Ask Experts Questions for FREE Help !
Ask
    Petitepuce's Avatar
    Petitepuce Posts: 8, Reputation: 1
    New Member
     
    #1

    Apr 10, 2013, 09:40 AM
    Paying Taxes on Interest earned on foreign account
    I'm filing my taxes (yes... I'm a procrastinator!) and am using H&R Block at home program. I've come to the section asking about interest earned on bank accounts and need to include a small amount of interest I've earned on an account I have in France. Since this bank has no connection to the US, I did not receive a 1099-INT but am using the December 2012 statement that shows the amount of interest I earned in 2012. Do I need to send the IRS any paper documentation to support the amount of interest earned that I am claiming? Of course, all I would have at this point is the bank statement if documentation is needed.

    Thanks
    taxesforaliens's Avatar
    taxesforaliens Posts: 649, Reputation: 117
    Senior Member
     
    #2

    Apr 10, 2013, 11:55 AM
    No, no need to send any statement to the IRS with your return. You would just have to send them if the IRS requests it, so keep everything for your records.
    Enter the interest as if you had received a 1099INT. If you paid taxes on the interest in France, enter them in box 6 and you can get a foreign paid tax credit.
    Also note that you might have to file FBAR forms if the total in your foreign accounts was $10000 or more at any point during the year.
    Petitepuce's Avatar
    Petitepuce Posts: 8, Reputation: 1
    New Member
     
    #3

    Apr 10, 2013, 02:45 PM
    Quote Originally Posted by taxesforaliens View Post
    No, no need to send any statement to the IRS with your return. You would just have to send them if the IRS requests it, so keep everything for your records.
    Enter the interest as if you had received a 1099INT. If you paid taxes on the interest in France, enter them in box 6 and you can get a foreign paid tax credit.
    Also note that you might have to file FBAR forms if the total in your foreign accounts was $10000 or more at any point during the year.
    Thanks for the response to my question. I'm fine as far as FBAR goes at this point, but am aware of the need to report to the Treasury Department via FBAR when my balance is $10K or more.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #4

    Apr 13, 2013, 09:49 PM
    Also, check to make sure that you do not have to submit Form 8938 if your foreign bank balances exceed the amounts specified under FATCA.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Interest earned on foreign account - do I have a problem? [ 4 Answers ]

My grandparents who lived in France opened a bank account for me many years ago that I didn't know about. Very little money was ever deposited in the account while my grandparents were alive. My mother (who also lives in France and is a french citizen) recently made me aware of the account and...

State tax for Ohio for foreign capital gain and foreign earned interest on the amount [ 4 Answers ]

Does one have to pay state tax on foreign capital gain and foreign interest that was earned during that year?

Foreign Earned taxes without W2 [ 6 Answers ]

Hello. I've been reading some posts that are similar to my situation, but either the exact question wasn't answered, or I am still confused. Situation: - I am a US Citizen - I worked for two separate companies in 2008, both of which supplied a W2 (no prob there) - I also worked in China...

Foreign Earned Income & Bank Interest [ 17 Answers ]

Hi, I am checking this for my married friends who are US citizens. They have been filing their foreign earned income jointly (Form 2555EZ) with the bona fide status since 2007. 1. One of the couple changed job last year so does he need to file 2 separate forms of 2555EZ for each employer's...

Taxation in USA for interest earned in foreign countries [ 2 Answers ]

Do you have to declare interest earned with USA tax filing if you earned this in a foreign country and already paid taxes in that country?


View more questions Search