Who needs to file FBAR??
#16
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Joined: Jul 2007
Location: North Norfolk and northern New York State
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Re: Who needs to file FBAR??
Meh. I like to keep things simple, and only keep records in paper format. I just re type the whole thing, copying from last year, just changing the $$. Takes maybe 20 minutes (I have three or four accounts to report.)
#17
Forum Regular
Joined: Sep 2008
Posts: 86
Tax On Interest
Filing a tax return shortly and new to FBAR.
There is one thing reporting bank account balance and interest gained in the UK but do we get double taxation i.e get taxed for Interest in UK and the USA (double taxation)?
There is one thing reporting bank account balance and interest gained in the UK but do we get double taxation i.e get taxed for Interest in UK and the USA (double taxation)?
#18
Re: Tax On Interest
I think the answer is yes unless you can be bothered to claim the tax back from the UK. It all depends how much interest you are talking about
#19
Re: Tax On Interest
If you have filed the form with HMRC to be exempted from UK income tax, they will refund any tax your bank deducts from interest. I have had a check the last two years without doing anything from my end. Have given up trying to get Natwest to pay the interest without deducting the tax.
#20
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Re: Who needs to file FBAR??
Is there any way the US tax man would take the interest paid in the UK into account?
#21
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Re: Who needs to file FBAR??
I recently opened a current account with a British bank, and as part of the process, had to declare that I was a U.S. Taxpayer, and I filled out a U.S. Form W9, I think it was...
Edited; OK, sorry, I think I totally misread your post! I believe the answer is, you need to fill in the foreign tax credit form, if you want the IRS to give you credit for foreign tax paid.
Last edited by robin1234; Feb 28th 2016 at 7:22 am. Reason: I read the quoted post wrongly first time around....
#22
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Joined: Apr 2011
Location: The Shire
Posts: 1,117
Re: Who needs to file FBAR??
With regards to interest paid in the UK from a bank or building society, it's worth mentioning that in a few weeks (starting 06 April 2016) all interest will be paid gross. The FI will not be withholding any tax.
As I understand it, HMRC will collate all interest paid from all FIs for any particular NINO. If the sum of all UK source income is below the personal allowance, no tax will be charged. If tax is due, then the Tax Code for the following year will be adjusted to collect the tax. If a Tax Code cannot be used, a self assessment form will be required.
Of course, all interest must still be declared to the IRS if a US return is filed.
As I understand it, HMRC will collate all interest paid from all FIs for any particular NINO. If the sum of all UK source income is below the personal allowance, no tax will be charged. If tax is due, then the Tax Code for the following year will be adjusted to collect the tax. If a Tax Code cannot be used, a self assessment form will be required.
Of course, all interest must still be declared to the IRS if a US return is filed.
#23
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Thread Starter
Joined: Apr 2015
Posts: 150
Re: Who needs to file FBAR??
So... Just to clarify, if the most i had in my bank account at any given time during 2015 was 5000 i do not have to file FBAR?
#24
Re: Who needs to file FBAR??
No, you don't need to file, unless you had other financial assets outside the US, with the total value over $10000.
#25
Re: Who needs to file FBAR??
Does anyone have tips on calculating the highest account balance (in dollars) over the year besides manually looking at exchange rates and account balances each month.
#26
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Re: Who needs to file FBAR??
I keep a spreadsheet and each month look at the statements (I only have 2 accounts) and note the highest daily amount in pounds for each account.
End of year it is easy to pick out the highest annual amounts from the 12 entries, and then I use the Dec 31st exchange rate to convert to $.
#27
Re: Who needs to file FBAR??
I don't look up the exchange rate every month since it is only the Treasury rate on Dec 31st that matters.
I keep a spreadsheet and each month look at the statements (I only have 2 accounts) and note the highest daily amount in pounds for each account.
End of year it is easy to pick out the highest annual amounts from the 12 entries, and then I use the Dec 31st exchange rate to convert to $.
I keep a spreadsheet and each month look at the statements (I only have 2 accounts) and note the highest daily amount in pounds for each account.
End of year it is easy to pick out the highest annual amounts from the 12 entries, and then I use the Dec 31st exchange rate to convert to $.
#28
Re: Who needs to file FBAR??
As durham_lad says, the only exchange rate you use is the US Treasury rate on December 31st. Hence you just need the highest amount in Sterling in the account during the year, which you use the December 31st rate to convert to dollars.
#29
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Re: Who needs to file FBAR??
That's ok as a rule of thumb if you had just one account, unchanged, for the whole year, January 1 to December 31. If you switched bank accounts during the year, and transferred money from one to the other, you have to count the money twice. Bring in the exchange rate ... you might be going above the threshold. Or if you had two or more accounts, and moved parts of the balance back and forth....
#30
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,540
Re: Who needs to file FBAR??
I don't look up the exchange rate every month since it is only the Treasury rate on Dec 31st that matters.
I keep a spreadsheet and each month look at the statements (I only have 2 accounts) and note the highest daily amount in pounds for each account.
End of year it is easy to pick out the highest annual amounts from the 12 entries, and then I use the Dec 31st exchange rate to convert to $.
I keep a spreadsheet and each month look at the statements (I only have 2 accounts) and note the highest daily amount in pounds for each account.
End of year it is easy to pick out the highest annual amounts from the 12 entries, and then I use the Dec 31st exchange rate to convert to $.