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One of my partners is a non-US-resident. Our LLC is based in Delaware, and we are subject to pass-through taxation (where we declare our share of profits/losses as income).

In principle, this partner must file a 1040NR, but in looking at the instructions for the 1040NR-EZ form, I get the impression that he may be able to file this version instead.

However, I'm a bit perplexed by this passage:

Your only U.S. source income was from wages, salaries, tips, refunds of state and local income taxes, scholarship or fellowship grants, and nontaxable interest or dividends. Note. If you had taxable interest or dividend income, you must use Form 1040NR instead of Form 1040NR-EZ.

Does profit from an LLC subject to pass-through taxation count as "wages" or "salaries" as defined in the 1040NR-EZ form?

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LLC (partnership) income is reported on Schedule K-1 which flows to Schedule E of the tax return, which can only be filed with the full form 1040/1040NR. So no, your partner cannot file 1040NR-EZ.

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  • Ah, too bad! I take it that I can't use the 1040EZ for myself, then, either? In any case, thank you!
    – Louis Thibault
    Commented Apr 3, 2015 at 15:08
  • @blz that's correct.
    – littleadv
    Commented Apr 3, 2015 at 15:57

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