The 1040-NR Form is also called, the U.S. Non-resident Alien Income Tax Return. As the name suggests, this is filed by non-resident aliens who have declared dependents in the income tax return, who have earned revenues previously declared in Form 1099 out of projects as an independent contractor or if they received income by way of capital gains or dividends from stocks. Non-resident citizens who claim itemized deductions or who are claiming unreimbursed employee expenses may also use this form.
The IRS set certain qualifications for users of Form 1040NR. They must be non-resident aliens currently engaged in any business or trade in the US and their income must be exempted from paying the federal tax either because of a tax treaty or by tax laws; or they do not earn any income from their transactions or sources in the United States. Additionally, this form also applies to nonresident aliens who are not engaged in business or trade in the country and not all the taxes they owe from the federal government were withheld from their income.
Representatives of deceased persons obliged to file this form as well as, representatives of trust or estates must also file Form 1040NR with the Internal Revenue Service.
Category: Tax deductions, Tax return. Form 1040 NR is used by nonresident aliens who have taxable income in the US. these people claim itemized deductions and expenses related to employment like continuing education and travel expenses.
Link to IRS website: http://www.irs.gov/pub/irs-pdf/f1040nr.pdf