requirements. Plus, if you had any tax withheld, filing might help you get a refund!
Wondering if you qualify for lower rates or exemptions? Check if there’s a tax treaty between the U.S. and your home country. It could reduce or eliminate some taxes, but you usually still have to file paperwork to claim those benefits.
Bottom line: Earned income in the U.S.? Probably file Form 1040-NR.
Unsure? Always consult a tax professional for personal guidance.
Get in touch with me!
If you’re a nonresident alien in the U.S. (read the meaning in the previous post) and you earned any income from U.S. sources — like wages, freelance work, or rental income — you likely must file a tax return, usually Form 1040-NR. Unlike U.S. residents, most nonresidents don’t get a standard deduction, so even a small amount of U.S. income can trigger filing requirements. Plus, if you had any tax withheld, filing might help you get a refund!
Wondering if you qualify for lower rates or exemptions? Check if there’s a tax treaty between the U.S. and your home country. It could reduce or eliminate some taxes, but you usually still have to file paperwork to claim those benefits.
Bottom line: Earned income in the U.S.? Probably file Form 1040-NR.
Unsure? Always consult a tax professional for personal guidance.
Get in touch with me!
Who Is a U.S. Nonresident Alien?
You’re considered a “nonresident alien” if you’re not a U.S. citizen or green card holder and you don’t meet the “Substantial Presence Test” (a fancy way of saying you weren’t in the U.S. enough days to be treated as a resident for tax purposes). If that describes you, you’ll likely file taxes differently than U.S. residents do.
Tip: If you’re not sure about your status consult a tax professional.
Got questions? Contact me!
You’re considered a “nonresident alien” if you’re not a U.S. citizen or green card holder and you don’t meet the “Substantial Presence Test” (a fancy way of saying you weren’t in the U.S. enough days to be treated as a resident for tax purposes). If that describes you, you’ll likely file taxes differently than U.S. residents do.
Tip: If you’re not sure about your status consult a tax professional.
Got questions? Contact me!
Minimum income requirements for filing taxes in 2025
You probably have to file a tax return in 2025 if your gross income in 2024 was at least $14,600 as a single filer, $29,200 if married filing jointly or $21,900 if head of household.
If you were 65 or older at the end of 2024, those minimum income limits are higher.
You probably have to file a tax return in 2025 if your gross income in 2024 was at least $14,600 as a single filer, $29,200 if married filing jointly or $21,900 if head of household.
If you were 65 or older at the end of 2024, those minimum income limits are higher.
Dependent income requirements for filing a tax return in 2025
If someone can claim you as a dependent, the rules change.
You have to file a tax return if any of the following apply.
If someone can claim you as a dependent, the rules change.
You have to file a tax return if any of the following apply.
Understanding the difference between working under a W-2 and a 1099 is crucial:
1. Who gets a W-2?
If you’re employed in a traditional "employee" role, your employer will send you a W-2 form.
This applies to office workers, retail employees, nurses, servers, teachers, etc.
In this case, your employer withholds taxes (federal, state, Social Security, and Medicare) directly from your paycheck.
2. Who gets a 1099?
If you work as an independent contractor or freelancer, your income is reported via a 1099 form.
This is common for taxi drivers, delivery workers, freelance designers, outsourced programmers, bloggers, consultants, and similar roles.
In this situation, you are responsible for paying your own taxes, including self-employment tax.
3. Taxes and responsibilities
4. Pros and cons
Important Reminder!
Before accepting a new job, make sure the terms of your employment comply with labor laws. If you’re working as a regular employee, you should be classified under W-2, not as a "contractor" under 1099. Some employers might misclassify workers as 1099 contractors to save on taxes and benefits, which could be illegal.
Always consult with a tax professional to avoid mistakes and potential issues in the future!
1. Who gets a W-2?
If you’re employed in a traditional "employee" role, your employer will send you a W-2 form.
This applies to office workers, retail employees, nurses, servers, teachers, etc.
In this case, your employer withholds taxes (federal, state, Social Security, and Medicare) directly from your paycheck.
2. Who gets a 1099?
If you work as an independent contractor or freelancer, your income is reported via a 1099 form.
