[crazee85]

Hello,

I understand that we have to fill up the form 90-22.1 if the balance in our foreign bank accounts has exceeded $10,000 anytime during the past year.

Do we have to fill up Schedule B for form 1040 too?

Thanks.

[MukatA]

A US citizen and resident must report worldwide income on the tax return. You need to report foreign bank interest on sch B (Form 1040). File FBAR for 2010 and all missing year by August 31, 2011. U.S. TAX NEWS: 2011 Offshore Voluntary Disclosure Initiative

[crazee85]

Thanks Mukata.

As I understand, the part I and II of Schedule B will be filled only if the taxable interest or ordinary dividends are over $1,500 respectively.

If they are not over $1,500, but if the balance in our foreign bank accounts has exceeded $10,000 anytime during the past year, we have to still fill up part III for foreign accounts and trusts.

Is this correct?

Thanks.

[MukatA]

"As I understand, the part I and II of Schedule B will be filled only if the taxable interest or ordinary dividends are over $1,500 respectively."
Not true. Even total amount less than $100 need to be reported.

[crazee85]

The instructions for Schedule B say:
"Use Schedule B if any of the following applies.
• You had over $1,500 of taxable interest or ordinary dividends."
...
• You had a financial interest in, or signature authority (or other authority that is comparable to signature authority) over, a financial account in a foreign country or you received a distribution from, or were a grantor of, or transferor to, a foreign trust.
Part III of the schedule has questions about foreign accounts and trusts."

Since the first point is not valid for me, I was thinking of directly reporting the interest and dividends on Form 1040 line 8a and line 9a, without having to mention them on Schedule B too... Is that wrong? Should I fill up Schedule B Part I and Part II too?

Since the third point is indeed valid, I was thinking of filling up the Schedule B Part III. Is that fine?

Thanks a lot.