topic Tax from Interest Income from CD, as Non Resident in Get your taxes done using TurboTax

Tax from Interest Income from CD, as Non Resident

mmubaswi — Wed, 11 Feb 2026 04:03:01 GMT

Hello,

If a visitor has a US bank account, and interest income from C/D from the Bank, is he required to pay taxes as a non-resident? The bank already deducted the standard 30% from the interest income and sent the 1099-INT. Is he required to file a 1040-NR?

Re: Tax from Interest Income from CD, as Non Resident

MarilynG1 — Thu, 08 Feb 2024 22:23:42 GMT

Banks do not usually deduct income tax on Interest Income they pay out to an account holder. Was the 30% a Penalty they paid for closing their CD Account Early? It it was indeed income tax, they could file a 1040-NR to get that refunded.

The IRS does not require reporting/taxation of US Bank Interest for Non-Residents, unless it is connected with a US trade or business.

Here more Tax Tips for Resident and Non-Resident Aliens and Non-Taxable Interest for Non-Residents.

Re: Tax from Interest Income from CD, as Non Resident

mmubaswi — Sun, 11 Feb 2024 01:27:25 GMT

Hi, thank you for the reply, yes it was withheld as tax and that's why the 1099 was generated. He doesn't have an ITIIN.

Re: Tax from Interest Income from CD, as Non Resident

Critter-3 — Sun, 11 Feb 2024 01:31:39 GMT

He is not required to file a 1040NR but he may want to file one to get any excess withholding refunded. An ITIN can be applied for by filing an W-7 and attaching the return to it.