Foreign Banking Fees

[maskat]

Hello,

I have had bank accounts in a foreign bank that generated interest income in 2024.  I understand I have to report the interest income which is taxable.  My question has to do with the banking fees that the foreign bank charged me to maintain the accounts, i.e. administrative and money transfer fees, etc.; can I deduct the foreign banking fees from the foreign bank interest I earned.  Please comment as it relates to both Federal and state of California income taxes.

Thank you,

Max 

[DaveF1006]

No. Banking fees are not deductible unless you are self-employed and the bank accounts were strictly business accounts.