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henrylin57
Level 1

if I have bank accounts in two foreign countries, in one of the country the account is less than $50K, do I need to report it ?

 
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ToddL99
Expert Alumni

if I have bank accounts in two foreign countries, in one of the country the account is less than $50K, do I need to report it ?

Report both foreign accounts on a single Form 8938.

 

The $50,000 threshold applies to all of your foreign accounts, i.e. the total value. Once you exceed that threshold, you must report all foreign accounts.

 

From Instructions for Form 8938 (2020)

 

Use Form 8938 to report your specified foreign financial assets if the total value of all the specified foreign financial assets in which you have an interest is more than the appropriate reporting threshold.

 

Unmarried taxpayers.

 

If you are not married, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.

 

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.

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5 Replies
DavidD66
Expert Alumni

if I have bank accounts in two foreign countries, in one of the country the account is less than $50K, do I need to report it ?

If the aggregate value of your foreign financial accounts exceeded $10,000 at any time during the calendar year, you must file an FBAR report.  For more information, see:

 

Report of Foreign Bank and Financial Accounts (FBAR)

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henrylin57
Level 1

if I have bank accounts in two foreign countries, in one of the country the account is less than $50K, do I need to report it ?

My question if I need the one foreign account less than $50k in 1040 Form 8938, even my accounts in two countries are over $50k. Or do I just need to report the Foreign account in one country which is over $50K in 1040 Form 8938?

Thanks!

npierson7
Level 1

if I have bank accounts in two foreign countries, in one of the country the account is less than $50K, do I need to report it ?

You must file IRS Form 8938, Statement of Specified Foreign Financial Assets, with your income tax return if: you had $50,000 in a foreign account on the last day of the year, or. you had more than $75,000 in such an account at any point during the year.

In addition, every U.S. person (U.S. citizens, green card holders, resident aliens) is required to file FinCEN Form 114 if they are an owner, nominee, or can control the distribution of the account's funds. If the combined balance of all your foreign accounts is more than $10,000 at any point during the calendar year, you must file FinCEN Form 114. 

 

You can file FinCEN 114 here:

 

Individuals Filing the Report of Foreign Bank & Financial Accounts (FBAR)

henrylin57
Level 1

if I have bank accounts in two foreign countries, in one of the country the account is less than $50K, do I need to report it ?

Thank your response !

I am asking if I need to file a1040 Form 8398 for the bank account in foreign country "A" with balance less than $50k and no interest/dividend , while I have another bank account in foreign country "B" with balance over $50K and I have filed the form 8938 for the account in Country "B" .

ToddL99
Expert Alumni

if I have bank accounts in two foreign countries, in one of the country the account is less than $50K, do I need to report it ?

Report both foreign accounts on a single Form 8938.

 

The $50,000 threshold applies to all of your foreign accounts, i.e. the total value. Once you exceed that threshold, you must report all foreign accounts.

 

From Instructions for Form 8938 (2020)

 

Use Form 8938 to report your specified foreign financial assets if the total value of all the specified foreign financial assets in which you have an interest is more than the appropriate reporting threshold.

 

Unmarried taxpayers.

 

If you are not married, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.

 

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.

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