amend return for $10 unreported income

LisaS · Post by **LisaS** » Fri Feb 21, 2014 4:21 pm

Do I have to amend a return if I realize I somehow didn't include $10 of interest income from a foreign account? The additional income does not result in an increase in tax (I stay in the same bracket on the tax table). The income for that account totaled about $60 and I mistakenly reported $50.

nelsona · Post by **nelsona** » Fri Feb 21, 2014 5:03 pm

Since it doesn't affect your tax, I wouldn't bother, unless you need to amend for another reason. I wouldn't bother chasing down the NR4 form either.

Don't forget that yopu are reporting the amount in USD. For 2013 the exchange is 1.03 so $50 US is $51.50 Cdn

ikeaidea · Post by **ikeaidea** » Sat Feb 22, 2014 7:53 pm

N: Found IRS website average rate is 1.071 for 2013, see below link.

http://www.irs.gov/Individuals/Internat ... ange-Rates

Is it applicable for income calculation?

rafa02 · Post by **rafa02** » Sat Feb 22, 2014 9:22 pm

and the Federal Reserve website shows 1.03 http://www.federalreserve.gov/releases/g5a/current/ and Bank of Canada 1.02991 - confusing!

CdnAmerican · Post by **CdnAmerican** » Sun Feb 23, 2014 3:28 pm

ikeaikea's link is a nice one; it notes "The Internal Revenue Service has no official exchange rate. Generally, it accepts any posted exchange rate that is used consistently." The treasury rate differs from these two posted above (1.064). It would seem to make sense that the IRS would just pick one and stick with it, but since they don't, it seems reasonable to have some latitude with the taxpayer who uses a publicly available and reputable rate.

exPenn · Post by **exPenn** » Sun Feb 23, 2014 4:09 pm

For form 8938, the IRS instructions state that the exchange rate on the last day of the tax year must be used. Therfore, I have been using the Dec. 31 Treasury Dept. exchange rate for all amounts in my tax filings, since, for example, the amount of interest listed on my 1040 must be the same as that reported on the 8938. The Dec. 31, 2013 Canadian $ exchange rate is 1.0640.

rlb · Post by **rlb** » Sun Feb 23, 2014 10:26 pm

"For form 8938, the IRS instructions state that the exchange rate on the last day of the tax year must be used. Therfore, I have been using the Dec. 31 Treasury Dept. exchange rate for all amounts in my tax filings, since, for example, the amount of interest listed on my 1040 must be the same as that reported on the 8938. etc."

I don't believe this is correct. The FMS exchange rate for Dec 31 must be used to convert the maximum ** value ** of the asset to USD. On the other hand, the exchange rate on the day of the transaction must be used for a single large transaction (for example, a stock sale, a one-time IRA withdrawal), and a yearly average rate can be used for something involved with frequent transactions over the year (monthly interest, pension payments, ...). You report the income amounts on 8938 as whatever you reported them on your 1040, with only the value of the asset forced to use the end of year rate.

rlb · Post by **rlb** » Mon Feb 24, 2014 8:29 am

Oops, I meant RRSP withdrawal, not IRA (example).