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Do I need to file late form 1040-NR for 2024 based on 1099-INT even if I am not a US citizen, live in Canada but hold US bank accounts? I had no income in the US but earned $44.72 as interest from my bank accounts. Thank you!

 
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1 Reply
jtax
Level 10

Do I need to file late form 1040-NR for 2024 based on 1099-INT even if I am not a US citizen, live in Canada but hold US bank accounts? I had no income in the US but earned $44.72 as interest from my bank accounts. Thank you!

If you were not a US resident and your only income is interest from a US bank, you do not need to file a 1040-NR.

Why? Because the tax code says so in I.R.C. 871 says so. https://www.law.cornell.edu/uscode/text/26/871

 

U.S. Code § 871 - Tax on nonresident alien individuals


(a)Income not connected with United States business—30 percent tax
  (1)Income other than capital gains
  
  Except as provided in subsection (h), there is hereby imposed for each
  taxable year a tax of 30 percent of the amount received from
  sources within the United States by a nonresident alien
  individual as—


       (A)interest  ...


(i)Tax not to apply to certain interest and dividends


       (1)In general


       No tax shall be imposed under paragraph (1)(A) or (1)(C) of
       subsection (a) on any amount described in paragraph (2).


       (2)Amounts to which paragraph (1) applies
              
      The amounts described in this paragraph are as follows:
      
       (A)Interest on deposits, if such interest is not effectively
       connected with the conduct of a trade or business within the
       United States.


       (3)Deposits


       For purposes of paragraph (2), the term “deposits” means
       amounts which are—


               (A)deposits with persons carrying on the banking business,


       (B)deposits or withdrawable accounts with savings
       institutions chartered and supervised as savings and
       loan or similar associations under Federal or State
       law, but only to the extent that amounts paid or
       credited on such deposits or accounts are deductible
       under section 591 (determined without regard to
       sections 265 and 291) in computing the taxable income
       of such institutions, and

 

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