[ET_80]

Hi,

I have read from other people's responses that 1099-INT is NOT taxable and therefore you don't have to report it in your 1040-NR form. I'm currently living in Canada and have no gross income in the US (I never received any W2 forms for 2008). I only got the 1099-INT form for an amount a bit higher than $3,500. That amount sounds too high for not having to report. So, does it mean that I have to. If so, which federal tax form should I fill out and where should I report this amount (i.e. line xx, Schedule x)?

Thanks a lot for your help.

[MukatA]

Which visa do you have? When did you enter the U.S. and left the U.S.

[ET_80]

I have no visa with the US (unless I apply as a visitor). I left the US in 2006 and came to Canada to work, but I still kept my investments in the US. I heard that I can fill out the W8BEN form to be exempt from filling out taxes since I would be considered a foreigner with no income in the US. The only problem is that I have one bank that doesn't let me fill out that form...

If you could help me, that would be greatly appreciated.

[Five Rings]

Interest on portfolio investments (CDs, bank deposits, bonds, etc) are exempt from US tax under US domestic law when held by a nonresident alien.

Unless the bank or broker withheld tax there is no reason for you to file.

Even if you have no US tax ID number you may still submit a W8-BEN to the payor filling out part I only since you are not claiming a treaty benefit.

[IntlTax]

The only problem is that I have one bank that doesn't let me fill out that form...

The bank cannot prevent you from completing a Form W-8BEN. Perhaps you mean that they will close your account if you complete a Form W-8BEN. You could run into some difficulties if you don't fill out Form W-8BEN. If you did fill it out, you would not be receiving a 1099.

Since you have received a 1099 for $3,500, the IRS may be expecting a tax return from you.

[Five Rings]

To complete a tax return in your case download Form 1040NR
http://www.irs.gov/pub/irs-pdf/f1040nr.pdf

Fill in your name, address, and SS number or ITIN. Now go to page 4. On line 76c write in bank interest. If they withheld nothing put 0 in column a. Following line 76c across put down the interest amount in column e (other) and where you are to enter a tax rate % you put 0.
On line 85 put 0 if they did not withhold. On line 86 column e you put your interest income again. On line 87 column e write 0On line 88 write 0 and 0 on line 52 of the form. Mail it in.

[ET_80]

Thanks everyone, you were the most helpful!