Form 8938 how to specify form and line

Forum|Forum|5 years ago
April 12, 2021
2 replies
8 views

Hi tax experts,

I added 1099-INT manually with 3$ interest from a foreign bank. It appeared in Form 1040 Schedule B.

Now in Form 8938, I need to specify Form and Line or Schedule and line.

On Form 1040 Line 2b I have a total interest I got this year (from foreign and US banks).

On Form 1040 Schedule B Line 1 I have foreign bank (and US banks) interest listed as well.

Should I specify both in Form 8938 Part III Line 1a Column (d) and (e)?

Thanks in advance.

TurboTax Deluxe Online

DaveF1006

Level 15

It depends. To clarify, is the only foreign-source income from the 1099-INT? Do you have other foreign assets or accounts that would need to be reported on a 8938? If so, how much and what type? We need to find out first if there is a 8938 FBAR reporting requirement. Here is some more information from IRS in this published link .

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thoughtful_raccoon Author

Level 2

> is the only foreign-source income from the 1099-INT?

I have a few bank accounts (say A1, A2, A3) in one foreign bank (B1) with a very small APY. It produced interest in EUR and USD each month. I converted this interest using the exchange rate on https://www.fiscal.treasury.gov/. Then summarized it and added it into 1099-INT where is payer's name is B1.

This interest appeared on Form 1040 Line 2b and inside Schedule B Line 1.

> Do you have other foreign assets or accounts that would need to be reported on an 8938?

Yes, I do. I have a few accounts A1, A2, A3 in bank B1 that produced $3 interest. Also, I have bank accounts, say A4, A5, A6 in bank B2 that didn't have APY. I reported them in 8938 and going to report in FinCEN 114.

> We need to find out first if there is an 8938 FBAR reporting requirement.

I checked the requirements and I need to report both. And I did that.

DaveF1006

Level 15

Yes. here is how you will report the $3 on your 8938. You should specify it for all of your $3 transactions, or put them in as a combined total if you have many of them. Now I am going to assume you have a Turbo Tax Software version in front of you and that you also have a 8938 form reading to record.

First record your information in the 1099-INT and record the $3 interest payment (or combine payments if all from the same broker). Once you have done this, the amounts will appear on line 2b, on the form 1040 and line 4 on Schedule B.
To report it on the 8938, Go to part 111. In Box 1C hit the plus sign to the left of the box and under reporting details, Type in 1099-INT and the amount of $3. 1D type in 1040 line 2b 1E type in Schedule B Line 4.

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raspberry-cheese

Level 2

How did you enter the 1099-INT manually for a foreign account? Thank you

HopeS

Level 8

You can include the foreign interest under the 1099-INT section. Just make sure that you include this amount in USD. Also, if you paid any foreign taxes on this interest income, you will be able to take a Foreign Tax Credit for taxes paid on income that is also taxed in the US.

The Internal Revenue Service has no official exchange rate. In general, use the exchange rate prevailing when you received the income. Please refer to the following IRS links for more information about Foreign Currency and Currency Exchange Rates and Yearly Average Currency Exchange Rates

To enter foreign interest income in TurboTax, please follow these steps:

Once you are in your tax return, go to the Wages & Income tab.
Scroll to the Interest and Dividends section and click the Start/Revisit box next to Interest on 1099-INT.
On the screen Did you receive any interest income? click the Yes box,
On the screen, Let's import your tax info, click the box at the bottom Change how I enter my form.

On the next screen, How do you want to add your 1099-INT, click the box Type it in myself.

Enter the interest on the next screen.
If you paid foreign taxes on the interest, check the box My form has info in more than just box 1 (this is uncommon). [Screenshot #1.]
Enter any foreign taxes paid in box 6.

Review the link below which includes images of the Screenshots mentioned above: