if you have an interest on foreign account and you don't have foreign assets great than 50K, Please let me know whether you still need to file form 8938 or not

[LinaJ2020]

If your total foreign assets values are less than $50K, you do not need to file a Form 8938.  However, you might need to file a FinCEN Form 114 if your aggregate value of financial accounts exceeds $10,000 at any time during the year.  For more information, click here:  8938 vs FBAR 

To enter information in the program, here are the steps:

In TurboTax online,

• Sign in to your TurboTax account and select Pick up where you left off
• At the right upper corner, in the search box, type in "foreign assets" and Enter
• Select Jump to foreign assets
• Follow prompts
• On-screen, Amounts Related to Foreign Financial Assets, enter information

A FinCEN form is a separating filing from TurboTax.  To file a FinCEN form, read instructions here: FinCen’s BSA E-Filing System.

[Jen1234]

thanks!

[Jen1234]

Hi,  

Another question : why schedule B form state that if you have interest from foreign bank and you have to file form 8938.

Part III

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At any time during 2020, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country? See instructions . . . . . . . . . . . . . . . . . . . . . . . .

If “Yes,” are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those requirements

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But Turbotax don't allow to file form 8938 if you total assets is less than 50K.   Please let me know whether it is bug.   I tried to use a Desktop App ( home and business version).

Thanks

[LinaJ2020]

According to the Schedule B instruction, see below, it states that you may require to file.  It does not say you have to. 

Regardless of whether you are required to file FinCEN Form 114 (FBAR), you may be required to file Form 8938, Statement of Specified Foreign Financial Assets, with your income tax return. Failure to file Form 8938 may result in penalties and extension of the statute of limitations. See IRS.gov/Form8938 for more information.

To read instruction, click here:  https://www.irs.gov/instructions/i1040sb ( Under Part III. Foreign Accounts and Trusts)

[Jen1234]

Thanks you for reply.

As per document

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Regardless of whether you are required to file FinCEN Form 114 (FBAR), you may be required to file Form 8938, Statement of Specified Foreign Financial Assets, with your income tax return. Failure to file Form 8938 may result in penalties and extension of the statute of limitations. See IRS.gov/Form8938 for more information.

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" May be" means that you can file  or can not  file the form 8938.

Can Turbotax update the software to allow user to have choice to summit Form 8938?   

Thanks

[ReneeM7122]

Turbo Tax will ask you if you have foreign accounts.  If you answer 'yes,' it will bring you to the place where you answer questions to complete Form 8938 (FATCA).  You can find the form by searching for it on the Federal tab.

Please keep in mind, you may also need to file another FinCEN Form 114 if you are required to file the 8938.

The Form 8938 filing requirement does not replace or otherwise affect a taxpayer’s obligation to file FinCEN Form 114 (Report of Foreign Bank and Financial Accounts). Unlike Form 8938, the FBAR (FinCEN Form 114) is not filed with the IRS. It must be filed directly with the office of Financial Crimes Enforcement Network (FinCEN), a bureau of the Department of the Treasury, separate from the IRS. 

FBAR and FATCA are two separate reporting events filed in two separate places. 

FBAR - Report of Foreign Bank and Financial Accounts (FinCEN Form 114) 

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.   The name of the form to file If you have any questions or require technical assistance using the BSA E-Filing system, you may call them at 866-270-0733;  or if calling from outside the United States, 313-234-6146. 

Report of Foreign Bank and Financial Accounts (FBAR)

Foreign Accounts Tax Compliance Act (FATCA)

Under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets. The IRS receives information about foreign assets on form 8938 on your federal tax return. 

You must file the FBAR electronically through the Financial Crimes Enforcement Network’s BSA E-Filing System. You don’t file the FBAR with your federal tax return. 

Here is an IRS article that explains the comparison between FATCA and FBAR requirements.

[Jen1234]

Thanks!