<html><head>
<meta http-equiv="Content-Type" content="text/html; charset=utf-8">
</head><body>
<span style="position:absolute; border: gray 1px solid; left:0px; top:50px; width:612px; height:1008px;"></span>
<div style="position:absolute; top:50px;"><a name="1">Page 1</a></div>
<div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:36px; top:143px; width:283px; height:37px;"><span style="font-family: PDDIPA+Helvetica; font-size:17px">PAGER/SGML
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:16px">Page 1 of 48 Instructions for Form 1040NR
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:156px; top:134px; width:147px; height:25px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">Userid: ________ DTD INSTR04
<br>Fileid:
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:192px; top:150px; width:234px; height:9px;"><span style="font-family: PDDIPA+Helvetica; font-size:9px">D:\USERS\8fllb\documents\epicfiles\2007Instructions1040NR.sgm
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:323px; top:129px; width:154px; height:15px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">Leadpct: 0% Pt. size: 9.5 </span><span style="font-family: PDDJAB+ZapfDingbats; font-size:13px">❏ </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">Draft
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:505px; top:129px; width:57px; height:15px;"><span style="font-family: PDDJAB+ZapfDingbats; font-size:13px">❏ </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">Ok to Print
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:444px; top:149px; width:128px; height:31px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">(Init. &amp; date)
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:16px">7:48 -  6-DEC-2007
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:42px; top:198px; width:489px; height:10px;"><span style="font-family: PDDJAC+Helvetica-Oblique; font-size:10px">The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:42px; top:285px; width:267px; height:130px;"><span style="font-family: PDDJAD+Helvetica-Bold; font-size:46px">20</span><span style="font-family: PDDJCD+Helvetica-Condensed-Black; font-size:48px">07
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:32px">Instructions for
<br>Form 1040NR
<br></span><span style="font-family: PDDJCE+FranklinGothic-Demi; font-size:16px">U.S. Nonresident Alien Income Tax Return
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:42px; top:429px; width:157px; height:20px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">Section references are to the Internal
<br>Revenue Code unless otherwise noted.
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:41px; top:428px; width:337px; height:202px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">use a different address this year. See
<br></span><span style="font-family: PDDJAC+Helvetica-Oblique; font-size:10px">Where To File</span><span style="font-family: PDDIPA+Helvetica; font-size:10px"> on page 4.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:20px">General Instructions </span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">deduction. </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">The deduction rate for
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Domestic production activities
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:16px">What’s New for 2007
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Tax benefits extended. </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">The following
<br>tax benefits were extended through
<br>2007.
<br></span><span style="font-family: PDDJDF+Symbol; font-size:14px">• </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">Deduction for educator expenses in
<br>figuring adjusted gross income.
<br></span><span style="font-family: PDDJDF+Symbol; font-size:14px">• </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">District of Columbia first-time
<br>homebuyer credit.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Alternative minimum tax (AMT)
<br>exemption amount decreased. </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">The
<br>AMT exemption amount is decreased to
<br>$33,750 ($45,000 if a qualifying
<br>widow(er); $22,500 if married filing
<br>separately).
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:337px; top:672px; width:16px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px"> For
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:335px; top:494px; width:42px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px"> If you are
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:221px; top:471px; width:166px; height:533px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">2007 is increased to 6%.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Unreported social security and
<br>Medicare tax on wages.
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px">an employee and your employer did not
<br>withhold social security and Medicare
<br>tax, see Form 8919 to figure and report
<br>this tax.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Refundable credit for prior-year
<br>minimum tax.
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px">If you have an unused
<br>minimum tax credit carryforward from
<br>2004, see Form 8801 to find if you can
<br>take this credit.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Health savings account (HSA)
<br>funding distributions. </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">You may be
<br>able to elect to exclude from income a
<br>distribution made from your IRA to your
<br>HSA. See the instructions for lines 16a
<br>and 16b beginning on page 12.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">New recordkeeping requirements for
<br>contributions of money.
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px">charitable contributions of money,
<br>regardless of the amount, you must
<br>maintain as a record of the contribution
<br>a bank record (such as a cancelled
<br>check) or a written record from the
<br>charity. The written record must include
<br>the name of the charity, date, and
<br>amount of the contribution. See </span><span style="font-family: PDDJAC+Helvetica-Oblique; font-size:10px">Gifts to
<br>U.S. Charities</span><span style="font-family: PDDIPA+Helvetica; font-size:10px"> that begins on page 26.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Exemption for housing a person
<br>displaced by Hurricane Katrina
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">expires. </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">The additional exemption
<br>amount for housing a person displaced
<br>by Hurricane Katrina does not apply for
<br>2007 or later years.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Telephone excise tax credit.
