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pang6716
New Member

I maintain a foreign bank account which is largely inactive. However, it is kept in foreign currency and the exchange rate change yearly. Do I need to report gain/lost

 
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KittyM
Level 2

I maintain a foreign bank account which is largely inactive. However, it is kept in foreign currency and the exchange rate change yearly. Do I need to report gain/lost

No, you do not need to report the gain or loss due to fluctuations in the exchange rate, but if you receive interest income, it should be reported on your return.

To enter your interest income (if any), 

  • In your Federal Return, choose the tab for Wages & Income
  • Scroll down to the topic Interest on 1099-INT (you may have to click Add more income and See a list to find it) and choose Start/Edit
  • Choose Edit  or + Add more income to enter your interest
  • If you haven't started already, on the next page, scroll down and choose the gray button in the lower right, I'll type it in myself. 
  • On the page Let's get your 1099-INT or brokerage statement details enter your bank name and interest in Box 1, if any.
  • If necessary, mark the check box underneath the "Received from" entry that says "My form has info in more than just box 1 (this is uncommon)."  This will open additional boxes for interest income details, such as if you paid Foreign Tax on the income.

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1 Reply
KittyM
Level 2

I maintain a foreign bank account which is largely inactive. However, it is kept in foreign currency and the exchange rate change yearly. Do I need to report gain/lost

No, you do not need to report the gain or loss due to fluctuations in the exchange rate, but if you receive interest income, it should be reported on your return.

To enter your interest income (if any), 

  • In your Federal Return, choose the tab for Wages & Income
  • Scroll down to the topic Interest on 1099-INT (you may have to click Add more income and See a list to find it) and choose Start/Edit
  • Choose Edit  or + Add more income to enter your interest
  • If you haven't started already, on the next page, scroll down and choose the gray button in the lower right, I'll type it in myself. 
  • On the page Let's get your 1099-INT or brokerage statement details enter your bank name and interest in Box 1, if any.
  • If necessary, mark the check box underneath the "Received from" entry that says "My form has info in more than just box 1 (this is uncommon)."  This will open additional boxes for interest income details, such as if you paid Foreign Tax on the income.
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