Question

How do I report the interest earned on the foreign bank account

Forum|Forum|1 year ago
March 9, 2025
1 reply
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@skchugh , you report foreign earned interest just like for domestic interest. Just there is no 1099-INT and obviously there is no federal ID for the entity.

If the foreign ( which ? )country ( income source ) taxed this interest earnings, that tax may be eligible for Foreign Tax Credit.

Is there more help you need on this ?

M

Mike9241

if the interest paid to you was in the foreign country's currency, you have to convert to US $s. Convert the Foreign Currency: Determine the amount of foreign interest income in the local currency and convert it into US dollars. According to the IRS, you should use the yearly average exchange rate for conversions, unless it’s a transaction occurring on a specific date, in which case you would use the exchange rate of that day.