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Level 2
posted Mar 30, 2021 12:09:02 PM

Interest from Foreign bank (Canada)

Where do I report interest from Foreign bank (Canada).  I reported it under 1099-OID  foreign accounts but turbotax asked me where reported like "Form and Line" and "Schedule and line".  Should I report  interest from foreign bank in another location?  

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1 Best answer
Employee Tax Expert
Mar 30, 2021 12:39:02 PM

It depends. Please enter your foreign interest income AS IF you have received 1099-INT for it and enter interest income in box 1. If you paid any foreign taxes on the interest income, enter them in box 6 of 1099-INT form (be sure to indicate that you have more than just box on the form).  

  1. Federal Taxes
  2. Wages and Income
  3. Interest and Dividends, select Interest on 1099-INT

Note: You may have to file form Fincen 114, if your foreign account(s) exceed $10000 at any time during 2020.  You have to file it through the Treasury Dept..

 

Also if the foreign tax paid is more than $300, you will need to file a form 1116 to claim the credit. 

  1. Make sure you've entered all your foreign interest.
  2. From within your return, search for foreign tax credit and select the Jump to link in the search results.
  3. Answer Yes to Did you pay foreign taxes in 2020 or have credits to use from a prior year?
  4. Follow the instructions to get the credit or deduction.

[Edited 03-30-2021|12:17 PM PST]

1 Replies
Employee Tax Expert
Mar 30, 2021 12:39:02 PM

It depends. Please enter your foreign interest income AS IF you have received 1099-INT for it and enter interest income in box 1. If you paid any foreign taxes on the interest income, enter them in box 6 of 1099-INT form (be sure to indicate that you have more than just box on the form).  

  1. Federal Taxes
  2. Wages and Income
  3. Interest and Dividends, select Interest on 1099-INT

Note: You may have to file form Fincen 114, if your foreign account(s) exceed $10000 at any time during 2020.  You have to file it through the Treasury Dept..

 

Also if the foreign tax paid is more than $300, you will need to file a form 1116 to claim the credit. 

  1. Make sure you've entered all your foreign interest.
  2. From within your return, search for foreign tax credit and select the Jump to link in the search results.
  3. Answer Yes to Did you pay foreign taxes in 2020 or have credits to use from a prior year?
  4. Follow the instructions to get the credit or deduction.

[Edited 03-30-2021|12:17 PM PST]