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Huaren
等级三等兵
威望--
贴子51
魅力142
注册时间2005-06-23

garfield_life

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help for opening saving account

833

5

2006-10-08 18:35:00

In the last step of application for Citi E-Saving account, I was asked to check a Box for "Tax Verification", about being not subject to backup withholding.

Did Anyone have this expericence or idea?

My understanding is that if we check the box, we needn't to pay tax for our interest income, is that right?

Usually, do people report such small income when fill tax return form? If check the box, is there any problem or bad result in the future (My status is F1< 5years)?

Thanks very much!

Huaren
等级等待验证会员
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注册时间2006-03-31

ashley2006

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2006-10-08 20:49:00

I opened Citi E-saving by phone, and they didn't ask such questions.
Huaren
等级三等兵
威望--
贴子51
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注册时间2005-06-23

garfield_life

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2006-10-08 23:08:00

Anybody know anything about backup withholding and when we apply saving account how do we deal with it? Thanks~

[此贴子已经被作者于2006-10-8 23:09:54编辑过]

Huaren
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注册时间2003-02-03

1976

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2006-10-08 23:37:00

1) in either case, everyone must pay the tax for the earned interests.

2) for F1, in either case, you do not pay the tax for the earned interests. If they have charged (withhold) the money, just get it back when you file the tax return.

3) for income, no matter how small it is, you should report it.

Huaren
等级大校
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贴子9017
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注册时间2005-05-24

ismylie

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2006-10-09 15:34:00

以下是引用1976在2006-10-8 23:37:00的发言:

1) in either case, everyone must pay the tax for the earned interests.

2) for F1, in either case, you do not pay the tax for the earned interests. If they have charged (withhold) the money, just get it back when you file the tax return.

3) for income, no matter how small it is, you should report it.

why F1s don't pay interest income? It might not be taxed because they don't have enough taxable income after deductions, but they still have to report it if they receive 1099.
Huaren
等级三等兵
威望--
贴子51
魅力142
注册时间2005-06-23

garfield_life

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2006-10-09 17:04:00

My understanding:

1. needs to report anyway.

2. interests will be considered as foreign income and will not be taxed, even if it has been withhold, it can be asked back later.

Right? Thank you~ for the great help.

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