Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Oct 11, 2023 11:33:55 AM

Where do I add interest earned on the foreign bank account and foreign tax refund?

0 3 505
3 Replies
Level 15
Oct 11, 2023 11:51:25 AM

use a 1099-int for the foreign bank interest after converting to US dollars. The FTC refund may present a bigger issue. did you take a tax credit for what was originally paid or take an itemized deduction or skip it completely.

if the FTC credit or FTC itemized deduction was taken, then technically you need to reduce the amount by the refund (amend if the return was filed without taking the refund into account).  if a prior year you maty have to adjust any FTC carryforward, 

 

Level 15
Oct 11, 2023 12:33:30 PM

@andy11 , agreeing with @Mike9241  if ,and only if , you are a US person ( citizen/ GreenCard/  Resident for Tax purposes ).  Also note that if you are a US person then you would need to file form 1040-NR ( which is not supported by TurboTax ).

 

Please , when did you enter the USA and were there days present in the USA  ( for any purpose ) during 2020, and 2021 ?

What visa are you on ? and what code is there on your EAD permit  form   I-765 ? 

 

pk

Level 2
Oct 11, 2023 3:41:14 PM

Thanks for your responses!

 

If I have not made any claim for FTC in last year's tax return, I can skip adding to the tax refund I received on that tax credit in a foreign country, right? My Tax credit is the same as tax refund. This year as well I can skip claiming the tax credit and then skip tax refund which I will receive in the next tax year. If doing that is fine, I would stick to that as that makes filling tax forms much simpler.

I am a US person for tax purposes last few  years.