US Taxes on NRE accounts in India

[Tricolour]

Hi There
I have a NRE joint account with my wife in CITIBANK NRI Business Division, Long Island, New York with more than $10K. This account is also operated from India during my India visits. Citibank is sending me form 1099-INT on the interest amount every year and this was reported in the form 1040 just like any other interest income. Do i still need to file FBAR with the IRS, the reason I'm asking this question is Citibank address on the 1099-INT form is Long Island, New York. Appreciate your response

[funguyz]

I guess if the 1099-INT form has a federal ID then it is treated as domestic interest income so no need to file FBAR as long as you account for the interest in 1040, gurus please confirm

[sellbuy]

Could anyone who has done or is planning on doing Voluntary Disclosure report their experience ?

[kkr]

I guess if the 1099-INT form has a federal ID then it is treated as domestic interest income so no need to file FBAR as long as you account for the interest in 1040, gurus please confirm

My understanding is that you have to file FBAR if the maximum (total) account balance is over $10K at any time during the year. It's not related to the interest you receive; whatever interest you get, you need to report on Schedule B (regardless of whether you get a 1099 from the bank or not).

[hoping4thebest]

I recently learnt about the FBAR filing and decided to file a delinquent FBAR..since several folks on this forum have done so and have not faced any issues. I reported the taxes earned on these accounts so hopefully will not face much trouble.

Now, when coming to the FBAR form, I am confused based on my situation below -

- I have an "NRI - Non Resident Indian" Account A in which balance narrowly exceeded $10K for couple of months for both 2008 and 2009 for which I am filling out the TD form.
- My wife has "NRI - Non Resident Indian" Account B in which total amount NEVER exceeded $10K. NOT joint account.
- My wife has local foreign SB Account C in which total amount NEVER exceeded $10K. NOT joint account

1) Now, just because we have been filing returns "married filing jointly" - should I add the amount from my wife accounts (i.e. A+B+C) even though those were not joint accounts i.e. I had no "signing authority" or ownership in those accounts?
2) If the answer to 1. is YES, I am then confused if I should be filing a separate TD form for my wife as well, even though her accounts had minimum balance (i.e. never went above $10K) but since (from 1. above), I end up counting her account balance to get our "joint" aggregate balance?

In short, if we filed "married filing jointly" - should the "aggregate of balances' defined in the TD F 90-22.1 be calculated by including spouses foreign accounts even if those were not joint accounts?

[kkr]

I recently learnt about the FBAR filing and decided to file a delinquent FBAR..since several folks on this forum have done so and have not faced any issues. I reported the taxes earned on these accounts so hopefully will not face much trouble.

Now, when coming to the FBAR form, I am confused based on my situation below -

- I have an "NRI - Non Resident Indian" Account A in which balance narrowly exceeded $10K for couple of months for both 2008 and 2009 for which I am filling out the TD form.
- My wife has "NRI - Non Resident Indian" Account B in which total amount NEVER exceeded $10K. NOT joint account.
- My wife has local foreign SB Account C in which total amount NEVER exceeded $10K. NOT joint account

1) Now, just because we have been filing returns "married filing jointly" - should I add the amount from my wife accounts (i.e. A+B+C) even though those were not joint accounts i.e. I had no "signing authority" or ownership in those accounts?
2) If the answer to 1. is YES, I am then confused if I should be filing a separate TD form for my wife as well, even though her accounts had minimum balance (i.e. never went above $10K) but since (from 1. above), I end up counting her account balance to get our "joint" aggregate balance?

In short, if we filed "married filing jointly" - should the "aggregate of balances' defined in the TD F 90-22.1 be calculated by including spouses foreign accounts even if those were not joint accounts?

Yes, if you are filing a joint return, you need to include all accounts belonging to you on TD F form, even those that are owned by one of you. There is space to list accounts separately.

[jaykana]

Hi Experts - All through this thread the discussion is about NRE accounts. What about NRO accounts or Mutual Funds ?

[dbs]

Hi Experts - All through this thread the discussion is about NRE accounts. What about NRO accounts or Mutual Funds ?

As far as usa is concerned NRE and NRO are same. It is the Indian Govt. that makes a distinction between the two.

[greyfri]

Hi Experts - All through this thread the discussion is about NRE accounts. What about NRO accounts or Mutual Funds ?

Yes, you need to declare ALL accounts (NRE, NRO, regular, MF) and pay tax on all.

For MFs, you need to pay tax under American tax laws even if the fund is a so-called growth fund.

For NRO accounts, you can claim a foreign tax credit for all taxes paid AND due to the Indian government. You cannot claim a credit for TDS ( a common mistake), unless the tax was actually due and you filed an Indian tax return showing the amount of tax paid to India.

[Mezz]

Grey,

1. Can you provide link for the info that - You cannot claim a credit for TDS ( a common mistake), unless the tax was actually due and you filed an Indian tax return showing the amount of tax paid to India

2. Are you a tax consultant ?

Mezz