Foreign bank account interest on US tax return

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usrImmg

Registered Users (C)
Hello,

If an individual is in US on H1b Visa (not a US citizen or a GreenCard holder):

1. Does he needs to show foreign bank account interest on US tax return ?
What about interest from joint accounts ?
How low interest has to be for it to be excluded?

2. If Yes, Which form to use ?

3. Does he have to file Form TD F 90-22.1 ?

Thanks.
 
usrImmg said:
1. Does he needs to show foreign bank account interest on US tax return ?
What about interest from joint accounts ?
How low interest has to be for it to be excluded?.
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TheRealCanadian said:
If you are filing a 1040, yes.?.
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usrImmg said:
3. Does he have to file Form TD F 90-22.1 ?
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TheRealCanadian said:
Did the balance exceed $10,000 US at any time in 2009? If so, yes.
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Thanks.
I probably will use TurboTax, which used 1040A in past. If 1040A, will I still have to show foreign bank account interest ?

Please give link to IRS site where it says that individuals on H1b have to report foreign bank account interest ?

On IRS site, I came across: www . irs . gov / irb / 2010-11_IRB / ar12.html (dated March 15, 2010) and
www . irs . gov / pub / irs-drop / a-10-16.pdf :
"Announcement suspends, for persons who are not United States citizens, United States residents, or domestic entities (corporations, partnerships, trusts, or estates), the requirement to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), for the 2009 and earlier calendar years. .................... The requirement to file an FBAR due on June 30, 2010, is suspended for persons who are not United States citizens, United States residents, or domestic entities."
Please advise.
 
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If you are on h1b in the US for more than 180 days in 2009, you are considered a US resident for tax purposes.
 
TheRealCanadian said:
Google the "Substantial Presence Test", or SPT.
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Thanks. I came across: www .irs .gov /businesses/small/international/article/0,,id=96352,00.html

According to it, to be considered US resident for 2009, one must be physically present in the United States on at least:
1. 31 days during the current year (2009), and
2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
* All the days you were present in the current year (2009), and
* 1/3 of the days you were present in the first year (2008), before the current year, and
* 1/6 of the days you were present in the second year (2007), before the current year
Correct ?

How does "Residency Beginning and Ending Dates" affect taxes ?
 
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Where to get exhange rate ?
Which date exhange rate to use ? (answered below)

According to www .irs .gov/businesses/small/article/0,,id=130524,00.html:
"Use the exchange rate prevailing when you receive, pay, or accrue the item. If there is more than one exchange rate, use the one that most properly reflects your income."
So which one for foreign bank interest ?
 
usrImmg said:
According to it, to be considered US resident for 2009, one must be physically present in the United States on at least:
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A green card holder is always considered resident in the U.S. Establishing a foreign tax domicile or filing as a non-resident will abandon your green card status. Even if you are not present in the U.S. you must file as a U.S. resident.

A naturalized U.S. citizen can establish a foreign tax domicile (or meet the physical presence test) to become a non-resident Citizen for tax purposes.

Not sure which applies to an H1B holder. Can your H1B be considered abandoned?
 
JAEMM said:
A naturalized U.S. citizen can establish a foreign tax domicile (or meet the physical presence test) to become a non-resident Citizen for tax purposes.
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There's not such thing as a "non-resident Citizen for tax purposes". A US citizen cannot file a non-resident tax return.
 
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