Why does filing a Form 1040NR cost more than filing a Form 1040?

Non-resident returns are much more complex than resident returns, even if the income reported is very small.

  • Effectively Connected Income, or income connected to trade or business conducted with the U.S., must be treated differently than other income.
  • Fixed, Determinable and Periodical Income must be treated differently that Incidental Income.
  • We must determine if your income qualifies for a preferential tax rate according to a tax treaty.

$10K of U.S. income reported using a Form 1040NR may result in anywhere from $0 to $3,000 in tax due depending on the income characteristics listed above.

The additional fee that we charge for filing a non-resident return goes towards an analysis of these income characteristics which ensures that non-resident aliens are taxed as accurately as possible with as few penalties as possible.

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