I am helping my friend to file a tax return and a little bit confused with the IRS instructions. She was a US resident alien until she left in beginning of February of 2014. She earned some W-2 income while was here (about 20K), interest and dividends. She also had dividend income from her home country.

Is the interest income effectively connected with a US trade or business? Does she have to report the entire amount of interest earned for the year or the prorated amount on Form 1040NR? What income goes on Schedule NEC? Is it the amount of dividends she earned in her home country?

She also sold some stock earning a slight capital gain. Is it reported on Form 1040NR page 1?

Thank you for your help

You are attempting to do a dual-status return?

BAD IDEA! The dual-status return is NOT for amateurs, and, in fact, a fair number of tax professionals in the United States have NO clue how to prepare such a return.

You need to get professional help from someone who has experience filing such returns. This is especially true for your friend, since her dual-status return is an EXPATRIATE dual-status return, with the tax calculations performed on the Form 1040NR.

Note that she has to option to file as a resident for 2014 one last time.

She also has the requirement to submit a Residency Termination Statement, either with the tax return or separatelt.

If she wants MY professional help, have her email me at the address in my profile.