topic Non-US citizen and non-resident - interest on US bank account in Get your taxes done using TurboTax

Non-US citizen and non-resident - interest on US bank account

kbl2018 — Wed, 21 Oct 2020 23:24:31 GMT

I am not a US citizen and will be leaving the US at the end of this year. If I leave money in a US savings account will I need to file a US tax return for 2021?

Re: Non-US citizen and non-resident - interest on US bank account

Critter-3 — Wed, 21 Oct 2020 23:39:42 GMT

Leaving money in the account is not a tax issue ... needing to pay income tax on the earnings is the issue. Depending on the amount it earns you may need to file a 1040NR. TurboTax doesn't support that form ...

https://blog.turbotax.intuit.com/turbotax-news/turbotax-and-sprintax-now-make-filing-easier-for-non-...

https://www.sprintax.com/non-resident-alien-tax-1040nr-turbotax.html

Re: Non-US citizen and non-resident - interest on US bank account

kbl2018 — Wed, 21 Oct 2020 23:44:12 GMT

Thanks - if it earns interest, do you know how much interest it needs to be to require filing a tax return?

Re: Non-US citizen and non-resident - interest on US bank account

Critter-3 — Thu, 22 Oct 2020 00:29:14 GMT

https://www.irs.gov/forms-pubs/about-form-1040-nr

Re: Non-US citizen and non-resident - interest on US bank account

kbl2018 — Thu, 22 Oct 2020 01:09:33 GMT

OK so seems like I don't have to file a tax return for 2021 as I will be a non-resident alien (I will not be spending any time in the US in 2021) and my only income will be from US banks that is not a trade or business. Does that sound right to you?

Re: Non-US citizen and non-resident - interest on US bank account

Carl — Thu, 22 Oct 2020 03:10:01 GMT

If possible before your departure from the U.S., I would suggest you find a tax pro you can establish a repore with before you leave that is familiar with non-resident tax filings. That way, if things change in the future and you are required to file a U.S. non-resident tax return, you have a point of contact. That tax pro can be either in the U.S. or in your home country.

Since TurboTax does not provide or support the 1040-NR for non-residents, you might also want to check out www.sprintax.com which is a website that specializes in 1040-NR non-resident tax returns. They even provide the ability for you to complete the 1040-NR online and e-file it. This website is the one recommended by TurboTax for non-resident tax filers. I personally know a few non-resident foreign exchange students who have used it in the past and give it a thumbs up.

The key is to educate yourself on this "before"you depart the U.S. Trying to learn the ins and outs from your home country can be difficult.