US Tax return for minimal interest
Apr 25th 2021, 3:00 pm
#1
Just Joined
Thread Starter
Joined: Jun 2015
Posts: 28
US Tax return for minimal interest
Hi All,
So I left the USA and returned to UK Dec 2019 (Visa Holder). I did my 2019 USA tax return from the UK successfully and closed down the job and (I thought) all of my bank accounts so that I would have $0 in income from the USA in 2020.
I've just realized I left a bank account open in the USA through 2020 and received $48 in interest. Do I need to file a USA tax return for non resident? This was my only income from the USA in the entire of 2020.
So I left the USA and returned to UK Dec 2019 (Visa Holder). I did my 2019 USA tax return from the UK successfully and closed down the job and (I thought) all of my bank accounts so that I would have $0 in income from the USA in 2020.
I've just realized I left a bank account open in the USA through 2020 and received $48 in interest. Do I need to file a USA tax return for non resident? This was my only income from the USA in the entire of 2020.
Apr 25th 2021, 3:46 pm
#2
MODERATOR
Joined: Apr 2003
Location: Phoenix, Arizona
Posts: 58,679
Re: US Tax return for minimal interest
There is a minimum income requirement in order to be liable for filing a tax return. I'm not sure what that exact figure is, but I'm guessing it's not as low as $48. So I'm going to say "no".
Did the bank send you an official tax statement for the interest earned? I have one account that earns very little a year (less than $48), and the bank never sends me any tax statements.
Rene
Did the bank send you an official tax statement for the interest earned? I have one account that earns very little a year (less than $48), and the bank never sends me any tax statements.
Rene
Apr 25th 2021, 3:51 pm
#3
DE-UK-NZ-IE-US... the TYP
Joined: Mar 2010
Posts: 2,854
Re: US Tax return for minimal interest
Google could probably help you do some research here:
https://www.hrblock.com/tax-center/i...to-file-taxes/
https://apps.irs.gov/app/vita/conten...s_a_b_4012.pdf
https://www.hrblock.com/tax-center/i...to-file-taxes/
https://apps.irs.gov/app/vita/conten...s_a_b_4012.pdf
Apr 25th 2021, 5:00 pm
#4
Forum Regular
Joined: Jun 2015
Posts: 65
Re: US Tax return for minimal interest
Assuming that you are a ‘nonresident alien’, Article 11(1) of the UK/US tax treaty states:
1. Interest arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in that other State.
Publication 519 U.S. Tax Guide for Aliens states:
You can access the tax treaty tables by going to IRS.gov/Individuals/International-Taxpayers/Tax-Treaty-Tables
...
Exceptions. You do not have to file Form 8833 for any of the following situations.
1. You claim a reduced rate of withholding tax under a treaty on interest, dividends, rent, royalties, or other fixed or determinable annual or periodic income ordinarily subject to the 30% rate.
Etc.
1. Interest arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in that other State.
Publication 519 U.S. Tax Guide for Aliens states:
You can access the tax treaty tables by going to IRS.gov/Individuals/International-Taxpayers/Tax-Treaty-Tables
...
Exceptions. You do not have to file Form 8833 for any of the following situations.
1. You claim a reduced rate of withholding tax under a treaty on interest, dividends, rent, royalties, or other fixed or determinable annual or periodic income ordinarily subject to the 30% rate.
Etc.
Apr 26th 2021, 7:27 am
#5
BE Enthusiast
Joined: Nov 2012
Posts: 902
Re: US Tax return for minimal interest
Did you have a US visa in 2020? If not, the income is exempt from US tax under US domestic law. You would of course report it in the UK.
Apr 26th 2021, 7:35 am
#6
Just Joined
Thread Starter
Joined: Jun 2015
Posts: 28
Re: US Tax return for minimal interest
Thanks All,
Appreciate the help on this one! Interest is/ will be on my UK self assessment - very glad I don't have to do a USA return.
Don't have a Visa anymore or any other ties to the USA.
Appreciate the help on this one! Interest is/ will be on my UK self assessment - very glad I don't have to do a USA return.
Don't have a Visa anymore or any other ties to the USA.
