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Topic: Reporting UK bank interest to IRS  (Read 1489 times)

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Reporting UK bank interest to IRS
« on: June 09, 2006, 05:51:25 PM »
I assume the IRS wants a piece of this as well.  On what form does one include interest earned on a UK bank account.

Paul


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Re: Reporting UK bank interest to IRS
« Reply #1 on: June 09, 2006, 11:16:18 PM »
For a US citizen individual:

1040
Schedule B
Form 1116
Form 1116AMT
Form 6251
Form TDF90-22.1

PLUS
UK self-assessment tax return


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Re: Reporting UK bank interest to IRS
« Reply #2 on: June 09, 2006, 11:32:30 PM »
Guya,

Thanks.  I know all these forms.  I've been doing US taxes for 20 years.  Which one in particular does the UK interest go on.  The obvious one is schedule B.  But I assume that is for US banks only.

Paul


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Re: Reporting UK bank interest to IRS
« Reply #3 on: June 10, 2006, 04:39:05 AM »
Thanks.  I know all these forms.  I've been doing US taxes for 20 years.  Which one in particular does the UK interest go on.  The obvious one is schedule B.  But I assume that is for US banks only.

Actually isn't it considered passive foreign income reported on one of your 1116s?
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Re: Reporting UK bank interest to IRS
« Reply #4 on: June 10, 2006, 07:51:20 AM »
Which one in particular does the UK interest go on.  The obvious one is schedule B.  But I assume that is for US banks only.

Report UK and other non-US interest earned on Sch B.  Report a list of all UK and other non-US bank and securities accounts on Form TD F 90-22.1.  Report tax paid on that interest on Form 1116.  On Form 1116, if you're a higher rate taxpayer, it's General Limitation.  If you're not, it's Passive.  Yes, some banks will end up listed on both Sch B and TD F 90-22.1.

Liz Z i t z o w, EA
British American Tax


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