[vaya]

Hi, how do you report when US bank erroneously withheld taxes from interest income and issued 1099-INT to a F-1 student?

The interest income is non-taxable & withholding is added to other withholdings, that much is clear. But how do you show it on the return?

I could see two solutions:
1. File 1040NR & show interest income as non-taxable interest
2. File 1040NREZ & not show the income anywhere, just add the withholding

Thoughts?

Vaya

[MukatA]

Report as tax exempt interest on line 9b. Add tax paid in the withholdings.