This is common for taxi drivers, delivery workers, freelance designers, outsourced programmers, bloggers, consultants, and similar roles.
In this situation, you are responsible for paying your own taxes, including self-employment tax.
3. Taxes and responsibilities
- W-2: Your employer handles tax withholding and reporting for you. All you need to do is file your annual tax return.
- 1099: You’re responsible for tracking and paying your taxes — typically quarterly (estimated taxes). You also need to keep records of expenses to reduce your taxable income.
4. Pros and cons
- W-2: Pros — steady paycheck, benefits (health insurance, paid time off, retirement plans). Cons — less flexibility, dependence on employer rules and schedules.
- 1099: Pros — freedom to choose clients and schedules, ability to deduct business expenses (mileage, equipment, advertising, etc.). Cons — must manage your own income and expenses, pay taxes independently, and arrange your own insurance.
Important Reminder!
Before accepting a new job, make sure the terms of your employment comply with labor laws. If you’re working as a regular employee, you should be classified under W-2, not as a "contractor" under 1099. Some employers might misclassify workers as 1099 contractors to save on taxes and benefits, which could be illegal.
Always consult with a tax professional to avoid mistakes and potential issues in the future!
Recently, I received a letter from the never-ending IRS mailings. The topic: "Unethical Tax Preparers." My eye caught the abbreviation PTIN. What is that all about?
Officially: PTIN (Preparer Tax Identification Number) is an identification number assigned to tax preparers. Anyone who prepares federal tax returns for compensation is required to obtain a PTIN. The IRS introduced PTINs to improve the quality of tax return preparation and to protect taxpayers from unqualified or fraudulent tax preparers.
In practice: Your tax preparer is REQUIRED to include their valid PTIN on your tax return.
Where can you find this PTIN to ensure everything is in order?
Look on Form 1040, at the bottom right of the second page.
Do your tax returns include your preparer’s PTIN?
Officially: PTIN (Preparer Tax Identification Number) is an identification number assigned to tax preparers. Anyone who prepares federal tax returns for compensation is required to obtain a PTIN. The IRS introduced PTINs to improve the quality of tax return preparation and to protect taxpayers from unqualified or fraudulent tax preparers.
In practice: Your tax preparer is REQUIRED to include their valid PTIN on your tax return.
Where can you find this PTIN to ensure everything is in order?
Look on Form 1040, at the bottom right of the second page.
Do your tax returns include your preparer’s PTIN?
Does the IRS pay taxpayers?!
Does the IRS actually return money?!
Is it possible?
In short, yes, it’s possible. But, as always, there are nuances.
Under certain circumstances, such as:
the tax services may actually pay money to the taxpayer, for instance, by issuing a check or depositing it directly into your account (Refundable Credit).
Additionally, under specific conditions, there’s an opportunity to reduce your tax liability (to get Nonrefundable Credit), which is also a nice perk.
How can you make it happen? Consult a good tax professional!
Does the IRS actually return money?!
Is it possible?
In short, yes, it’s possible. But, as always, there are nuances.
Under certain circumstances, such as:
- your income level;
- having dependents;
- overpaying taxes through your W-2 during the year;
- student loans, and other specific conditions;
the tax services may actually pay money to the taxpayer, for instance, by issuing a check or depositing it directly into your account (Refundable Credit).
Additionally, under specific conditions, there’s an opportunity to reduce your tax liability (to get Nonrefundable Credit), which is also a nice perk.
How can you make it happen? Consult a good tax professional!
How do you know if you are a US tax resident?
If any of two conditions are met:
Then, congratulations, you are a US tax resident!
Tax resident status not only obliges you to pay taxes, but also allows you to receive various deductions and tax credits.
If you have any questions please contact us, we are always happy to help.
If any of two conditions are met:
- you have Form I-551 or just a Green Card;
- you are physically present in the United States on at least 31 days in the current year and 183 days during the last three years;
Then, congratulations, you are a US tax resident!
Tax resident status not only obliges you to pay taxes, but also allows you to receive various deductions and tax credits.
If you have any questions please contact us, we are always happy to help.