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    collegian's Avatar
    collegian Posts: 57, Reputation: 1
    Junior Member
    		  
    #1

    Mar 8, 2014, 10:47 AM
    Regarding interest earned from foreign bank accounts
    Hello,

    I will be filing my 2013 taxes as a resident alien. I know that I need to file FBAR form if the total amount at any point has been >= USD 10K.

    My questions are:

    1) Do I need to file the interest earned from that account irrespective of the total amount in the bank account? What if the total amount is < USD 10K?

    2) If the answer to (1) is YES, then how do I convert the amount into USD? Do I just take the individual dates on which interest was paid over the whole year and convert the amount to USD and add up the whole thing?

    Please give your suggestions.


    Thanks.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 8, 2014, 09:55 PM
    1) It does not matter HOW MUCH was in the account. You need to report any interest earned per account that exceeds $10.

    2) You can convert using the exchange rate on the date the interest was posted OR the average exchange rate for the year OR the year-end exchange rate provided by the IRS. You just need to be consistent about which method you use.
    collegian's Avatar
    collegian Posts: 57, Reputation: 1
    Junior Member
    		  
    #3

    Mar 9, 2014, 08:30 AM
    Quote Originally Posted by AtlantaTaxExpert View Post
    1) It does not matter HOW MUCH was in the account. You need to report any interest earned per account that exceeds $10.

    2) You can convert using the exchange rate on the date the interest was posted OR the average exchange rate for the year OR the year-end exchange rate provided by the IRS. You just need to be consistent about which method you use.

    Thanks again.

    I've a couple more:

    1) Do I need to provide some proof of the interest obtained from both local and overseas banks? I've 1099 INT from the local banks but for the overseas one, the only thing I've is an excel sheet of the year around transactions.

    2) The total interest I obtained is < $1,500 from all the accounts. Do I still need to fill Schedule B form for the interest obtained from overseas account or simply mentioning the total on 1040 A is enough?

    Please give your suggestions.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Mar 9, 2014, 09:30 AM
    1) No proof is needed,

    2) Because there is overseas income, the Schedule B IS required irrespective of the amount being reported.
    collegian's Avatar
    collegian Posts: 57, Reputation: 1
    Junior Member
    		  
    #5

    Mar 9, 2014, 06:59 PM
    Quote Originally Posted by AtlantaTaxExpert View Post
    1) No proof is needed,

    2) Because there is overseas income, the Schedule B IS required irrespective of the amount being reported.
    Thanks for all the help!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Mar 9, 2014, 07:13 PM
    Glad to help!
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