Buying i-bonds on as a non-resident alien for tax purposes

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alexa99
Posts: 2
Joined: Sun Jun 19, 2022 6:18 pm

Buying i-bonds on as a non-resident alien for tax purposes

Post by alexa99 »

I'm a non-resident alien living in the United States (F-1 Visa, exempt under substantial presence test for being a "US person" as defined by the IRS).

I filed 1040-NR for my tax return and submitted form 8888 to receive my refund as paper I-bonds.

The treasury direct website says you have to be a US citizen or resident to own i-bonds but its not really clear if it refers to tax residence or simply physical residence (with a valid SSN).

1. Am I allowed to buy and own i-bonds while I live in the US with a valid SSN (physical residence) while I'm a non-resident for tax purposes?
2. I have received my refund as paper I-bonds from the IRS. If I'm no allowed to own them, whats my recourse?
ivgrivchuck
Posts: 1672
Joined: Sun Sep 27, 2020 6:20 pm

Re: Buying i-bonds on as a non-resident alien for tax purposes

Post by ivgrivchuck »

I don't know, but I wouldn't worry too much about it...

If you decide to stay, you can keep the bonds.

If you decide to leave the U.S., you likely want to cash out the bonds before you leave, and report the interest in your last U.S. tax return.

There is no need for anyone to go after you in either case...
25% VTI | 25% VXUS | 12.5% AVUV | 10% AVDV | 2.5% VWO | 25% BND/SCHR/SCHP
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