La Quinta, CA
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Thursday, April 30, 2015

Reporting Foreign Interest Income on U.S. Tax Return

Not many people provide a good answer when asked the question "how do I report foreign interest from a bank on my U.S. income tax return". Here's how to do it. I am using Taxact software and other software may not be the same.

  • Add a 1099-INT as if you were reporting interest from a domestic bank
  • Fill in PAYER'S (bank) information. Make sure to use the physical street address of the bank and not a P.O. box number. Leave state and zip blank and enter foreign info below
  • Enter interest received in box 1
  • Check box 25 (indicating you did not actually receive a 1099-INT for this income)
  • Enter the total interest income related to that bank in box 26 (Foreign interest included in Box 1)
  • Repeat for each foreign bank account that you received bank interest at and did not receive a 1099-INT
 Filing U.S. income taxes while living abroad can be difficult. We help U.S. citizens and greencard holders living abroad through the tax maze. Call Borders Bookkeeping and income tax preparation today.

(760) 895-3516 or (403) 800 2458 in Canada.