How do I fix line 6 of Form 8938, Maximum value of all deposit accounts. TT is giving incorrect amount.

[tk94110]

In Form 8938 (Statement of Specified Foreign Financial Assets), TT seems to be filling the Line 6 "Maximum value of all deposit accounts", by adding up all Line 23 "Maximum value of account during tax year" of all foreign accounts. But this is incorrect when a fund is moved between accounts. 

For example, assume I have just two accounts A and B, and account A had $12000 and account B had $28000 at the beginning of the year. On August 1st, I moved $2000 from A to B and that was the only transaction in the year. 

At the end of the  year, account A has $10000 but the max amount of the year is still $12000.

Account B has $30000 and that is the maximum amount of account B.

The maximum value of all deposit accounts should be $40000 since we just moved money between the two accounts.

But TT fills Line 6 with $42000, the sum of the two maximum values $12000 + $30000. This is incorrect and I would like to fix it but if I go to the form 8938 screen, I cannot override the incorrect value. How do I fix this?

[JohnW152]

You can use the entry path described in How do I file Form 8938, Statement of Specified Foreign Financial Assets? for guidance in getting back to where you need to be.

Since the IRS doesn’t provide specific instruction for the scenario you raise in its Instructions for Form 8938 (Rev. November 2021), you’ll just need to return to the Form 8938 area of the program and manipulate the numbers to result in the correct Line 6 amount.

[tk94110]

The instructions in "How do I file Form 8983" doesn't quite work for me. There is no "Jump to" link after searching 8983.

But, I don't need to perform these steps because I already have the 8983 filed. I can find it if I click on the Forms icon. The problem I am reporting is that the TT is calculating the "Maximum value of all deposit accounts" incorrectly by merely summing up all the "Maximum value of account during tax year" across all accounts. And I can't figure out a way to correct (manually override) the number.

Your answer reads,  "you’ll just need to return to the Form 8938 area of the program and manipulate the numbers to result in the correct Line 6 amount.", but how I can manipulate the numbers ? I cannot lower the number in "Maximum value of account during tax year" of some accounts, because I'd have to lie about the maximum value of those accounts.

[Satyanarayana Ganti]

I am fully in agreement with the falacy in the programme. Let us be practical to understand the objective of the Report. In my opinion, it is the idea of IRS to know the value of foreign asset held and its value. Here the financial account is to be understodd as amounts in various accounts with banks as whole. So the programme should leave the field open to make a mual entry- not a mechanically totalling maximums of each bank account. The fallacy is to be set right in programming. Ifstill doubt persists, TT may like to have a clear discussion and resolve the issue.

[Satyanarayana Ganti]

One more point;

 I put it this way:

1. Money with Ban(s) is one account.

2. Investments held with Investment broker(s) is one account. 

3. Treasury stocks one account.You give the value of each individual account's maximum value separately . But, whrn you come to total- mention the number of all accounts- and THE MAXIMUM VALUE OF ALL ASSETS AS A WHOLE is to be mentioned.

[DaveF1006]

There are two types of accounts to reported on a 8938.  The first type of an account is a deposit account, such as your account at a bank where you may or may not make cash deposits or withdrawals.  

A custodial account is is an arrangement to hold certain types of deposits (typically not cash). investment accounts such as stocks, bonds, and other investments.  Your treasury stock account and other investment accounts would fall under this category. 

Line 6 asks for the Maximum value of just your deposit or bank accounts. Please read these 8938 instructions that explain how some these accounts are reported on each line.

@Satyanarayana Ganti 

[Satyanarayana Ganti]

I got it Mr Dave. I a like to receive your views on the posting relating toBank accounts as well

[HopeS]

I assumed you are referring to foreign bank account reporting. If this is not the case please clarify your question.

U.S. citizens, residents, and entities (including corporations and partnerships) are required to file a FinCen 114 (Report of Foreign Bank and Financial Accounts [FBAR]) form if they had a financial interest in (or signature authority over) at least one foreign financial account and the total value of all foreign accounts exceeded $10,000 at any time during the calendar year.

An FBAR is separate from your tax return. It can only be filed through the government's BSA E-filing System Website. You don't need to include this with your taxes, but you do need to submit it by April 17.

Additionally, you must indicate on your tax return whether, at any time during the year, you had a foreign financial asset. 

Here’s how to do it in TurboTax:

1. With your return open, go to Federal (or Federal Taxes) > Income & Expenses (or Personal if using Home & Business).
2. Open the Interest and Dividends section and start or revisit 1099-OID, Foreign Accounts.
3. Answer the questions about your miscellaneous investment income.

