Instructions for Form Ri-1040nr "Nonresident Individual Income Tax Return" - Rhode Island

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2018 INSTRUCTIONS FOR FILING RI-1040NR
(FOR RHODE ISLAND NONRESIDENTS OR PART-YEAR RESIDENTS FILING FORM RI-1040NR)
GENERAL INSTRUCTIONS
The RI-1040NR Nonresident booklet contains returns and instructions for
of intangible personal property unless they are part of the income from
filing the 2018 Rhode Island Nonresident Individual Income Tax Return.
any business, trade, profession or occupation carried on in this state
Read the instructions in this book carefully. For your convenience we have
by the nonresident taxpayer.
provided line by line instructions which will aid you in completing your return.
•Compensation received for active service in the military forces of
Please print or type so that it will be legible. Fillable forms are available on
the United States.
our website at www.tax.ri.gov. Check the accuracy of your name(s), ad-
dress, social security number(s), and the federal identification numbers listed
INCOME TERMS DEFINED
on Schedule W.
In these instructions “total federal income” is federal adjusted gross in-
These instructions are for the use of non-resident and part-year resident tax-
come as defined in the United States Internal Revenue Code (IRC) and ap-
payers only. Full Year resident taxpayers will file their individual income tax
plicable regulations. “Total income from Rhode Island sources” is that portion
returns on Form RI-1040. Resident forms and instructions are available
of your total federal income derived from or connected with Rhode Island
upon request at the Rhode Island Division of Taxation and on our website at
sources. “Total Rhode Island income” is your total income from Rhode Island
www.tax.ri.gov.
sources after making the additions and subtractions described later in these
instructions. Total Rhode Island income of a part-year resident includes total
Complete your 2018 Federal Income Tax Return first.
income from Rhode Island sources for the entire year plus other income re-
It is the basis for preparing your Rhode Island tax return. The Rhode Is-
ceived during period of residence in Rhode Island after making the additions
land tax is based on your federal adjusted income.
and subtractions described later in these instructions.
Accuracy and attention to detail in completing the return in accordance
with these instructions will facilitate the processing of your tax return. You
JOINT AND SEPARATE RETURNS
may find the following points helpful in preparing your Rhode Island Income
JOINT RETURNS: Generally, if two married individuals file a joint federal
Tax Return.
income tax return they also must file a joint Rhode Island income tax return.
However, if either one of the married individuals is a resident and the other
WHO MUST FILE A RETURN
is a non-resident, they must file separate returns, unless they elect to file a
Every nonresident individual required by the laws of the United States to
joint return as if both were residents of Rhode Island. If the resident spouse
file a federal income tax return who has income derived from or connected
files separately in Rhode Island and a joint federal return is filed for both
with Rhode Island sources must file a Rhode Island individual income tax
spouses, the resident spouse must compute income, exemptions, credits
return. Nonresidents should complete page 11, Schedule II.
and tax as if a separate federal return had been filed.
Every part-year individual who was a resident for a period of less than 12
If neither spouse is required to file a federal income tax return and either
months is required to file a Rhode Island return if he or she is required to file
or both are required to file a Rhode Island income tax return, they may elect
a federal return. Part-year residents should complete page 13, Schedule III.
to file a joint Rhode Island income tax return.
Nonresident and part-year resident individuals who are not required to file
Individuals filing joint Rhode Island income tax returns are both equally li-
a federal income tax return may be required to file a Rhode Island individual
able to pay the tax. They incur what is known as “joint and several liability”
income tax return if he or she has Rhode Island modifications increasing
for Rhode Island income tax.
their Federal Adjusted Gross income.
SEPARATE RETURNS: Married individuals filing separate federal income
DEFINITION OF RESIDENT AND NONRESIDENT
tax returns must file separate Rhode Island income tax returns.
RESIDENT: a person (a) who is domiciled in the State of Rhode Island or
(b) who, even though domiciled outside Rhode Island, maintains a perma-
MILITARY PERSONNEL
nent place of abode within the state and spends a total of more than 183
Under the provisions of the Soldiers and Sailors Civil Relief Act the service
days of the taxable year within the state.
pay of members of the armed forces can only be subject to income tax by
NONRESIDENT: any person not coming within the definition of a resident.
the state of which they are legal residents. Place of legal residence at the
For purposes of the above definition, domicile is found to be a place an in-
time of entry into the service is normally presumed to be the legal state of
dividual regards as his or her permanent home – the place to which he or
residence and remains so until legal residence in another state is established
she intends to return after a period of absence. A domicile, once established,
and service records are changed accordingly. The Rhode Island income tax
continues until a new fixed and permanent home is acquired. No change of
is imposed on all the federal taxable income of a resident who is a member
domicile results from moving to a new location if the intention is to remain
of the armed forces, regardless of where such income is received.
only for a limited time even if it is for a relatively long duration. For a married
Military pay received by a nonresident service person stationed in Rhode
couple, normally both individuals have the same domicile. Any person as-
Island is not subject to Rhode Island income tax. This does not apply to
serting a change in domicile must show:
other income derived from Rhode Island sources, e.g., if the service person
(1) an intent to abandon the former domicile,
holds a separate job, not connected with his or her military service, income
(2) an intent to acquire a new domicile and
received from that job is subject to Rhode Island income tax.
