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How to File a Nonresident Tax Return

When it comes to nonresident tax returns, individuals have the option to independently prepare and file their taxes by collecting essential documents like W2, 1042-S, and/or 1099. Nevertheless, a considerable number of nonresidents opt for the convenience of utilizing the services provided by Rapid Tax for their tax filing needs.

After completing the straightforward Rapid Tax survey and navigating through the order summary and payment phase, you will be all set to electronically file or E-file your nonresident U.S. tax return. Your return preparation will be contingent upon furnishing an online signature and confirming your identity.

Nonresident Tax Return

Filing a Nonresident State Tax Return

In addition to the above, your obligation to file a state tax return can vary depending on your state of residence. It is important to note that there are nine states where residents are not required to file any tax returns.

  1. Alaska
  2. Florida
  3. Nevada
  4. New Hampshire
  5. South Dakota
  6. Tennessee
  7. Texas
  8. Washington
  9. Wyoming

Nonresident Tax Filing Deadline

On an annual basis, the tax deadline usually occurs on April 15. For the 2024 tax year, the due date to submit your U.S. nonresident tax return will be April 15, 2025.

In case there are outstanding taxes due to the tax office and your tax return is not submitted by the set deadline, the IRS reserves the right to levy penalties for late filing and charge interest on the unpaid balance.

What Happens If I Don’t File My Nonresident Tax Return?

Prioritizing the organization of your tax affairs is prudent to avoid last-minute stress before the U.S. tax deadline. Due to postponing their tax filing, numerous nonresident aliens in the U.S. tend to feel burdened by the complexities of the process.

Failure to submit tax documents can expose nonresident individuals to penalties from the IRS, the primary tax agency in the United States.

Commencing immediately following the deadline for filing taxes, the penalty will not surpass 25% of the outstanding tax amount. Nonetheless, if filing belatedly beyond 60 days from the original or extended due date, the minimum penalty will be the lesser of $485 or 100% of the unpaid tax.

The possibility exists that this could also influence the outcome of any upcoming visa or Green Card requests.

Can Nonresident Aliens Get a Tax Refund?

Absolutely! Many individuals who do not reside in the area may need to realize that they are eligible to request a refund on taxes. By submitting a tax return, you can receive a tax refund.

Acquiring the highest Federal Tax refund possible is made easy with Rapid Tax, as the typical State Tax refund amounts to $493. The timeline for receiving the refund in your bank account hinges on the IRS.

Typically, it takes about 4-6 weeks for paper tax returns to be processed, although there is a possibility of the IRS requiring up to 6 months to complete the processing and issue the tax refund.

Can Nonresident Alien File Jointly With My Wife?

In considering your specific situation, it is important to note that if you were married by the end of the tax year, the option to file a joint return with your spouse may not be available if both of you are classified as nonresident aliens.

Should you decide to submit Form 1040NR, you’ll notice that your only choice for filing status is as a single taxpayer.

I’ve Left the U.S. Can I and Should I Still File Taxes?

Absolutely, it’s possible to submit your tax filings while residing outside the United States. Rapid Tax holds IRS approval to assist with filing Federal tax returns electronically through E-Filing, which makes it incredibly convenient to complete and submit your U.S. Federal tax return from overseas.

Should you require assistance with filing your state tax return, allow Rapid Tax dedicated tax professional to guide you through the process of preparing a state-compliant nonresident tax return.

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How Life Events Can Save You Money from Tax Savings

Experiencing significant life milestones like getting married recently or buying your first home can lead to a myriad of uncertainties and inquiries. While you may be pondering how these pivotal moments impact your financial situation, rest assured that they can also yield tax savings opportunities.

Embarking on the journey of marriage, becoming a homeowner, welcoming a new addition to the family – these pivotal milestones have the potential to bring about tax savings when the time comes for tax filing.

Getting Married

If you have recently tied the knot or are contemplating marriage this year, chances are you are aware of the significant financial commitment involved. Despite the hefty price tag associated with weddings, one silver lining of getting married is the potential for increased tax benefits compared to when you were unmarried.

With marriage joining your lives, you and your partner can now combine your tax returns under the status of married filing jointly. This status may result in decreased tax obligations compared to when you were filing individually, thanks to the more favorable federal tax rates provided to married couples filing jointly.

In many cases, married individuals can enjoy tax benefits. If a couple ties the knot on the last day of the year, they are deemed married for the entire year and can take advantage of the various perks that come with marriage.

Choosing to file jointly as a married couple opens the door to potentially increased tax deductions and tax credits. One notable enhancement is the larger standard deduction available for the 2024 tax year.

