We have a checking account at a foreign bank, we make deposits from our U.S. bank, money for which we already paid taxes in the U.S.. Do we need to declare that account?

[otseewigto]

There seems to be a $10,000 limit above which one has to report that account. As a couple do we have a larger limit?

[ToddL · Accepted solution]

There are two separate reporting requirements for foreign accounts, Form 8938 (IRS, tax return) and Report of Foreign Bank and Financial Accounts (Treasury, FinCEN 114).

Whether or not you have to report this foreign bank account on Form 8938 depends on how the account is held and the amount in the account.

From Instructions for Form 8938, Statement of Specified Foreign Financial Assets: 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.

Whether or not you have to file FinCEN 114 also depends on how the account is held and the amount in the account.

Who Must File an FBAR

United States persons are required to file an FBAR if:

1. the United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
2. the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.

United States person includes U.S. citizens; U.S. residents; entities, including but not limited to, corporations, partnerships, or limited liability companies, created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.

Exceptions to the Reporting Requirement

Exceptions to the FBAR reporting requirements can be found in the  FBAR instructions . There are filing exceptions for the following United States persons or foreign financial accounts, to include certain foreign financial accounts jointly owned by spouses.

FinCEN Report 114, Report of Foreign Bank and Financial Accounts. FinCEN Report 114 supersedes the previous years’ form TD F 90-22.1 and is only available online through the BSA E-Filing System.

See: Report of Foreign Bank and Financial Accounts (FBAR)