I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?
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New Member

I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?

 
11 Replies
Employee Tax Expert

I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?

Yes, if you are filing a resident tax return (Form 1040), you need to report your worldwide income, including interest income. Foreign banks do not issue Form 1099-INT. You can report that interest in TurboTax as if you received a Form 1099-INT. Go to: Federal Taxes (Personal in Home & Business version) - Wages & Income - under Interest and Dividends section, click Start/Update/Revisit on Interest on 1099-INT.

If you need exchange rates, please use the IRS website link: https://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates

Also remember to say "yes" or check the box when the program asks if you had "Owned or signed on a foreign bank, broker, or other financial account." If at any time during tax year you did not have equivalent of $10,000 or more on your bank account(s), then there will be no additional filing requirements. But if you do have additional foreign bank/asset required reporting to do, TurboTax will walk you through and suggest the next step.

If TurboTax doesn't prompt you for foreign account information, go to: Federal Taxes (Personal in Home & Business version) - Wages & Income - under the section Interest and Dividends start the interview for 1099-OID, Foreign Accounts.

You can also read more about it here: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial...

New Member

I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?

I did try to add it as 1099 INT but now its forcing me to give an FEIN which the foreign banks dont have. 

Neither do I remember giving it one last year.

 

Any suggestions? 

Employee Tax Expert

I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?

You can enter in box 6 of 1099-INT form (there is a check box to indicate that you have more than just box on the form). You must report the amount in U.S. Dollars.

  1. Federal Taxes
  2. Wages and Income
  3. Interest and Dividends, select Interest on 1099-INT

@sachi

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New Member

I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?

The FEIN for my bank is not available.

How can i put the information in? Any updates on the thread?

Expert Alumni

I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?

Would you see if entering 99-9999999 will get you through.  Thank you.

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Level 1

I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?

Hi - Both 00-0000000 and 99-9999999 did not work. What should we do?

Returning Member

I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?

Hello,

 

I am seeing same issue. I haven't tried to submit the forms yet but on the review section it still keeps showing as error. Did you have success submitting the forms?

 

I don't think this was an issue last year. I had used turbo tax and reported foreign interest as a 1099-int. Not sure why this is a issue this year.

Expert Alumni

I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?

You can report the foreign interest income as other miscellaneous income.

 

  1. Open your return in TurboTax 

  2. Click on Wages & Income 

  3. Scroll down to All Income 

  4. Scroll down to Less Common Income 

  5. Scroll down to Miscellaneous Income, 1099-A, 1099-C 

  6. Click start 

  7. Scroll down to Other reportable income 

  8. Answer yes 

  9. Enter interest description and amount 

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Returning Member

I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?

Thanks for your reply. But my question is that this really is a interest income and I have reported it as INTEREST income previously without FEIN using turbo tax. 

 

Can we or should we report its a Miscellaneous income wouldn't that be equal to 1099-misc?  Besides this really isn't an employment income but an interest that I have gained. 

Level 1

I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?

So i called turbo tax and they said, just leave it empty and ignore the warning for the FEIN. Its not mandatory for filing. That’s what I did and it went through.

Employee Tax Expert

I have interest income earned at NRI account at Indian bank. would I have to show in income tax filing? if so how? How do I report foreign bank account details (india)?

You can report it under Other Income so that you will be able to e-file.  Here are the steps:

 

In TurboTax online,

  • Sign in to 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
  • Enter a description and the amount.

 Technically, you would enter a Form 1099 for interest, dividends to create a Schedule B.  However, with a foreign entity, you would not have a US FEIN to qualify for the e-file.  To workaround, I would suggest you enter the information under Other Income in the program.  To the IRS, as long as the total amount is reported on your taxes as Other income on line 7a Form 1040, you should be Okay. 

@tj45

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