turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Event: Ask the Experts about your refund > RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Foreign Bank Accounts

Hello - Slightly off topic, but as I am stationed overseas I am obliged to have a foreign Bank account in order to pay bills etc. I understand that I must acknowledge that this account exists on my tax form, and report any sums over $10,000 via FBAR. I have always maintained a balance below that 10k Threshold, but my question is does it matter if I go over that amount? Other than reporting via FBAR, Are there tax penalties/consequence/disadvantages If I do? Thank you in advance!

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
KanM361
Expert Alumni

Foreign Bank Accounts

Hello Matt, if your bank account exceeds the amount of $10,000 their are no penalties, however, as you are aware this needs to be reported via FBAR and you need to report the interest income in your tax return if you are filing a resident return no matter if your bank balance amount is below or above $10,000 (as residents/citizens report worldwide income).

 

Please let me know if you need any clarification on the above or have any additional questions.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

8 Replies
JandKit
Employee Tax Expert

Foreign Bank Accounts

The FBAR is required if the aggregate value of your foreign account exceeds $10,000. In effect, if your income exceeds the $10,000 threshhold at anytime, the FBAR is required.

The FBAR is not a part of the tax return and is filed separately from your regular tax return. More information can be found here:

https://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
JandKit
Employee Tax Expert

Foreign Bank Accounts

There are penalties for not filing an FBAR when required.

What Are the FBAR Penalties for Not Filing?

For those whose lack of filing was non-willful (meaning you didn’t know about your reporting obligation), the fine can be $10,000 per violation.

If it is determined that you purposely avoided filing, the fine can be $100,000 or 50% of the balance of the account at the time of the violation, whichever is greater.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
KanM361
Expert Alumni

Foreign Bank Accounts

Hello Matt, if your bank account exceeds the amount of $10,000 their are no penalties, however, as you are aware this needs to be reported via FBAR and you need to report the interest income in your tax return if you are filing a resident return no matter if your bank balance amount is below or above $10,000 (as residents/citizens report worldwide income).

 

Please let me know if you need any clarification on the above or have any additional questions.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Foreign Bank Accounts

Thank you for the answer(s)! I understand the reporting requirements to a degree, but basically is it worth the effort t keep the balance below the 10k threshold?   It can be tricky given the volatility of currency. Are there tax penalties/consequence/disadvantages If I go above the 10k amount, or is it simply that I must report it? -Thanks!

 

KanM361
Expert Alumni

Foreign Bank Accounts

If your balance goes above $10,000 at anytime during the calander year, you must file as FBAR, otherwise there are penalties.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Jayesh P
New Member

Foreign Bank Accounts

The foreign account containing mutual funds never exceeded $10000 in cash. However, over the period of time the total value in the mutual fund account may have exceeded the $10000. Do we need report it thru FBAR?

MarilynG1
Expert Alumni

Foreign Bank Accounts

For the FBAR filing,  you are only concerned with foreign account balances in the last tax year (2023).  

 

Here's the link for Filing an FBAR.

 

@Jayesh P 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Foreign Bank Accounts

Hi Jayesh P

A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year.
Here is additional info that may be informative to you:

https://bsaefiling.fincen.treas.gov/docs/FinCENFBARHelp.pdf

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies