How does one (resident for tax purposes in US) report interest income on CDs held in a foreign bank without 1099-INT?

[prabir-bishnu]

The bank has given a 1099-OID form but has not provided any 1099-INT form. The 1099-OID form does not include foreign tax paid.

1. Should one calculate the total interest received and tax paid manually?

2. Is the manually calculated amount related in any way to what is printed on 1099-OID?

3. Should both the manual amount and the 1099-OID amount be reported on tax returns?

[DianeW · Accepted solution]

The interest amount used should be the amount that is shown on the 1099-OID.  To be able to include the foreign tax paid that does not show up on this form you can use the 1099-INT entry to include it.  Report the interest amount only once with the foreign tax paid.  A manual calculation is acceptable for the foreign tax paid.

1. Open (continue) your return if it's not already open.
2. Inside TurboTax, search for 1099-INT or 1099INT (lower-case also works) and then select the "Jump to" link in the search results.
3. Answer Yes to Did you receive any interest income?
   • If you see Here's the interest we have so far, select Add interest income.
4. On the following screen, select how you want to enter your 1099-INT (import or type it in yourself) and follow the onscreen instructions.
5. Enter the name of the foreign bank, the amount (in US Dollars) in box 1
6. Check the box "My form has info in more than just box 1 (this is uncommon)".
7. Enter any foreign taxes paid in box 6 
8. Click the images attached to enlarge and view for assistance