💡 Form 8938 (FATCA) – 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).
📌 Main Points :-
• Applies to U.S. citizens, residents & certain entities.
• Report bank accounts, stocks, bonds, foreign partnerships, pensions, life insurance with cash value, etc.
• File with IRS (part of your income tax return).
• Thresholds (U.S. residents):
– Single: > $50,000 (year-end) / $75,000 (anytime)
– Married Filing Jointly: > $100,000 (year-end) / $150,000 (anytime)
• Higher thresholds apply if living abroad.
• Non-filing = $10,000+ penalties (can increase if not corrected).
✅ Example:
Foreign Bank A = $40,000
Foreign Stocks = $90,000
👉 Total = $130,000 → Single filer → Form 8938 required.
✨ Easy-to-remember points:
*FBAR ≠ Form 8938 → Both may apply.
*Form 8938 is about assets (attached to IRS return).
*FBAR is about accounts (filed separately with FinCEN).
🔑 Remember: Form 8938 = IRS tax compliance under FATCA, aimed at transparency of offshore wealth.