iceflow

Folks,
I'm in the process of completing US tax return. What paperwork have you sent or been asked to send re: Interest income from outside the US? What I'm seeing is plenty of references to 1099-INT forms. Do you just key the figure and that's it or do they want a statement from the bank showing interest paid? It's messy as the tax years are different, I was just going to tot up the calendar years interest and put that on the return. The interest statement's from the banks as I recall run April to March. The sum involved is about 150 USD....it's already had tax paid to HMRC but that's another story, rather than get into tax credits for 25% of 150, they can have it.
Thanks

lansbury

The interest on my UK bank accounts is around the $150/$200 most years. I just declare it. Never been asked for any paperwork to prove what it is.

durham_lad

+1

I tot up the interest for the calendar year, convert to $ using the IRS exchange rate, and fill in a 1099-INT.

Michael

Why do you fill in a 1099-INT? Keeping UK bank records would likely be the best proof although it is highly unlikely that the IRS would audit income that wasn't declared on a 1099-INT unless the amount was very high.

JAJ

A foreign bank will (generally) not issue a 1099.
However, TurboTax requests input as if a 1099 exists. You just include the interest and foreign tax (if any), it doesn't matter that there's no actual 1099.

iceflow

Thanks all. I'll plan on just entering the amount on the tax return and leave at that. I appreciate the responses.

durham_lad

Exactly. And a US bank won't issue a 1099-INT if the interest is less than $10 but you are still expected to declare the interest on your tax return.

nun

If you are a US resident you should not be paying UK tax on your UK bank interest, but it does have to be entered into your US taxes, Line 21 is a good place to do it. Also you do not need to have a 1099-INT for foreign interest. The IRS is not required to give you a FTC for any UK tax you pay on your interest.

You should file a US-Individual2002 to stop having tax withheld at source by your UK bank. Also call them up and make sure they understand your situation as they might require you to file a form R85 with them directly. Make sure you file FBAR and 8938 if required.

stephend-

I assume if you HAVE NOT filled in an R85 and are paying UK tax on your interest, you don't get any relief from the IRS - particularly if you get the tax paid back in an HMRC rebate as the paltry sum is below your annual allowance?

nun

Correct

jmood

I just received a 1099INT from my UK bank (US based UK bank) for 6p. Yes, six pence! Dammit.

JAJ

I thought that normally, 1099 forms are not issued for amounts less than $10.

You may want to write to the bank and ask them why they are wasting time and money with 1099 forms for immaterial amounts. Of course you'll probably get some form letter back that doesn't in any way answer the question.

Michael

If you enter that amount in Turbo Tax, it will round it to the nearest dollar so it will be $0.

jmood

Would it be worth my time and money to write to the bank asking about that 6p?

kodokan

We keep about $5-6k in sterling in UK accounts, to pay for some online things there like gifts to families, or use whilst visiting. I just keep it in non-interest bearing cheque accounts, as I can't be bothered with the paperwork for the piffling amount of interest it would otherwise generate. That way I don't have to worry about record-keeping or getting it wrong!