I'm a foreign national in the US (came here mid-August 2018 on valid non-immigrant US visa and it's been more than 180 days from then) and recently I signed up for a bank account and got a signup bonus of $300 (There is no other amount credited into this account yet like salary). What is the tax liability on me? And what is the process to be followed as the bank did not withhold any tax at source or provide me with any tax-related form while opening the account. Please advise.
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Bank bonuses are taxable. Here's some discussion about them: money.stackexchange.com/questions/95847/…– Bob BaerkerMar 25, 2019 at 23:43
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1 Answer
This is considered taxable income.
At the end of the year, the bank will send you (and the IRS) a form 1099-INT, which contains this amount. You will have to add it to your tax declaration, and it might or might not result in your taxes being slightly higher, depending on what other income you have. (In any case, the tax increase is significantly less than those 300, so it is a deal).
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I do not have any other income here yet. I'm only on frequent short term visits and receive my salary in India.– gauthamMar 25, 2019 at 22:20
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2If you are more than 180 days in the US, your worldwide income is taxable in the US, and you are required to file taxes (unless you are in some very specific visa classes, like diplomats).– AganjuMar 25, 2019 at 22:22
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My permanent residence is in India. Do I still have to pay taxes for the income earned in India?– gauthamMar 25, 2019 at 22:25
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2I don't know India tax law; probably yes. You can potentially deduct your Indian taxes when you file your US taxes, and might result with zero taxes; that depends on the two countries having an agreement (I don't know). Yes, nobody said it's fair.– AganjuMar 25, 2019 at 22:27