(3) actual physical presence in a new domicile.
In addition, under the provisions of the Military Spouses Residency Relief
Act, income for services performed by the servicemember’s spouse can only
INCOME OF A NONRESIDENT SUBJECT TO TAX
be subject to income tax by the state of which they are legal residents if the
A nonresident is subject to tax on all items included in his or her total fed-
servicemember’s spouse meets certain conditions.
eral income (including his or her distributive share of partnership income or
Income for services performed by the servicemember’s spouse in Rhode
gain and his or her share of estate or trust income or gain) which are derived
Island would be exempt from Rhode Island income tax if the servicemem-
from or connected with Rhode Island sources as follows:
ber’s spouse moves to Rhode Island solely to be with the servicemember
•From real or tangible personal property located in the state.
complying with military orders sending the servicemember to Rhode Island.
•From a business, trade, profession or occupation carried on in the
The servicemember and the servicemember’s spouse must also share the
state.
same non-Rhode Island domicile.
•From services performed in the state.
However, other income derived from Rhode Island sources such as busi-
•Winnings and prizes from the Rhode Island lottery and other gam-
ness income, ownership or disposition of any interest in real or tangible per-
bling establishments in this state.
sonal property and gambling winnings are still subject to Rhode Island
•A nonresident is not subject to tax on the following classes of in-
income tax.
come even though included in total federal income:
Internal Revenue Code provisions governing armed forces pay while serv-
•Annuities, interest, dividends or gains from the sale or exchange
Page I-1
2018 INSTRUCTIONS FOR FILING RI-1040NR
(FOR RHODE ISLAND NONRESIDENTS OR PART-YEAR RESIDENTS FILING FORM RI-1040NR)
GENERAL INSTRUCTIONS
The RI-1040NR Nonresident booklet contains returns and instructions for
of intangible personal property unless they are part of the income from
filing the 2018 Rhode Island Nonresident Individual Income Tax Return.
any business, trade, profession or occupation carried on in this state
Read the instructions in this book carefully. For your convenience we have
by the nonresident taxpayer.
provided line by line instructions which will aid you in completing your return.
•Compensation received for active service in the military forces of
Please print or type so that it will be legible. Fillable forms are available on
the United States.
our website at www.tax.ri.gov. Check the accuracy of your name(s), ad-
dress, social security number(s), and the federal identification numbers listed
INCOME TERMS DEFINED
on Schedule W.
In these instructions “total federal income” is federal adjusted gross in-
These instructions are for the use of non-resident and part-year resident tax-
come as defined in the United States Internal Revenue Code (IRC) and ap-
payers only. Full Year resident taxpayers will file their individual income tax
plicable regulations. “Total income from Rhode Island sources” is that portion
returns on Form RI-1040. Resident forms and instructions are available
of your total federal income derived from or connected with Rhode Island
upon request at the Rhode Island Division of Taxation and on our website at
sources. “Total Rhode Island income” is your total income from Rhode Island
www.tax.ri.gov.
sources after making the additions and subtractions described later in these
instructions. Total Rhode Island income of a part-year resident includes total
Complete your 2018 Federal Income Tax Return first.
income from Rhode Island sources for the entire year plus other income re-
It is the basis for preparing your Rhode Island tax return. The Rhode Is-
ceived during period of residence in Rhode Island after making the additions
land tax is based on your federal adjusted income.
and subtractions described later in these instructions.
Accuracy and attention to detail in completing the return in accordance
with these instructions will facilitate the processing of your tax return. You
JOINT AND SEPARATE RETURNS
may find the following points helpful in preparing your Rhode Island Income
JOINT RETURNS: Generally, if two married individuals file a joint federal
Tax Return.
income tax return they also must file a joint Rhode Island income tax return.
However, if either one of the married individuals is a resident and the other
WHO MUST FILE A RETURN
is a non-resident, they must file separate returns, unless they elect to file a
Every nonresident individual required by the laws of the United States to
joint return as if both were residents of Rhode Island. If the resident spouse
file a federal income tax return who has income derived from or connected
files separately in Rhode Island and a joint federal return is filed for both
with Rhode Island sources must file a Rhode Island individual income tax
spouses, the resident spouse must compute income, exemptions, credits
return. Nonresidents should complete page 11, Schedule II.
and tax as if a separate federal return had been filed.
