Hi,
My spouse is neither US citizen nor green card holder, but stayed in US over 3 years. Is he still considered as "resident" in tax return (when on the married jointly file, I am a green card holder)?
And he had foreign bank accounts in 2020, total balance is less than $50K. He transferred all money into our US joint account end of 2020 and early 2021, does he still need to report his 2020 interest income on tax return, and complete FinCEN form 114(for all foreign accounts, included closed ones)? If so, where he report the foreign interest income on tax return? same as income on 1099 INT?
Can those be done via Turbo Tax Home & Office?
Thanks.
1. Yes, he will be considered as a US resident for tax purposes. He passed the Substantial Presence Test. Click here: Substantial Presence Test
2. If he has gained any interest in his bank accounts on December 31, 2020, including the foreign account, he is required to report on his return. Per requirement of FBAR, aggregate value of financial accounts exceeds $10,000 at any time during the calendar year. This is a cumulative balance, meaning if you have 2 accounts with a combined account balance greater than $10,000 at any one time, both accounts would have to be reported. Without a Form 1099-INT, he will report as if it is reported on a Form 1099-INT. Here are the steps:
In TurboTax online,
3. Yes, the TurboTax Home & Office version will support his situation.
Unlike Form 8938, the FBAR (FinCEN Form 114) is not filed with the IRS. It must be filed directly with the office of Financial Crimes Enforcement Network (FinCEN), a bureau of the Department of the Treasury, separate from the IRS. With less than $50K balance in his foreign account, he is required to file FinCen Form 114. He will file separately fromm your Form 1040.To see the requirements and how to file, click here: 8938 vs FinCen