Introduction
The United States taxes non-residents on their US-source income. If you earn dividends from American stocks, rental income from US real estate, or fees from a US company, you likely have IRS filing obligations — even if you live in France or elsewhere.
This guide by Hayot-expertise.fr explains who must file, which form to use, key deadlines, and how to avoid costly mistakes.
Are You a Non-Resident Alien?
You are a Non-Resident Alien (NRA) for IRS purposes if you don't hold a Green Card AND don't pass the Substantial Presence Test (183-day weighted count over 3 years). NRAs use Form 1040-NR to report US-source income.
What US Income Must Be Declared?
| Income Type | Tax Treatment |
|---|---|
| US wages | Withholding + 1040-NR |
| US dividends | 30% withholding (or treaty rate) |
| US rental income | 30% gross OR net income election |
| US real estate gains (FIRPTA) | 15% withholding at sale |
| US bank interest | Generally exempt for NRAs |
France-US Tax Treaty
The 1994 France-US tax treaty reduces withholding rates:
- ▸Dividends: 15% (5% for substantial holdings)
- ▸Royalties: 0% for industrial/IP royalties
- ▸Capital gains: taxed in country of residence (except real estate)
Filing a 1040-NR lets you claim treaty benefits and recover excess withholding.
Key Deadlines 2026
| Filing | Deadline |
|---|---|
| Form 1040-NR | June 15, 2026 (automatic 2-month extension for overseas NRAs) |
| Extension (Form 4868) | October 15, 2026 |
| FBAR (FinCEN 114) | April 15, 2026 (auto-extension to October 15) |
Practical Example: French Investor with US Rental Property
Pierre owns a Miami apartment generating $24,000 gross rent with $18,000 in deductible expenses.
- ▸No filing (30% gross withholding): $24,000 × 30% = $7,200 tax
- ▸1040-NR with net income election: $6,000 net × 10% = $600 tax
- ▸Savings from filing: $6,600
How to Comply
- ▸Get an ITIN (Form W-7) if you don't have a US Social Security Number
- ▸Gather documents: Form 1042-S, rental statements, expense receipts
- ▸Prepare Form 1040-NR claiming treaty benefits and net income elections
- ▸File by June 15 or request an extension
FAQ
Must I file if withholding was already deducted? Only if you want to claim a refund, use treaty rates, or deduct expenses.
What is FIRPTA? A 15% withholding on the sale price when a non-resident sells US real estate. File 1040-NR to reconcile actual tax owed.
Can I fix past unfiled years? Yes, via the IRS Streamlined Filing Compliance Procedures (reduced penalties).
Contact Hayot Expertise
Our French-American tax specialists prepare Form 1040-NR, obtain ITINs, handle FBAR reviews, and manage IRS regularizations.
📞 Contact us for a personalized IRS compliance review.
Article written by Hayot Expertise
Chartered Accountant, registered with the Institute of Chartered Accountants.
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