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    helpneeded123's Avatar
    helpneeded123 Posts: 4, Reputation: 1
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    #1

    Feb 10, 2010, 11:43 AM
    Foreign Bank account
    Hello,
    I am on H1 visa in USA. I have a NRE account in India in which I transfer money into. The money gets converted into INR after it has been credited to my account in India. I do not receive any kind on documentation (1099-INT or likewise) showing the interest earned on that interest bearing account. Income tax is exempt on interest earned in NRE accounts.
    1.) Do I need to declare the account's amount on form TD F 90.22-1 if it is more than $10K at any time during the year.
    2.) Do I need to declare the interest earned on that account?

    If I do declare it and I pay to extra taxes, doesn't it mean I am paying taxes on amounts that I am already declaring as part of my earnings and have already paid taxes on.

    Apologies, if I am confusing the questions or wording it wrong. I am not well versed with tax terminologies. Thanks in advance for helping me.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #2

    Feb 10, 2010, 06:46 PM

    If you are a U.S. resident then you must report the foreign account and include all of your worldwide income on your U.S. tax return.
    helpneeded123's Avatar
    helpneeded123 Posts: 4, Reputation: 1
    New Member
    		  
    #3

    Feb 10, 2010, 07:19 PM
    Thanks for the reply.
    I have another question. My foreign bank did not send me 1099INT. How do I report the interest in that case? Should I just write the interest earned in schedule B by converting the interest earned in INR into USD?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #4

    Feb 11, 2010, 04:15 AM

    Yes, you will report interest income. Even the interest earned on your NRE account. Convert INR to USD.
    You may also need to file TD F 90.22-1. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income
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