Pakistani freelancers earning from US clients may owe $0 US tax under the Pakistan-US treaty — but many still need to file Form 1040-NR to claim that treaty benefit and recover any withheld amounts. You cannot file without an ITIN. Get your ITIN for $99 through ITIN Plus, then file Form 1040-NR by June 15.
Not every Pakistani earning from US platforms must file a US tax return — but many do. You need to file Form 1040-NR if:
| Situation | File 1040-NR? |
|---|---|
| Upwork/Fiverr: US clients, US withholding deducted | ✅ Yes — to get refund |
| Amazon FBA — selling to US buyers through US entity | ✅ Yes — required |
| KDP royalties — 30% withheld before treaty was claimed | ✅ Yes — to recover withheld tax |
| US LLC owner — single-member foreign-owned | ✅ Yes — Form 5472 + pro-forma 1120 |
| Freelancer: W-8BEN submitted, 0% withheld, no US business | Often not required — consult a tax advisor |
Good news: Under the Pakistan-US tax treaty, most service income earned by Pakistani residents from US clients is taxable only in Pakistan. If the IRS withheld 30% from your Upwork or KDP earnings, filing a 1040-NR lets you reclaim that money as a refund.
Form 1040-NR is the US Non-Resident Alien Income Tax Return. It is filed by non-US persons (like Pakistani nationals) who received US-source income during the tax year. It reports income, claims treaty exemptions, and either shows tax owed or triggers a refund of excess withholding. The deadline for most filers is June 15 (extended from the standard April 15 for overseas filers).
Form 1040-NR has a mandatory field for your US Taxpayer Identification Number. As a Pakistani non-resident, that means your ITIN. The IRS will not process your return without it — and without a return, you cannot reclaim any withheld US tax. Getting your ITIN first is essential.
The IRS rejects returns submitted without a TIN. If Upwork, Amazon, or YouTube has withheld US tax from your earnings, you cannot recover it without filing — and you cannot file without an ITIN. Every year without filing means that withheld money stays with the IRS permanently.
Apply now if you don't have one. Takes 7–11 weeks. Apply well before the June 15 deadline to avoid late filing.
Collect: 1099-NEC or 1099-K forms from platforms (Upwork, Amazon, YouTube), bank statements showing US income received, any Form 1042-S showing withholding amounts deducted.
Use tax software that supports 1040-NR (TaxAct, Sprintax) or hire an international tax professional. Claim the Pakistan-US treaty exemption on Schedule OI. Report all US-source income.
File electronically if possible. If mailing, send to: Internal Revenue Service, Austin, TX 73301-0215, USA. Keep proof of mailing (DHL or FedEx with tracking).
If excess withholding was deducted (30% when treaty should apply), the IRS refunds the difference within 16–20 weeks. Refunds for overseas filers arrive by international wire or check.
Cannot file US taxes without ITIN. ITIN Plus processes your application for $99 — the lowest price in Pakistan. IRS Certified, 7–11 weeks.
Apply for ITIN — $99 →✅ IRS.gov Listed · 📞 +1 (305) 216-6992
Under the Pakistan-US tax treaty, most service income (freelance, consulting) is taxable only in Pakistan — not the US. However, you must file Form 1040-NR and claim the treaty position to make it official. If you don't file, the IRS assumes you owe tax.
June 15 for taxpayers residing outside the US. An additional extension to October 15 can be requested by filing Form 4868. Late filing when tax is owed incurs a 5% per month penalty.
If Upwork withheld US taxes, you may be owed a refund for past years. The IRS allows amended returns for up to 3 years. You'll need ITIN for each year and a tax professional familiar with non-resident returns.
No. Form 1040 is for US citizens and residents. Form 1040-NR is specifically for non-resident aliens — including Pakistani nationals with US-source income.