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px">credit was available only on your 2006
<br>return. If you filed but did not request it
<br>on your 2006 return, file Form 1040X
<br>using a simplified procedure explained
<br>in its instructions to amend your 2006
<br>return. If you were not required to file a
<br>2006 return, see the 2006 Form
<br>1040EZ-T.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:16px">What’s New for 2008
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">IRA deduction expanded. </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">You may
<br>be able to deduct up to $5,000 ($6,000
<br>if age 50 or older at the end of the
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px">year). You may be able to take an IRA
<br>deduction if you were covered by a
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:355px; top:837px; width:20px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px"> This
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:276px; top:1015px; width:59px; height:9px;"><span style="font-family: PDDIPA+Helvetica; font-size:9px">Cat. No. 11368V
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:53px; top:642px; width:5px; height:20px;"><span style="font-family: PDDJAD+Helvetica-Bold; font-size:20px">!
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:73px; top:637px; width:122px; height:30px;"><span style="font-family: PDDJAC+Helvetica-Oblique; font-size:10px">At the time these instructions
<br>went to print, Congress was
<br>considering legislation that
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:42px; top:659px; width:166px; height:111px;"><span style="font-family: PDDJEF+Helvetica-Black; font-size:5px">CAUTION
<br></span><span style="font-family: PDDJAC+Helvetica-Oblique; font-size:10px">would increase the amounts above. To
<br>find out if this legislation was enacted,
<br>and for more details, see the
<br>Instructions for Form 6251.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">IRA deduction expanded.
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px">covered by a retirement plan, you may
<br>be able to take an IRA deduction if your
<br>2007 modified adjusted gross income
<br>(AGI) is less than $62,000 ($103,000 if
<br>a qualifying widow(er)).
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:163px; top:710px; width:46px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">If you were
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:54px; top:774px; width:150px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">You may be able to deduct up to an
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:41px; top:784px; width:164px; height:220px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">additional $3,000 if you were a
<br>participant in a 401(k) plan and your
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px">employer was in bankruptcy in an
<br>earlier year.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Standard mileage rates. </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">The 2007
<br>rate for business use of your vehicle is
<br>48</span><span style="font-family: PDDIPA+Helvetica; font-size:6px">1</span><span style="font-family: PDDIPA+Helvetica; font-size:10px">/</span><span style="font-family: PDDIPA+Helvetica; font-size:6px">2</span><span style="font-family: PDDIPA+Helvetica; font-size:10px"> cents a mile. The 2007 rate for
<br>use of your vehicle to move is 20 cents
<br>a mile. The special rate for charitable
<br>use of your vehicle to provide relief
<br>related to Hurricane Katrina has
<br>expired.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Elective salary deferrals. </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">The
<br>maximum amount you can defer under
<br>all plans is generally limited to $15,500
<br>($10,500 if you only have SIMPLE
<br>plans; $18,500 for section 403(b) plans
<br>if you qualify for the 15-year rule). See
<br>the instructions for line 8 on page 10.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Mailing your return.
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px"> If you are filing
<br>the return for an estate or trust, you will
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:445px; top:299px; width:122px; height:23px;"><span style="font-family: PDDIPA+Helvetica; font-size:11px">Department of the Treasury
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Internal Revenue Service
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:401px; top:428px; width:167px; height:30px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">retirement plan and your 2008 modified
<br>AGI is less than $63,000 ($105,000) if a
<br>qualifying widow(er)).
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:414px; top:465px; width:150px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">You may be able to deduct up to an
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:401px; top:475px; width:164px; height:239px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">additional $3,000 if you were a
<br>participant in a 401(k) plan and your
<br>employer was in bankruptcy in an
<br>earlier year.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Personal exemption and itemized
<br>deduction phaseouts reduced.
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px">Taxpayers with adjusted gross income
<br>above a certain amount may lose part
<br>of their deduction for personal
<br>exemptions and itemized deductions.
