TL;DR — Key Takeaways
- →Form 1040-NR is the US return for nonresident aliens. Citizens, green-card holders, and resident aliens generally file Form 1040.
- →A Form W-2 comes from US payroll. Compensation from a foreign employer is usually not issued as a US W-2.
- →A nonresident alien with US-source wages may get a W-2 and report those wages on Form 1040-NR; treaty and presence facts can change the result.
- →Calling a foreign wage statement a “W-2” does not put a US citizen on Form 1040-NR.
Short answer
Form 1040-NR follows nonresident-alien status. A W-2 follows US payroll. A foreign employer’s wage statement follows neither rule automatically.
Which form the person files
| Who | Typical US income-tax return |
|---|---|
| US citizen or green-card holder, including those living abroad | Form 1040 |
| Resident alien (substantial presence or election) | Form 1040 |
| Nonresident alien | Form 1040-NR |
Living outside the United States does not convert a citizen’s return into Form 1040-NR.
Which paper the wage arrives on
- Form W-2 reports wages from a US employer or US payroll. Nonresident aliens who earned US-source wages often receive one and report those wages on Form 1040-NR. Days of presence and a tax treaty can change what is taxable — that is a sourcing question, not a reason to pick the form by nickname.
- Foreign employer pay is usually a local payslip or year-end statement. People call that a “foreign W-2.” It is not a US Form W-2, and it does not by itself belong on Form 1040-NR.
- US persons with foreign-employer earned income still start from Form 1040, then test FEIE vs FTC.
Next steps
- Employment structure: US employer while living abroad.
- Broader US overlay: US digital nomad taxes.
Educational planning only — not tax advice. Residency for US filing (substantial presence, treaties, elections) is fact-specific.