Form 8938 (FATCA) โ Specified Foreign Financial Assets
๐ก Form 8938 (FATCA) โ Specified Foreign Financial Assets :-
If you are a U.S. taxpayer and your foreign financial assets exceed certain thresholds, you must report them on Form 8938 (attached to your Form 1040).
๐ Main Points :-
โข Applies to U.S. citizens, residents & certain entities.
โข Report bank accounts, stocks, bonds, foreign partnerships, pensions, life insurance with cash value, etc.
โข File with IRS (part of your income tax return).
โข Thresholds (U.S. residents):
โ Single: > $50,000 (year-end) / $75,000 (anytime)
โ Married Filing Jointly: > $100,000 (year-end) / $150,000 (anytime)
โข Higher thresholds apply if living abroad.
โข Non-filing = $10,000+ penalties (can increase if not corrected).
โ
Example:
Foreign Bank A = $40,000
Foreign Stocks = $90,000
๐ Total = $130,000 โ Single filer โ Form 8938 required.
โจ Easy-to-remember points:
*FBAR โ Form 8938 โ Both may apply.
*Form 8938 is about assets (attached to IRS return).
*FBAR is about accounts (filed separately with FinCEN).
๐ Remember: Form 8938 = IRS tax compliance under FATCA, aimed at transparency of offshore wealth.
