Form 8938 asks that you list and Deductions and Credits in addition to Interest, Gains/Losses, Dividends etc.
What does the IRS consider to be a Credit? I added funds to my overseas brokerage account. Is that a "credit" to my account? If I list that, it then asks for WHERE in my tax return I reported that credit (Form number and Line number). If I got the money from my job, then do I put the line that recorded my payroll???
I think I am not interpreting the "Credit" entry correctly but I cannot find any other info as to what this is asking for/about. Does "credits" here mean something else?
Any clarification from someone who actually knows what this "credit" and "deduction" means on the Form 8938 would be incredibly helpful. Thanks in advance.
-Steve
You'll need to sign in or create an account to connect with an expert.
Maybe the form instructions would be helpful : https://www.irs.gov/forms-pubs/about-form-8938
Yes, that was the first thing I read. It does not specify what a credit or a deduction is or how it is defined. Did YOU see anything in the IRS instructions that answers my question?
What line is in question ?
This is the sum total of the IRS instructions regarding credits and deductions:
Enter the following items for your total assets reported in Part V or Part VI and the schedule, form, or return on which you reported the items.
Interest.
Dividends.
Royalties.
Other income.
Gains or (losses).
Deductions.
Credits.
My question was as to how these are defined and accounted for. If I make a deposit, it that a credit? Or only if it was earned income of some sort? If cash deposits are considered credits, then do I need to specify my job income line on my 1040 as the source?
For someone as myself who actually did read through the IRS instructions in detail, do you have any substantive guidance on this other than "read the instructions"?
The deductions and credits are referring to the same on your form 1040 that have a direct correlation to the assets being listed ... almost no one will have anything to enter on these lines.
Thank you. That is very helpful.
So I misinterpreted what "credits" meant. They do not apply to cash deposits made to the account.
Thanks you for your assistance here.
-Steve
When I read the instructions, I interpreted credits to mean "tax credits" related to the assets. For example, foreign tax credit.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
RussellPeak2030
New Member
ddranalli
New Member
chuggybuggy
Returning Member
r-wa313413
Level 1
Raph
Community Manager
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.