Form 8938 for Americans Living Abroad may apply to U.S. citizens and certain U.S. taxpayers who hold specified foreign financial assets above the applicable reporting thresholds. The filing requirement depends on the value of the taxpayer’s foreign assets, filing status, and whether the taxpayer qualifies as living abroad for Form 8938 purposes.
Because Form 8938 is filed with a U.S. federal tax return and is separate from the FBAR requirement, Americans abroad may need to evaluate both reporting obligations. Wakrim Law Firm assists U.S. taxpayers living overseas with international tax reporting, prior-year compliance, and related IRS matters.
Who Must File Form 8938 While Living Abroad?
Form 8938 filing requirements generally apply to specified individuals who have an interest in specified foreign financial assets exceeding the applicable reporting threshold.. This may include U.S. citizens and certain resident aliens living outside the United States.
For Form 8938 purposes, higher reporting thresholds are available to qualifying taxpayers living abroad. Whether a taxpayer qualifies depends on factors such as having a foreign tax home and satisfying certain residence or physical-presence requirements.
The Form 8938 filing thresholds for Americans living abroad depend on filing status and whether the value of specified foreign financial assets exceeds the year-end or at-any-time threshold.
Form 8938 Reporting Thresholds for Americans Living Abroad
| Filing status | End-of-year threshold | Threshold at any time during the year |
|---|---|---|
| Single or married filing separately | More than $200,000 | More than $300,000 |
| Married filing jointly | More than $400,000 | More than $600,000 |
These thresholds apply to qualifying taxpayers living outside the United States. Different and generally lower thresholds apply to taxpayers living in the United States.
See the IRS guidance on Form 8938 reporting requirements.
What Foreign Assets May Be Reported on Form 8938?
Form 8938 may cover a broader range of foreign financial assets than foreign bank accounts alone. Depending on the circumstances, reportable assets may include foreign financial accounts and certain other financial assets held for investment that involve a foreign issuer or counterparty.
Determining whether a particular investment, account, ownership interest, or other foreign asset must be reported can require a review of both the type of asset and how it is held.
- Foreign bank and financial accounts
- Foreign stocks or securities held outside a financial account
- Certain interests in foreign entities
- Certain foreign financial instruments or contracts
Form 8938 vs. FBAR
Form 8938 and the FBAR are separate reporting requirements. A taxpayer may be required to file one, both, or neither depending on the facts.
Form 8938 is generally attached to the taxpayer’s federal income tax return, while the FBAR is filed separately with FinCEN. The forms also use different reporting thresholds and do not cover exactly the same categories of assets.
Americans abroad with foreign bank or financial accounts should therefore evaluate both requirements rather than assuming that filing one form satisfies the other.
Learn more about FBAR requirements for Americans living abroad.
See the IRS comparison of Form 8938 and FBAR requirements.
When Is Form 8938 Filed?
Form 8938 is generally filed with the taxpayer’s annual U.S. federal income tax return and is due on the same date as that return, including any applicable extension.
Taxpayers generally should not file Form 8938 separately from their annual or amended federal tax return. A taxpayer who is not required to file a federal income tax return for the year generally does not have to file Form 8938 solely because the value of foreign financial assets exceeds the applicable reporting threshold.
What If You Did Not File Form 8938 in Prior Years?
Americans living abroad sometimes discover that Form 8938 should have been included with one or more prior U.S. tax returns. The appropriate way to address a missed filing depends on the taxpayer’s overall filing history, the foreign assets involved, and the circumstances surrounding the omission.
Understanding Form 8938 for Americans Living Abroad is especially important when prior U.S. tax returns included significant foreign financial assets.
A missed Form 8938 filing may also occur together with unfiled tax returns, missing FBARs, or other international information-reporting issues. These situations should generally be reviewed together rather than corrected in isolation.
If you have missed prior federal tax returns, review our guidance for Americans abroad with unfiled tax returns. Certain qualifying taxpayers may also want to learn about the Streamlined Foreign Offshore Procedures.
How Wakrim Law Firm Can Help Americans Abroad
Wakrim Law Firm assists taxpayers with Form 8938 for Americans Living Abroad, FBAR reporting, international tax compliance, and prior-year filing issues.
Depending on the circumstances, our assistance may include reviewing Form 8938 filing obligations, evaluating FBAR and other international reporting requirements, identifying prior-year compliance issues, and helping taxpayers understand available paths toward U.S. tax compliance.
For broader guidance on U.S. filing and international reporting obligations, explore our U.S. tax services for Americans living abroad.
Need help understanding your U.S. tax reporting obligations while living abroad? Contact Wakrim Law Firm to discuss your situation.
Frequently Asked Questions About Form 8938 for Americans Living Abroad
Do Americans living abroad have to file Form 8938?
Some U.S. taxpayers living abroad must file Form 8938 when the value of their specified foreign financial assets exceeds the applicable reporting threshold.
Is Form 8938 the same as an FBAR?
No. Form 8938 and the FBAR are separate reporting requirements. A taxpayer may need to file both depending on the type and value of foreign financial assets.
What is the Form 8938 threshold for Americans living abroad?
For qualifying taxpayers living abroad, the threshold is generally more than $200,000 at year-end or $300,000 at any time during the year for taxpayers filing other than jointly. For married taxpayers filing jointly, the thresholds are generally more than $400,000 at year-end or $600,000 at any time during the year.
Do I need to file Form 8938 if I do not file a U.S. tax return?
Generally, no. If you are not required to file a federal income tax return for the year, you generally do not have to file Form 8938 solely because your foreign assets exceed the reporting threshold.