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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4380
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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I am american and venezuelan citizen..I have salary in USA

Resolved Question:

I am american and venezuelan citizen..I have salary in USA and investments in Venezuela, stock market...I received from Mercantil Bank a 1099INT and the information of Gross Proceeds..The format doesn't have a social security number however, I would like to know how do i have to report in my 1040. I know that american citizen have to report all foreign investment...What part of the report noted that it is only for information...I don't know if I have to report or not...
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

NPVAdvisor :

Hi,

NPVAdvisor :

Yes, as a US "person," which includes a citizen or resident you'll have to pay income tax by reporting it on the 1040NR

Customer:

I have social security number ....Why 1040NR? I used to report my income on 1040..My question is about my stock market and interest that I had received from my foreign investment in Venezuela , that are managed by Venezuela bank that it is in USA also ......

NPVAdvisor :

If you have to pay on that in Venezuela, you can use the FTC (foreign tax credit on the us return to reduce your tax bill by that amount

NPVAdvisor :

I'm sorry ...

NPVAdvisor :

go ahead, I'm with you now

Customer:

What form is the FTC? 1116? I didn't pay any taxes..I just received form Mercantile bank the stock that I sold on 2012 and the interest that I have received for my foreign transactions...However the 1099 didn't report this transactions as foreign and also they didn't report my social security number.

NPVAdvisor :

OK, one thing at a time .. first the 1116, this is a form that would be used to get a tax credit for any taxes paid to a foreign country (to eliminate your paying tax twice on the the same amount of income) ... Sounds lie that doesn't apply now ... on the second issue ...

NPVAdvisor :

This IRS says, in publication 525 ...

NPVAdvisor :

If you are a U.S. citizen or resident alien, you must report income from all sources within and outside of the U.S. This is true whether or not you receive a Form W-2 Wage and Tax Statement, a Form 1099 (Information Return) or the foreign equivalents. See Publication 525, Taxable and Nontaxable Income for more information.

NPVAdvisor :

So you would need to report this on your 1040

NPVAdvisor :

Thaty would go on line 8(a) taxable interest

Customer:

Even that the bank did not report my social security number?

Customer:

Interest are from Venezuelan investments..Do I need to report?

NPVAdvisor :

Yes, here's the IRS guidance : http://www.irs.gov/Businesses/Income-from-Abroad-is-Taxable The IRS takes the position that Social Security number IS XXXXX device that makes reporting easy ... but REPORTING the income is the substance here ... If you report this and keep the 1099 for your records you by pre-empting the issue that cold arise later, when IRS gets that copy of that 1099 and ask the bank to identity you

NPVAdvisor :

Again, from IRS .. " If you are a U.S. citizen or resident alien, you must report income from all sources within and outside of the U.S. This is true whether or not you receive a Form W-2 Wage and Tax Statement, a Form 1099 (Information Return) or the foreign equivalents. "

Customer:

As american citizen I can deduct any amount in order to avoid to pay taxed for the full amount?

NPVAdvisor :

When you do the 1040 there are always the standard deduction ($6,100 for 2013) - or itemized deductions if they would be higher (schedule A) and also the personal exemption that everyone gets ($3900 for 2013)

NPVAdvisor :

Those are the amounts for filing as a single tax payer, if you are married, you'll need to file jointly and the exemption and deduction are higher

Customer:

Ok thank you so much...

NPVAdvisor :

If this is the ONLY income you have where you need to file, and that income is below those two amounts added together ... there' no need to file (unless you have some withholding or credits coming back to you)

NPVAdvisor :

You welcome

NPVAdvisor :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


 


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Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4380
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and other Tax Specialists are ready to help you
Expert:  Lane replied 1 year ago.
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Lane
Lane
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Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986