Do I need to file 1040-NR?

[LJ038]

I am a South Korean citizen, living in South Korea.

The last time I was in the US with a visa was in 2021 as an F-1 student. (In 2023, I was in the US for a week or so with ESTA.)

Would I be considered a non-resident alien?

I have a savings account in the US and received 1099-INT but have no other income to report.

Do I need to file 1040-NR?

Looking at the IRS website, it sounds like interest income from savings account is nontaxable for nonresident aliens?

[AmyC]

Correct. The IRS states in Nontaxable Types of Interest Income for Nonresident Aliens: Nonresident aliens (NRAs) are not taxed on certain kinds of interest income, including but not limited to certain portfolio interest and deposit interest, that is not effectively connected with a U.S. trade or business per Internal Revenue Code subsections 871 (h) and (i), respectively, provided that such interest income arises from one of the following sources:

1. A U.S. bank
2. A U.S. savings and loan association
3. A U.S. credit union
4. A U.S. insurance company
5. Portfolio Interest (Described in “3. Exclusions From Gross Income" – “Nonresident Aliens” - "Interest Income" and its subsection "Portfolio interest" of Publication 519, U.S. Tax Guide for Aliens)

[LJ038]

Thank you for your reply.

So should I file a 1040-NR and report zero income?

[MarilynG1]

No, you would not be required to file a tax return, based on your circumstances.

@LJ038 

[LJ038]

Hello,

Since I am a nonresident alien engaged in a trade or business in the US, it seems like I am required to file 1040NR and report no taxable income. I have the following related questions:

1. Can I file 1040-NR by June 15th (17th in 2024) since I "didn’t receive wages as an employee subject to U.S. income tax withholding"?

Although I received interest from a savings account in the US, the IRS website says interest income from savings account is nontaxable for nonresident aliens. However, it also says:

"If NRAs use Form 1040-NR, U.S. Nonresident Alien Income Tax Return, to report their income, then such nontaxable interest income shall not be reported anywhere on Form 1040-NR except in response to question L on page 5 of Form 1040-NR."

2. If I am not reporting any income, do I still need to report the nontaxable interest income?

If I do, I'm not sure what to say for Question L on page 5 (Schedule OI - Other Information) of 1040-NR because

Question L is for Income Exempt from Tax under a tax treaty with a foreign country

while the IRS website says interest income is nontaxable per Internal Revenue Code rather than a tax treaty.

Thank you for your help.

[MarilynG1]

If you're living in South Korea, you are not engaged in any trade or business in the US.

You don't need to file a US tax return of any kind.