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Level 2
posted Mar 8, 2021 5:39:54 PM

Does the F1 student have to file 1040NR if she has interest income only ?

My friend has F1 visa from 2018. She prepared her tax return as Nonresident alien and file 8843 only. But in 2020, she opened a new bank account in HSBC and also referred her son opened another bank account. So she got a 1099-INT to have $700 INTREST INCOME for new account open bonus and referral.. As I knew, there's no tax liability for 1099-INT for NRA, right? So usually there should be no 1099-INT sent to her. But now HSBC sent the form, Does she need to file 1040 NR even no tax liability. Thank you!

0 3 1085
3 Replies
Expert Alumni
Mar 8, 2021 6:20:47 PM

If she remains as a nonresident, she only needs to report US source income on her Form 1040NR.  Therefore, she should not need to report the foreign interest.  However, if she received a 1099-INT, I will suggest here to contact Sprintax for verification. 

Level 2
Mar 8, 2021 7:10:51 PM

She opened account in HSBC in washington state. I thought it should be US source income, right? I will check with sprintax. Thank you!

Expert Alumni
Mar 8, 2021 7:26:11 PM

It depends. In reviewing this link, from IRS.gov, you could potentially required to file a non-resident return.

  1. A nonresident alien individual who is not engaged in a trade or business in the United States and has U.S. income on which the tax liability was not satisfied by the withholding of tax at the source must file.
  2. U.S. source income that is Fixed, Determinable, Annual, or Periodical (FDAP)  This includes interest income.
  3. Check with Sprintax because the amount of your interest may be below your filing threshold.