[lenchen]

I have some interest in my saving acoount in a non-US bank. Do I have to report it as "other income"?

Also last year I was on J-1 visa status. My tax man filed regular 1040 for me. My friend told me it might be wrong and I needed 1040-NR.
If this is right and I had a wrong form for 2006, should I amend and file with 1040NR?

Thanks.

[AtlantaTaxExpert]

If you filing as a non-resident alien for 2007, the non-US bank interest is NOT taxable in the U.S.

As for 2006, you need to file Form 1040X to amend the return and ask that your non-resident alien status be re-instated. Attach a properly prepared Form 1040NR to the Form 1040X with the word "Amended" printed on the top of the first page.

Depending on your home country, you may owe MORE, LESS or NO additional taxes when you amend.

[lenchen]

Thank you a lot for the answer!

I have one more question:

For 2007 I file ar permanent resident - so all foreign interest in savings is going to taxable?

And for 1040-NR for 2006 - the savings in US bank accounts are taxable or not taxable?

Thanks!

[lenchen]

I think I need to add some more info for the question above:

2006 was my second year on J-1 visa. During that year I married a H-1B visa holder. We filed regular 1040 joined.

[AtlantaTaxExpert]

If you filed jointly with your spouse in 2006 as resident aliens, then the foreign interest IS taxable, as U.S. residents pay taxes on ALL of their world-wide income. You will need to amend the 2006 return to add that interest to the return.

However, if the additional tax is LESS than $50, do not bother; the IRS does not normally address such small amounts.

[lenchen]

Thank you very much for the answer!! This is really a big help! Thanks!!

Could you please also tell, how to report the foreign interest on 1040 Scheule B? Just calculate the currency into dollars?

[AtlantaTaxExpert]

You can convert using a monthly average or an annual average conversion rate.

Then just list the name of the bank and your converted amount.

If the amount is NOT over $1,000, the IRS will accept it at face value.

[lenchen]

Thank you very much for all your answers!!

[AtlantaTaxExpert]

Glad to help!

If you want my professional help to file your return, email at the address below.

[MukatA]

I think I need to add some more info for the question above:

2006 was my second year on J-1 visa. During that year I married a H-1B visa holder. We filed regular 1040 joined.

Since in 2006 you filed as residents, then you must declare your world wide income. If on a foreign income you paid taxes in the foreign country then you can get foreign tax credit.
Same for 2007.

[MukatA]

Thank you very much for the answer!!! This is really a big help! Thanks!!!

Could you please also tell, how to report the foreign interest on 1040 Scheule B? Just calculate the currency into dollars?

Yes, you convert currency to dollars using exchange rate for the day; the rate at which you will be able to convert currency to the us dollars.