Tax question related to IRS and interest earned from a Bank in India

[isitasham 1]

Generally, if you earn interest in a savings bank in India (e.g an NRO account), we have to include that interest as income in our US tax return - that is a given.

However, if you have already paid tax on that interest in Inida (i.e. deducted at source by the Indian Bank), do we have to still include that as icome in our IRS return? My guess is yes, but I just want to make sure.

Any suggestions, pointers.

Thanks!

[Starlight95 1]

Generally, if you earn interest in a savings bank in India (e.g an NRO account), we have to include that interest as income in our US tax return - that is a given.

However, if you have already paid tax on that interest in Inida (i.e. deducted at source by the Indian Bank), do we have to still include that as icome in our IRS return? My guess is yes, but I just want to make sure.

Any suggestions, pointers.

Thanks!

Yes, as long as your a USC I would include the interest as far as what I know from experience.

Star

[isitasham 1]

Yes, as long as your a USC I would include the interest as far as what I know from experience.

Star

Hi Starlight95,

Thanks!

I thought so too. I suppose, when dealing with IRS its better to be safe than sorry.