Reporting Canadian NR4 Interest Income within my US TurboTax via 1099-INT

[rraczkow2]

Hi,

I would like to get advice on how to report interest from a multi-year Canadian GIC (similar to CDs) to my US TurboTax return.  Specifically, I have received an NR4 reporting interest received in 2023 and 2024 as a total sum.  However, I have already reported the 2023 accrued interest in last years return.  It appears that for 2024 I can report the total interest (matching the NR4) and then choose "I need to adjust the interest reported on my form", then provide the 2023 previously reported interest in the "Adjustment amount" and reason for adjustment as "My accrued interest".  I hope this would yield the interest accrued for 2024, and provide the IRS with enough information to correctly assess my income.

Can anyone confirm if this is correct?

For example: I received a 2024 NR4 from Canada showing the equivalent of $1000 USD in interest income from a 2-year GIC that was opened in 2022 and matured in 2024.  The total interest  resulted from $400 accrued in 2023 and $600 accrued in 2024.  In my 2023 TurboTax return (when no NR4 was received), I declared $400 of interest income via 1099-INT.  In my 2024 TurboTax return, I can declare $1000 of interest income (matching the NR4), and then provide an adjustment amount of $400 (accrued interest previously declared in 2023).  I expect that the $1000 - $400 would show my actual 2024 interest received as $600.

My goal is to help the IRS understand that I am honestly declaring and paying taxes on my NR4 reported income.

Thank you

P.S. All values entered into US TurboTax have been converted from Canadian dollars to US dollars

[rraczkow2]

Replying to my own post:

I found another alternative that may be more simple.

TurboTax allows the "Payer's information" (ie. the bank name) to contain a long text description.  I can enter the 2024 accrued interest income as box 1 for the 1099-INT, and append an explanation to the Payer's information.

Payer's information: "Bank of Montreal (This value represents the accrued interest from 2024, interest accrued from 2023 was declared on my 2023 return, the NR4 states the total interest for 2023 and 2024)"

This avoids trying to get TurboTax to accept the NR4 and adjust for previous accruals (and do math under the covers that may or may not be accurate).