An earlier post here suggested a person residing less than 183 days per year in the U.S., who makes interest income, would have either 0% or 30% withholding, depending on the type of interest income. I wanted to get examples of each type of interest withholding.
The original post here stated that one should read Code § 871(a) for the general rule that U.S. source interest income paid to non-U.S. persons is subject to a 30% tax. There are exceptions in Code 871(h) and (i) for bank interest and portfolio interest, among others.
The exception for bank interest is clear. Would this include money market interest as well?
It's not clear what is Portfolio interest. Would this include interest from bond investments?
What are some other examples of interest income that would get the 0% withholding rate?
And what are some examples of interest income that would get the automatic
30% withholding?If there is a good summary list of types of incomes for laymen readers someplace, I would appreciate the reference.