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I have earned interest from the foreign bank account. it's single digit dollars. how to report that income in Turbotax.

 
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LinaJ2020
Expert Alumni

I have earned interest from the foreign bank account. it's single digit dollars. how to report that income in Turbotax.

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. 

 

If you receive an interest in a foreign bank account, it is taxable to you.  If you pay taxes to both foreign and US government on this income, you may qualify for a foreign tax credit.  To claim, you will need to file a Form 1116 if the foreign tax amount you paid is more than $300.  If it is less than $300, you do not need to file Form 1116.  For more information, click here: Foreign tax credit

 

Here are the steps:

  • Open up your TurboTax account and select Pick up where you left off
  • At the right upper corner, in the search box, type in "foreign tax credit" and Enter
  • Select Jump to foreign tax credit
  • Follow prompts

 

 

 

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