Hello,
I am trying to file 1040NR to report no taxable income (since I am a nonresident alien engaged in a trade or business in the United States).
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."
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.