Form Ri-1040nr - Rhode Island Tax Computation Worksheet

2013 INSTRUCTIONS FOR FILING RI-1040NR

(FOR RHODE ISLAND NONRESIDENTS OR PART-YEAR RESIDENTS FILING FORM RI-1040NR)

GENERAL INSTRUCTIONS

This booklet contains returns and instructions for filing the 2013 Rhode

come even though included in total federal income:

Island Nonresident Individual Income Tax Return. Read the instructions in

•Annuities, interest, dividends or gains from the sale or exchange

this book carefully. For your convenience we have provided line by line in-

of intangible personal property unless they are part of the income from

structions which will aid you in completing your return. Please print or type

any business, trade, profession or occupation carried on in this state

so that it will be legible. For the first time this year, fillable forms will be avail-

by the nonresident taxpayer.

able on our website at Check the accuracy of your name(s),

•Compensation received for active service in the military forces of

address, social security number(s), and the federal identification numbers

the United States.

listed on Schedule W.

These instructions are for the use of non-resident and part-year resident tax-

INCOME TERMS DEFINED

payers only. Full Year resident taxpayers will file their individual income tax

In these instructions “total federal income” is federal adjusted gross in-

returns on Form RI-1040. Resident forms and instructions are available

come as defined in the United States Internal Revenue Code (IRC) and ap-

upon request at the Rhode Island Division of Taxation and on our website at

plicable regulations. “Total income from Rhode Island sources” is that portion

of your total federal income derived from or connected with Rhode Island

sources. “Total Rhode Island income” is your total income from Rhode Island

Complete your 2013 Federal Income Tax Return first.

sources after making the additions and subtractions described later in these

It is the basis for preparing your Rhode Island tax return. The Rhode Is-

instructions. Total Rhode Island income of a part-year resident includes total

land tax is based on your federal taxable income.

income from Rhode Island sources for the entire year plus other income re-

Accuracy and attention to detail in completing the return in accordance

ceived during period of residence in Rhode Island after making the additions

with these instructions will facilitate the processing of your tax return. You

and subtractions described later in these instructions.

may find the following points helpful in preparing your Rhode Island Income

Tax Return.

JOINT AND SEPARATE RETURNS

JOINT RETURNS: Generally, if two married individuals file a joint federal

WHO MUST FILE A RETURN

income tax return they also must file a joint Rhode Island income tax return.

Every nonresident individual required by the laws of the United States to

However, if either one of the married individuals is a resident and the other

file a federal income tax return who has income derived from or connected

is a non-resident, they must file separate returns, unless they elect to file a

with Rhode Island sources must file a Rhode Island individual income tax

joint return as if both were residents of Rhode Island. If the resident spouse

return. Nonresidents should complete page 7, Schedule II.

files separately in Rhode Island and a joint federal return is filed for both

Every part-year individual who was a resident for a period of less than 12

spouses, the resident spouse must compute income, exemptions and tax

months is required to file a Rhode Island return if he or she is required to file

as if a separate federal return had been filed.

a federal return. Part-year residents should complete page 9, Schedule III.

If neither spouse is required to file a federal income tax return and either

Nonresident and part-year resident individuals who are not required to file

or both are required to file a Rhode Island income tax return, they may elect

a federal income tax return may be required to file a Rhode Island individual

to file a joint Rhode Island income tax return.

income tax return if he or she has Rhode Island modifications increasing

Individuals filing joint Rhode Island income tax returns are both equally li-

their Federal Adjusted Gross income.

able to pay the tax. They incur what is known as “joint and several liability”

for Rhode Island income tax.

DEFINITION OF RESIDENT AND NONRESIDENT

SEPARATE RETURNS: Married individuals filing separate federal income

RESIDENT: a person (a) who is domiciled in the State of Rhode Island or

tax returns must file separate Rhode Island income tax returns.

(b) who, even though domiciled outside Rhode Island, maintains a perma-

nent place of abode within the state and spends a total of more than 183

days of the taxable year within the state.

MILITARY PERSONNEL

NONRESIDENT: any person not coming within the definition of a resident.

Under the provisions of the Soldiers and Sailors Civil Relief Act the service

For purposes of the above definition, domicile is found to be a place an in-

pay of members of the armed forces can only be subject to income tax by

dividual regards as his or her permanent home – the place to which he or

the state of which they are legal residents. Place of legal residence at the

she intends to return after a period of absence. A domicile, once established,

time of entry into the service is normally presumed to be the legal state of

continues until a new fixed and permanent home is acquired. No change of

residence and remains so until legal residence in another state is established

domicile results from moving to a new location if the intention is to remain

and service records are changed accordingly. The Rhode Island income tax

only for a limited time even if it is for a relatively long duration. For a married

is imposed on all the federal taxable income of a resident who is a member

couple, normally both individuals have the same domicile. Any person as-

of the armed forces, regardless of where such income is received.

serting a change in domicile must show:

Military pay received by a nonresident service person stationed in Rhode

(1) an intent to abandon the former domicile,

Island is not subject to Rhode Island income tax. This does not apply to

(2) an intent to acquire a new domicile and

other income derived from Rhode Island sources, e.g., if the service person

(3) actual physical presence in a new domicile.

holds a separate job, not connected with his or her military service, income

received from that job is subject to Rhode Island income tax.

INCOME OF A NONRESIDENT SUBJECT TO TAX

In addition, under the provisions of the Military Spouses Residency Relief

A nonresident is subject to tax on all items included in his or her total fed-

Act, income for services performed by the servicemember’s spouse can only

eral income (including his or her distributive share of partnership income or

be subject to income tax by the state of which they are legal residents if the

gain and his or her share of estate or trust income or gain) which are derived

servicemember’s spouse meets certain conditions.

from or connected with Rhode Island sources as follows:

Income for services performed by the servicemember’s spouse in Rhode

•From real or tangible personal property located in the state.

Island would be exempt from Rhode Island income tax if the servicemem-

•From a business, trade, profession or occupation carried on in the

ber’s spouse moves to Rhode Island solely to be with the servicemember

state.

complying with military orders sending the servicemember to Rhode Island.

•From services performed in the state.

The servicemember and the servicemember’s spouse must also share the

•Winnings and prizes from the Rhode Island lottery and other gamb-

same non-Rhode Island domicile.

ing establishments in this state.

However, other income derived from Rhode Island sources such as busi-

•A nonresident is not subject to tax on the following classes of in-

ness income, ownership or disposition of any interest in real or tangible per-

Page I-1

Form Ri-1040nr - Rhode Island Tax Computation Worksheet - 2013

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