topic Should I add both "Form 1040, Line" and "Schedule B, Line 1" for reporting interest of foreign bank accounts? in Get your taxes done using TurboTax

Should I add both "Form 1040, Line" and "Schedule B, Line 1" for reporting interest of foreign bank accounts?

reneerex — Tue, 31 Mar 2020 00:42:46 GMT

Hello Sir or Madam,

When I report the interest of foreign bank accounts,

1. should I enter the value in "Interest" category and in "Amounts Attributable to Foreign Financial Accounts"?

2. It recommends me to enter "Schedule B, Line 1" for reporting the interest for form 8939. Do I need to also include "Form 1040, Line 2"?

Thank you very much.

Best regards,

Renee

Re: Should I add both "Form 1040, Line" and "Schedule B, Line 1" for reporting interest of foreig...

JohnB5677 — Tue, 31 Mar 2020 17:01:35 GMT

Yes, you should enter the interest you earned in your income. To post this go to:

Income
Scroll down to Interest & Dividends
Select Interest on 1099-DIV
I'll type it myself
Enter the payer and amount

This will post it to both Schedule B and the 1040.

This accounts for earning the Income. You must now report the income.

When reporting form 8938 and FBAR, you should report the value of your foreign financial assets including the interest earned, and not only the interest earned. Unmarried individuals residing in the United States are required to file Form 8938 if the market value of their foreign financial assets is greater than $50,000 on last day of the year or greater than $75,000 at any time during the year.

Re: Should I add both "Form 1040, Line" and "Schedule B, Line 1" for reporting interest of foreig...

reneerex — Tue, 31 Mar 2020 21:32:28 GMT

Hello @JohnB5677

Thank you very much for your reply. I have some additional questions.

>>This will post it to both Schedule B and the 1040.

Do you have the line number associated with the Schedule B and the 1040? Is it "Schedule B, Line 1" and "Form 1040, Line 2"?
Do I need to enter BOTH "Schedule B, Line 1" and "Form 1040, Line 2" when reporting form 8939?

Thank you very much.

Best regards,

Renee

Re: Should I add both "Form 1040, Line" and "Schedule B, Line 1" for reporting interest of foreig...

JohnB5677 — Tue, 31 Mar 2020 22:41:50 GMT

You should not be entering numbers directly into the Forms mode. There is less risk of error if you post to the input Step by Step method.

On Schedule B,

each entry will be listed in Part I line 1
and will be totaled down to line 2.
Line 3 is the tax exempt portion
Line 4 is the total (line 2) less the tax exempt (line 3)

Line 4 of Schedule B is carried over to the 1040 Line 2b

Re: Should I add both "Form 1040, Line" and "Schedule B, Line 1" for reporting interest of foreig...

reneerex — Wed, 01 Apr 2020 21:35:59 GMT

Hello @JohnB5677

So, I should enter
Form 1040, and Schedule 1 Line 1. Is that correct?

Best regards,

Renee

Re: Should I add both "Form 1040, Line" and "Schedule B, Line 1" for reporting interest of foreig...

KarenJ2 — Sun, 05 Apr 2020 17:31:56 GMT

Yes, You would enter the amount , and then Form 1040, line 2b, and then Sch B, line 1.