topic account type for reporting foreign financial accounts in Get your taxes done using TurboTax

account type for reporting foreign financial accounts

reneerex — Tue, 31 Mar 2020 00:18:55 GMT

Hello Sir or Madam,

When I reported the foreign financial accounts, I have

foreign bank accounts
security account (without stock, just an account number)
foreign life insurance policies
electronic wallet (WeChat Pay, PayPal, etc.)

When I select the account type, the options are only "Deposit" or "Custodial".

My questions are:

1. Is that correct that I report these accounts as "Foreign Financial Accounts"? I mean, not reporting them as "Other Foreign Financial Assets"?

security account (without stock, just an account number)
foreign life insurance policies
electronic wallet (WeChat Pay, PayPal, etc.)

2. If yes, then, I choose "Deposit" for my foreign bank accounts. What account types should I choose for these accounts?

security account (without stock, just an account number)
foreign life insurance policies
electronic wallet (WeChat Pay, PayPal, etc.)

Thank you very much.

Best regards,

Renee

Re: account type for reporting foreign financial accounts

DavidD66 — Tue, 31 Mar 2020 19:36:48 GMT

The bank accounts are Foreign Financial Accounts, Type: Deposit

If the life insurance policies meet either the Cash Value Accumulation Test and the Guideline Premium Requirement/Cash Value Corridor Test, they are not considered an investment and do not need to be reported on Form 8938 or FinCEN Form 114. If they fail either of these tests they are considered investments and are subject to reporting.

The Electronic Wallet accounts such as PayPal would be considered Deposit accounts.

If your "security accounts" do not have any assets, then they are not subject to withholding. If they have any assets, they would be reported as "Other Foreign Financial Assets".

Re: account type for reporting foreign financial accounts

reneerex — Tue, 31 Mar 2020 21:31:25 GMT

Hello @DavidD66

Thank you very much for your reply. I have some additional questions.

1. >>If they fail either of these tests they are considered investments and are subject to reporting.

If it failed, which type should I report it? As "Foreign Financial Accounts" and type "Deposit" or "Other Foreign Financial Assets"?

2. For the income from the foreign insurance policies, I know that I should add it as "Other Income" on Form 140 Line 21, Schedule 1, Line 8, but which category should I enter it to, "Amounts Attributes to Foreign Financial Accounts" or "Amounts Attributes to Other Foreign Financial Assets"?

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/which-schedule-and-line-should-i-enter-for-repor[product key removed]e-type-of-foreign-financial-assets/00/1341824#M140547

3. >>If your "security accounts" do not have any assets, then they are not subject to withholding. If they have any assets, they would be reported as "Other Foreign Financial Assets".

There is only $0.18 dollar in my security account. It is not the value of a stock, just money left at my security account.

Best regards,

Renee

Re: account type for reporting foreign financial accounts

reneerex — Wed, 01 Apr 2020 21:49:18 GMT

Hello @DavidD66

Could you please help?

Thank you very much for your reply. I have some additional questions.

1. >>If they fail either of these tests they are considered investments and are subject to reporting.

If it failed, which type should I report it? As "Foreign Financial Accounts" and type "Deposit" or "Other Foreign Financial Assets"?

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/which-schedule-and-line-should-i...

3. >>If your "security accounts" do not have any assets, then they are not subject to withholding. If they have any assets, they would be reported as "Other Foreign Financial Assets".

There is only $0.18 dollar in my security account. It is not the value of a stock, just money left at my security account.

Best regards,

Renee