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Sanctuaryrh
Returning Member

Open foreign account or just wire service money to US bank?

Hello!

I understand I need to report a foreign bank account, and the amount over $10,000...and any accrued interest.

Is it worth it to go to all that trouble to get an account in another country or should I just have the money for my service wired directly into my US bank account?

It's not earned income per se, it's more of a goodwill payment, or commission type.  

 

Thanks! 

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2 Replies
pk
Level 15
Level 15

Open foreign account or just wire service money to US bank?

@Sanctuaryrh , whether you open a bank account in another country really  depends  on what you want to do with the monies.   The fact that a foreign bank / financial  account  owned by or having signature authority over, comes under  FBAR ( form 114 and on-line only ) or FATCA ( form 8938 along with your return), should have  no bearing, IMHO.  Yes , these are extra forms to fill out but there are no tax implications.

The  fact remains that income from another country is still taxable income to a US person ( citizen/ GreenCard/ Resident for Tax Purposes).   So I would not dwell too much on the FBAR / FATCA requirements.

 

That is my view

 

Is there more I can do for you ?

Sanctuaryrh
Returning Member

Open foreign account or just wire service money to US bank?

Hello @pk 

 

Thank you for your response.  You're right, it's not really going to make a difference whether I report it from there (with forms) or wire it here and pay tax on it.   I think I was making it a little too confusing. 

 

Thank you!

☺️

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