Form or Schedule location for reported bank interest on Form 8938

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In 2022, I received a total of $13 in bank interest from two accounts. One account is based in America and the other is overseas. The overseas account earned a total of $4 in interest.

While filling out Form 8938 on TurboTax Online, it asks a question in the More Info About Foreign Financial Assets section. The question is Where Reported, Form or Schedule; (only one entry per row is required).

Is only one of these fields necessary to fill in? Meaning I can provide the location on the Schedule only or do I need to reference the Form as well? The $4 interest shows up under Schedule B, Line 1 on my tax forms when I printed them to review.

On 1040 Line 2b, it shows an aggregate value of $13 of both banks' interest.

My thinking was that only Schedule B, Line 1 would be needed since the 1040 Line 2b is also showing non-foreign bank interest amounts.

Thanks in advance for any input.

[DaveF1006]

It depends.  First of all, if your aggregate value of your foreign financial assets exceed $50K, you do not need to complete form 8938. 

Secondly, you reported your interest correctly. It should appear in Line 2b of your 1040. 

If the total of your foreign financial assets exceed $50K, let me know by responding further in this post and we will gladly address that for you.

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Thanks for your input, Dave!

Yes, my total foreign bank account savings exceed $50k (married filling jointly and it exceeds that threshold as well) and TurboTax alerted me that this form will indeed be required.

Regarding Part III of Form 8938, should I enter 1040, Line 2b onto (d) Form and Line and Schedule B, Line 1 onto (e) Schedule and Line?

On my Schedule B, Line 1 shows 2 lines. One for my American bank account, and the other for my foreign bank account for the interest of $4.00

On my Form 1040, it shows a sum of $13 on line 2b for interest. Just wanted to make sure I am reporting the right spots since some of the interest also came from a non-foreign (American based) bank account and isn't directly related to the 8938. 

Thank you!

[DaveF1006 · Accepted solution]

Here is how I would report.

1. When you report all your interest in your 1099 INT section of your return, make these two separate entries. I do see where you did that.
2. I would $4 in Box C in section 13 in the 8938.
3. In Box D, type in Form 1040 line 2B.
4. In the Next box, type in Schedule B Part 1 line 2.

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Thank you very much for your help, Dave!

[Andy49080]

Hi,

I have a similar problem that I can not solve.

I earned interests for of an amount exceeding 1500$.

I completed info for form 8938 with the detail of each bank account.

When printing my forms, 1040 line 2b is empty.

Can you help me with that please?

Regards,

Andy

[AmyC]

You entered all the bank information for the 8938, did you also enter it under income as Interest on 1099-INT? You will need to manually enter the information for the foreign banks. If you paid any foreign tax, convert it to USD and enter in box 6. See Where do I enter Form 1099-INT?

@Andy49080 

[Andy49080]

That was it, thank you 🙂

[Fi8]

Hi. When do we have an interest in the specified foreign financial account or asset? Is it if any income, gains, losses, deductions, gross proceeds, distributions from holding or disposing of the account would be required to be reported or included or reflected in the income tax return … and if such, if the interest amount earned from a joint bank deposit account goes straight into the other joint account owner (A) savings account which owner B has no access to, is  joint account owner (B) required to file Form 8938? 

Thank you! 

[DianeW777]

It depends.  The rules for filing Form 8938 can be reviewed in the link below to check the income thresholds and account rules.

• Do I need to file Form 8938?