Can I Add a Non-U.S. Citizen to My Bank Account?
Understand what's involved in adding a non-U.S. citizen to your U.S. bank account. Get clarity on the necessary steps and implications for joint banking.
It is possible to add a non-U.S. citizen to a U.S. bank account, a common need for those supporting family, managing shared expenses, or assisting visitors. While permissible, this process involves specific requirements and careful consideration of financial and legal implications. Understanding the necessary steps and documentation can streamline the process for both the existing account holder and the non-U.S. citizen.
General Eligibility for Non-U.S. Citizens
Most U.S. financial institutions permit non-U.S. citizens to be added to bank accounts, though specific policies and requirements vary. A primary requirement for adding a non-U.S. citizen typically involves proof of identity and their physical presence at a bank branch during the account opening process. This physical presence helps banks verify identity and comply with federal regulations.
Eligibility often extends to individuals holding various immigration statuses, including those with visas, green cards, or specific work permits. While banks generally accommodate these statuses, some institutions may have stricter criteria. Contact the specific bank to understand their particular requirements. The distinction between “resident alien” and “non-resident alien” status, while complex for tax purposes, also influences the specific documentation a bank may require for account setup.
Required Documentation and Information
Both the U.S. citizen account holder and the non-U.S. citizen must provide specific documents and information. The non-U.S. citizen typically needs to present a valid, unexpired passport as a primary form of identification. Additional identification might include a U.S. driver’s license or state identification card, if available, or a U.S. Employment Authorization Card.
Proof of a U.S. address is also required, often satisfied by a recent utility bill, a lease agreement, or official mail. This is a standard requirement under the USA PATRIOT Act, which mandates that financial institutions verify the identity and address of all individuals opening accounts to combat financial crimes.
A Taxpayer Identification Number (TIN) is necessary for banking purposes. If the non-U.S. citizen does not have a Social Security Number (SSN), they will likely need an Individual Taxpayer Identification Number (ITIN). An ITIN is a nine-digit tax processing number issued by the Internal Revenue Service (IRS) for individuals ineligible for an SSN. To apply for an ITIN, individuals must complete IRS Form W-7, along with original or certified copies of identity and foreign status documents, such as a passport. The IRS typically processes ITIN applications within 7 to 11 weeks. For the U.S. citizen, standard identification like a driver’s license and their Social Security Number will be required.
The Account Opening Process
Once documentation is prepared, the account opening process can begin. Both the U.S. citizen and the non-U.S. citizen should be physically present at a bank branch. While some banks offer online options for existing customers, adding a new joint account holder, particularly a non-U.S. citizen, usually necessitates an in-person visit for identity verification and document submission.
During the meeting, identification, proof of address, and Taxpayer Identification Number (ITIN or SSN) will be presented for verification. The bank will then provide specific account opening forms for both individuals to sign, confirming their agreement to the terms of the joint account. After forms are signed and submitted, the bank will conduct its internal verification procedures to ensure compliance with federal regulations. Following successful verification, the initial deposit can be made to fund the account. Post-submission steps may include receiving temporary checks, a debit card, and setting up online banking access for both joint account holders.
Important Considerations for Joint Accounts
Establishing a joint bank account carries significant financial and legal implications. Both individuals typically have equal access to all funds, meaning either party can withdraw, deposit, or manage the account independently. This shared access also extends to liability, making both account holders equally responsible for any overdrafts, fees, or debts incurred. Opening a joint account requires a high degree of trust.
Any income earned on the account, such as interest, is taxable. For non-resident aliens, interest income from U.S. bank deposits not connected with a U.S. trade or business is typically exempt from U.S. income tax, but banks are required to report this income to the IRS on Form 1042-S. Non-resident aliens should provide a Form W-8BEN to the bank to certify their foreign status and prevent unnecessary tax withholding on such interest. The Foreign Account Tax Compliance Act (FATCA) also mandates that U.S. financial institutions report information about accounts held by U.S. taxpayers to the IRS, and foreign financial institutions report on U.S. persons with accounts abroad, ensuring transparency.
If large sums are transferred between holders, potential gift tax implications may arise. For 2025, an individual can gift up to $19,000 per recipient without triggering gift tax reporting requirements. Amounts exceeding this annual exclusion may reduce the giver’s lifetime gift tax exemption, potentially requiring the filing of IRS Form 709. A power of attorney can be a useful tool for managing the account if one party leaves the country for an extended period, though creating such a document involves separate legal steps. Either party typically maintains the right to close the account or withdraw all funds, emphasizing clear communication and mutual understanding.