PDA

View Full Version : Foreign interest


ilovepiano
Feb 6, 2008, 04:23 PM
Hi guys,
Reading some of the postings I realize I should have reported the interest on my foreign savings account on my 2005 and 2006 tax return (I am an F-1 student filing as resident alien since 2005). I checked the figures and because of this neglect I received about $8 too much of a refund for both years. Is there a penalty for this when I file an amended return? I also did not claim the lifetime education credit for which I am apparently eligible both years when I filed.
Thank you!

AtlantaTaxExpert
Feb 11, 2008, 01:23 PM
If the interest was the ONLY issue, I would advise you not to bother amending the return. The IRS would not bother for such a small amount of money.

However, claiming the Lifetime Learning Credit WILL result in a significant tax refund, so you should amend the 2005 and 2006 return to claim that credit. When you do so, you can then add the interest income to the amendments.

Queli
Feb 11, 2008, 01:33 PM
I would like, know about tax refund for j1 visas.

ilovepiano
Feb 18, 2008, 02:05 PM
Thank you! If I refile to claim the tax credit, how do I treat reimursements I received the following year? Say if in 2005 I paid x amount for tuition and fees and then in 2006 I got reimbursed some of that amount? Do I just not claim that amount on the 2005 tax return?

AtlantaTaxExpert
Mar 4, 2008, 01:41 PM
LovePiano:

It depends on the level of reimbursement.

There is a limit as to how much in education credits you can claim. Example: Lifetime Learning Credit is capped at $2,000, which is 20% of $10,000 in tuition. If your tution was $30,000, and you then got reimbursed for $5,000 in the following year, it would have NO EFFECT on your Lifetime Learning Credit.