I am a USA citizen living in the Philippines with my Filipina spouse [Never been to the USA] which has an ITIN number and I opened a bank account for her in the USA in 2014.

For taxes I file "married filing jointly" and she received a 1042-S this year from that bank.
It shows "income code"=Deposit Interest
"Gross income"=$300
with box 3a "Exemption code 02"=Exempt under IRC (other than portfolio interest)

Is she exempt from paying taxes on the interest she made or should it be reported along with my interest on my 1040 Schedule B "interest & ordinary dividends"?

Thank You

I'm assuming your spouse is not a US citizen (dual citizen nor has US documentation)... Does this US bank account that you opened for her also have branches in the Philippines or no?

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Originally Posted by spicywings

I'm assuming your spouse is not a US citizen (dual citizen nor has US documentation)... Does this US bank account that you opened for her also have branches in the Philippines or no?

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Non citizen, non resident, living in the Philippines, no banks of same in the Philippines.

Regarding the $300, does it have income 19 or 18 on the 1042s or something else?

29 deposit interest

Ok, wanted to make sure. I think you are good. According to the IRS, this is an amount that is not subject to reporting from your 1042s.

Amounts That Are Not Subject to Reporting on Form 1042-S

http://www.irs.gov/Individuals/Inter...on-Form-1042-S

Thanks

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Originally Posted by ranosb

Thanks

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No problem. Have a great weekend.

HOWEVER, if you and your wife filed a JOINT U.S. tax return, then she CHOSE to be treated as a U.S. resident, in which case the $29 in interest is fully taxable on your tax return