Itemized Deductions for U.S. Nonresident Aliens (NRA), A to Z

1040-NR Tax Guide

Eligibility Deductions Tax Simulator Comparison Pitfalls

Itemized Deductions for U.S. Nonresident Aliens (NRA), A to Z

Demystify complex U.S. taxes, get to the core concepts, and calculate your estimated tax savings.

Step 1: Am I a Nonresident Alien (NRA)?

Your U.S. tax status is determined by residency status for tax purposes, not your visa type. Answer the questions below to check your status.

1. Do you have a U.S. Green Card?

2. Do you meet the Substantial Presence Test (SPT)?

Select 'Yes' if you were present in the U.S. for at least 31 days this year, AND the sum of (days this year) + (days last year / 3) + (days year before last / 6) is 183 days or more. (Note: Days for exempt individuals like F/J visa students may be calculated differently.)

Step 2: Key Deductions for Nonresident Aliens (NRAs)

✅ State & Local Taxes (SALT)

You can deduct state and local *income taxes* paid on income effectively connected with a U.S. trade or business (ECI).

Deductible (Yes)

• State/local income tax withheld from your salary
• Estimated state/local tax payments made
• Additional tax paid with last year's state return

Not Deductible (No)

• State/local sales tax
• Property taxes, vehicle registration fees
• Other non-income taxes

🚨 Key Limit: The deduction is capped at $10,000 per year ($5,000 if married filing separately).

✅ Donations to U.S. Charities

You can deduct contributions made to qualified *U.S.* charitable organizations (qualified 501(c)(3) organizations).

Deductible (Yes)

• Donation to Doctors Without Borders 'USA'
• Donation to the American Red Cross
• Donations to other IRS-approved U.S. charities

Not Deductible (No)

• Donations to charities in your home country
• Money given directly to an individual
• Contributions to political groups

🚨 Key Limit: Cash contributions are generally limited to 60% of your U.S. Adjusted Gross Income (AGI). You must keep a written acknowledgment (receipt) for any single donation of $250 or more.

✅ Casualty & Theft Losses

Deductions are only allowed for losses on property located in the U.S. that are caused by a *federally declared disaster*. (Rule for 2018-2025)

The calculation is complex. You can only deduct the net loss (after insurance, etc.) minus '$100 per casualty' and minus '10% of your AGI', so the actual deduction may be small.

⚠️ Very limited applicability. General theft or local natural disasters likely do not qualify. Consulting a professional is advised for this item.

Step 3: My Estimated Tax Savings Simulator

Enter your information for the 2024 tax year below to see how itemized deductions can reduce your tax burden. (Estimates based on 'Single' filing status).

① Annual Gross Income (ECI)

$

② Total State/Local Income Tax Paid

$

③ Total Donations to U.S. Charities

$

Total Itemized Deductions:

Estimated Tax Savings:

Nonresident (NRA) vs. Resident (RA): What's Different?

Feature	Nonresident Alien (Form 1040-NR)	U.S. Resident (Form 1040)
Taxable Income Base	U.S. Source Income	Worldwide Income
Standard Deduction	❌ Generally Not Allowed (few exceptions)	✅ Available
Scope of Itemized Deductions	Very Limited (SALT, donations, etc.)	Broad (medical expenses, mortgage interest, etc.)
Filing Status	Mainly Single or Married Filing Separately (MFS)	Married Filing Jointly (MFJ), Head of Household (HOH), etc.

Top 5 Common Mistakes to Avoid

❌

Using the Wrong Form

Filing Form 1040 instead of 1040-NR

❌

Taking the Standard Deduction

Most NRAs are not eligible

❌

Deducting Foreign Donations

Only U.S. charities are deductible

❌

Ignoring the SALT Cap

Deducting more than the $10,000 limit

❌

Deducting Sales/Property Tax

Only income tax is deductible

✅

Keep Meticulous Records

Tax payments, donation receipts, etc.

This application is for informational and educational purposes only. Always consult official IRS materials or a qualified tax professional for your actual tax filing.

© 2024 Interactive Tax Guide. All Rights Reserved.