do you have to pay taxes if you have a foreign bank account?

Question

if you deposit a mass amount of money in a foreign bank account would you have to pay taxes, fees or securities.?

say i put the money that i made overseas in 1 year which is not taxable since the money is earned overseas and i put it into a intrest free swiss account or other foreign nation where the money sits, that is not taxable is it?

Answer 1

Yes you do. US citizens and residents are subject to US taxation from all sources world-wide. You would also be subject to any taxes in the foreign country as well though could take a credit for those taxes on your US income tax return.

Not only that, there are additional reporting requirements if you have control over foreign accounts above a certain limit.

I don't know where you get the idea that it's not taxable just because it was earned overseas. That is NOT true! There MIGHT be an exclusion for foreign earned income if you meet certain requirements but any interest earned is unearned income and is ALWAYS taxable in the US!

Answer 2

1. In you have foreign bank account or have invested in a foreign country, and the total amount at any time during the year exceeds $10,000 then do not ignore Part III (Foreign Accounts and Trusts) of Schedule B of Form 1040.

2. If you select Yes in line 7a of Part III, then you must complete Form TD F 90-22.1 and File with the Department of Treasury by June 30, 2008. If you are required to file and do not file it, the penalty may be up to $10,000 (or more in some cases).

3. The Form TD F 90-22.1 can be download from:
www.irs.gov/pub/irs-pdf/f90221.pdf

4. You must report all foreign interest income and any other foreign income. Report interest income on Schedule B. Evidently, this amount will be included in your net taxable income on Form 1040.

5. If you paid taxes in the Foreign country and the country has tax treaty with the United States, then you claim Foreign Tax Credit on line 47 of form 1040.

Answer 3

You are supposed to pay taxes on any interest you may earn from the bank account. You would report it as foreign interest earned, and put the country that it was earned in. Good luck.

Answer 4

It depends on where you got the money - if it would be taxable if it were in the US, then depositing it in a foreign account doesn't change that.

Interest on the foreign account is taxable to you.

Answer 5

it truly is in lots of circumstances easyer to establish a foreign places economic business enterprise account. flow money to it as mandatory. and function a in usa debit card to apply there. If there residing or working . Like 24 hours to flow money over 30 days from time to time. in the event that they have a place of work right here interior the U. S..

Answer 6

You would have to pay income tax on any interest earned on money that is invested overseas.

Fees and other costs would be between you and the bank.