This guide is for nonresident aliens, including Australian residents with US-source income. It covers which form applies, how to test your status, what income counts, which documents to gather, deadlines and treaty points. Confirm the form and instructions for the specific tax year you are filing, because the printed year on the form decides which income it covers.
Key Takeaways
- Form 1040NR-EZ is obsolete; eligible nonresidents now use Form 1040-NR.
- Living in Australia or holding a non-US passport doesn't settle your US filing status.
- Wages, rent, scholarships and withheld income each lead to different filing outcomes.
- Check the deadline, treaty paperwork and e-filing options before you submit.
Is Form 1040NR-EZ Still Available in 2026?
No. The IRS 2020 instructions state that "For 2020, you will no longer use Form 1040-NR-EZ" and direct filers to the redesigned Form 1040-NR. Archived copies, such as the 2018 version, remain in the IRS prior-year library. They only suit a return for that old year.
How the Forms Compare
- Form 1040NR-EZ: the former simplified return for certain nonresidents with no dependents. Gone from 2020.
- Form 1040-NR: the current return for nonresident aliens, reporting US-taxable income.
- Form 1040: for US citizens and resident aliens, who generally report worldwide income.
Filing Year Versus Tax Year
Don't confuse the year you file with the year you earned the income. The final 2025 Form 1040-NR and instructions are the current versions, and returns for 2025 income are due in 2026.
A 2026 draft form exists, but the IRS says not to file drafts. Income earned in 2026 is reported in the 2027 filing cycle.
Who Must File Form 1040-NR in 2026?
Determine Whether You Are a Nonresident Alien
You are generally a US resident for tax purposes if you meet either test:
- Green card test: you were a lawful permanent resident at any time during the year.
- Substantial presence test: at least 31 days in the current year and 183 weighted days. The weighting counts all current-year days, one-third of prior-year days and one-sixth of the year before that.
For example, 120 days in each of three years equals 120 + 40 + 20 = 180, which falls below the 183-day threshold.
Students and teachers on F, J, M or Q visas can exclude qualifying days. "Exempt" here concerns day counting, not exemption from tax. A closer-connection exception also exists, which you claim on Form 8840.
Citizenship, visa type and Australian residence don't decide this. A US citizen or green card holder living in Sydney generally files Form 1040 and stays taxed on worldwide income.
Common Filing Triggers
The IRS says nonresidents engaged in a US trade or business generally must file. Triggers include:
- US wages and services physically performed in the US
- Effectively connected income from a US business
- US rental income
- Taxable scholarships or fellowship grants
Without a US trade or business, you must file if withholding didn't satisfy your US liability. You also file to claim a refund, deductions or credits. Dividends, interest and royalties can fall either way, depending on withholding and treaty relief.
Special Situations
- F, J, M and Q visa holders: may need Form 8843. If you also have taxable income to report, attach it to Form 1040-NR.
- Dual-status taxpayers: a mid-year change in residency means a resident period and a nonresident period, with no standard deduction.
- Remote work outside the US: income for work performed abroad is usually not US-source, but confirm the facts of each case.
- Property owners and investors: rental income and sales of US real estate follow their own rules.
A Quick Decision Path
- Determine your tax status under the green card and substantial presence tests.
- Identify the type and source of each income item you received.
- Check whether withholding fully covered your US tax obligation.
- Confirm whether you need to file a return or can claim a refund.
What Income, Deductions and Treaty Benefits Are Covered?
ECI Versus FDAP
Effectively connected income (ECI) is US-source income tied to a US trade or business. Allowable deductions apply, and net ECI is taxed at graduated individual rates.
FDAP income (fixed, determinable, annual or periodical) covers items such as dividends, interest and royalties. It need not be annual or regular. Non-ECI US-source FDAP generally bears 30% on gross income unless a treaty rate applies, with no deductions. Schedule NEC computes this tax.
Two special categories:
- Rental income: Non-ECI rent is taxed at 30% gross. Elect section 871(d) to treat it as ECI, claim deductions and tax the net; attach the election to the return.
- US property sales: FIRPTA generally withholds 15% of the amount realised, not the gain. That amount is a credit, not the final tax, so file a return and attach the stamped Form 8288-A.
Gross-basis FDAP, net-basis ECI and transaction withholding are different calculations. Don't mix them.
Deductions, Credits and Filing Status
Non-residents get fewer benefits than residents:
- Filing status options: Single, Married filing separately, or Qualifying surviving spouse. No joint or head-of-household filing.
- No earned income credit.
- Itemised deductions go on Schedule A (1040-NR), which is not the resident Schedule A.
- The standard-deduction treaty exception covers eligible Indian students and business apprentices, not Australians generally.
US-Australia Treaty Benefits
The 1982 convention, as amended in 2001, sets conditional source-country ceilings:
| Income | Ceiling rate |
|---|---|
| Dividends (Article 10) | 15% for individuals; 5% for qualifying companies holding 10%+ of voting power |
| Interest (Article 11) | 10%, with exemptions for some government and financial-institution interest |
| Royalties (Article 12) | 5% |
These are ceilings, not automatic rates, and exceptions apply. Article 14 can tax independent services performed in the US when presence exceeds 183 days or a fixed base exists. That is a different test from weighted substantial presence.
