Reporting Interest from Foreign Bank Account

[chestnutt 10]

Hello!

 

I have my green card and moved to the US in 2014 from Australia. The only money I am currently making in Australia is ~$1500 AUD yearly in interest on my savings account at my Australian bank. Does this need to be reported on my US tax return, and if it does do I just add it into line 7 on form 1040? I do pay tax on it in Australia but the Australian tax year is July to June so I've only paid tax on it in Australia for the first half of 2016.

 

Any help would be appreciated!

Thanks

[Gitana 11]

enter amount on the line 8a and attach Schedule B. If your account is over 10K then you also have to file FBAR

[chestnutt 10]

4 hours ago, Gitana said:

enter amount on the line 8a and attach Schedule B. If your account is over 10K then you also have to file FBAR

Thanks for the reply. Can I then file form 1116, Foreign Tax Credit, or am I stuck paying tax on the interest in Australia and then again here?

 

Thanks

[Gitana 11]

to be honest i have no idea how foreign tax credit works:(

[Wuozopo 4,293]

On March 8, 2017 at 4:46 AM, chestnutt said:

Thanks for the reply. Can I then file form 1116, Foreign Tax Credit, or am I stuck paying tax on the interest in Australia and then again here?

 

Thanks

If you already paid taxes on the interest to Australia, then you may take that amount as a foreign tax credit on your US return (Form 1040 Line 48).