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Hello,
If a person who is not a U.S citizen or greencard holder, opens a bank account in the U.S in 2018, do they now have to report or file any tax report in the U.S?
Say they have a large sum of money in the bank account (e.g. $250,000) and only generate whatever interest the bank account pays.
Are they exempt from paying tax on this interest per :https://www.irs.gov/individuals/inte...ns-from-income ?
0) Do they have to report or file with the IRS (they are not U.S citizens or green card holders)
1) Will they receive a 1099? Or a 1042S?
2) What triggers them receiving the 1099 or 1042S? Is it the size of the deposit they make into the bank account? OR the size of the interest the account generates?
3) What triggers them having to report/file with the IRS? Again, is it the size of the deposit they make into the bank account? OR the size of the interest the account generates?
5) Can having this U.S bank account that generates interest affect the date they become tax residents of the U.S? e.g. if they open the bank account in 2018, but only get their green card in 2019, can the fact that they had a U.S bank account generating interest make them tax residents earlier than 2019? i.e. in 2018, are they still non-resident aliens or can they be resident aliens?
thanks in advance
If a person who is not a U.S citizen or greencard holder, opens a bank account in the U.S in 2018, do they now have to report or file any tax report in the U.S?
Say they have a large sum of money in the bank account (e.g. $250,000) and only generate whatever interest the bank account pays.
Are they exempt from paying tax on this interest per :https://www.irs.gov/individuals/inte...ns-from-income ?
0) Do they have to report or file with the IRS (they are not U.S citizens or green card holders)
1) Will they receive a 1099? Or a 1042S?
2) What triggers them receiving the 1099 or 1042S? Is it the size of the deposit they make into the bank account? OR the size of the interest the account generates?
3) What triggers them having to report/file with the IRS? Again, is it the size of the deposit they make into the bank account? OR the size of the interest the account generates?
5) Can having this U.S bank account that generates interest affect the date they become tax residents of the U.S? e.g. if they open the bank account in 2018, but only get their green card in 2019, can the fact that they had a U.S bank account generating interest make them tax residents earlier than 2019? i.e. in 2018, are they still non-resident aliens or can they be resident aliens?
thanks in advance
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