How do I disclose interest income I received on capital in a foreign country? I am a resident alien for tax but citizen of another country where I received interest.

[lohia-vn]

I do not have any of the investment for for interest earned and my interest income is under $2500

[DaveF1006 · Accepted solution]

You would report this as interest earned.

1. Go to: Federal > Wages & Income.
2. Locate: Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto).
3. Action: Click Start or Add/Edit.
4.  Click Add investments then select Interest from the options. When asked how to upload, choose "Type it in myself."
5. Received from: Enter the name of the foreign bank.
6. Payer's ID (EIN): Leave this blank. The software may flag it as "Needs Review" later, but the IRS allows e-filing for foreign interest without an EIN.
7. Box 1 (Taxable Interest): Enter the U.S. dollar equivalent of the interest you earned.

If your interest is over $1,500, TurboTax will automatically generate Schedule B. This is where you must disclose the foreign nature of the account. 

1. Part III (Foreign Accounts): After entering your interest, TurboTax will ask if you have a financial interest in a foreign country. You must answer YES.
2. Country Code: You will be prompted to select the country where the account is held.
3.  Failure to answer these questions correctly can trigger significant penalties, even if the tax amount is small.