Can nonresident aliens take the standard deduction?

The basic rule

The standard deduction is a fixed amount that most U.S. residents subtract from income without listing expenses. It rests on the idea that the person is taxed on all of their income, so a general allowance for personal costs is fair. A nonresident alien is taxed far more narrowly, mostly on U.S.-source income and effectively connected income, and the law does not give that person the general allowance. Publication 519 states it flatly in its chapter on deductions: nonresident aliens cannot claim the standard deduction.

The practical consequence is that someone filing Form 1040-NR with, say, a $20,000 wage and no itemized deductions pays tax on the full $20,000 unless a treaty or another rule reduces it. That surprises people who are used to a large allowance on a resident return.

The India exception

The one carve-out in the publication is for students and business apprentices who are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty. They can claim the standard deduction provided they do not claim itemized deductions. The publication refers to Worksheet 5-1 for the computation, gives $15,000 as the 2025 amount for these students in the student scholarship discussion, and says a married student whose spouse itemizes cannot take the standard deduction. For disaster-affected students, Worksheet 5-1 also lets the standard deduction increase by qualified disaster-related personal casualty losses.

This exception is narrow. It does not cover other Indian nationals, other treaty countries, or Indian students who do not meet the Article 21(2) requirements. The checker returns the India language only if you choose that status.

What you can itemize instead

A nonresident alien can claim some of the same itemized deductions as a resident, but only if the person has income effectively connected with a U.S. trade or business. The deductions and losses must generally be properly allocated and apportioned to that effectively connected income. You cannot deduct items that relate to exempt income or to income that is not effectively connected.

There are two broad exceptions to that allocation rule: certain charitable contributions and casualty and theft losses can be deducted even if they do not relate to effectively connected income. State and local income taxes are allowed on income that is effectively connected, with a combined total deduction limit of $10,000, or $5,000 if married filing separately, per the publication. Itemized deductions are claimed on Schedule A (Form 1040-NR).

Why effectively connected income decides everything

Because the allowed deductions hinge on effectively connected income, a nonresident whose only U.S. income is a passive 30% type, such as dividends from a U.S. company, has almost nothing to deduct. That income is taxed on its gross amount at the flat rate or a lower treaty rate. A nonresident with U.S. wages for services performed here has effectively connected income and can use the itemized route. The effectively connected income page explains the line between the two.

Dual-status and resident years

A dual-status taxpayer is in a middle position that is easy to miss. Chapter 6 says a dual-status taxpayer cannot use the standard deduction on Form 1040 or 1040-SR, but can itemize allowable deductions. This applies even though the person is a resident for part of the year. See the dual-status page for the other restrictions. Resident aliens, by contrast, claim the standard deduction for their filing status or itemize, as citizens do, and can use the federal income tax calculator for an estimate.

Residency is therefore the first question for anyone asking about the standard deduction. If you are unsure whether you are a resident, start with the substantial presence test calculator. The answer changes this page from "no" to "yes."

Sources

• IRS Publication 519, U.S. Tax Guide for Aliens (2025): Chapter 5, Itemized Deductions and Standard deduction; Chapter 6, Restrictions for Dual-Status Taxpayers; Chapter 8, scholarship discussion. Read November 2, 2026.

Edition read: Publication 519 (2025), U.S. Tax Guide for Aliens, for use in preparing 2025 returns. Dollar figures on this page are the ones printed in that edition; check the current publication and form instructions for your tax year. This page summarizes the publication and does not replace it.