Every part-year individual who was a resident for a period of less than 12
If neither spouse is required to file a federal income tax return and either
months is required to file a Rhode Island return if he or she is required to file
or both are required to file a Rhode Island income tax return, they may elect
a federal return. Part-year residents should complete page 13, Schedule III.
to file a joint Rhode Island income tax return.
Nonresident and part-year resident individuals who are not required to file
Individuals filing joint Rhode Island income tax returns are both equally li-
a federal income tax return may be required to file a Rhode Island individual
able to pay the tax. They incur what is known as “joint and several liability”
income tax return if he or she has Rhode Island modifications increasing
for Rhode Island income tax.
their Federal Adjusted Gross income.
SEPARATE RETURNS: Married individuals filing separate federal income
DEFINITION OF RESIDENT AND NONRESIDENT
tax returns must file separate Rhode Island income tax returns.
RESIDENT: a person (a) who is domiciled in the State of Rhode Island or
(b) who, even though domiciled outside Rhode Island, maintains a perma-
MILITARY PERSONNEL
nent place of abode within the state and spends a total of more than 183
Under the provisions of the Soldiers and Sailors Civil Relief Act the service
days of the taxable year within the state.
pay of members of the armed forces can only be subject to income tax by
NONRESIDENT: any person not coming within the definition of a resident.
the state of which they are legal residents. Place of legal residence at the
For purposes of the above definition, domicile is found to be a place an in-
time of entry into the service is normally presumed to be the legal state of
dividual regards as his or her permanent home – the place to which he or
residence and remains so until legal residence in another state is established
she intends to return after a period of absence. A domicile, once established,
and service records are changed accordingly. The Rhode Island income tax
continues until a new fixed and permanent home is acquired. No change of
is imposed on all the federal taxable income of a resident who is a member
domicile results from moving to a new location if the intention is to remain
of the armed forces, regardless of where such income is received.
only for a limited time even if it is for a relatively long duration. For a married
Military pay received by a nonresident service person stationed in Rhode
couple, normally both individuals have the same domicile. Any person as-
Island is not subject to Rhode Island income tax. This does not apply to
serting a change in domicile must show:
other income derived from Rhode Island sources, e.g., if the service person
(1) an intent to abandon the former domicile,
holds a separate job, not connected with his or her military service, income
(2) an intent to acquire a new domicile and
received from that job is subject to Rhode Island income tax.
(3) actual physical presence in a new domicile.
In addition, under the provisions of the Military Spouses Residency Relief
Act, income for services performed by the servicemember’s spouse can only
INCOME OF A NONRESIDENT SUBJECT TO TAX
be subject to income tax by the state of which they are legal residents if the
A nonresident is subject to tax on all items included in his or her total fed-
servicemember’s spouse meets certain conditions.
eral income (including his or her distributive share of partnership income or
Income for services performed by the servicemember’s spouse in Rhode
gain and his or her share of estate or trust income or gain) which are derived
Island would be exempt from Rhode Island income tax if the servicemem-
from or connected with Rhode Island sources as follows:
ber’s spouse moves to Rhode Island solely to be with the servicemember
•From real or tangible personal property located in the state.
complying with military orders sending the servicemember to Rhode Island.
•From a business, trade, profession or occupation carried on in the
The servicemember and the servicemember’s spouse must also share the
state.
same non-Rhode Island domicile.
•From services performed in the state.
However, other income derived from Rhode Island sources such as busi-
•Winnings and prizes from the Rhode Island lottery and other gam-
ness income, ownership or disposition of any interest in real or tangible per-
bling establishments in this state.
sonal property and gambling winnings are still subject to Rhode Island
•A nonresident is not subject to tax on the following classes of in-
income tax.
come even though included in total federal income:
Internal Revenue Code provisions governing armed forces pay while serv-
•Annuities, interest, dividends or gains from the sale or exchange
Page I-1
ing in a “combat zone” or in an area under conditions that qualify for Hostile
correction in federal taxable income or federal tax liability as reported on
Fire Pay are applicable for Rhode Island purposes.
your federal income tax return, whether resulting from the filing of an
amended federal return or otherwise, within 90 days after filing such
amended return or final determination of such change by the Internal Rev-
DECEASED TAXPAYERS
enue Service. Report any changes on Form RI-1040NR, and check the
If the taxpayer died before filing a return for 2018, the taxpayer’s spouse
Amended checkbox. Using the Supplement to Individual Income Tax Return,
or personal representative must file and sign a return for the person who
provide an explanation of changes to your income, deductions or credits. At-
died if the deceased was required to file a return. A personal representative
tach the supplement to your amended return. The supplement can be found
can be an executor, administrator or anyone who is in charge of the tax-
on the Division of Taxation’s website at:
payer’s property. The person who files the return should check the “de-
http://www.tax.ri.gov/taxforms/personal.php
ceased” check box after the deceased’s name.
