U.S. Tax Preparation Worldwide   James Maertin CPA

 
  Home    About     Get Started     Tax Guide     Fees     Pay Fee     Refund Status      Testimonials     Links     Policies

 

Tax Guide 

IRS Tax Law Changes

Americans Abroad

Capital Gains, Interest and Dividends

Deductions

Dependents

Education Credits, Scholarships

Foreign Bank Reporting

Foreign Nationals

Social Security, Medicare, Self Employment Tax

State Taxes

Tax Deadlines, Extensions, Late Payments, Estimated Tax

Tax Resident, Nonresident, Dual Status

Other Topics

Report of Foreign Bank and Financial Accounts (FBAR)

Statement of Specified Foreign Financial Assets (Form 8938)


 

These are the two forms that taxpayers who have foreign financial accounts or assets may have to submit. The FBAR has been around for many years as Form TD F 90.22.1 but has been replaced by FinCen Report 114 as of tax year 2013. It is submitted separately from the tax return.

 

Form 8938 has been in existence since tax year 2011, as part of the new FATCA legislation and is included in the tax return.

 

(Penalties for willful failure to file are potentially severe).

 

FinCEN Form 114:  Report of Foreign Bank and Financial Accounts (FBAR) 

Filing Requirements:  U.S. citizens, U.S. residents, trusts, estates, and domestic entities that have a financial interest in or signature authority over foreign financial accounts; and the aggregate value of the foreign accounts exceeds $10,000 at any time during the calendar year. 

 

If you have child with over $10,000 in foreign accounts, a separate FBAR will be required for your child even if you declare the account on your FBAR as custodian.

Financial interest: (1) you are the owner of record or holder of legal title or the owner of record; or (2) holder of legal title is your agent or representative; or (3) you have a sufficient interest in the entity that is the owner of record or holder of legal title.

 

Signature authority: you have authority to control the disposition of the assets in the account by direct communication with the financial institution maintaining the account.

Form 114 is separate from the tax return and can only be electronically filed. It is due April 15 of each calendar year but you can get an automatic extension to October 15.  If you and spouse own separate foreign accounts, you will each be required to file an FBAR. The value of any jointly owned accounts will be the entire value of the account on each spouse's FBAR.  Form 114 Instructions.

 

 

Form 8938:  Statement of Specified Foreign Financial Assets

Filing Requirements:  U.S citizens, U.S. residents, and certain non-resident aliens that have an interest in specified foreign financial assets; and you meet the threshold reporting requirements below to file a tax return.  Form 8938 Instructions.

 

Living in the United States Living outside the United States
Single or married filing separately
$50,000 on 12/31/18
$75,000 at any time during 2018
Single or married filing separately
$200,000 on 12/31/18
$300,000 at any time during 2018
Married filing jointly
$100,000 on 12/31/18
$150,000 at any time during 2018
Married filing jointly
$400,000 on 12/31/18
$600,000 at any time during 2018

 

Form 8938 is included with the federal tax return and is only required if you meet the threshold and a tax return is required to be filed.

 

Value to Report of Jointly Owned Assets for Form 8938:

Reportable Accounts & Assets

Foreign accounts and assets include, but are not limited to, the following accounts open at some point in 2014.

 

Download a questionnaire.  On worksheet "Foreign Accts & Assets", include these under Foreign Accounts

Download a questionnaire.  On worksheet "Foreign Accts & Assets", include these under Foreign Assets (if you meet the filing threshold)

IRS comparison of Form 8938 and FBAR requirements

 

Exceptions to Reporting:

You do not have to report any asset on Form 8938 if you report it on one or more of the following forms that you timely file with the IRS for the same tax year.

Non-Reportable: