Schedule K-1 and 1042-S for non-resident alien

[formerpatriot]

Hello!

I have read in several places that if you are a non-resident alien with no income "Effectively connected with U.S. trade or business", and if you have some income "Not effectively connected with U.S. trade or business" reported on one or more 1042-S tax slips where all tax rates have been applied as per the U.S.-Canada tax treaty, then you do not have to file a 1040-NR with the IRS.

What if the non-resident alien was the beneficiary of a trust (following the death of a parent) and was issued a Schedule K-1? The amounts reported on the K-1 are the same as the amounts reported on the 1042-S tax slips. They correspond to the money earned inside the trust between the time of death and the time of final distribution of the inheritance to the children. Does the non-resident alien child still have no IRS filing requirement?

As for taxes to be paid to Canada, can the non-resident alien simply report the income as per the 1042-S tax slips and make no mention of the schedule K-1 in their Canadian tax return? Additional details: there is a 1042-S tax slip reporting interest income with the appropriate treaty rate of 0% and a 1042-S tax slip reporting dividend income with the appropriate treaty rate of 15%.

As usual, thank you for your help!