Non-resident alien received 1099-INT after leaving US - do I need to file a return?

This is a common issue for former US residents. Since you've received a 1099-INT instead of a 1042-S, the IRS system is expecting you to file a return. As a non-resident alien (NRA) with only US-source interest income, you would typically file Form 1040-NR (U.S. Nonresident Alien Income Tax Return). Interest income is generally subject to a 30% withholding tax for NRAs, unless reduced by a tax treaty between the US and your home country. Since your bank didn't process your W-8BEN in time, they likely didn't withhold this tax, which creates another reason you should file. When you file, include a copy of your W-8BEN to substantiate your NRA status, and claim any applicable tax treaty benefits. This will help prevent potential issues with the IRS, who otherwise might wonder why the 1099-INT income wasn't reported.

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I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it as a last resort for my NRA tax situation with misreported interest. I was connected to an IRS International Tax Specialist within 45 minutes after WEEKS of failed attempts on my own. The agent confirmed I needed to file Form 1040-NR for my 1099-INT income and explained exactly how to document my non-resident status so the interest would be taxed at the correct treaty rate. She even gave me a specific IRS notice number to reference if there were any questions about why I was filing with a 1099-INT instead of a 1042-S. Saved me from potentially overpaying hundreds in taxes since my bank had completely messed up the reporting!

The 1099-INT vs 1042-S issue is frustrating but common. One additional tip: when you file your 1040-NR, include a statement explicitly explaining that you're a non-resident alien and that the bank erroneously issued a 1099-INT instead of a 1042-S. Also mention your attempts to get the bank to correct it. This creates a paper trail showing you've acted in good faith, which can be important if there's ever a question about why the 1099-INT income was reported on a non-resident return. I've seen the IRS be pretty reasonable when taxpayers clearly document these kinds of reporting errors by financial institutions.

Quick question - if I'm in a similar situation with a 1099-INT but I also have rental income from a property I still own in the US, does that change how I need to file as an NRA? Anyone know if I need different forms?

Sophie, you're definitely required to file a US tax return in this situation. Even though you're a non-resident alien with only $1,350 in interest income, the fact that you received a 1099-INT (instead of the proper 1042-S) means the IRS expects you to report this income on Form 1040-NR. Since your bank didn't process your W-8BEN in time, they likely didn't withhold any tax from your interest payments. As an NRA, this interest is subject to 30% withholding (or potentially less if your home country has a tax treaty with the US). When you file your 1040-NR, you'll need to calculate and pay the appropriate tax on this income. Make sure to attach a copy of your W-8BEN form to your return and include a brief statement explaining that you're an NRA and that the bank erroneously issued a 1099-INT instead of a 1042-S. This documents your good faith effort to establish your non-resident status. Also check if your home country has a tax treaty with the US that might reduce the withholding rate below 30%. The filing requirement exists regardless of the income amount when you have US-source income subject to tax as a non-resident.