My FCNR deposits (US dollar currency) in India will mature in 2020. Do I need to report a pro-rated calculation of interest in Turbo tax for 2018 in this years filing?

[aka_123]

I moved funds to India in NOV 2018. Until then It was in the US and I received a 1099 INT form from the bank in the US. I am a tax resident for 2018 even though I left the country in JULY 2018 and closed the F1 visa I held. 

[pk · Accepted solution]

Cannot confirm that you were indeed a resident for tax purposes  in 2018.  However, because you were on F-1, once you left the country ( visa cancelled ) , you are automatically a Non-Resident Alien for the rest of the year.    So either you were a Non-Resident Alien for the  whole  year ( depending on your visa and length of stay in the  USA  till departure) or a dual status  --- resident for tax purposes till departure and  NRA thereafter.

In any case  the CD in India   and  any interests  earned thereon is not subject to USA taxation -- (a)  the earnings are not available to you till 2010 and none to report on 2018 and (b) as a non-resident alien you are taxed  ONLY on USA connected/sourced income.

[aka_123]

Hi I entered US in 2010 on F1 visa. So I am a resident alien for tax purposes. I got income for 2 months in 2018 and received a W2 for that. By July 2018 I cancelled visa and left. Only in November 2018 I moved my funds as US dollar deposits to India.

[pk]

Then  you are dual status  - Resident for tax purposes till cancellation of visa/ departure from the USA and thereafter a Non-Resident Alien.  If there were no USA sourced / connected income after your departure ( other than perhaps 1099-INT) then just file a form 1040 as usual and ignore anything after departure ( i.e. no 1040-NR required.

Namaste

[aka_123]

again I want to confirm that I do not have to report the anything to FBAR  as well regarding the funds I fixed as US dollar deposits in India.

[pk]

There is no FBAR or FATCA reporting requirements  for Non-Resident Aliens.  It applies ONLY to US citizens/Resident Aliens/ Resident Aliens for Tax Purposes at the time of reporting.  I am assuming here that dollar deposit is  under your tax id ( PAN) in India  and not under your ITIN/SSN and also that you have closer connection to India  than to USA.  However, if you wish to file a  Treasury form 114 ( online at <a rel="nofollow" target="_blank" href="http://www.fincen.gov">www.fincen.gov</a>) it cannot hurt -- but must have a valid ssn or itin.

[aka_123]

When I was entering the information in Turbo tax they have a question on Schedule  B 7a that did you own any  foreign bank account? I chose YES but it asks we to enter in part 8 the ordinary dividend amount. I am not clear how to fill Schedule B because there is no place to fill that I am not required to file FBAR OR FATCA. Kindly guide me.

[pk]

Since you are filing as a resident alien  for tax purposes , and for the  period Jan 2018 thru July 2018 ( the day you departed the USA and became a Non-Resident Alien.  You should therefore answer questions about foreign bank accounts as such  i.e. within that period when you were being treated as a resident for tax purposes. So  I think the answer should be NO ( if indeed you did not have a foreign ban account).  In any case after the  question about foreign  bank accounts , it  should also be asking if you are required to file  FBAR  and  you say NO. That should clear up the situation.  Go back through the screens and answer. Sometimes it is easy to miss.  Let me know how that works out

[aka_123]

thank you very much!!