Treaty positions are usually disclosed on Form 8833, though exceptions exist for reduced withholding on interest, dividends, rent and royalties, and for items totalling $10,000 or less. A W-8BEN goes to the payer before payment. It is not a return.
Schedules and Supporting Forms
- Schedule OI: other information, including residence and treaty details.
- Schedule NEC: tax on income not effectively connected.
- Schedule A (1040-NR): itemised deductions.
- Form 8843: explains excluded days for exempt individuals.
- Form W-7: ITIN application, generally filed with the return.
- Form 8833: treaty-position disclosure.
- Form 8288-A: FIRPTA withholding reconciliation.
Not every filer attaches every schedule.
Document checklist:
- Passport and visa records
- US entry and exit dates
- W-2, 1042-S and 1099 forms
- Rental or business records
- Withholding statements and prior returns
How to File Form 1040-NR in 2026
Confirm Status and Taxpayer Identification
Run the green card and substantial presence analysis first. You need an SSN or ITIN to file.
For an ITIN, Form W-7 requires original documents or copies certified by the issuing agency, not ordinary photocopies. A passport is the only standalone document.
New applicants generally submit the original return with the application. Certifying Acceptance Agents can authenticate documents.
Gather Records and Classify Income
Reconcile each US income document against your own records. Label every item as ECI, FDAP, exempt, treaty-affected or fully withheld.
Also pull together:
- Visa history and US days present
- Country of tax residence
- Expense records and withholding certificates
- Prior returns and any refund documentation
Complete the Return
Work through it in this order:
- Taxpayer information
- Income
- Deductions
- Tax calculation
- Payments and withholding
- Refund or balance due
- Schedules and attachments (OI, NEC, A-NR, 8843, 8833)
Sign and date the return. Paid preparers add their PTIN.
E-File or Paper
The IRS confirms Form 1040-NR can be filed electronically, but ordinary consumer software often doesn't support it. Check any provider's 1040-NR support before relying on it.
For paper filing, the 2025 instructions list:
- Without payment: Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0215, USA
- With payment: Internal Revenue Service, P.O. Box 1303, Charlotte, NC 28201-1303, USA
Verify addresses before mailing. Certified-mail protection applies to US postal rules, not every foreign registered service. Private couriers qualify only if IRS-designated.
Payment options from abroad include a USD wire from a foreign bank or a card payment through a US processor, and fees can apply.
Deadlines, Late Returns and Corrections
For calendar-year 2025 returns:
| Filer | Deadline | Extended (Form 4868) |
|---|---|---|
| Wages subject to US withholding | 15 April 2026 | 15 October 2026 |
| No such wages | 15 June 2026 | 15 December 2026 |
October isn't the universal extension date. An extension doesn't extend time to pay.
Late penalties generally run at 5% per month for failure to file (maximum 25%) and 0.5% per month for failure to pay. Reasonable-cause relief may apply. Section 874 also generally requires filing within 16 months of the due date to preserve deductions and credits.
If you filed the wrong form, use Form 1040-X and attach the correct return marked "Amended".
Common Mistakes and When to Seek Professional Help
The errors that cause the most trouble:
- Using the discontinued 1040NR-EZ
- Choosing Form 1040 without confirming residency
- Putting income in the wrong category
- Omitting Schedule OI or Form 8843
- Missing treaty disclosures
- Skipping the ITIN
- Assuming withholding always ends the filing requirement
Also remember that exempt days are not exempt income.
Late filing, expired refund claims and wrong prior-year returns each follow different procedures. The IRS may prepare a substitute return that omits deductions you could have claimed.
File refund claims within 3 years of the return due date, and check current IRS guidance rather than assuming penalty relief. Complex residency facts, treaty claims or multi-year corrections are strong reasons to get a professional review before you file.
VJM Global prepares Form 1040-NR returns for non-resident individuals, including treaty benefits, withholding questions and ITIN applications. Australian-based non-residents, foreign investors and multinational clients with cross-border questions can ask VJM Global to review residency, US-source income, documentation and treaty-related filing requirements.
Final Thoughts
Don't treat Form 1040NR-EZ as a 2026 filing form. Establish your status, then use the year-specific IRS form, usually Form 1040-NR for eligible nonresident aliens.
Check current IRS instructions before filing. Get professional advice if your return involves any of the following:
- Dual-status filing
- Real estate or business income
- Treaty claims
- An ITIN application
- Late filing or amendments
Frequently Asked Questions
Can you still file a 2018 tax return?
Yes, subject to IRS filing, refund and limitation rules. Use the 2018 forms and instructions, not current ones.
What does "1040-NR" mean on a tax return?
It is the US federal income tax return generally used by eligible nonresident aliens to report income taxable under nonresident rules.
Is Form 1040NR-EZ still available in 2026?
No. The IRS discontinued it from tax year 2020. Use the Form 1040-NR and instructions for your filing year.
Who should file Form 1040-NR instead of Form 1040?
Nonresident aliens file 1040-NR. US citizens, green card holders and resident aliens generally file Form 1040. Review the residency tests and exceptions first.
Do I need to file Form 1040-NR if my US tax was already withheld?
Not always. It depends on the income type and whether withholding fully satisfied your liability. US business income, refund claims and treaty positions can still require a return.
Can nonresident aliens claim tax treaty benefits on Form 1040-NR?
Yes, when the treaty article and documentation requirements are met. Form 8833 or another disclosure is required in some situations.
