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You can include both the interest income and the foreign taxes paid on this interest income under the 1099-INT section. Just make sure that you include this amount in USD. Also, if you paid any foreign taxes on this interest income, you will be able to take a Foreign Tax Credit for taxes paid on income that is also taxed in the US.
The Internal Revenue Service has no official exchange rate. In general, use the exchange rate prevailing (i.e., the spot rate) when you received the income. Please refer to the following IRS links for more information about Foreign Currency and Currency Exchange Rates and Yearly Average Currency Exchange Rates
To enter this transaction in TurboTax Online (for TurboTax Online sign-in, click Here , then select "Take Me to My Return") or Desktop, please follow these steps:
Alternatively, you can enter your foreign taxes paid under the foreign tax section.
To enter your foreign taxes in TurboTax Online or Desktop, please follow these steps:
Please note : If you have foreign bank accounts, you may be required to file a Report of Foreign Bank and Financial Accounts (FBAR) if are a US citizen or resident and:
To be directed to the US Treasury Government Website to prepare a Report of Foreign Bank and Financial Accounts, click FBAR (TurboTax does not support this form)
You can include both the interest income and the foreign taxes paid on this interest income under the 1099-INT section. Just make sure that you include this amount in USD. Also, if you paid any foreign taxes on this interest income, you will be able to take a Foreign Tax Credit for taxes paid on income that is also taxed in the US.
The Internal Revenue Service has no official exchange rate. In general, use the exchange rate prevailing (i.e., the spot rate) when you received the income. Please refer to the following IRS links for more information about Foreign Currency and Currency Exchange Rates and Yearly Average Currency Exchange Rates
To enter this transaction in TurboTax Online (for TurboTax Online sign-in, click Here , then select "Take Me to My Return") or Desktop, please follow these steps:
Alternatively, you can enter your foreign taxes paid under the foreign tax section.
To enter your foreign taxes in TurboTax Online or Desktop, please follow these steps:
Please note : If you have foreign bank accounts, you may be required to file a Report of Foreign Bank and Financial Accounts (FBAR) if are a US citizen or resident and:
To be directed to the US Treasury Government Website to prepare a Report of Foreign Bank and Financial Accounts, click FBAR (TurboTax does not support this form)
Hi:
Thanks in advance for your help in this matter.
Answering one of your questions but also checking how you ended up filing:
1. For INDIA interest paid by banks, as we all know, you will not get any 1099-INT. So as a filer it will be your responsibility to get the actual interest paid by INDIA banks to you. Now to do that, one needs to look at their bank account statements and look for any interest line items and add them up. Usually I like to keep a yearly (US financial year) spreadsheet of all my INDIA income (e.g bank accounts, rental, etc.) , account MAX balance (during any time of the year), the interest they earned and any tax that was deducted at source (TDS). I then use this sheet to complete my US tax returns and also keep it for my records (along with statements, etc).
2. For the interest earned on INDIA tax refund, I would assume that it will get added as an income to the US taxes. Also I assume it should be shown at income in the year it hits your bank account in INDIA.
Having said above, please do share how you handled your tax situation, as it will help me and others learn.
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