\u2018Do I need to file a US tax return?\u2019 The answer can be fairly straightforward, but once you get away from having only investment income – Interest, Dividends, Payments in Lieu and securities transactions – the answer gets much more complex.<\/p>\n
However, this is an area where it is best to consult a tax advisor about your personal situation.<\/p>\n
\u2022 If you have a standard bank account that earns interest on a deposit – the general answer is that no filing is required.
\n\u2022 If you have a brokerage account with interest, dividends and trading activity the general answer is also no.
\n\u2022 If you own a publicly traded partnership (PTP) and have distributions – then the answer is maybe.<\/p>\n
The US tax withheld from dividends, interest and other items is usually close to the amount that would be due in tax. This is especially true if you live in a treaty country and a lower withholding rate has been applied. It is possible that filing a US non-resident return (form 1040NR) would net a small refund, However, the administrative burden of filing, unless you had very large payments would outweigh the benefit.<\/p>\n
\u2022 If you own a PTP and a large distribution was paid out and withheld (because it is business income) then the answer is maybe. You would need to again weigh the administrative burden of filing, getting a US Individual Tax Identification Number (ITIN) for a small amount of returned tax is cost efficient.<\/p>\n
\u2022 If you own a more direct interest in a US business, it is likely you will need to file tax. However, this is where your tax advisor can play a vital role in evaluating what is necessary.
\n\u2022 Rents paid directly to a non-US person are required to be withheld upon. This is where a US tax filing is usually necessary.<\/p>\n
\u2022 Student grants, stipends and teaching fellowships often require that they file. Many educational institutions have offices to assist with US tax filings for non-residents.<\/p>\n
Remember that it is both a tax question and a cost question. If you need to hire someone to prepare a US return for you and if it costs $100 and the refund is $20 it is not sensible to file.<\/p>\n","protected":false},"excerpt":{"rendered":"
\u2018Do I need to file a US tax return?\u2019 The answer can be fairly straightforward, but once you get away from having only investment income – Interest, Dividends, Payments in Lieu and securities transactions – the answer gets much more complex.<\/p>\n","protected":false},"author":1,"featured_media":221500,"parent":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_acf_changed":true,"footnotes":""},"contributors-categories":[13576],"traders-academy":[13125,13128,13132],"class_list":{"0":"post-175429","1":"trading-lessons","2":"type-trading-lessons","3":"status-publish","4":"has-post-thumbnail","6":"contributors-categories-interactive-brokers","7":"traders-academy-beginner-trading","8":"traders-academy-level","9":"traders-academy-trading-lesson"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\n