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    kritvarma's Avatar
    kritvarma Posts: 23, Reputation: 1
    New Member
     
    #1

    Mar 10, 2009, 09:00 PM
    Foreign income
    I am on H1-B and resident. When I went to India I opened a 'NRE' 5-yr fixed deposit account. But that bank doesn't send any interest information (1099) to me. I am not sure how much interest got accrued and when.
    Am I supposed to report that interest income on an yearly basis when I file 1040? Does the total balance or interest be reported else where also? What happens if we forget to report inadvertently?
    Please note that it is not an NRO or FCNR account. It is NRE.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Mar 10, 2009, 09:29 PM

    Yes, banks in India will not send you 1099-int, but you must still report the interest on your tax return.
    Get info from bank statement or annual tax deduction statement sent by the bank. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
     
    #3

    Mar 11, 2009, 06:10 AM

    Agree with MukatA. And don't forget to file Form TD F 90-22.1 if the account exceeds $10,000 at any point during the year.
    kritvarma's Avatar
    kritvarma Posts: 23, Reputation: 1
    New Member
     
    #4

    Mar 11, 2009, 02:17 PM
    Thanks for your response. I will file it. Just curious what to do if somebody forgets to file this NRE income inadvertently. I know someone who might have forgotten to file for 1 or 2 yrs.
    kritvarma's Avatar
    kritvarma Posts: 23, Reputation: 1
    New Member
     
    #5

    Mar 11, 2009, 07:12 PM
    Thanks for your response.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #6

    Mar 11, 2009, 07:28 PM

    You are required to file amended tax return Form 1040X.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,815, Reputation: 846
    Senior Tax Expert
     
    #7

    May 4, 2009, 02:24 PM
    While MukatA IS correct about the need to amend your return, if the amount of interest received is not great (say less than $300), the need to amend also is NOT that great, because the effect on your tax liability is so small as to be insignificant.

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