I have two foreign provident funds which I cashed out (what I got out was less than what I deposited so basically at a loss). How do I report this using turbotax (I have premier desktop 2022)?
Also, is just having an account something I need to report each year? If so, how?
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Thanks for joining us today, tal32123!
Generally foreign pensions(such as provident funds) are taxable to US citizens or residents. You only report any income you receive from this account - such as withdrawals and payments. You will need to create a substitute 1099R form.
Here is how you would enter it into TurboTax Online:
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Thanks for the help, just to clarify:
If I deposited in 2020,2021,2022 $15,000 for example and then cashed out the account and received $10,000 (so for this example a loss of $5,000) I still need to report this even though its basically sold at a loss?
If this is an Indian Employee Provident Fund, it should be exempt from U.S. tax pursuant to the U.S.-Republic of India Income Tax Treaty. You would still have to report the income on your U.S. Taxes - you would use IRS form 8833. Here is more information regarding this:
https://www.irs.gov/forms-pubs/about-form-8833
TurboTax does not support Form 8833. You would have to use an outside tax preparer.
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