You can enter this information on 1040NR-EZ Line 2 if it is a refund of state taxes.
Otherwise, Nonresident aliens are not taxed on certain kinds of interest income as follows, per Internal Revenue Code subsections 871(h) and (i), provided that such interest income arises from one of the following sources:
- A U.S. bank
- A U.S. savings and loan association
- A U.S. credit union
- A U.S. insurance company
- Portfolio Interest (Described in Chapter 3 "Exclusions From Gross Income" – "Interest Income" – "Portfolio interest" of Publication 519, U.S. Tax Guide for Aliens)
If the nonresident alien individual uses Form 1040NR to report his income, then such nontaxable interest income shall not be reported anywhere on Form 1040NR except in response to question L on page 5 of Form 1040NR.
If the nonresident alien individual uses Form 1040NR-EZ to report his income, then such nontaxable interest income shall not be reported anywhere on Form 1040NR-EZ. The erroneous reporting of such interest income on Form 1099 by one of the institutions listed above shall not cause such interest income to be included in the gross income of the nonresident alien recipient if such recipient has filed the proper income tax return.
