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Level 4
Jun 7, 2019 10:24 PM UTC
Question

2555s Interest Earned

I work overseas and currently filing form 2555.  My wife lives with me and doesn't work.  She recently inherited money, from her dad (overseas) who is not a US citizen (less than  $100K).  

1) Is the inherited money taxable? 

2) She now earns interest on the inherited money.  We file jointly.  Can I file a separate 2555-S form to her to deduct the earned interest?  

Thanks 

1 reply

Critter
Level 15
Jun 7, 2019 10:24 PM UTC

1) Is the inherited money taxable?  Cash inheritances from anywhere in any amount is not taxable.

2) She now earns interest on the inherited money.  We file jointly.  Can I file a separate 2555-S form to her to deduct the earned interest?   The form 2555 is for Earned income only ... you cannot exclude interest income.