Hi Atlantataxexpert,

Me and my wife opened a Fixed deposit in India in 2012 and transferred money from US to India (NRE Fixed deposit) and we will not get the interest on the Fixed Deposit (CD) until 2013. How do I show this in my taxes. I mean since there is no interest paid, it would not mean anything for 2012? How do I still show money in foreign account, I mean which form.

Regards,
Chatur

Chatur:

You CAN claim the accrued interest in the 2012 tax return if you want, but you do NOT have to.

If you do not, however, ypou WILL have to claim all of the interest on your 2013 tax return.

Hi Atlantataxexpert,

Thanks for the information. I believe I would still need to file the TD F 90-22.1. Is it true that this form is not needed to be filed with the tax return but instead at any time of the year. I want to ensure I report all my oversees accounts to avoid any penalties.

Can I use any software to ensure that this is also reflected into my tax returns.

Regards,
Chatur.

Chatur,

The TD F 90-22.1 form is the FBAR. It is filed completely separate from the federal income tax return, but it must be submitted in a timely manner so that it is RECEIVED no later than 30 June 2013.

No extensions, no excuses!

There are websites that allow you to submit the FBAR electronically, so there is software for the FBAR.

Hi Atlantataxexpert,
Thanks for the advise. If my overseas bank does not send me a 1099, can I use my bank statements to estimate my interest received in 2012 and report it with my tax return. Thanks.

Regards,
Chatur

Yes, use those bank statements, because most foreign banks do NOT send out Forms 1099-INT.