foreign account

gjas1984 — Wed, 11 Feb 2026 05:13:56 GMT

I have earned interest from my foreign savings account, but the country where the bank is located automatically taxes it. Does this qualify as a deduction then?

Re: foreign account

pk — Tue, 26 Mar 2024 20:26:38 GMT

@gjas1984

(a) Please consider changing your sign in credentials -- it looks too much like an email address ( and this is a public board.

(b) Foreign earned interest is taxed just like domestic earned interest except for Treaty assertions ( if any )

1. deduct this taxes if you use itemized deduction ( but SALT limits apply );

OR 2. you can use safe harbor for foreign taxes ( up to US $300 per filer ( US$600 if MFJ) on a return

OR 3. if over the safe harbor amount use the form 1116 to get Foreign Tax credit --- note however, that in this case while the taxes paid is recognized dollar for dollar, the amount allowed for tax year is based roughly on a ratio of foreign income to world income and thus is a fraction.

Does this answer your query ? Or do you need more on this ?

topic foreign account in Deductions & credits

foreign account

Re: foreign account