Yes, you will need to pay taxes in both countries but you can claim a foreign tax credit for the interest income taxed in NZ. To enter the income first.
- Log in to TurboTax: Open your TurboTax account and start a new return or continue an existing one.
- Navigate to Income Section: Go to the "Federal" section and then click on "Wages & Income."
- Add Income: Click on "Add Income" and select Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) if using desktop, it is Interest and Dividends
- Enter Interest Income: Choose "Interest on 1099-INT" and click on "Start" or "Update."
- Enter Details. Since you have no 1099 INT statement, you will need to enter the information like you do have one. If you paid foreign taxes on this income, enter the foreign tax paid in Box 6.
Now to get credit for the foreign taxes paid.
- Go to Federal
- Deductions and credits
- Estimate and other taxes paid
- Foreign Tax Credit>start or revisit
- TurboTax will guide you through filling out Form 1116, Foreign Tax Credit. You'll need to provide details about the foreign taxes paid, the country where the income was earned, and other relevant information.
@vsundar
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