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foreigntaxexplorer
Returning Member

Foreign interest, gains, deductions I entered in the Foreign Financial Assets section (Form 8938) do not populate in Form 1040

Hi everyone!


I’m currently answering the questions in the Foreign Financial Assets section related to Form 8938, and I have some questions about the "More Info About Foreign Financial Assets" step.

For context, I own a foreign bank savings account and a mutual fund account held through a foreign financial institution.

I printed a preview of this year’s return, and on my Form 1040 Schedule B, Line 1, I see several U.S.-based bank accounts and broker accounts listed, but my foreign bank and mutual fund accounts are not included. As someone has suggested in another thread, I also checked Box 1h on Form 1040, and the amount is $0.

Where can I find this information and how do I fill out the fields shown in the screenshot? I have already answered all other questions related to Form 8938 in TurboTax.

 

More Info About Foreign Financial Assets.png

 

 

By the way, regarding my mutual fund account held through a foreign financial institution, should it be categorized as Other Foreign Financial Assets, or should I enter this information in the Additional Foreign Financial Accounts section?

In other words, should the gains and deductions from my mutual fund account be reported in Box 13 (Foreign deposit and custodial accounts) or Box 14 (Other foreign assets) on Form 8938?

From my understanding, it should be entered in the Additional Foreign Financial Accounts section, with the Type of Account categorized as Custodial instead of Deposit because I held the mutual fund through a foreign brokerage account. Also, if I attempt to add my mutual fund account in the Other Foreign Financial Assets section, I'll have to select one of the following Type of Entity options: Partnership, Corporation, Trust, or Estate, none of which seem applicable.

 

Thanks in advance!

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