! pursuant to a divorce or separation agreement

CAUTION entered into on or before December 31, 2018, is

income on your Form 1040-C unless that agreement was changed after December 31, 2018, to expressly provide that alimony received isn’t included in your income. Alimony received is not included in your income if you entered into the divorce or separation agreement after December 31, 2018.

Line 1, column (f). Enter nonresident alien income from U.S. sources that is not effectively connected with a U.S. trade or business, including the following.

• Interest, dividends, rents, salaries, wages, premiums, annuities, compensation, remuneration, and other fixed or determinable annual or periodic gains, profits, income, and certain alimony received (see Caution, earlier).

• Prizes, awards, and certain gambling winnings. Proceeds from lotteries, raffles, etc., are gambling winnings. You must report the full amount of your winnings. In most cases, you cannot offset losses against winnings and report the difference.

Line 1, column (e). Enter nonresident alien income effectively connected with a U.S. trade or business. Nonresident aliens should include income that would be included on page 1 of Form 1040-NR. This includes:

• Salaries and wages (generally shown in box 1 of Form W-2),

• The taxable part of a scholarship or fellowship grant,

• Business income or loss (income that would be included on Schedule C (Form 1040) as an attachment to Form 1040-NR), and

• Any other income considered to be effectively connected with a U.S. trade or business. See the Instructions for Form 1040-NR for details.

8 Instructions for Form 1040-C (Rev. 1-2026)

• 85% of the U.S. social security benefits you receive. This amount is treated as U.S. source income not effectively connected with a U.S. trade or business and is subject to the 30% tax rate, unless exempt or taxed at a reduced rate under a U.S. tax treaty. Social security benefits include any monthly benefit under Title II of the Social Security Act or part of a tier 1 railroad retirement benefit treated as a social security benefit. They do not include any supplemental security income (SSI) payments.

Line 5. Exempt income. Include on line 5, column (d), (e), or (f), all income you received during the year that is exempt by the Code (see examples below). Also, include on line 5 income that is exempt by treaty, but only if the income is reportable in column (d) or (e). Attach a statement that shows the basis for the treaty exemption (including treaty and article(s)).

Note: Do not include on line 5 income reportable in column (f) that is exempt by treaty. Instead, report these amounts on line 1 of column (f) and explain on the statement required for Part III, line 25, the basis for the reduced rate or exemption.

Be sure to include on line 5, column (c), any amount withheld on exempt income you are reporting on line 5, column (d), (e), or (f). For example, include amounts that were withheld by a withholding agent that was required to withhold due to lack of documentation. However, do not include amounts reimbursed by the withholding agent.

Do not include on lines 1 through 4 any amount that is reportable on line 5.

Exempt income for nonresident aliens. If you are a nonresident alien, the following income that you receive is exempt from U.S. income tax.

1. Interest on bank deposits or withdrawable accounts with savings and loan associations or credit unions that are chartered and supervised under federal or state law, or amounts held by an insurance company under an agreement to pay interest on them, if the income is not effectively connected with a U.S. trade or business. Certain portfolio interest on obligations issued after July 18, 1984, is also exempt income.
2. Your personal service income if: a. You were in the United States 90 days or less during the tax year;

b. You received $3,000 or less for your services; and c. You performed the services as an employee of or under contract with a nonresident alien individual, foreign partnership, or foreign corporation not engaged in a U.S. trade or business; or for a foreign office of a U.S. partnership, corporation, citizen, or resident.

5. Annuities you received from qualified annuity plans or trusts if both of the following conditions apply.

a. The work that entitles you to the annuity was performed either (1) in the United States for a foreign employer and you met the conditions under item 2 earlier, or (2) outside the United States.

b. When the first amount was paid as an annuity, at least 90% of the employees covered by the plan (or by the plan or plans that included the trust) were U.S. citizens or residents.

6. U.S. source dividends paid by certain foreign corporations if they are not effectively connected with your U.S. trade or business. See Exception under Dividends in chapter 2 of Pub. 519 for how to figure the amount of excludable dividends.

Certain items of income may be exempt from federal tax under a tax treaty. For more information, go to IRS.gov/ TreatyTables . For general information on tax treaties, go to IRS.gov/Individuals/International-Taxpayers/Tax-Treaties . Also, see Pub. 901, U.S. Tax Treaties .