1

I am an Indian working in US on H1B visa. I pass the substantial presence test and will be filing as a resident alien this year. I am little confused on how to report the interest on the Indian Fixed Deposit account. When I created these FD I choose to receive the interest on maturity. So here is my situation

  1. FD1 - Opened Dec-1-2014, Matured Dec-1-2015 (Auto Renewed with interest)
  2. FD2 - Opened Jan-5-2015, Matured Jan-5-2016 (Auto Renewed with interest)

Now, In my 2015 1040 form I just need to report interest received on FD1 right (as FD2 is not matured by Dec 31st)?

In both the FDs, the bank shows me the accumulated interest on the FD till present date, but it will only be payed out on maturity.

Also, In FBAR how should I report the total amount in the account?

Thanks

2

You report the interest actually received during the year, on your Schedule B.

On FBAR you report the highest balance of the account during the year. It is not necessarily the balance on the last day of the year (or the first). You'll need to go through your statements and find the day with the highest balance, in US dollars.

The FBAR requirement is a bit confusing because you may end up reporting the same money multiple times. For example, Jan 1st you have account A with $20K. You then open accounts B, C and D and transfer $5K to each. You end up with 4 accounts with $5K each, but on your FBAR you'll report $35K total balances: $20K for A, and $5K for B, C and D.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.