I am a resident alien for tax purpose. I understand I need to report my interest income from the foreign bank regardless of the amount in schedule B and also I need to file a Fincen form 114 (FBAR) if I meet the threshold.
How do I report the interest income from a foreign bank account which I jointly own with my father who is not a US citizen and never came to US. Is there any difference in the way I should report because he is the primary on that account and hes the one who is using the account primarily. There is also some tax deducted at source by the bank for the interest.
Please advise. Thanks for your time.
what you are describing apeears to say that you are a signatory to the account but really do not operate the account i.e. you have signature authority but no financial interest ( that is how you report on the FBAR ) and on schedule-B bottom you select signature / nominee powers but not report the interest income because you do not receive any benefit from it. This is the case for many persons in the USA whom have either emigrated or working in the USA with parents in another country ( where very often the signature authority is given to the USA resident for purposes of downstream access to the account should the account owner become debilated or otherwise unable tto operate the account. Don't worry, as long as the FBAR and the schedule B say the same thing you are OK. Good luck
@pk thanks for the reply. In my case the threshold 10k has not been met so there is no need for fbar. My main question is should I report the interest in schedule b for the acct jointly owned where I hAve signature authority but I don't take any financial interest. If i dont report then no schedule b will be generated so no way to answer questions . Not sure how that works. Thanks