If you are claiming a refund as a surviving spouse filing a joint return with
RHODE ISLAND LOTTERY PRIZES AND GAMBLING WINNINGS
the deceased, no other form is needed to have the refund issued to you.
However, all other filers requesting a refund due the deceased, must file
Winnings and prizes received from the Rhode Island Lottery and other
Form RI-1310, Statement of Person Claiming Refund Due a Deceased Tax-
gambling establishments are taxable under the Rhode Island personal in-
payer, to claim the refund.
come tax and are to be included in the income of both residents and non-
residents alike.
WHEN AND WHERE TO FILE
ESTIMATED INCOME TAX PAYMENTS
Rhode Island personal income tax returns will be considered timely filed if
If a taxpayer can reasonably expect to owe more than $250 after allowing
post-marked by Monday, April 15, 2019.
for withholding tax and/or credits, he or she must make estimated tax pay-
ments. Estimated tax payments are made on Form RI-1040ES that has in-
If you are claiming a refund, mail your return to:
structions for computing the estimated tax and making payments.
Rhode Island Division of Taxation
One Capitol Hill
PAYMENTS OR REFUNDS
Providence, RI 02908 – 5806
Any PAYMENT of tax liability shown on your return to be due the State of
you are making a payment, mail your return, payment and Form RI-1040V
Rhode Island must be paid in full with your return. Complete and submit
to:
Form RI-1040V with your payment.
Rhode Island Division of Taxation
One Capitol Hill
An amount due of less than five dollars ($5) need not be remitted.
Providence, RI 02908 – 5807
See “Where and When to File” for mailing instructions.
EXTENSION OF TIME
A REFUND will be made if overpayment of income tax is shown on your
Any extension of time for filing an individual income tax return granted
return, unless you indicate on your return that such overpayment is to be
shall not operate to extend the time for the payment of any tax due on such
credited to estimated tax liability for 2019. No other application for refund is
return.
necessary. Please note that no refund can be made unless your return is
properly signed.
In General -
(1) An individual who is required to file a Rhode Island income tax
Refunds of less than $5.00 will not be made unless specifically requested.
return shall be allowed an automatic six month extension of time to file
such return.
See “Where and When to File” for mailing instructions.
(2) An application must be prepared in duplicate on Form RI-4868.
(3) The original of the application must be filed on or before the
REFUND CLAIMS
date prescribed for the filing of the return of the individual with the
Rhode Island Division of Taxation.
RIGL 44-30-87 provides different time periods within which a refund claim
(4) The application for extension must show the full amount prop-
is allowed. A refund may be claimed within three (3) years of filing a return
erly estimated as tax for the taxable year, and the application must be
or two (2) years from the time the tax was paid, whichever expires later.
accompanied by the full remittance of the amount properly estimated
If a claim is made within the three (3) year period, the amount of the refund
as tax which is unpaid as of the date prescribed for the filing of the re-
cannot exceed the amount of tax paid within that three (3) year period.
turn.
If a claim is made within the two (2) year period, the amount of refund
may not exceed the portion of tax paid during the two (2) years preceding
NOTE: If no payment is required to be made with your Rhode Island exten-
the filing of the claim.
sion form and you are filing a federal extension form for the same period of
time, then you do not need to submit the Rhode Island form. Attach a copy
For purposes of this section, any income tax withheld from the taxpayer
of the Federal Form 4868 or the electronic acknowledgment you receive
during any calendar year and any amount paid as estimated income tax for
from the IRS to your Rhode Island individual income tax return at the time it
a taxable year is deemed to have been paid on the fifteenth day of the fourth
is submitted.
month following the close of the taxable year for which the payments were
being made.
WHERE TO GET FORMS
For more information call the Personal Income Tax Section at
Forms may be obtained by:
(401) 574-8829, option #3.
- visiting the Division of Taxation’s website: http://www.tax.ri.gov or
- calling the Division of Taxation’s Forms Request line: (401) 574-8970
VICTIM OF IDENTITY THEFT
If you are a victim of identity theft, attach a copy of Federal Form 14039
MISSING OR INCORRECT FORM W-2
to your return.
This form is given to you by your employer showing the amount of your
income tax withheld on your behalf by your employer. A copy of it must ac-
SIGNATURE
company your Rhode Island income tax return if you are to receive credit
You must sign your Rhode Island income tax return. If filing a joint return,
for such withheld tax. Only your employer can issue or correct this form.
both married individuals must sign the return. An unsigned return cannot
If you have not received a Form W-2 from your employer by February 15,
be processed.
2019 or if the form which you have received is incorrect, contact your em-
Any paid preparer who prepares a taxpayer’s return must also sign as
ployer as soon as possible.
