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?
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(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 )
(c) if the Foreign taxing authority taxes this income then you can
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.
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