Filing Non Resident 1040NR Deductions - What Can I Actually Claim?

Thanks for the info! Quick question though - I'm from Canada and I've always been told I get a personal exemption amount instead of the standard deduction. Is that different from what you're saying about only India having a special provision? And does the 140 days I spent in the US matter at all for how I'm treated?

You're right to ask about Canada. Non-residents from Canada, Mexico, and South Korea can claim personal exemptions due to their specific tax treaties, but this is different from the standard deduction that US residents get. The personal exemption amount is generally smaller than the standard deduction. The 140 days you spent in the US could matter, but not necessarily for deductions. It's more relevant for determining your residency status. The IRS uses the Substantial Presence Test to determine if you're a resident or non-resident for tax purposes. If you've been in the US for 183 days or more in the current year, or if the weighted total of days over three years exceeds 183 (using the formula), you might actually be considered a resident alien for tax purposes, which would change everything about your filing.

How does it work with foreign tax credits? My biggest issue is figuring out how to avoid double taxation between my home country and the US.

Does it actually work with non-US tax systems too? I need to file both in the US and in my home country and the interaction between the two is what's really complicated for me.

It absolutely handles foreign tax credits. The tool analyzes your situation and identifies which income is taxable where, then calculates the appropriate foreign tax credits to avoid double taxation. It showed me exactly how much I could claim as a credit for taxes paid to my home country. For your question about non-US tax systems, yes it does work with them. The software is specifically designed for cross-border tax situations. It understands the tax treaties between the US and over 60 countries, and can help you see how your tax obligations interact between countries. It helped me understand which deductions were valid on my US return versus my home country return, and identified treaty provisions that benefited my specific situation.

How does this actually work? Does it just connect you faster or do they help with the actual tax questions too?

This sounds like BS honestly. There's no way to skip the IRS phone queue - everyone has to wait their turn. How could they possibly get you through faster than anyone else?

They don't help with the tax questions themselves - they just help you get connected to an actual IRS agent faster. Basically, they use technology to navigate the IRS phone system and wait on hold for you, then call you when they have an agent on the line. You're still talking directly to the IRS, just without the ridiculous wait times. It's definitely not BS. They use a combination of AI and actual people to call the IRS for you, navigate the phone tree, and wait on hold. When they finally reach an agent, they connect you directly to that agent. The IRS doesn't know or care how you reached them - you're just another caller who waited in the queue, except Claimyr did the waiting for you. It's completely legitimate and really worked for me when I needed specific answers about my non-resident deduction questions.

Wait, I've never heard of this before and I've been working in the US on and off for years. Could I have been filing wrong this whole time? What happens if you should have been filing as a resident but filed as non-resident?

The Substantial Presence Test is definitely something many people miss. For your situation, you'd need to look back at your time in the US over the last three years. If you should have been filing as a resident but filed as non-resident, you may need to file amended returns. However, there's a potential silver lining - as a resident alien, you're entitled to more deductions and credits than as a non-resident, so you might actually get additional refunds by amending. It depends on your specific situation though. The statute of limitations for amending returns is generally 3 years from the original filing date, so you could potentially still fix previous years if needed.

Thanks for this info! I'm actually here on a B-1 business visa for my work assignments. Would that change anything about how my residency is determined? I didn't know visas could affect how the substantial presence test works.

For B-1 business visas, the normal Substantial Presence Test applies - there's no special exemption like there is for F, J, M, or Q visas. So you'd count your days normally: all days in the current year, 1/3 of days in the previous year, and 1/6 of days from two years ago. If that total exceeds 183, you'd be considered a resident alien for tax purposes unless you qualify for certain exceptions. One such exception is the "closer connection" exception. If you can demonstrate that you have a closer connection to your home country than to the US (through things like having a permanent home there, family connections, banking relationships, etc.), you might be able to maintain non-resident status even if you meet the Substantial Presence Test. You'd need to file Form 8840 to claim this exception.

This is incredibly helpful, thank you! I had no idea about Publication 519 - I've been trying to piece together information from various IRS pages and getting more confused. One follow-up question about the substantial presence test calculation: when you count days, do partial days count as full days? I had several trips where I arrived late at night or left very early in the morning, so I'm not sure if those should count as full days or not. Also, do days spent in transit (like layovers in US airports while traveling to other countries) count toward the 140 days? I'm definitely going to look into that Form 8840 for the closer connection exception since I still maintain my primary residence, bank accounts, and family ties in my home country. The 140 days was really just for this one extended project.

Great questions! For the substantial presence test, any part of a day that you're physically present in the US counts as a full day - so yes, even if you arrived late at night or left early in the morning, those count as full days. The IRS is pretty strict about this. Regarding transit/layovers, it depends on the specifics. If you're just passing through a US airport on the way to another country and don't formally enter the US (stay in the international transit area), those typically don't count. However, if you clear customs and immigration, even for a layover, that would count as a day of presence. The closer connection exception via Form 8840 sounds like it would definitely apply to your situation, especially since this was just a temporary extended project. You'll need to demonstrate ties to your home country like you mentioned - permanent home, family, banking, voter registration, driver's license, etc. The form asks for pretty detailed information about your connections to both countries. One tip: keep good records of your travel dates and the nature of your trips. The IRS may ask for documentation if they review your return, especially when claiming exceptions to residency rules.

This is really comprehensive advice, thank you! The point about state taxes is something I hadn't even considered yet - I was working in California for most of those 140 days, and I know they have pretty aggressive tax collection. I'm definitely leaning toward getting a professional consultation at this point. Between the potential residency status change, treaty benefits I might be missing, and now state tax implications, this is getting more complex than I initially thought. Do you happen to know if there are any specific credentials or certifications I should look for when finding a tax professional who specializes in non-resident situations? I want to make sure I find someone who really knows this area rather than just someone who says they do. The record keeping advice is spot on too - I've been pretty casual about tracking my travel dates, but I can see how important that's going to be going forward, especially if I have more extended projects like this one.