Form 1040-NR: the US return for people who aren't US persons.
If you are a UK resident with no US citizenship or Green Card but you earn US-source income — a Florida rental, US royalties, business profits, a property sale — Form 1040-NR is how the IRS sees it. Filed well, it usually collects back tax rather than adding it.
Figures relate to tax year 2025 (US) · 2025-26 (UK)
Who files it, and what it covers
The 1040-NR reports US-source income of nonresident aliens: effectively connected income like rentals and business profits taxed at graduated rates, and fixed or determinable income like dividends taxed by withholding.
For UK landlords, the net-basis election under section 871(d) is usually the difference between 30% withholding on gross rents and graduated tax on actual profit after expenses — routinely a large saving.
- US rental property income and the net-basis election
- Sales of US real estate and FIRPTA withholding recovery
- Treaty-rate claims on dividends, interest and royalties
- ITIN applications where a US tax number is needed
Withholding is a deposit, not the answer
US payers often withhold at default rates — 30% on income, 15% of gross proceeds on property sales under FIRPTA. The 1040-NR is where the real liability is computed and the difference refunded.
We prepare the return, the elections and the withholding certificates together, so the refund position is claimed rather than left with the IRS.
Primary sources
Official guidance from the IRS, FinCEN and GOV.UK. Thresholds and rates on those pages are updated annually — check the current tax year before relying on a figure.
Questions, Answered.
What clients ask about form 1040-nr tax returns
I sold a US property and 15% was withheld. Is that my tax?
No — FIRPTA withholding is collected on gross proceeds as security. The actual gain is computed on the 1040-NR, and the excess withholding comes back as a refund. A withholding certificate can sometimes reduce it up front.
Do I need an ITIN?
To file a 1040-NR, yes — a US taxpayer identification number is required. We prepare the W-7 application alongside the return so both move together.
Does filing a 1040-NR make me a US taxpayer generally?
No. It taxes the US-source income it reports and nothing more. Your UK residence position is untouched, and the same income is credited on the UK side so it isn't taxed twice.
What is the deadline for Form 1040-NR?
Generally June 15 where no wage withholding applies — typical for UK landlords — and April 15 where it does. Extensions to October are available on Form 4868 either way.
Do I pay US and UK tax on the same US rental income?
Both countries tax it, but the UK gives credit for the US tax paid, so the income isn't taxed twice — you effectively pay the higher of the two rates overall. The order the returns are prepared in matters for getting that credit right.
Next Step.
Tell us what you hold — the scope and a fixed fee follow in writing.