[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_column_text el_class=”answer_items”]Question: I am a foreign national and I received bank interest income this year. I forgot to file the required forms so the bank took tax withholding from the interest income.

1. Do I need to file a Form 1040NR to claim the refund of the withholding tax?
2. Since I do not have a SSN, do I have to apply for ITIN before I can file the 1040NR for the refund?

[/vc_column_text][/vc_column][/vc_row][vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_column_text el_class=”answer_items”]Answer: Interest (other than qualifying original issue discount (OID)) generally is subject to a 30% tax, unless it qualifies for exemption from U.S. tax. Before you proceed, check to see if your country have  an active treaty with the US.

1. If there’s a treaty provision available, the you will file a form 1040NR to claim the refund of the withholding tax.
2. As foreign national, you cannot apply for an ITIN before filing the 1040 NR. Form 1040NR y ITIN Application are filed at the same time. The IRS won’t issue an ITIN unless a return is filed with the application. Attach Form W-7 to the front of the income tax return. On the tax return,  simply leave the SSN field blank.

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