Form 1099-INT with a Box 3: NonResident Alien 2024 Form 1040NR

Forum|Forum|1 year ago
February 27, 2025
1 reply
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I am seeking clarification regarding the taxability of interest income on U.S. Treasury Bills for a nonresident alien. The taxpayer is a nonresident alien filing Form 1040NR for tax year 2024. TP received a 2024 Form 1099-INT reporting $3,000 in Box 3 as interest income from U.S. Treasury Bills.

It is my understanding that interest income from U.S. Treasury Bills is generally exempt from U.S. tax for nonresident aliens. However, I have been unable to locate the specific tax provision confirming this or if my understanding is incorrect.

Could you please confirm whether this income is taxable and, if exempt, direct me to the relevant authority or publication?

Thank you very much for your time and assistance.

This topic has been closed for replies.

Best answer by BobKamman

Section 871(a) includes ALL interest, whether from Treasury or Tesla bonds. Section 871(h) then excludes ALL interest, regardless of source. You're getting hung up on looking for Treasury, when the exclusion is much broader than that.

sjrcpa

Level 15

IRC Section 871(h)

The more I know the more I don’t know.

T

The Real HalloweenAuthor

Level 6

Thanks so much for your reply!

IRC871(h) refers to IRC871(a) (1)(A) or (1)(C) but IRC871(a) (1)(A) or (1)(C) does not say that interest income from T-Bills is not taxable or I misread. Please help to clarify.

BobKammanAnswer

Level 15

Section 871(a) includes ALL interest, whether from Treasury or Tesla bonds. Section 871(h) then excludes ALL interest, regardless of source. You're getting hung up on looking for Treasury, when the exclusion is much broader than that.

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