If I have more than 10,000 in my French bank account what happens when I declare it on my IRS return?

[sept28seminar]

I am an American and French citizen and file taxes in both countries

[Anonymous_]

@pk

[pk]

@sept28seminar ,

(a)  For US tax purposes  you are taxed as if you are ONLY a US citizen 

(b) You are taxed  by US on your world income but may be eligible for foreign tax  credit/deduction on income that is taxed by both jurisdictions ( US and France )

(c) From your post it appears you are  a resident  ( & citizen of France ) and therefore  taxed on world income  ( same as US ),

(d) For form 8938 ( FATCA) form, other than  ticking the boxes   schedule- B as to whether you have to file FBAR ( form 114 at FinCen.gov and only on-line filing, threshold of => US$10,000) and filing the form 8938 ( FATCA with a threshold  depending on your filing status -- MFJ/MFS/Single etc.  and tax home) there is no other requirement and NO TAX consequences.

(e) Noting that US taxes you one your world income , the US$10,000 +  effect is really based on whether this was income ( active or passive ) that needs to be taxed or not .  Just telling IRS that you have an amount in your bank account does not necessarily mean more taxes.

(f) Since your tax home is foreign ( FRANCE), your income(s) may be eligible for  foreign earned income exclusion  and / or foreign tax credit.  There fore I am not  sure I understand the import of the question you posed.

If I have not addressed your "real" question, please consider adding more explanation to your post.

Is there more I can do for you ?  Is this for tax year 2022 or for 2023 ?

pk