1. There is no minimum threshold for reporting foreign interest income when filing US Taxes.
2. Interest income from foreign sources is not tax-free in the U.S. even if it is tax-free in the country where it comes from. Some foreign investments such as Canadian registered retirement accounts (RRSP) may receive tax-deferred growth treatment, but overall it is rare.
3. Yes, report foreign interest income in the same page as 1099-INT.
4. You need submit Form 8938 if you meet one of the following thresholds:
The threshold filing requirements vary based on whether a person is filing as single, separate or married filing jointly, and whether the person files as a U.S. resident or foreign resident.
The rules for Taxpayers living in the U.S.:
Unmarried Taxpayers
If you are not married, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.
Married Taxpayers Filing a Joint Income Tax Return
If you are married and you and your spouse file a joint income tax return, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year.
Married Taxpayers Filing a Separate Income Tax Return
If you are married and file a separate income tax return from your spouse, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.
The rules for Taxpayers living outside the U.S.:
Unmarried Taxpayers
If you are not married, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the tax year.
Married Taxpayers Filing a Joint Income Tax Return
If you are married and you and your spouse file a joint income tax return, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the tax year.
