How can I report return of capital on my 1040NR? This was reported on my 1042s form under income code 37 in box 1 and 0% tax rate. This income is not effectively connected to US business or trade. On line 7a there is federal tax withheld but on line 10 there is 0.00 since the tax withheld was repaid to me.

1 Answer 1


Return of capital is not income, and no tax was withheld. Nothing to report.

  • Nit: it's not income unless the (cumulative) RoC exceeds your basis (purchase cost), then the excess is reported as a capital gain -- for this case (NRA, not effectively connected) on 1040NR schedule NEC. Mar 27, 2022 at 5:40

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