foreign bank accounts & FATCA
Foreign bank accounts that peak over $10,000 in a given tax year have to be reported too. The amount isn’t taxed, but it must be reported. A Statement of Foreign Assets (8938) also needs to be filed when you own foreign assets over a certain value.
Foreign banks accounts include many types of financial accounts and also accounts that you have signed authority over.
Example, if you had your own bank account in the UK which during the tax year, peaked at USD$7,500 and then you have a joint account, business account or securities account (even if you only have signing authority) which peaked at USD$3,500 – you would have to report both bank accounts because together the peak balance was over USD$10,000
We provide an FBAR filing process for only $28 when we also prepare your Federal tax return.
Considering all types of foreign bank accounts including those that you may only have sigining authority over.
When it comes to reporting the FATCA 8938 Statement of Foreign Assets, add up the value of all these accounts; remember to consider the highest value during the tax year.
- Foreign trusts, bank & security accounts
- Business ownership and partnerships
- Stockholdings & pensions
- Securities, mutual funds, hedge funds, life insurance
If you file as an individual, you need to file the 8938 along with your tax return if you are residing out of the United States, then you need to check if the total value of assets was more than $200,000 on the last day of the tax year, or more than $300,000 at any time during the year.
***You don’t include the value of your home.***
Listen to Susan talking about the FBAR and FATCA requirements…