Foreign account interest entry

[rbhaga1]

I am using TT Deluxe Do It Yourself web software for filing 2025 taxes. I am not allowed to proceed further when I enter foreign interest received from Indian Banks that do not have a FEIN. What are my next steps? Please advise. 

[DaveF1006]

Use this method to report your interest to bypass the FEIN requirement.

1. Go to Federal > Wages & Income.
2. Scroll to the very bottom to Less Common Income and select Miscellaneous Income, 1099-A, 1099-C.
3. Select Other reportable income at the bottom.
4. Answer Yes to "Any Other Taxable Income?"
5. Description: Enter "Foreign Interest - [Bank Name, India]".
6. Amount: Enter the total in USD.
7. This will place the income on Schedule 1, Line 8z, which flows to your 1040 without requiring a FEIN.

If you paid foreign tax on this, here is how you may file to receive a Foreign Tax credit.

1. Navigate to the Credit Section: Go to Federal > Deductions & Credits > Estimates and Other Taxes Paid > Foreign Tax Credit.
2. Initial Questions: * Select Yes to "Did you pay foreign taxes?" 
3. Select Yes to "Before we begin, have you already entered all your foreign income?" (You did this in the "Other Reportable Income" section).
4. Choose the Credit: On the screen "Do you want the deduction or the credit?", select Take a Credit.
5. If it asks if wish to take the simplified election, say yes.
6. Income Category:  Select Passive Income (this is the correct category for bank interest)
7. .Add the Country: Click Add a Country and select India.
8. Report the Income (Part 1): * On the "Other Gross Income" screen, enter a description (e.g., "Indian Bank Interest") and the Total USD amount of the interest. 
9. Continue through the screens (skipping expenses and losses if they don't apply) until you reach "Foreign Taxes Paid - India".
10. Enter the amount of foreign tax you paid in the Foreign Taxes box. 
11. Select the Date Paid (or the date it was withheld).

[bhagalx]

Hi @DaveF1006 

I do not see the  option 'Less Common Income and select Miscellaneous Income, 1099-A, 1099-C' mentioned in the Turbo Tax Deluxe Online version I mentioned in my query. Please respond or is there a way to directly reach out and talk with you to resolve the issue?

Thanks

[CesarJ]

See if this method allows you to input your foreign interest—I found it to be successful just now.

Entering Interest Income in the TurboTax:

1. Locate the Search box in the upper right of the program screen and enter interest income.
2. Click on Jump to interest income.
3. On the Did you have investment income in 2025? screen, select Yes.
4. When you reach the Let's import your tax info screen, click on Enter a different way.
5. On the OK, let's start with one investment type screen, select Interest and then click Continue.
6. Finally, on the How would you like to upload your 1099-INT? screen, choose Type it in myself.
7. Remember to bypass the EIN step.

@bhagalx 

[bhagalx]

@DaveF1006 

I finally was able to enter the foreign interest payments and tax withheld information. Thank you for the detailed instructions. You may ignore my earlier response.

Thanks

[bhagalx]

@CesarJ I was able to enter the data using the instructions provided by @DaveF1006.

Thank you for responding to my initial response. Much appreciated.

Thanks

[mvrck3210]

Thanks, @DaveF1006 

If I have more than one CD in a foreign bank (Indian, in this case) and another savings account with a different bank, can I combine them all or should I submit one entry per financial institution? Can I combine all accounts for a financial institution in one entry or should I enter the details for each bank/account combination?

[DaveF1006]

If you have accounts at several different banks (e.g., ICICI and HDFC), you cannot combine them. Each financial institution must have its own dedicated section or entry in your filing. This allows the treasury to identify exactly where the funds are located.

This is especially critical if you need to file a FBAR report or an 8938 in your return. If you are filing the FBAR, you only need to file if the aggregate value of all your foreign accounts exceeded $10,000 at any time during the year. If you hit that threshold, you must report all accounts, even those with very small balances. Here is the website to prepare your FBAR. report. 

For the 8938, you would need to file if:

1.  If filing single, if your balance is over $50,000 at the last day of the year or $75,000 at any time, you will need to file a 8938.  This form is available in TurboTax. ($100,000/$150,000 if Married filing Jointly)

[cedvil]

Thank you for the very helpful info. What if there are two accounts at the same financial institution? Should one sum them up in that case?

[SusanY1]

You can safely combine the interest amounts from two accounts at the same bank.