“preparer”. If a firm or corporation prepares the return, it should be signed
in the name of the preparer on behalf of the firm or corporation.
CHANGES IN YOUR FEDERAL TAXABLE INCOME OR
If you wish to allow the Tax Division to contact your paid preparer should
FEDERAL TAX LIABILITY
questions arise about your return, check the appropriate box above the pre-
You must report to the Rhode Island Division of Taxation any change or
parer’s name.
Page I-2
NET OPERATING LOSS DEDUCTIONS
If the funds are rolled over to a Tuition Savings Plan of another state or
are an unqualified withdrawal, recapture is required.
The Rhode Island Personal Income Tax law relating to Net Operating Loss
Taxpayers may also take a modification decreasing federal adjusted gross
deduction (NOL) has been amended by enactment of RIGL §44-30-2.8 and
income in the amount of any qualified withdrawal or distribution from the “Tu-
RIGL §44-30-87.1
ition Saving Program” which is included in federal adjusted gross income.
Under the provisions of RIGL §44-30-87.1, for losses incurred for taxable
Taxpayers should claim the modification on Schedule M - page 1, line 1g.
years beginning on or after January 1, 2002, an NOL deduction may not be
carried back for Rhode Island personal income tax purposes, but will only
RHODE ISLAND TAX CREDITS
be allowed as a carry forward for the number of succeeding years as pro-
vided in IRS Section 172. A carry forward can only be used on the Rhode
Rhode Island law provides special Rhode Island tax credits which may
Island return to the extent that the carry forward is used on the federal re-
be applied against the Rhode Island income tax. Before claiming any cred-
turn.
its, taxpayers should refer to the Rhode Island law and/or regulations for
Should you have any questions regarding this matter, please call the Per-
specific requirements for each credit such as carry over provisions and the
order in which the credits must be used. Taxpayers claiming credits must
sonal Income Tax Section at (401) 574-8829, option #3.
attach RI Schedule CR and the proper form(s) and other documentation to
the return; failure to do so will result in disallowance of the credit. A list of
BONUS DEPRECIATION
allowable Rhode Island credits is available on RI Schedule CR.
A bill passed disallowing the federal bonus depreciation for Rhode Island
tax purposes. When filing a Rhode Island tax return any bonus depreciation
If you do not see a particular credit on RI Schedule CR, that means the
taken for federal purposes must be added back to income as a modification
credit is no longer allowed against personal income tax.
on RI Schedule M - page 2, line 2d for Rhode Island purposes. In subse-
quent years, when federal depreciation is less than what previously would
INTEREST
have been allowed, the difference may be deducted from income as a mod-
Any tax not paid when due, including failure to pay adequate estimated
ification on RI Schedule M - page 1, line 1i for Rhode Island purposes.
tax, is subject to interest at the rates of 18% (0.1800) per annum.
A separate schedule of depreciation must be kept for Rhode Island pur-
Interest on refunds of tax overpayments will be paid if the refund is not
poses. The gain or loss on the sale or other disposition of the asset is to be
paid within 90 days of the due date or the date the completed return was
determined, for Rhode Island purposes, using a Rhode Island depreciation
filed, whichever is later. The interest rate for tax overpayments is 5.25%
schedule.
(0.0525) per annum.
EXAMPLE: A company bought equipment after September 11, 2001 that
PENALTIES
cost $10,000 and had a 10 year life and qualified for 30% bonus deprecia-
The law provides for penalties in the following circumstances:
tion. Depreciation for federal purposes in the first year was $3,700 (30% X
•Failure to file an income tax return by the due date. A late filing penalty
$10,000) + (10% x 7,000). Normal depreciation in the first year would have
will be assessed at 5% (0.0500) per month on the unpaid tax for each month
been $1,000. The Company should add back on RI Schedule M, line 2d the
or part of a month the return is late. The maximum late filing penalty is 25%
amount of $2,700 ($3,700 - $1,000). In subsequent years the company
(0.2500).
should deduct $300 ($1000 - $700) each year while depreciation lasts. The
•Failure to pay any tax due by the due date. A late payment penalty will
deduction should be on RI Schedule M, line 1i.
be assessed at 1/2% (0.0050) per month on the unpaid tax for each month
If a taxpayer has already filed a return, an amended return should be filed.
or part of a month the tax remains unpaid. The maximum late payment
Questions on this procedure should be addressed by calling the Personal
penalty is 25% (0.2500).
Income Tax Section at (401) 574-8829, option #3.
•Preparing or filing a fraudulent income tax return.
SECTION 179 DEPRECIATION
Regulation 280-RICR-20-55-4 implements the state law enacted in 2013
Rhode Island passed a bill disallowing the increase in the Section 179
which establishes civil and criminal penalties for paid preparers who prepare
depreciation under the Jobs & Growth Tax Relief Reconciliation Act of 2003.
