rsh said:It is past tax date but should one report bank balances and interest earned in one's NRE and FCNR accounts in India if the balance is more than $10,000.
rsh said:Folks,
It is past tax date but should one report bank balances and interest earned in one's NRE and FCNR accounts in India if the balance is more than $10,000. I have received conflicting advice.
Thanks for your help.
qwertyisback said:I think, foreign earnings upto $$$(not sure how much , I guess 80K), is not taxable in US.
where did you get 10K figure?? Has somebody adviced you that foreign earning above 10K taxed in US??
pv1976 said:Interests from NRE accounts are definitely taxable. In fact the banks would send you a tax statement (is that form 1099T..?? not sure) for filing purpose.
rsh said:Yes. But this is a little complicated. The money was earned in UK before I came to the US. This money was deposited in the NRE account 5 years before I became GC holder and has been earning interest for the past 5 years.
I only recently became GC holder.
So lets get this straight, we need to report to IRS income that we earned in another country before I came to US that is now deposited in an NRE account and earning interest.
Am I mistaken in this?
pralay said:It really does not matter where you earned your money. I guess you opened your NRE account in USA, right? If so, it adheres to US law. Bank is going to send you 1099-INT or 1099-DIV. If you got it, you should declare it in your IRS form 1040. Citi-NRE, ICICI, SBI all have same rule. If you did not receive 1099-INT/1099-DIV you should talk to your bank.
Your H1/L1/GC status is irrelevent regarding this issue.
ceejay said:I am totally ignorant about this matter. I have been living in US for the past seven years and never declared the interested rate earned from my NRE account in the tax return. I have never received any 1099-INT form from Indian banks.
BTW, what do you meant by "opened your NRE account in USA"? I opened my NRE account at ICICI bank while I was visiting India. Is this different?
I am anixious to know about this information. I am surprised to learn how I haven't come across about this info before. Also, will it be an issue since I haven't been declaring it so far?
tangohi said:This is quite puzzling. I know that if you are a green card holder all your income is taxed including that in India or elsewhere. I am not sure if that is true for interest income on H-1 B.
tangohi said:T am curious to know what the answer is to this question especially if you are not permanent resident. What if you pay tax on your iincome earned in India in India, how will that work out. An yclarification would be helpful.
tangohi said:This is quite puzzling. I know that if you are a green card holder all your income is taxed including that in India or elsewhere. I am not sure if that is true for interest income on H-1 B.
tangohi said:I don't think that Indian Banks send any 1099 to US address.
- Doesnt matter. If you live and earn income in US then you are liable to pay tax on certain income abroad (like interest earned on NRE accounts).tangohi said:I am curious to know what the answer is to this question especially if you are not permanent resident.
tangohi said:What if you pay tax on your iincome earned in India in India, how will that work out. An yclarification would be helpful.
TheRealCanadian said:Your immigration status is not relevant. If you are a US tax resident (by meeting SPT), then you must declare all worldwide income.
TheRealCanadian said:I am also puzzled why some other folks in this thread think they don't need to declare interest income on money made before they came to the US.
In_durham said:There are two issues here. One is to declare to US treasury if you have interest in ANY overseas account that exceeds US$10k. Period no ambiguity there. If you use tax cut to prepare your tax returns it will ask you this question and then ask to fill in the form and send directly to the US treasury.
The other is the interest earned for GC and US citizens. One HAS to report all income in US tax returns. Whether it is taxable or not anywhere in the world is immaterial. It being tax free in India is irrelevant to your US reporting schedule. If you paid foreign taxes you get credit for it in your US tax return just as the income is added on to your US AGI.
That is my take on this topic. Any comments?