Hi i have a question.. I have a foreign bank account in which I earned interest and also tax was deducted . In 1099 INT i can show the interest but where should I show the tax that was deducted ?

[DS30]

To report foreign interest (including your foreign taxes) -

You can include this under the 1099-INT section. Just make sure that you include this amount in USD. Also, if you paid any foreign taxes on this interest income, you will be able to take a Foreign Tax Credit for taxes paid on income that is also taxed in the US.

The Internal Revenue Service has no official exchange rate. In general, use the exchange rate prevailing (i.e., the spot rate) when you received the income. Please refer to the following IRS links for more information about Foreign Currency and Currency Exchange Rates and Yearly Average Currency Exchange Rates

To enter foreign interest income in TurboTax Online (for TurboTax Online sign-in, click Here , then select "Take Me to My Return") or Desktop, please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on “I’ll choose what I work on” (jump to full list)
4. Scroll down the screen until to come to the section “Interest and Dividends”
5. Choose “ Interest on 1099-INT” and select “start’
6. Select "I'll type it in myself"
7. Enter the name of the foreign bank, the amount (in USD) in box 1
8. Check the box "My form has info in more than just box 1 (this is uncommon)".
9. Enter any foreign taxes paid in box 6 (screenshot)

Since you enter the foreign interest under the 1099-INT section, it will not show up under the 1099-OID, foreign accounts section (only 1099-OID amounts are reported in this section). This section will only ask questions about your foreign accounts but not about the amount of any interest income from these accounts. This foreign account information is required by the IRS.

[savantz]

I input foreign interest and chose "Schedule B, Line 1", but it's not included in gross income. In past two years, I was using PC Download version, where the input went to "Schedule B, Line 1" and 1040 automatically.

[LinaJ2020]

It should show on line 2 of your Form 1040.  Not sure what happened.  You can also try to enter under "Other Income" to avoid any possible e-file errors due to the TIN. 

In TurboTax online program:

• Sign into your account, select Pick up where you left off
• To the right upper corner, in the search box, type in "other reportable income" and Enter
• Select Jump to other reportable income
• Next screen, Other Wages Received, select No to continue
• Next screen, scroll down all the way to the bottom, under Other reportable income, select Start
• Next screen, Any Other Taxable Income? select Yes to continue

The amount should show on line 8 of Schedule 1 and Form 1040.

@ savantz

[savantz]

I went through this, but this does not generate Form 8938 for me. My previous versions generated Form 8938 for me, which is not working in 2020 online version.

[Irene2805]

To generate Form 6938 in TurboTax Online, please follow these steps:

1. While in your return, in the Search box at the top right of your screen, type Form 8938.
2. Click the Jump to form 8938 link.  [Screenshot below.]
3. This will take you to the Foreign Financial Assets section.
4. Complete the entries and TurboTax will generate Form 8938 for you.

@savantz