topic Money was deducted from my foreign bank account. I returned the stuff, so money was refunded to my electrical wallet account. Does it mean income for wallet account? in Deductions & credits

Money was deducted from my foreign bank account. I returned the stuff, so money was refunded to my electrical wallet account. Does it mean income for wallet account?

reneerex — Mon, 09 Mar 2026 08:56:53 GMT

I bought things using the App, it has a electrical wallet and my foreign bank account associated with it. When I bought things, money was deducted from my foreign bank account, but when I returned them, the money was refunded to the electrical wallet account. So, does it mean taxable income for this electrical wallet? Thanks. Finally, I transferred all the money from this electrical account to my foreign bank account, does it mean deductions for this electrical wallet?

Re: Money was deducted from my foreign bank account. I returned the stuff, so money was refunded ...

MinhT1 — Mon, 07 Mar 2022 13:30:40 GMT

If your purchases and returns are personal items (not used for business) then they are reported on your tax return. Likewise, transfers between your electronic wallet and your foreign bank account are not reported on your tax return.

Re: Money was deducted from my foreign bank account. I returned the stuff, so money was refunded ...

reneerex — Thu, 10 Mar 2022 00:40:32 GMT

Hello @MinhT1

Thanks for your reply.

Yes, the things I bought and returned are personal items. How should I report them on your tax return?

Please correct me if I am wrong, Thanks.

1. For the electrical wallet account, its account total value increased at first (due to the deposit, but it did NOT produce an income because I transferred the money to my foreign bank account), and decreased last (due to the transfer), should I select "YES" for the question: is this account has any income, deduction or credits associated with it?

2. If I select "YES", how do I specify that it has NO income but only deduction.

My concern is that: if I select "YES", how do I specify that it is NOT an income but a deduction? I mean, for the other foreign bank accounts (that I selected "YES" for this question), I could enter interest income for them. It will be reflected as interest income in the report. However, for this account, it was ONLY total value change, and it was between my own foreign bank accounts.

Best regards,

Renee

Re: Money was deducted from my foreign bank account. I returned the stuff, so money was refunded ...

FangxiaL — Thu, 10 Mar 2022 04:43:05 GMT

Check if you have filing requirements regarding your foreign bank account. Any spending activities do not go on your tax return.

Click on the question mark next to Prepare a report on foreign financial assets. In the screenshots below, it shows part of the information:

@reneerex

Re: Money was deducted from my foreign bank account. I returned the stuff, so money was refunded ...

reneerex — Fri, 11 Mar 2022 00:22:44 GMT

Hello @FangxiaL

Thank you very much for your reply. Yes, I need to report foreign bank accounts, and form 8938.

Best regards,

Renee