US dollar sub account tax reporting

[Gulliver]

For some reason, I haven’t figured out yet, Japanese bank foreign currency sub accounts tend to be savings accounts.

This means that, even though the amount is minuscule, you will be earning interest in Japan.

I contacted Japanese Bank who told me that, on the Japanese side, tax on your interest gained is taken out at the time of withdrawal so you do not have to report it on your Japanese tax return.

So my question is will you have to report (or have you ever reported it the past) that interest on your US tax return?

[TokyoWart]

For some reason, I haven’t figured out yet, Japanese bank foreign currency sub accounts tend to be savings accounts.

This means that, even though the amount is minuscule, you will be earning interest in Japan.

I contacted Japanese Bank who told me that, on the Japanese side, tax on your interest gained is taken out at the time of withdrawal so you do not have to report it on your Japanese tax return.

So my question is will you have to report (or have you ever reported it the past) that interest on your US tax return?

If the interest comes to less than 50 cents US for the tax year then there isn't anything to report. I have had several cash accounts at Japanese banks for several years and in most cases the individual account doesn't generate even the equivalent of $1 in a year and there is nothing to report (which is also one of the boxes you check when preparing the US tax return's form 8938: there is a "No tax item reported in Part III with respect to this asset" box that gets checked for almost all of my Japan bank accounts).