Rhode Island personal income tax returns with the intent to wrongfully evade
Section 179 depreciation will remain limited to $25,000 for Rhode Island in-
or reduce a tax obligation.
come tax purposes. When filing your Rhode Island tax return, a deduction
is allowed for depreciation taken on your federal return in prior years which
was previously taken as an increasing modification to adjusted gross in-
USE OF FEDERAL INCOME TAX INFORMATION
come. Enter the deduction as a modification on Schedule M - page 1, line
All amounts reported from the Federal Form 1040, 1040NR and 1040NR-
1j.
EZ, as well as those reported on Form RI-1040NR are subject to verification
A separate schedule of depreciation must be kept for Rhode Island pur-
and audit by the Rhode Island Division of Taxation.
poses. The gain or loss on the sale or other disposition of the asset is to be
The Rhode Island Division of Taxation and the Internal Revenue Service
determined, for Rhode Island purposes, using the Rhode Island depreciation
exchange income tax information to verify the accuracy of the information
schedule.
reported on Federal and Rhode Island income tax returns.
Legislation passed in July of 2013 sets Rhode Island to conform with the
federal Section 179 deduction amounts for all assets placed in service on
OTHER QUESTIONS
or after January 1, 2015.
Obviously the foregoing general instructions and the specific instructions
for completing the return form(s) which follow will not answer all questions
TUITION SAVINGS PROGRAM – SECTION 529
that may arise. If you have any doubt regarding completion of your return,
A modification decreasing federal adjusted gross income may be
further assistance may be obtained at the Division of Taxation, One Capitol
claimed for contributions made to a Rhode Island “qualified tuition pro-
Hill, Providence RI 02908-5801 or by calling the Personal Income Tax Sec-
gram" under section 529 of the Internal Revenue Code, 26 U.S.C. §529.
tion at (401) 574-8829, option #3.
The maximum modification shall not exceed $500, $1,000 if a joint return,
regardless of the number of accounts. Taxpayers should claim the modifi-
cation on Schedule M - page 1, line 1g.
Page I-3
SPECIFIC LINE INSTRUCTIONS
NAME AND ADDRESS
1040NR-EZ, enter $0 on this line.
Complete the identification portion of the return, including your name and
Line 5 - Subtract line 4 from line 3. If zero or less, enter zero.
social security number, your spouse’s name and social security number (if
applicable), address, daytime telephone number and your city or town of
Line 6 – Exemptions: New for Tax Year 2018 - Complete RI Schedule E
legal residence.
(found on page 5 of the RI-1040NR Nonresident booklet) listing the name,
social security number, date of birth and relationship to you of each depend-
ELECTORAL SYSTEM CONTRIBUTION
ent for whom you are claiming an exemption. Enter the number of Exemp-
You may designate a contribution of five dollars ($5) or ten dollars ($10)
tions from RI Schedule E, line 5 in the box on line 6. Attach RI Schedule E
if married and filing a joint return, to the account for the public financing of
to your RI-1040NR tax return.
the electoral system. The first two dollars ($2) or four dollars ($4) if married
and filing a joint return, up to a total of two hundred thousand dollars
RI Schedule E is discussed further beginning on page I-8 of these instruc-
($200,000) collectively for all parties and the nonpartisan account, shall be
tions.
allocated only to political parties which at the preceding general election,
nominated a candidate for governor and such candidate polled at least 5
NOTE: If you are filing a Federal Form 1040NR-EZ, enter 1.
percent of the entire vote cast in the state for governor. The remaining funds
shall be allocated for the public financing of campaigns for governor.
Exemption Amount: Multiply the number of exemptions in the box by
An electoral system contribution will NOT increase your tax due or reduce
$4,000.
your refund.
However, if line 3 is more than $199,000 see the Exemption Worksheet on
DESIGNATION OF POLITICAL PARTY
page i (back of the front cover) to compute your exemption amount.
If you don’t name a political party, your contribution will by credited to the
nonpartisan general account or you can check the box and designate a po-
NOTE: If someone else can claim you on their return, your exemption amount is
litical party. If you designate:
zero.
(1) a political party which did not receive at least 5 percent of the entire
vote for Governor in the preceding general election,
Line 7 – Rhode Island Taxable Income: Subtract line 6 from line 5. If zero
(2) a non-existent political party,
or less, enter zero.
(3) a particular office,
(4) an individual officeholder or political figure or
Line 8 – Rhode Island Income Tax: Enter the RI income tax from the RI
(5) a national party which is not a state party,
Tax Table or Tax Computation Worksheet.
your electoral system contribution will be credited to the nonpartisan general
account.