<br>The amount by which these deductions
<br>are reduced in 2008 will be only </span><span style="font-family: PDDIPA+Helvetica; font-size:6px">1</span><span style="font-family: PDDIPA+Helvetica; font-size:10px">/</span><span style="font-family: PDDIPA+Helvetica; font-size:6px">2</span><span style="font-family: PDDIPA+Helvetica; font-size:10px"> of
<br>the amount of the reduction that
<br>otherwise would have applied in 2007.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Capital gain tax rate reduced.
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px"> The
<br>5% capital gain tax rate is reduced to
<br>zero.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Tax on children’s income.
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px">8615 will be required to figure the tax
<br>for the following children with
<br>investment income of more than
<br>$1,800.
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:525px; top:663px; width:24px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px"> Form
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:414px; top:716px; width:151px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">1. Children under age 18 at the end
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:402px; top:726px; width:34px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">of 2008.
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:414px; top:736px; width:133px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">2. The following children if their
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:402px; top:746px; width:151px; height:20px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">earned income is not more than half
<br>their support.
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:414px; top:769px; width:135px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">a. Children age 18 at the end of
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:402px; top:779px; width:23px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">2008.
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:414px; top:790px; width:146px; height:10px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">b. Children over age 18 and under
<br></span></div><div style="position:absolute; border: textbox 1px solid; writing-mode:lr-tb; left:401px; top:800px; width:164px; height:204px;"><span style="font-family: PDDIPA+Helvetica; font-size:10px">age 24 at the end of 2008 who are
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px">full-time students.
<br>The election to report a child’s
<br>investment income on a parent’s return
<br>and the special rule for when a child
<br>must file Form 6251 will also apply to
<br>the children listed above.
<br></span><span style="font-family: PDDJAD+Helvetica-Bold; font-size:11px">Expiring tax benefits. </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">The following
<br>benefits are scheduled to expire and
<br>will not apply for 2008.
<br></span><span style="font-family: PDDJDF+Symbol; font-size:14px">• </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">Deduction for educator expenses in
<br>figuring adjusted gross income.
<br></span><span style="font-family: PDDJDF+Symbol; font-size:14px">• </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">The exclusion from income of
<br>qualified charitable deductions.
<br></span><span style="font-family: PDDJDF+Symbol; font-size:14px">• </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">Credit for nonbusiness energy
<br>property.
<br></span><span style="font-family: PDDJDF+Symbol; font-size:14px">• </span><span style="font-family: PDDIPA+Helvetica; font-size:10px">District of Columbia first-time
<br></span><span style="font-family: PDDIPA+Helvetica; font-size:10px">homebuyer credit (for homes
<br>purchased after 2007).
<br></span></div><span style="position:absolute; border: black 1px solid; left:497px; top:157px; width:67px; height:0px;"></span>
<span style="position:absolute; border: black 1px solid; left:42px; top:184px; width:528px; height:0px;"></span>
<span style="position:absolute; border: black 1px solid; left:428px; top:298px; width:11px; height:25px;"></span>
<span style="position:absolute; border: black 1px solid; left:426px; top:298px; width:5px; height:18px;"></span>
<span style="position:absolute; border: black 1px solid; left:430px; top:301px; width:7px; height:23px;"></span>
<span style="position:absolute; border: black 1px solid; left:430px; top:308px; width:4px; height:13px;"></span>
<span style="position:absolute; border: black 1px solid; left:418px; top:304px; width:11px; height:12px;"></span>
<span style="position:absolute; border: black 1px solid; left:422px; top:315px; width:8px; height:10px;"></span>
<span style="position:absolute; border: black 1px solid; left:414px; top:315px; width:8px; height:10px;"></span>
<span style="position:absolute; border: black 1px solid; left:421px; top:309px; width:1px; height:10px;"></span>
<span style="position:absolute; border: black 1px solid; left:407px; top:297px; width:17px; height:26px;"></span>
<span style="position:absolute; border: black 1px solid; left:420px; top:306px; width:3px; height:1px;"></span>
<span style="position:absolute; border: black 1px solid; left:416px; top:318px; width:3px; height:5px;"></span>
<span style="position:absolute; border: black 1px solid; left:424px; top:318px; width:3px; height:5px;"></span>
<span style="position:absolute; border: black 1px solid; left:42px; top:417px; width:528px; height:0px;"></span>
<span style="position:absolute; border: black 1px solid; left:42px; top:638px; width:27px; height:27px;"></span>
<span style="position:absolute; border: black 1px solid; left:45px; top:641px; width:21px; height:18px;"></span>
<div style="position:absolute; top:0px;">Page: <a href="#1">1</a></div>
</body></html>
