FATCA Form 8938 Guide for U.S. Taxpayers Abroad
A plain-English overview for Americans abroad, built from current IRS guidance. Use it to understand the issue before deciding whether to self-file or hire specialist help.
What Form 8938 does
Form 8938 reports specified foreign financial assets with the federal income tax return when the applicable threshold is met. It overlaps with FBAR in some situations but is a separate requirement with different definitions and thresholds.
Thresholds for taxpayers living abroad
According to the IRS, taxpayers living abroad who file other than a joint return generally cross the Form 8938 threshold when specified foreign financial assets exceed $200,000 at year-end or $300,000 at any time during the year. Joint filers living abroad generally use $400,000 at year-end or $600,000 at any time. The IRS has specific tests for being treated as living abroad.
Form 8938 vs FBAR
FBAR uses a $10,000 aggregate foreign-account threshold and is filed with FinCEN. Form 8938 is attached to the tax return and can cover a broader category of specified foreign financial assets. Some people file both.
Why this is easy to get wrong
Ownership through entities, jointly held assets, valuation, foreign pensions and investment accounts can complicate the analysis. Use the current IRS instructions for the tax year you are filing.
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