Minimal taxable interest, help?

After realising I should have been filing my taxes with the US, I'm getting them sorted! I earn well under the threshold and am using form 2555 ez. My 1040s are very straightforward, however I did have a very tiny amount of taxable interest from my savings account from the last few years (less than $1 per year in some instances).

Will I be taxed on those tiny amounts? Is there a form I can fill out to avoid being taxed? As far as I understand form 2555 ez only covers wages salaries and tips from line 7 on my 1040.

I've never had anywhere near $10,000 at any time so I don't need to fill out the FBAR either.

I know it's a silly amount to be asking about but I just want to make sure everything is filled out correctly to avoid problems down the road.

Thanks!

If your taxable income (including interest) is below the threshold for your filing status, you pay no tax. Interest, from whatever source, is reported on Schedule B, just as it would be if you lived in the US.

Don't you only have to fill out a schedule b if you have interest over $1,500, or is it different for foreign accounts?

Schedule B has 3 parts. The first part doesn't need to be filled in unless you have interest over $1500. However the third part must be filled in by anyone who is required to file the FBARanyone holding a foreign account.

Ok, thanks for that. I don't have over $1,500 in interest and I don't need to file an FBAR. Do I still need to file a Schedule b due to having a foreign bank account? We are talking bank account interest of less than a dollar per year here.

Read the directions for Schedule B, Part III (http://www.irs.gov/pub/irs-pdf/f1040sb.pdf):

You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust.

Since you have a foreign account you must fill this part in. This would still be the case even if the account had a zero balance and earned no interest.

However it should take you less than a minute to fill in the Schedule B and add it to your tax return so I don't see why you are getting so worried.