Line 9 – Rhode Island Percentage of Allowable Federal Credits: Enter
If you designate more than one political party, your contribution will be
the amount of allowable federal credits from page 3, RI Schedule I, line 25.
credited to the first political party named.
Line 10 – Rhode Island Tax After Allowable Federal Credits – Before Al-
FILING STATUS
location: Subtract line 9 from line 8. If zero or less, enter zero.
Check the appropriate box to indicate your filing status. Generally your
filing status for Rhode Island income tax purposes is the same as for Federal
Line 11 – Rhode Island Allocated Income Tax:
income tax purposes.
If ALL your income is from Rhode Island, check the first box and enter
the amount from line 10 on this line.
If you are a NON-RESIDENT with income from outside Rhode Island,
INCOME, TAX AND CREDITS
complete page 11, schedule II and enter the result on this line. Also, check
the second box.
If you are a PART-YEAR RESIDENT with income from outside Rhode Is-
Line 1 – Federal Adjusted Gross Income: Enter your federal adjusted
land, complete page 13, schedule III and enter the result on this line. Also
gross income from Federal Form 1040, line 7; Federal Form 1040NR, line
check the third box.
36 or Federal Form 1040 NR-EZ, line 10.
Line 12 – Other Rhode Island Credits: Enter amount of Other Rhode Is-
Line 2 – Modifications: Enter your net modifications from RI Schedule M,
land credits from page 6, RI Schedule CR, line 8. Attach RI Schedule CR
page 2, line 3. If you are claiming a modification, you must attach RI Sched-
and your original certificate or carry-forward schedule to your RI-1040NR.
ule M to your return. RI Schedule M is discussed further starting on page
I-9 of these instructions.
NOTE: All credits require the original certificate be attached to the return.
Failure to do so will result in the disallowance of the credit until the original
Line 3 – Modified Federal Adjusted Gross Income: Determine your mod-
can be provided.
ified federal adjusted gross income by combining the amount on line 1 with
the amount on line 2.
Line 13a – Total Rhode Island Income Tax – After Rhode Island Credits:
Subtract line 12 from line 11. If zero or less, enter zero.
Line 4 – Deductions: Enter your Rhode Island standard deduction from the
list below. Rhode Island does not allow the use of federal itemized deduc-
Line 13b - Recapture of Prior Year Other Rhode Island Credits: Enter
tions.
amount of Credit Recapture from page 6, RI Schedule CR, line 11.
Single
$8,525
Married Joint
$17,050
Line 14 – Rhode Island Checkoff Contributions: Enter amount of checkoff
Qualifying Widow(er)
$17,050
contributions from page 3, RI Checkoff Contributions Schedule, line 33. A
Married Separate
$8,525
list of the checkoff contributions can be found on page I-8 of these instruc-
Head of Household
$12,800
tions. These checkoff contributions will increase your tax due or reduce your
refund.
However, if line 3 is more than $199,000 see the Exemption Worksheet on
page i (back of the front cover) to compute your exemption amount.
Line 15 – Use/Sales Tax Due: Enter the amount of Use/Sales Tax from
Schedule U, line 4 or line 8, whichever applies. For more information, see
NOTE: Nonresident alien individuals are not eligible for the Rhode Island
the instructions for RI Schedule U on page I-11.
standard deduction. If you file Federal Form 1040NR or Federal Form
Page I-4
Line 16a – Total Rhode Island Tax and Checkoff Contributions: Add
If the amount of underestimating interest due on line 18b is more than the
lines 13a, 13b, 14 and 15.
amount of overpayment from line 19, subtract line 19 from line 18b and enter
the result on line 18c.
Line 16b - Enter the amount from line 16a.
Line 20 – Overpayment to be Refunded: Enter the amount of the over-
payment on line 19 that is to be refunded. Refunds of less than $5.00 will
not be paid unless specifically requested.
PAYMENTS
Line 21 - Overpayment to be Applied to 2019:
Enter the amount of overpayment on line 19 which is to be applied to your
2019 estimated tax. (See General Instructions on page I-2)
Line 17a – Rhode Island Income Tax Withheld: Enter total amount of
Rhode Island 2018 income tax withheld from Schedule W, line 16. (Attach
state copy of all forms W-2, 1099s, etc. to the front of the return.) Credit for
RI SCHEDULE I
Rhode Island income tax withheld will be allowed only for those amounts
ALLOWABLE FEDERAL CREDIT
supported by attached W-2s, 1099s, etc.
RI Schedule W, along with your W-2s and 1099s, must be attached to your
return in order to receive credit for Rhode Island income tax withheld.
Line 22 – Rhode Island Income Tax: Enter the amount from Form RI-
1040NR, page 1, line 8.
Withholding from a Pass-through entity reported on Form RI-1099PT should
be entered on Schedule W and included in the amount for Line 17a.
