foreign bank account and interest earned

I have about $22,000 in my foreign bank account. The bank automatically deduct tax on the interest earned. Most of the proceed goes to the poor students I am providing scholarship to. The interest earned in foreign currency is can not be brought to the U.S. any other country of the foreign currency exchange restriction. How or if I should report the interest earning to the IRS?

Thanks.

749

Expert Alumni

Mar 24, 2025 3:03:10 PM

You can enter the interest in the section for 1099-INT in TurboTax. You will leave the field for "EIN" blank (if it is presented). The interest will go in the Box 1 area.

Since the tax withheld is foreign, you will enter that information in the "foreign tax paid" section. The simplest way to enter this is to check the box "my form has additional boxes" and put the data in the are for Box 6.

Alternately, you can enter the tax paid in the Foreign tax credit section of TurboTax. Be sure to visit that section to ensure that the credit calculates for your tax paid to the foreign country, if eligible.

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foreign bank account and interest earned