If your total foreign (i.e., Swiss) accounts dropped below $100,000 in total, and if you are a married taxpayer, then you are correct in that you've fallen below the Form 8938 reporting threshold. TurboTax would be accurately capturing this.
That said, there are in fact two
separate disclosure forms that may be required for taxpayers who hold foreign financial accounts; each also has different
reporting rules. One is known as IRS Form 8938, and can be
attached to the relevant yearly Form 1040 tax return. It appears that you are now below the reporting limits for needing to file this tax form.
However, the second foreign account disclosure form, also administered by the US Treasury Department (but not the IRS agency), is called FinCen
Form 114. This one has a much lower reporting threshold of just $10,000, for specified foreign assets. In order to be in full compliance with US tax laws, affected taxpayers need to file one, or both, of these two forms.
As it turns out, FinCen Form 114 can only be completed and filed via the internet, on a dedicated government webpage. This is not included in the TurboTax package because the Treasury Department runs the site itself.
The following
Internal Revenue Service webpage describes these two disclosure requirements in some detail, and provides
the dollar value reporting levels:
https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements
(Note that you can get to the FinCen 114 reporting internet site
through the above IRS link.)
Returning to your original question, our recommendation for you is to not file Form 8938, as long as you don't have to; but please check the above IRS website and the requirements for FinCen 114. If it applies to you, then you should file the FinCen 114 form independently of TurboTax and your income tax return.
Thank you for asking this important question.
