I have an account in ICICI Indian Bank, with NRI and NRO accounts balance < $10000, interest = $22. Can amounts in WTax.Pd be considered Foreign tax paid?

[johnsantaclara]

ICICI Indian bank only has interest certificate but not 1099. But I see W.TaxPd in my statement, and I think that may be taxes witheld. I am not filing taxes in India as the amount is too small. Can I add up all the amounts in W.TaxPd and enter that as Foreign Tax paid in TurboTax 1099? Thank you.

[KarenJ]

As long as the tax paid on the bank interest is not more than 20% of the interest income for resident accounts and 30.9% tax on the interest earned for NRO then it would make sense to claim the tax as the foreign tax paid on foreign interest income.  

[johnsantaclara]

Thank you so much! To confirm my understanding, the interest my account was $22.53 and the WTax.pd in my statement shows a total of $5.52, though I didn't file any taxes in India I am a U.S. citizen and that amount felt too small to file taxes, as that is the only account I have in India. Please confirm if it still okay to enter $.5.52 as foreign tax paid. Thanks again.

[KarenJ]

Yes, I would go ahead and take the foreign tax on the interest.

[johnsantaclara]

Thanks a lot again! That was super helpful!