Line 23 – Credit for Child and Dependent Care Expenses: Enter the
amount from Federal Form 1040, Schedule 3, line 49.
NOTE: You can not claim Rhode Island Temporary Disability Insurance pay-
ments (RI TDI or SDI) as income tax withheld. These amounts are non re-
Line 24 – Tentative Allowable Federal Credit: Multiply the amount on line
fundable on RI-1040NR.
23 by 25%.
RI Schedule W, along with your W-2s and 1099s, must be attached to your
Line 25 - Maximum Credit: Enter the amount from line 22 or 24, whichever
return in order to receive credit for Rhode Island income tax withheld.
is less. Enter here and on Form RI-1040NR, page 1, line 9.
Line 17b – 2018 Estimated Payments and Amount Applied from 2017
return: Enter the amount of estimated payments on 2018 Form RI-1040ES
and the amount of overpayment applied from your 2017 return.
RI SCHEDULE II
NONRESIDENT TAX CALCULATION
Line 17c – Nonresident Withholding on Real Estate Sales in 2018: Enter
the amount of Rhode Island income tax withheld on sales of real estate lo-
This worksheet is located on page 11 of the RI-1040NR Nonresident
cated in Rhode Island.
booklet and is to be completed by full year nonresidents. Part-year
residents complete Schedule III located on page 13 of the RI-1040NR
Line 17d - RI Earned Income Credit: Enter amount from page 3, RI Sched-
Nonresident booklet .
ule EIC, line 38. If you are claiming a RI earned income credit, you must
complete and attach RI Schedule EIC located on page 3 to your RI-1040NR.
PART 1 – ALLOCATION & TAX WORKSHEET
Line 17e – Other Payments: Enter any other payments, including advance
Column A, Lines 1 through 10 –
payments made with your application for an automatic extension of time to
file (Form RI-4868). Attach a copy of Form RI-4868.
Line 1 – Wages, Salaries, Tips, etc.
Enter the amount of your total wages, salaries, commissions, tips, etc. re-
Any pass-through withholding from Form RI- 1099PT must be entered
ported on your federal return which were received for services performed in
on RI Schedule W and not included in “Other Payments’ on this line.
Rhode Island.
Form RI-1099PT must be attached to your return.
Compensation earned partly within and partly without Rhode Island –
Line 17f – Total Payments and Credits: Add lines 17a, 17b, 17c, 17d and
If total wage and salary income was earned partly within and partly outside
17e.
Rhode Island and your employer does not separately report the amount of
earnings in Rhode Island, determine the amount allocable to Rhode Island
Line 17g - If filing an amended return, enter the amount of any prior over-
by completing RI Schedule II, part 2 on page 12 or attaching a separate
payments for this tax period (whether refunded or carried forward).
schedule detailing how such allocation was made.
Line 17h - Net Payments: Subtract line 17g from line 17f.
The amount allocable to Rhode Island is that portion of your wage and salary
income which the number of days worked in Rhode Island bears to the total
Line 18a – Balance Due: If the amount on line 16b is greater than the
number of days (exclusive of nonworking days, such as Saturday, Sundays,
amount of line 17h, SUBTRACT line 17h from line 16b and enter the balance
holidays, sick leave, vacation, etc,) employed both within and outside the
due on line 18a. This is the amount you owe.
state during the year.
Line 18b – Underestimating Interest Due: Complete Form RI-2210 or
If your compensation subject to allocation depends entirely on volume of
Form RI-2210A. Enter the amount of interest due from Form RI-2210, line
business transacted, as in the case of a salesman working on commission,
12 or line 22, or Form RI-2210A, line 12 on this line.
do not use RI Schedule II, part 2. In this event, the amount of compensation
allocable to Rhode Island is that portion of the compensation included in
Line 18c – Total Amount Due: Add lines 18a and 18b. This amount is
Column B, line 1 which the volume of business transacted inside the state
payable in full with your return. Complete Form RI-1040V. Send payment
bears to the total volume of business transacted both inside and outside the
and Form RI-1040V with your return. An amount due of less than five dollars
state. The determining factor in ascertaining where business is transacted
($5) need not be paid.
is the location where the services or sales activities were actually performed.
Attach a schedule to your return showing the computation of the allocation
Line 19 – Overpayment: If the amount on line 17h is greater than the
to Rhode Island of compensation based on volume of business transacted.
amount on line 16b, SUBTRACT line 16b from line 17h.
If your personal service compensation is allocated on a basis other than
If there is an amount due on line 18b for underestimating interest, subtract
those covered in the preceding two paragraphs, please attach a separate
line 18b from line 19.
schedule showing complete details.
Page I-5

Download Instructions for Form Ri-1040nr "Nonresident Individual Income Tax Return" - Rhode Island

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