Hi, I would like to learn more about taxes applicable on intrests, dividends earned from bank acounts, stocks, mutual funds, etc. in a foreign country. I am interestd in investing in a foreign country but I am not sure if there is a threshold for reporting the income earned in a foreign country on my tax return or if I need to report all my earnings whether small or large to the IRS during my annual tax return filing. Please advise all I need to know about taxes applicable on foreign income and if I am eligible to claim a foreign tax credit on these earnings if I pay my taxes in the foreign country. Thank you!
Hi bhavinsampat,
Hope you are having a great Wednesday!
I understand you do not have questions about todays forum of Form W-4, but you do have questions about foreign earned income. If you're a U.S. citizen or resident you'll need to report all of your income, whether it was earned in the U.S. or abroad.
Also, here is information about claiming the foreign tax credit, https://turbotax.intuit.com/tax-tips/military/filing-irs-form-1116-to-claim-the-foreign-tax-credit/L2ODfqp89
I hope this information is helpful!