Unable to e-File because TurboTax insists on FEIN number of Bank that gave Interest returns, even when the bank is a foreign bank, which does not have FEIN number.

Did this bank issue a 1099-int or just some type of document ?

To enter your foreign interest in U.S. dollars you do not need a Form 1099-INT or a FEIN. To enter the foreign interest, you should do the following:

 

1. Delete the Form 1099-INT from your return.
2. Enter interest income in the Search Magnifying Glass in the upper right hand corner of the screen.
3. Select Jump to interest income,
4. Answer the questions on the screens and say you did not receive a Form 1099-INT
5. Enter the foreign interest in U.S. Dollars

To delete a form off of your return you need to:

1. Select Tax Forms in the Black bar on the left side of the screen.
2. Select Tools from the drop down menu.
3. On the Tools Center Select Delete a form.
4. Locate the form on the list and select Delete.
5. You will be asked to confirm the deletion.

Facing the same problem again this year.

TurboTax is insisting on entering the FEIN number and there is no work around.

They have created a new option of "1099-OID, Foreign Accounts" . But when I enter the interest income in that section, the taxable income shows as 0.0 as shown in the attached image.

I hope TurboTax will take notice of this recurring issue. When I spoke to specialist on the phone, she had no idea about this and suggested that I don't need to enter it in the "Interest on 1099-INT" section, which would mean, that I am not paying tax for the interest earned in foreign bank.

I hope somebody can help escalate this to concerned department who would be able to fix this recurring issue.

Foreign bank (Indian bank in my case) don't have FEIN number, nor do they issue any 1099-INT

Note: I already tried deleting the entry and entering it manually.(But FEIN number prompt always comes up)

You can use a blank 1099-INT and fill it in as if it was a domestic payer and you chose to fill the info yourself in lieu of downloading the data.

Using the desktop version and creating a hypothetical payer:

Opened up a blank 1099-INT and filled in the interest income and there was no request for the name of the payer or the EIN nbr.  as this is optional at least on the desktop version.  So if the on-line version insists on an EIN nbr. the following worked.  I used 11-1111111.  This worked for any sequence from “1” thru “8”.  Zeroes and nines would cause errors.  I suggest trying the work around and see if the on-line version will accept it.

You're correct, you can use all 1's for the FEIN.  It acts as a default "dummy number"  for IRS purposes.  This is also helpful when there is no zip code, for example.

 

If the error persists, delete the 1099-INT and enter it as Other Income. Here are the steps:

 

In TurboTax online,

• Sign in to your account, select Pick up where you left off
• To the right upper corner, in the search box, type in "other reportable income" and Enter
• Select Jump to other reportable income
• Next screen, Other Wages Received, select No to continue
• Next screen, scroll down all the way to the bottom, under Other reportable income, select Start
• Next screen, Any Other Taxable Income? select Yes to continue
• Enter a description and the amount.

Technically, you would enter a Form 1099 for interest, dividends to create a Schedule B that goes to the IRS.  However, with a foreign entity, you would not have a US FEIN to qualify for the e-file.  For the workaround, follow the instructions from above.  To the IRS, as long as the total amount is reported on your taxes as Other income on line 7a Form 1040, you should be okay. 

 

If you have also paid taxes to a foreign country, you can claim a foreign tax credit on your US return.  Here are the steps:

 

In TurboTax online,

 

@rogge 1722

@Vinp

• Open up your TurboTax account and select Pick up where you left off
• At the right upper corner, in the search box, type in "foreign tax credit" and Enter
• Select Jump to foreign tax credit
• Follow prompts
• On-screen, Tell Us About Your Foreign Taxes, select None of these apply and Continue
• Follow prompts
• On-screen, Choose the Income Type, check Passive Income
• Follow prompts
• On-screen, Other Gross Income-Foreign country, enter description and amount
• Follow prompts, 
• On-screen, Foreign Taxes Paid-foreign country
• Under Foreign Taxes on Other Income, enter the amount

Yes. Entering 11-1111111 did the trick.

Thanks a lot for your help.