How to report interest income on foreign bank accounts

Forum|Forum|6 years ago
June 7, 2019
4 replies
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I have interest income of around 150$ from foreign bank account which I have to report in my tax return, where do I report it? Currently I have added it along with other Interest income from US bank accounts as a seperate row. I dont have 1099 INT form for this income since banks in India don't issue this. I have converted the INR to USD per rate conversion available on IRS website for FBAR.

I will file FBAR by the due date to report this account.

TurboTax Deluxe Online

Best answer by MargaretL

Please enter your foreign interest income AS IF you have received 1099-INT for it and enter interest income in box 1. If you paid any foreign taxes on the interest income, enter them in box 6 of 1099-INT form (be sure to indicate that you have more than just box on the form - see pic). And you are correct to do so in U.S. dollars.

Federal Taxes
Wages and Income
Interest and Dividends, select Interest on 1099-INT

Note: You may have to file form Fincen 114, if your foreign account(s) exceed $10000 at any time during 2016. You have to file it through the Treasury website: http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html

MargaretLAnswer

Employee

Federal Taxes
Wages and Income
Interest and Dividends, select Interest on 1099-INT

AgrawalAuthor

Thanks a lot for your detailed answer. I verified and updated the information, You're awesome.

Andythewall

Was there an answer to what should we add in the 'Payer ID of Federal tax ID number'? A foreign bank does not have a federal ID number from US and TT won’t allow to file without it being added to the 1099 INT form

ihave tried all 9s and all 0s. Please can someone clarify!

KarenJ2

Please try all 1s as the Payer ID and see if that will work.

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Andythewall

Is there no way to disable it? What if all 1s is an actual entity. Wiki says the first two digits indicate that geographical area in the us the entity exists. If we put all 1s, then 11- would mean that the bank is in Austin. It’s not in Austin, it’s overseas. This doesn’t seem right to do. Is this what Turbo Tax Intuit Tax CPA would recommend to do?

Andythewall

Here is what I was able to find out from one of TTs CPA.

https://ttlc.intuit.com/community/taxes/discussion/received-interest-from-foreign-bank-what-do-i-put-in-federal-id-number-on-1099-int-screen/00/1059309

PRIYA200892

Hi,

I am facing a similar case. Can you please share your experience ?
should I add India interest income (converted to usd) and US interest income and enter as one single value ?

Separately, for FBAR how do you declare the Mutual Funds value during the year ?

linaj20201

I will suggest you to separate them into two transactions, just to be clear. However, the total amount should show on line 2b on your Form 1040 as an taxable event.

Regarding FBAR, to enter your mutual fund account value, here are the steps:

In TurboTax online,

Sign in to your TurboTax account and select Pick up where you left off
At the right upper corner, in the search box, type in "foreign assets" and Enter
Select Jump to foreign assets
Follow prompts
On-screen, "Amounts Related to Foreign Financial Assets", enter information

If you live in the US and meet one of the following criteria, you would need to file a Form 8938.

Unmarried individual (or married filing separately): Total value of assets was more than $50,000 on the last day of the tax year, or more than $75,000 at any time during the year.

Married individual filing jointly: Total value of assets was more than $100,000 on the last day of the tax year, or more than $150,000 at any time during the year.