# Closed tfsa, need to report interest earned



## compostelle (Jun 1, 2012)

Last year , in July, I closed my TFSA, (tax free savings account in Canada), and the money was deposited into my NRA spouses account. The question I have is if i need to report the interest earned on the TFSA for 6 months of 2012 only. 
The canadian government didnot issue any type of receipt for this, since it was considered a tax free savings account, meaning there was no need to issue a T5.
Thanks for any help!
P.


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## maz57 (Apr 17, 2012)

The short answer is yes, the interest is reportable. TFSAs aren't taxable in Canada but they are not recognised by the IRS and are therefore taxable in the US. Depending on the exact structure of the TFSA there may be additional reporting requirements (Form 3520 and 3520a).

The lack of a T5 is not relevant; the IRS doesn't want to see Canadian tax receipts anyway as they don't fit into their system. The amount is reported on the line for taxable interest on the 1040 along with any other interest you may be reporting. Don't forget Schedule B as well. All in US funds, of course.

Depending on the size of the account (and your other accounts) there may be an FBAR obligation as well.


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## compostelle (Jun 1, 2012)

Thanks !


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