Also, see IRS information on Reporting Foreign Bank and Financial Accounts (FBAR).

FBAR

@Satyanarayana Ganti 

[Satyanarayana Ganti]

I am referring to foreign bank account reporting in Form 8938 attachement to Fprm 1040

[DaveF1006]

Yes, here is how to report your 8938. First of all, an 8938 will be generated by going to federal>other tax situations>Miscellaneous Forms>prepare a report on Foreign Financial Assets. 

Begin the interview process.

1.  First it asks if your foreign financial assets totaled more than $50,000 on the last day of the year or $75,000 at any time during the year. If the answer is no, Turbo Tax will not continue having you work in this section and will not generate a 8938.
2. The next screen will show you a list of forms and will ask if you filed these. If you have and reported the assets on any of these other forms, you do not need to duplicate reporting the same asset twice.
3. Then it asks if you reported income from any of your deposit or custodial accounts. if so, you will report those here.
4. Next, if you reported things like dividends or interest from your accounts, you will report what lines on the 1040 does this appear and the schedules and line where these appear. More than likely, it will be on a Schedule B if the interest and dividends were more than $1500 in interest or dividends.
5. Next is where you will begin reporting all of your accounts. You will indicate if the accounts are deposit or custodial. So enter the information from your first account after indicating this is a deposit account.
6. After entering the required information, then there will be a screen asking you have any other foreign financial assets to report. 
7. You will keep entering additional financial assets until you have completed entering all of your financial accounts, while indicating these are deposit or custodial accounts.
8. In the end, you will have a completed 8938 with a 8938 continuation statement that lists every account you have recorded.

Let us know if you have additional questions.

@Satyanarayana Ganti 

[rjd5]

This is a phenomenally messed up part of tax reporting and Turbotax which appears does not have a good grip on the rules. Before panicking, remember that the 2025 IRS has been DOGE smashed like a punch-drunk heavy weight boxer. They aren't going to wasting time on obscurities when they can barely process the incoming coming flood of 2024 tax returns while Trump wants to put them permanently out of business. If we must reduce our standard of living so oligarchs don't have to pay income tax, at least this unwarranted invasion of privacy should be on the chopping block too. It's a new day bowing before the ERS, planned successor to the devastated IRS.

That said, "maximum value" is ambiguous. I will go with the FinCen definition which is stupid enough to satisfy the most extravagant interpretation remembering none of this is about taxation, only invasion of privacy and extra-territorial intimidation. Overstating maximum value does not generate overstated tax. Sigh, it does not generate a single penny in deductions or credits. Just your wasted time. They only want to look underneath your sk--t. Kinda of like TSA "checking" for financial matters. Most all, unless you have really big amounts it is doubtful that 99% of people caught in this external reporting hell are any serious threat of being big time money launderers.

"If the maximum account value of a single account or aggregate of the maximum account values of multiple accounts exceeds $10,000, an FBAR must be filed. An FBAR is not required to be filed if the person did not have $10,000 of maximum value or aggregate maximum value in foreign financial accounts at any time during the calendar year.

For United States persons with a financial interest in or signature authority over fewer than 25 accounts that are unable to determine if the aggregate maximum account values of the accounts exceeded $10,000 at any time during the calendar year, complete the appropriate Part II, III, IV, or V section for each of these accounts and check the “amount unknown” box, item 15a.

One final comment relevant to our times. To renounce US citizenship you have to show that you filed the last five years of Form 8938. (FinCen has its own threat mechanisms, but I don't think that is one of them). Congress wanted to go after people trying to get out of extraterritorial taxation which only the US and Liberia do. Play straight, nobody wants an unscheduled Central American stay.

[Fionja]

 @tk94110

It seems to me that your original question was not really answered, or rather that TT has a bug that does not allow for correct reporting.
I have exactly the same issue. I bought a house in the US last year and to finance that, I pulled all my financial assets from two other countries that I used to work in. In order to consolidate all money into the one account which had the lowest international transfer cost, I moved enough monies between accounts to inflate the wrong TurboTax calculation to something like 200% of the actual money I owned abroad.
It feels really awkward to submit that to IRS. Makes you think they may come back one day and ask what happened to the unaccounted few hundred thousand you used to have abroad?
The suggested solution above for TT to leave that field blank and let the user fill it correctly would be best.
I did not find a way to correct that entry manually. You would have to print, correct the printout and file via USPS.