Form 8938 (Statement of Specified Foreign Financial Assets)
A FATCA-related form filed with Form 1040 to report foreign financial assets that exceed specified thresholds.
Detailed Explanation
Filing thresholds depend on filing status and US/foreign residency: a single US-resident taxpayer files when foreign financial assets exceed $50,000 at year end or $75,000 anytime; thresholds are higher for joint filers and overseas filers. Reportable assets include foreign accounts, foreign stocks held outside an account, and certain foreign partnership and trust interests. Form 8938 supplements but does not replace the FBAR; many taxpayers file both.
Key Points
- FATCA reporting form filed WITH Form 1040 (the FBAR is filed separately with FinCEN).
- US-resident thresholds: $50,000 year end / $75,000 anytime (single); $100,000 / $150,000 (MFJ).
- Higher thresholds apply to US persons living abroad ($200,000 / $300,000 single, $400,000 / $600,000 MFJ).
- Reportable assets include foreign accounts, foreign stock held directly, and foreign partnership and trust interests.
- Failure to file: $10,000 penalty, rising up to $50,000 for continued non-filing after IRS notice.
Practical Example
A US resident holds a $60,000 brokerage account in Germany and $20,000 of directly held foreign company shares, totaling $80,000. Because this exceeds the $50,000 year-end threshold for a single US-resident filer, they attach Form 8938 to their Form 1040. They likely also have an FBAR obligation, which is filed separately with FinCEN.
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Learn about International TaxationRelated Terms
FBAR (Report of Foreign Bank and Financial Accounts)
A FinCEN Form 114 filing required of US persons who hold foreign financial accounts with an aggregate value exceeding $10,000 at any point during the year.
FATCA (Foreign Account Tax Compliance Act)
A US law requiring foreign financial institutions and certain US taxpayers to report foreign financial accounts and assets to the IRS.
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