Interest on Foreign Bank Accounts with income source outside of USA

[MSAL678]

Is interest from an overseas bank account (foreign bank) for US Citizen with income coming from sources outside of USA (such as family inheritance) considered interest income and needs to be reported as such?

[DianeW777]

Yes. A US resident is required to report all worldwide income. If you do happen to pay tax to a foreign country on the same income you may be entitled to a foreign tax credit.

• Claiming the Foreign Tax Credit with Form 1116
• Where do I enter the Foreign Tax Credit (Form 1116) or deduction?
• US Tax Treaties