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Old 03-02-2015, 11:54 AM
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Income earned from NRE accounts

Hi,

I have a NRE account in india(offshore account) which provides interest of 4% annually but they do not provide 1099 form showing the interest I earned for that particular year. Should I be reporting this income to IRS while filling taxes although I do file FBAR form to notify IRS of my offshore account.

My tax account says that since this money is not bought into US Banks I don't need to notify IRS. I am wondering if he is right.

Thanks For the help,

Ned



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Old 03-02-2015, 08:17 PM
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Quote:
Originally Posted by ned18 View Post
Hi,

I have a NRE account in india(offshore account) which provides interest of 4% annually but they do not provide 1099 form showing the interest I earned for that particular year. Should I be reporting this income to IRS while filling taxes although I do file FBAR form to notify IRS of my offshore account.

My tax account says that since this money is not bought into US Banks I don't need to notify IRS. I am wondering if he is right.

Thanks For the help,

Ned
It depends; aslongas you area US resident(even for tax purposes), then, you need to report your US source and world wide income on your US tax returns(fed/state) and you can claim foreign tax credit on your taxes paid to Indian taxing authority(ies) by filing form 1116 or by claiming tax deduction on Sch A of 1040 line 8.



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Old 03-03-2015, 10:24 AM
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Thanks for the response, I was confirmed the same thing by one of my friends..



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