In the upcoming tax year, individuals filing as single will see a boost in the standard deduction to $14,600, while those filing jointly as married will enjoy an increased deduction of $29,200. Moreover, married couples filing jointly in 2024 can benefit from an EITC (Earned Income Tax Credit) of up to $7,830 with three children.

tax savings

Buying a New Home

Making the decision to become a homeowner brings about significant life changes and presents an opportunity for substantial tax savings. The costs associated with a mortgage and property taxes can be quite substantial. Still, for those who have recently bought a home or are contemplating the idea, there is potential to lower tax liabilities by deducting mortgage interest and property taxes when itemizing deductions on Schedule A.

Having a Child or Children

If you welcomed a new member to your family this past year, I extend my warm congratulations! Amidst the happiness and thrill that comes with having a child, you might now be contemplating the financial aspects of caring for your little one.

Great news! Your family can now take advantage of additional tax deductions and tax credits. When you welcome a new baby, you become eligible for various tax benefits, such as the Child Tax Credit and the Child and Dependent Care Credit if you incur child care expenses.

Child Tax Credit:

  • Each dependent or a child must be under 17
  • Up to $2,000 for the tax years from 2022 to 2025 
  • If you are a single filer with an income of $200,000 or less or a married couple filing jointly with a combined income of $400,000 or less, you may be eligible for the Child Tax Credit.

Child and Dependent Care Tax Credit:

When considering tax credits for childcare expenses, you may qualify for a tax credit of up to 35% of eligible expenses. This Child Care Tax Credit applies to up to $3,000 of expenses for one child or $6,000 for two or more children.

Once your adjusted gross income surpasses $15,000, the tax credit begins to decrease, dropping to a minimum of 20% instead of the usual 35%. This adjustment highlights how welcoming a new addition to the family can lead to a significant tax benefit.

Experiencing life transitions can evoke a mix of emotions, from excitement and hope to confusion and costliness. However, amidst the whirlwind, it’s worth noting that these transitions often come with significant tax advantages.

Rest assured that you don’t need to stress about understanding the intricate tax regulations. Regardless of the financial decisions you made in the past year, the experts at Rapid Tax dedicated Tax Professional will ensure that they are accurately reflected in your tax filing. Whether you prefer to handle your taxes independently or have one of our seasoned professionals assist you, we are committed to maximizing your refund and ensuring you receive every entitlement you are due, which is guaranteed.

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Important Tax Updates That Will Change After 2025

In the absence of Congressional action, 2026 will usher in significant tax adjustments, such as increased tax rates and reduced standard deductions. Anticipate substantial 2025 tax updates on the horizon, all attributed to the repercussions of the 2017 tax reform legislation.

Beginning in 2026, a significant number of individual tax provisions are set to revert back to the regulations implemented in 2017. These provisions, which are currently scheduled to expire after 2025, will require action by Congress to be extended beyond that point. Let’s delve into the essential provisions that are due to expire.

  • 2025 Tax Update 1. In the upcoming year of 2025, alterations are set to take place within the individual income tax brackets. tax rates will return to 10% ~ 15% ~ 25% ~ 28% ~ 33% ~ 35% ~ 39.6%.
  • 2025 Tax Update 2. We can expect to see significant increases in standard deductions in 2025. The legislation passed in 2017 led to a substantial doubling of these deductions, marking a significant shift in tax policy.
  • 2025 Tax Update 3. In the year 2025, the child tax credits have seen a significant increase compared to the amount set before 2018. The credit has now been raised to $2,000, up from $1,000.
  • 2025 Tax Update 4. In the tax reform bill of 2017, a change was made to the AGI (Adjusted Gross Income) cap for cash donations to qualified charities, boosting the limit from 50% to 60%.
  • 2025 Tax Update 5. In the current year of 2025, individuals benefit from a significantly increased estate and gift tax exemption.
2025 tax update

Some Restrictions on Well-Known Tax Deductions End After 2025.

  1. In compliance with current regulations, there are limitations on the tax deductibility of home mortgage interest can be tax deducted on up to $750,000, which is less than what was previously.
  2. Incorporated within Schedule A are various tax deductions that fall under the 2%-of-AGI threshold. The recent legislation of 2017 has removed this particular group of itemized deductions up to the year 2025. Among these are costs such as unreimbursed employee expenditures (covering travel, meals, education, etc.), fees associated with brokerages and IRAs, hobby-related expenses, and fees linked to tax return preparation.
  3. In the tax year 2025, individuals may claim tax deductions for theft and casualty losses from only the federally declared disaster area eligible for the tax deduction.
  4. In the upcoming year of 2025, two significant tax provisions set to expire were not present in the laws of 2017. One of these changes is the widening of eligibility for the Obamacare health premium credit, benefiting more individuals purchasing insurance through a marketplace. 

Additionally, the exemption from federal income tax on most student loan debt forgiven between 2021 and 2025 stands out as a departure from the usual tax treatment of canceled debts. Find your dedicated RapidTax Tax Professional to walk you through these new 2025 tax updated and provisions from start to finish.