This appears on IRS Form 1042-S (“Foreign Person’s US Source Income Subject to Withholding”). Nonresident alien withholding applies at the rate of 30% (or applicable treaty rate) for US-sourced interest and dividends but not gross proceeds from capital gains transactions paid by a US corporation (or by certain non-US corporations that have generally derived 25% or more of their gross income from sources within the United States). Compare backup withholding.

In general, nonresidents may not need to file a US tax return (Form 1040-NR) when their US tax withholding, such as on dividends and interest, fully covers their tax liability and they are not trying to get a refund.