{"id":236,"date":"2015-06-24T22:00:52","date_gmt":"2015-06-25T02:00:52","guid":{"rendered":"https:\/\/ogtax.wpengine.com\/?p=173"},"modified":"2023-02-24T07:15:50","modified_gmt":"2023-02-24T07:15:50","slug":"interest-payments-to-foreign-persons","status":"publish","type":"post","link":"https:\/\/oandgaccounting.com\/es\/interest-payments-to-foreign-persons\/","title":{"rendered":"Pagos de intereses a personas extranjeras"},"content":{"rendered":"

[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:<\/strong>\u00a0I 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.<\/p>\n

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  1. Do I need to file a Form\u00a01040NR<\/a>\u00a0to claim the refund of the withholding tax?<\/li>\n
  2. Since I do not have a SSN, do I have to apply for\u00a0ITIN\u00a0<\/a>before I can file the\u00a01040NR\u00a0<\/a>for the refund?<\/li>\n<\/ol>\n

    [\/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:<\/strong> 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 \u00a0an active treaty with the US.<\/p>\n

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    1. If there\u2019s a\u00a0treaty provision<\/a>\u00a0available, the you will file a form\u00a01040NR<\/a>\u00a0to claim the refund of the withholding tax.<\/li>\n
    2. As foreign national, you cannot apply for an\u00a0ITIN<\/a>\u00a0before filing the\u00a01040 NR<\/a>. Form\u00a01040NR<\/a>\u00a0and\u00a0ITIN<\/a>\u00a0Application are filed at the same time. The IRS won’t issue an\u00a0ITIN<\/a>\u00a0unless a return is filed with the application. Attach Form\u00a0W-7<\/a>\u00a0to the front of the income tax return. On the tax return, \u00a0simply leave the SSN field blank.<\/li>\n<\/ol>\n

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