topic About Foreign Financial Aaaets in Get your taxes done using TurboTax

About Foreign Financial Aaaets

JERRY-CH — Mon, 01 Mar 2021 02:32:25 GMT

As shown in the figure.I don't know which schedule does it mean?Is the form 1044 or some other schedule?And where i can get it?I just have some interests and dividends.I have no ideal how to fill them. This describe make me really confused!Thanks for someone who can help me !!!

Re: About Foreign Financial Aaaets

pk — Mon, 01 Mar 2021 04:51:38 GMT

@JERRY-CH How are the interest and dividends reported to you ? Is this from a US broker, 1099-INT or 1099-DIV or what? Or are you investing directly or through a Non-US based broker in a foreign country?

Generally a US Broker reported foreign earnings ( interest and/or dividend etc. ) do not require you to provide any special information, especially when the total amount is less or equal to safe harbor amount ( $300 per filer -- $600 for a joint filer).

So please tell me more about your situation -- yes ?

Re: About Foreign Financial Assets

JERRY-CH — Sun, 07 Mar 2021 22:35:02 GMT

Thank you for your apply.But,I didn't receive any 1099 forms for my financial assets.They were just something like interest statements from foreign banks other than brokers.Someone told me i should put the name of banks and my interests amount in the form 1040 Schedule B line 1.And put my dividends in the Schedule B line 5.But i am not sure if it is right.I am looking forward to your apply. Thank you.

Re: About Foreign Financial Assets

npierson7 — Sun, 07 Mar 2021 23:59:19 GMT

You can enter your foreign interest income as if you have received 1099-INT for this income.

To do that in TurboTax follow these steps:

Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
Next click on “I’ll choose what I work on” (jump to full list)
Scroll down the screen until to come to the section “Interest and Dividends”
Choose “ Interest on 1099-INT” and select “start’
Select "I'll type it in myself"
Enter the name of the foreign bank and the amount (in USD) in box 1

Note: You may have to file form FinCEN114, if your foreign account(s) exceed $10000 at any time during 2020. You have to file it through the Treasury website: http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html

Re: About Foreign Financial Assets

pk — Mon, 08 Mar 2021 02:05:49 GMT

@JERRY-CH ,agreeing with the excellent reply/instructions by @npierson7 , would just want to touch on the dividend portion of your question. Follow the same steps for dividends except i that in case of foreign dividends of foreign shares ( that you invested in through non-US brokers), there will usually be no qualified dividends for US tax purposes -- so you enter the total dividends only and zero for qualified dividends -- but make sure from your broker ( US brokers will tell if there are any qualified dividends in the distribution). If you paid any foreign taxes on these incomes ( interest and /or dividends) then enter the taxes while reporting the dividends -- there is box for that ( TurboTax will ask for this ). Then choose the simplified method to deal with this -- this will result in dollar for dollar foreign tax credit up to $300 for a single filer and $600 for a joint filer ( Safe Harbor amount).

By the way I am assuming here that you are US citizen/Resident. Are you living abroad?