I earned $100 foreign interest but turbox tax doesn't show it was taxable income

[cathiexu]

Hi, I have foreign interest (in local currency, which worth $100 USD) in tax year 2022. I'm using turbotax CD version, and tried to add it to "interest & dividend section - Miscellaneous Investment income". I believe this should be taxable income as US resident alien.

After I finish all section and go back to main page, it shows 0 as taxable income as below. Why this is happening and what could be done to fix?

[ErnieS0]

Enter your foreign interest in Interest on 1099-INT even though you did not receive Form 1099-INT. Skip the import and type it yourself.

On the screen "Let's get your 1099-INT or brokerage statement details," enter the name of your foreign bank and the amount in U.S. dollars.

The 1099-OID, Foreign Accounts section is for creating the FBAR and Form 8938.

If at any time during the year the total balance of all your foreign accounts was more than $10,000, you will need to complete FinCEN Form 114 (formerly Form TD F 90-22.1). 

If you held foreign financial assets worth more than $50,000 on
the last day of the tax year or $75,000 at any time during the tax year you might also need to complete Form 8938. We'll help you with this.

[Edited 02/14/23 | 17:48 PST]

[cathiexu]

Hi @ErnieS0, for Form 8938, I believe the threshold is 75k for at any time and 50k at the end of year? 

additional question for form 8939:

1. when you say “If you held foreign financial assets worth more than xx”, does foreign financial assets include cash deposits? 

2. If the threshold is triggered by one account, Should we also add foreign accounts that have 0 balance or the accounts that have been closed?

3. I hold one bank account in China, on its app, I could purchase financial products such as bonds and mutual funds. All interest payment from bond and dividends from mutual funds were received by this bank account, so it sounds like “Robinhood”, but itself actually is a debit card account but I could use the deposit to buy bond/mutual funds. I do see I have account ids opened with financial product companies, which I guess they were auto-authorized to open when I used my bank account to purchase bonds/mutual funds. Should I treat them as “Robinhood” by adding only my bank account  on FORM 8938 or should I add them all?

thanks!

[DaveF1006]

Yes, in its instructions for form 8938, you will file form 8938 your  assets exceeds $50,000 on the last day of the tax year or $75,000 at any time during the tax year. This would include cash deposits made into your foreign accounts during the year because this would increase the amount of your assets held in your foreign accounts.

As far as reporting individual accounts, the IRS is not concerned with how many accounts you possess.  This agency is only concerned about total assets if if the amount of your total assets exceed $50K on the last day of the year, or totaled more than $75K at any time during the year. 

Now for the answer to your last question, you would add the totals of all of your accounts because these totals would be part of the $50K and $75K  total requirement listed above.

@cathiexu 

[cathiexu]

@DaveF1006 , thanks for the reply. 

If one account was closed in the mid of year, should we also report that? Thanks!

[DaveF1006]

Yes, if you have a reporting requirement to make because of the amounts of  all your foreign accounts exceeded $75K at any time during the year, then the $amount of your closed account needs to be disclosed.

@cathiexu