Deductions & credits

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:

1. Once you are in your tax return, go to the Wages & Income tab. 
2. Scroll to the Interest and Dividends section and click the Start/Revisit box next to Interest on 1099-INT.
3. On the screen Did you receive any interest income? click the Yes box,
4. On the screen, Let's import your tax info, click the box at the bottom Change how I enter my form.  [Screenshot #1, below.]

5. On the next screen, How do you want to add your 1099-INT, click the box Type it in myself.  [Screenshot #2]

6. Enter the interest on the next screen.
7. 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 #3.]
8. Enter any foreign taxes paid in box 6.

SCREENSHOT #1

SCREENSHOT #2

SCREENSHOT #3