I have more than $10,000 in a foreign bank. I live overseas. It says I do not have to declare the foreign assets because they are less than $400,000. Is that correct? Do I have to file FBAR with FinCen?
This is what I found at IRS site, Instructions for FORM 8938-
Reporting Thresholds Applying to Specified Individuals
Taxpayers living in the United States. If you do not live outside the United States, you satisfy the reporting threshold discussed next that applies to you and no exception applies, file Form 8938 with your income tax return.
Unmarried taxpayers. If you are not married, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.
Married taxpayers filing a joint income tax return. If you are married and you and your spouse file a joint income tax return, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year.
SO THERE IS AN ISSUE WITH TURBOTAX. IT SHOULD GIVE DIFFERENT THRESHOLD LIMITS TO DIFFERNT SITUATIONS (UNMARRIED, MARRIED AND LIVING WITHIN OR LIVING OUTSIDE).
There are two different forms related to foreign accounts/assets. One is the FBAR FinCen 114 form which you have to file if you had $10,000 or more at one point during the year in your foreign accounts (the sum of all foreign accounts is important). This is related to the question if you had foreign accounts.
This form is not filed with your tax return. You have to file it here: http://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html