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Level 1
posted Jan 24, 2020 9:01:39 AM

Treasury bill interest for nonresident alien

I'm a nonresident alien. I wonder if Treasury bill interest is exempt from taxation for me? I know some kinds of interest are nontaxable for nonresident aliens but I'm not sure if Treasury bill interest is included.

 

https://www.irs.gov/individuals/international-taxpayers/certain-types-of-nontaxable-interest-income

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1 Best answer
Level 1
Jan 31, 2020 8:54:20 AM

Page 11 of Publication 519 indicates that interest includes "interest from a state, the District of Columbia, or the U.S. government."  Nonresident aliens for tax purposes are not subject to tax on interest income.  If you received a 1099-INT, I would recommend keeping it for your records as well as a reference to Pub 519 for tax year 2019.

3 Replies
Level 1
Jan 31, 2020 8:54:20 AM

Page 11 of Publication 519 indicates that interest includes "interest from a state, the District of Columbia, or the U.S. government."  Nonresident aliens for tax purposes are not subject to tax on interest income.  If you received a 1099-INT, I would recommend keeping it for your records as well as a reference to Pub 519 for tax year 2019.

Level 1
Jan 31, 2020 9:19:01 AM

MarCar - You may already be aware that if you are a nonresident alien, you will need to file using the 1040NR or 1040NREZ form.  You cannot file these forms electronically.  You will need to complete paper forms, attach the appropriate tax reporting forms and mail your return in. You will also need to complete the 8843.

https://www.irs.gov/individuals/international-taxpayers/taxation-of-nonresident-aliens

Expert Alumni
Feb 3, 2020 9:05:44 AM

If you are a nonresident alien, you need to file a nonresident tax return.  TurboTax does not support nonresident returns.  However, we have a partnership with Sprintax and they can assist you with your nonresident filing requirement.  They can also assist you with any interest questions you have as a nonresident.