For Foreign Financial assets -- if I am not required to report Foreign financial assets (< $11000) as per IRS because it is below IRS threshold requirement of $100K or $150K for reporting:
Do I have to report Foreign Bank interest income in my tax returns?
For FBAR: it is a separate requirement to report if assets are $10K more more, but the question is for Tax Return.
Even though you may not have to report the accounts on an FBAR, you need to report the interest earned as you are required to report all of your income earned, worldwide, if you are filing a U.S. resident tax return. You report it the same as interest on a U.S. bank account, by entering it as interest income in the Wages & Income section of the program.
You will not have a U.S. tax form 1099-INT so select "Type it in myself" and skip import. Then enter the interest in the field for Box 1.
Even though you may not have to report the accounts on an FBAR, you need to report the interest earned as you are required to report all of your income earned, worldwide, if you are filing a U.S. resident tax return. You report it the same as interest on a U.S. bank account, by entering it as interest income in the Wages & Income section of the program.
You will not have a U.S. tax form 1099-INT so select "Type it in myself" and skip import. Then enter the interest in the field for Box 1.
Thanks!
How about CD (Certificates of Deposit) income that are tax exempt in foreign country? Do we have to report those as well?
Additionally, a separate topic:
There are expenses to manage foreign accounts - like CPA, legal, transportation expenses etc. Is there a way to claim such expenses?