Form 8938 how to specify form and line

It depends. To clarify, is the only foreign-source income from the 1099-INT? Do you have other foreign assets or accounts that would need to be reported on a 8938? If so, how much and what type? We need to find out first if there is a 8938 FBAR reporting requirement. Here is some more information from IRS in this published link .

> is the only foreign-source income from the 1099-INT?

I have a few bank accounts (say A1, A2, A3) in one foreign bank (B1) with a very small APY. It produced interest in EUR and USD each month. I converted this interest using the exchange rate on https://www.fiscal.treasury.gov/.  Then summarized it and added it into 1099-INT where is payer's name is B1.

This interest appeared on Form 1040 Line 2b and inside Schedule B Line 1.

 

> Do you have other foreign assets or accounts that would need to be reported on an 8938?

Yes, I do. I have a few accounts A1, A2, A3 in bank B1 that produced $3 interest. Also, I have bank accounts, say A4, A5, A6 in bank B2 that didn't have APY. I reported them in 8938 and going to report in FinCEN 114.

 

> We need to find out first if there is an 8938 FBAR reporting requirement.

I checked the requirements and I need to report both. And I did that.

 

 

 

Yes. here is how you will report the $3 on your 8938. You should specify it for all of your $3 transactions, or put them in as a combined total if you have many of them. Now I am going to assume you have a Turbo Tax Software version in front of you and that you also have a 8938 form reading to record.

1. First record your information in the 1099-INT and record the $3 interest payment (or combine payments if all from the same broker). Once you have done this, the amounts will appear on line 2b, on the form 1040 and line 4 on Schedule B.  
2. To report it on the 8938, Go to part 111.  In Box 1C hit the plus sign to the left of the box and under reporting details, Type in 1099-INT and the amount of $3. 1D type in 1040 line 2b  1E  type in Schedule B Line 4.

> 1099-INT and the amount of $3

 

So I need to replace "$3" as on my screenshot above on "1099-INT and the amount of $3"?

But I can't do that, because the field is numeric-only.

No. Here is how to enter.

1. Working in the 8938, go to part 111 1C, 
2. Right click inside the box, you should have a plus arrow to the left of the box, you will hit that plus sign to provide supporting details.
3. When you select it, there is a dialogue box where you will enter the description 1099-INT and the amount $3. Here is what that looks like. 

 

This is not available in Online/Web version

It depends. In he web version, type in 8938 in he search bar with the magnifying glass. After you type that in, hit continue.  When you see the link that says jump to 8938, select that and you can begin working on your 8938.

 

Sometimes the Turbo online may have limited functionality and if so. You may need to switch to the downloadable software version where you are able to enter directly into the form itself. 

 

 

Sorry for that, but if I click on magnifying glass and type "Form 8938" I see only help articles.

It seems that this description is not displayed in Form 8938, it is just for filler convenience, right?

 

Just type in "8938", not "form 8938." See if that helps.

The same. Just help articles.

Did you type in 8938 without the quotation marks?

Sure, I haven't used it when typed.

It depends.  If form 8938 received categorized each income, you may need to enter the income accordingly on your income tax return.  If the return wasn't transmitted yet, you may still edit the form.

How did you enter the 1099-INT manually for a foreign account? Thank you

You can include the foreign interest 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 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 foreign interest income in TurboTax, please follow these steps:

1. Once you are in your tax return, go to the Wages & Income tab.
2. Scroll to the Interest and Dividends section and click the Start/Revisit box next to Interest on 1099-INT.
3. On the screen Did you receive any interest income? click the Yes box,
4. On the screen, Let's import your tax info, click the box at the bottom Change how I enter my form.  

On the next screen, How do you want to add your 1099-INT, click the box Type it in myself.  

1. Enter the interest on the next screen.
2. If you paid foreign taxes on the interest, check the box My form has info in more than just box 1 (this is uncommon).  [Screenshot #1.]
3. Enter any foreign taxes paid in box 6.

 

Review the link below which includes images of the Screenshots mentioned above:

 

 

 

 

 

See the link below to follow if no Form 1099 was received.

 

 

How to Add Foreign Interest

 

@raspberry-cheese 

 

[Edited 4/10/2023| 7:14AM PST] 

How to Add Foreign Interest link is not working. There is no hyperlink to it. Can you please share it again?

You can include the foreign interest 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 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 foreign interest income in TurboTax, please follow these steps:

1. Once you are in your tax return, go to the Wages & Income tab.
2. Scroll to the Interest and Dividends section and click the Start/Revisit box next to Interest on 1099-INT.
3. On the screen Did you receive any interest income? click the Yes box,
4. On the screen, Let's import your tax info, click the box at the bottom Change how I enter my form. 

On the next screen, How do you want to add your 1099-INT, click the box Type it in myself.  

1. Enter the interest on the next screen.
2. If you paid foreign taxes on the interest, check the box My form has info in more than just box 1 (this is uncommon).  [Screenshot #1.]
3. Enter any foreign taxes paid in box 6.

 

 

 

 

If No Form 1099 was received please follow the instructions in the link below posted by @LinaJ2020

 

How to Enter Foreign Interest

 

@linkstar18