Reporting foreign interest income. I've received $1556 of foreign interest income but do not have a 1099-INT form from the foreign bank.

Forum|Forum|6 years ago
May 31, 2019
3 replies
0 views

Q1: How do I report this income and how do I complete Schedule B with the foreign bank details? I do not see any option to complete Schedule B form on turbo tax. I have entered everything on my turbo tax account and reached the "Review" stage but do not see an option to report this foreign interest income and to complete Schedule B. Where would I do that?

Q2: The accumulated value of all my foreign NRE banks & Certificate of Deposits foreign accounts was more than $10,000 during this tax year. So, I believe that I will need to complete FBAR forms. How would I do that?

TurboTax Deluxe Online

B

bine22

Employee

Enter your foreign interest as if you had a 1099INT for it. If you paid foreign taxes, enter them in box 6 of that 1099 INT. This should also generate schedule B. You'll need to fill in part 3 of that.

You can also enter "schedule B" in the search box and then choose from the drop down which part you want to work on.

Turbotax does not support the FBAR from Fincen 114, which you need to file if you have $10000 or more in your foreign accounts. You have to file it through the Treasury website: http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html

C

charles_flaum

You will also have to file Form 8938 Statement of Specified Foreign Financial Assets if your total foreign accounts are above certain thresholds (see instructions for Form 8938)

L

linaj20201

Technically, you would enter a Form 1099 for interest, dividends to create a Schedule B. However, with a foreign entity, you would not have a US FEIN to qualify for the e-file. To workaround, I would suggest you enter the information under Other Income in the program. To the IRS, as long as the total amount is reported on your taxes as Other income on line 7a Form 1040, you should be Okay.

In TurboTax online, here are the steps:

Sign in to your account, select Pick up where you left off
To the right upper corner, in the search box, type in "other reportable income" and Enter
Select Jump to other reportable income
Next screen, Other Wages Received, select No to continue
Next screen, scroll down all the way to the bottom, under Other reportable income, select Start
Next screen, Any Other Taxable Income? select Yes to continue
Enter a description and the amount.

E

einholen

Hi @linaj20201, mind explaining a bit more why US FEIN is important in this case? I can't find a field for any identification numbers, let alone employer identification number, anywhere in Schedule B or TurboTax forms for 1099-INT, all they ask for is the payer's name.

Here's also what I find in Schedule B instructions. Doesn't entering just the interest amount based on the foreign bank's statement fall into a substitute statement category?

Report on line 1 all of your taxable interest. Taxable interest generally should be shown on your Forms 1099-INT, Forms 1099-OID, or substitute statements.

L

linaj20201

If you are using TurboTax Desktop, you should be able to e-file without any issues.

For users who use online, there has been an issue about them not be able to e-file without a US FEIN. This issue has been reported and under investigation.

@einholen

AmyC

Employee

@Lucka The IRS needs to know how much income you reported to pay the foreign tax.

For example: You paid $100 foreign tax. Great, The IRS needs to know which country and how much income you reported to them.

Always being careful if you need to report foreign accounts. Here is a comparison of the 8938 and FBAR requirements. The FBAR is not part of the tax return. It is filed separately. File FBAR through the Financial Crimes Enforcement Network.

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