Yes, if you are filing a resident tax return (Form 1040), you need to report your worldwide income, including interest income. Foreign banks do not issue Form 1099-INT. You can report that interest in TurboTax as if you received a Form 1099-INT. Go to: Federal Taxes (Personal in Home & Business version) - Wages & Income - under Interest and Dividends section, click Start/Update/Revisit on Interest on 1099-INT.

If you need exchange rates, please use the IRS website link: https://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates

Also remember to say "yes" or check the box when the program asks if you had "Owned or signed on a foreign bank, broker, or other financial account." If at any time during tax year you did not have equivalent of $10,000 or more on your bank account(s), then there will be no additional filing requirements. But if you do have additional foreign bank/asset required reporting to do, TurboTax will walk you through and suggest the next step.

If TurboTax doesn't prompt you for foreign account information, go to: Federal Taxes (Personal in Home & Business version) - Wages & Income - under the section Interest and Dividends start the interview for 1099-OID, Foreign Accounts.

You can also read more about it here: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial...

I did try to add it as 1099 INT but now its forcing me to give an FEIN which the foreign banks dont have. 

Neither do I remember giving it one last year.

Any suggestions? 

You can enter in box 6 of 1099-INT form (there is a check box to indicate that you have more than just box on the form). You must report the amount in U.S. Dollars.

1. Federal Taxes
2. Wages and Income
3. Interest and Dividends, select Interest on 1099-INT

@sachi

The FEIN for my bank is not available.

How can i put the information in? Any updates on the thread?

Would you see if entering 99-9999999 will get you through.  Thank you.

Hi - Both 00-0000000 and 99-9999999 did not work. What should we do?

Hello,

I am seeing same issue. I haven't tried to submit the forms yet but on the review section it still keeps showing as error. Did you have success submitting the forms?

I don't think this was an issue last year. I had used turbo tax and reported foreign interest as a 1099-int. Not sure why this is a issue this year.

You can report the foreign interest income as other miscellaneous income.

1. Open your return in TurboTax 

2. Click on Wages & Income 

3. Scroll down to All Income 

4. Scroll down to Less Common Income 

5. Scroll down to Miscellaneous Income, 1099-A, 1099-C 

6. Click start 

7. Scroll down to Other reportable income 

8. Answer yes 

9. Enter interest description and amount 

Thanks for your reply. But my question is that this really is a interest income and I have reported it as INTEREST income previously without FEIN using turbo tax. 

Can we or should we report its a Miscellaneous income wouldn't that be equal to 1099-misc?  Besides this really isn't an employment income but an interest that I have gained. 

So i called turbo tax and they said, just leave it empty and ignore the warning for the FEIN. Its not mandatory for filing. That’s what I did and it went through.

You can report it under Other Income so that you will be able to e-file.  Here are the steps:

In TurboTax online,

• Sign in to your account, select Pick up where you left off
• To the right upper corner, in the search box, type in "other reportable income" and Enter
• Select Jump to other reportable income
• Next screen, Other Wages Received, select No to continue
• Next screen, scroll down all the way to the bottom, under Other reportable income, select Start
• Next screen, Any Other Taxable Income? select Yes to continue
• Enter a description and the amount.

 Technically, you would enter a Form 1099 for interest, dividends to create a Schedule B.  However, with a foreign entity, you would not have a US FEIN to qualify for the e-file.  To workaround, I would suggest you enter the information under Other Income in the program.  To the IRS, as long as the total amount is reported on your taxes as Other income on line 7a Form 1040, you should be Okay. 

@tj45

Hi VJAIN

Can you please summarize the steps.  I have to report as well.  Another question - I have more than $10,000 in the bank account - any additional steps?

To enter foreign interest income.

1. Log into Turbo Tax
2. Go to federal>wages and income>show more

3. Interest and Dividends>show more

4. Interest on 1099-INT

5. when it asks for a bank, indicate change how I enter my form.

6. Next screen enter you will type it in yourself.

7. Next you will arrive at a screen that says Let's get the info from your 1099-INT

8. Enter the name of the Bank or who paid you the foreign interest

9. If you paid foreign tax, check the box that says My form has info in other boxes (this is uncommon).

10. enter your foreign tax paid in box 6 of the form.

To claim a foreign tax credit for the amount of foreign tax you paid, go to:

1. Go to federal>deductions and credits>estimate and other taxes paid
2. Foreign taxes >start
3. Start answering questions. Make sure you answer the question correctly about if this is the first year you are making the simplified  election
4. Answer the questions in the next screens until you reach a screen that talks about income type. This will be the general category of income. if you have more than one country, you will add that later.
5. Next screen is where you add the country your foreign income was earned in. 
6. Next screen will ask you what your source income earned in that country. Here you will allocate income earned while you were in that country.
7. You will continue answering questions until you get to a screen that says foreign taxes paid to XXXX. Be sure not to list a date at the bottom beyond 12/31/2020 or you won't get the foreign tax credit and will show up as an error in your return

Lastly, yes you will need to report your foreign account over $10,000. You will report this on form 8938, which Turbo Tax supports. To report:

1. Type in 8938 in the search bar next to the magnifying glass toward the top of your return and select the Jump to link at the top of the search results.
2. On the Foreign Financial Assets screen, select Yes, I have foreign financial assets
3. Answer yes or no to living in a foreign country, and select Continue.
4. Answer yes or no to amount of foreign financial assets, and select Continue.
5. Carefully follow the instructions. If you need Form 8938, we'll fill it out for you.

Thanks a lot DaveF - I tried to follow your steps but I was using TT on my PC - not online and some of the steps I could not replicate like you stated.  It is very confusing and I am able to report the income and get credit but not sure if I did everything right.  I either buy audit defence for $50 from TT or go to a tax consultant and pay $800.   I wish TT did this simpler - someone I struggled last year too even with help from somone from TT - the tax consultant I used said TT had messed things up.  This year again I am in the same pickle.   Any thoughts?  I wish TT would follow your steps and walk us through like you did and make sure it works on all versions (on or offline).