I earned interest in a US savings account in 2019. I am a resident of Denmark, and per the tax treaty, only DK has the right to tax this. How do I report to the IRS?

[sabyancw]

This is defined in Article 11 of the US/DK tax treaty. I know that my financial institution is reporting this income to the IRS, so I assume my tax statement needs to include something about it, but the US is also not allowed to tax this amount. Do I enter the full amount on the 1099-INT, and then "adjust" it for the full amount under the reasoning of "other?"

[JohnB5677 · Accepted solution]

Interest arising in one Contracting State and earned by a resident of the other Contracting State is generally subject to taxation only by the residence country under Article 11. 

1. You would post the 1099-INT as usual and [Continue]
2. Under Tell us if any of these uncommon situations apply
3. Select We need to adjust the taxable amount [Continue]
4. In Adjustment post the same number as in Box 1 of your 1099 INT
5. Also select Other reason

This will cancel the taxable portion of the 1099-INT

Edited 03/16/2020