Thank you for your question.
Yes, you need to report the interest. It is a really good question and I found the following information:
Instructions on Form 1040 page 23 Foreign-source Income - (https://www.irs.gov/pub/irs-pdf/i1040gi.pdf) - "You must report unearned income, such as interest, dividends, and pensions, from sources outside the United States unless exempt by law or a tax treaty." Please see Canada Tax Treaty - ARTICLE XI - Interest - at https://www.irs.gov/pub/irs-trty/canada.pdf.
The following is from Publication 519 page 11 Source of Income - (https://www.irs.gov/pub/irs-pdf/p519.pdf) - "If you are a resident alien, you must report all interest, dividends, wages, or other compensation for services, income from rental property or royalties, and other types of income on your U.S. tax return. You must report these amounts from sources within and outside the United States."
It seems that you need to report the interest. I hope this answered your questions
Thank you so much
**Say "Thanks" by clicking the thumbs up icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
