Reporting threshold for Form 8938
The Form 8938 instructions describe the reporting threshold as the value level that applies to specified foreign financial assets. For a U.S. citizen, the applicable level depends on filing status and, for higher thresholds, qualifying residence abroad.
Meaning of the threshold
The Internal Revenue Service instructions for Form 8938 describe the reporting threshold as an asset value test for specified individuals with interests in specified foreign financial assets. Unless an exception applies, a specified person files Form 8938 when the asset value is more than the applicable threshold; a person who has no income tax return filing requirement does not file Form 8938 solely because the assets exceed it.[1]
For an individual, the instructions set separate thresholds by marital and return filing status, and by whether the person meets the conditions for taxpayers living outside the United States. The test uses two points in the tax year: value on its last day and value at any time during it.[1]
Threshold amounts for individuals
| Circumstances | Last day of tax year | At any time during tax year |
|---|---|---|
| Living in the United States, unmarried or married filing separately | More than $50,000 | More than $75,000[1] |
| Living in the United States, married filing jointly | More than $100,000 | More than $150,000[1] |
| Qualifying foreign tax home and presence abroad, unmarried or married filing separately | More than $200,000 | More than $300,000[1] |
| Qualifying foreign tax home and presence abroad, married filing jointly | More than $400,000 | More than $600,000[1] |
The higher thresholds apply when the person's tax home is in a foreign country and the person meets one of the presence abroad tests. The instructions describe those tests as either U.S. citizenship with bona fide foreign residence for an uninterrupted period including an entire tax year, or at least 330 full days present in a foreign country during a 12-month period ending in the reported tax year.[1]
How asset value is counted
The threshold applies to the total value of specified foreign financial assets in which the individual has an interest. The instructions use fair market value, and foreign currency amounts are converted to U.S. dollars for this calculation.[1]
Jointly owned assets can be counted differently depending on the owners and their return. Spouses filing jointly count a jointly owned asset once. Specified individuals filing separate returns count half its value when jointly owned with a spouse; other joint owners each count the full value.[1]
The threshold is distinct from the FBAR filing test. The Form 8938 instructions say filing Form 8938 does not remove an FBAR requirement that otherwise applies. FinCEN describes that separate test as applying to a United States person with a financial interest in or signature authority over foreign financial accounts whose aggregate value exceeds $10,000 at any time during the calendar year.[1][2]
Questions and answers
Which Form 8938 threshold applies to a U.S. citizen living in the United States?
For an unmarried person or one married filing separately, the threshold is more than $50,000 at year end or more than $75,000 at any point. For spouses filing jointly, it is more than $100,000 at year end or more than $150,000 at any point.[1]
When can a U.S. citizen use the higher foreign residence thresholds?
The person's tax home must be in a foreign country, and the person must meet a presence abroad test. The instructions define qualifying presence as full-year bona fide residence abroad for a U.S. citizen, or at least 330 full days abroad in a qualifying 12-month period for a U.S. citizen or resident.[1]
Does the threshold apply only to assets at year end?
No. The instructions test both the value on the last day of the tax year and the value at any time during the tax year. Exceeding either applicable amount satisfies the threshold test.[1]
How is a jointly owned asset included in the total?
Spouses filing a joint return count the asset once. Specified spouses filing separate returns count half, while each joint owner in other cases includes the full value.[1]
Does Form 8938 replace FBAR reporting?
No. The instructions state that Form 8938 does not remove an FBAR requirement that otherwise applies. FinCEN's separate account test uses a $10,000 aggregate value threshold at any time during the calendar year.[1]
Related terms
- Specified individual: The Form 8938 instructions use specified individual for several categories of people. U.S. citizens and resident aliens count, as do some nonresident aliens.
- Financial interest in an account: FBAR rules define financial interest through account ownership or relationships to the legal title holder. A U.S. person named on an account has an interest.
- Maximum account value: The Form 8938 instructions define maximum account value as a financial account's highest value during the tax year, based generally on fair market value.
Related guides and articles
- Form 8938 and Foreign Trust Assets: A U.S. citizen's guide to Form 8938: what counts as a specified foreign financial asset, when the form accompanies a tax return, and how filing thresholds vary.
- FBAR and Form 8938 for accounts linked to trusts: FBAR and Form 8938 are separate reports with different filing tests for a U.S. citizen. IRS instructions describe foreign accounts as well as trust interests.
- Trust accounts: FBAR and Form 8938 overlap: Trust-related FBAR and Form 8938 reporting: foreign accounts and specified assets, ownership, signature authority, and where the two reports overlap and differ.
Related pages
Sources and data notes
- Internal Revenue Service, Instructions for Form 8938. https://www.irs.gov/instructions/i8938. Retrieved .
- FinCEN, Report foreign bank and financial accounts. https://www.fincen.gov/report-foreign-bank-and-financial-accounts. Retrieved .
- U.S. Government, 31 CFR 1010.350. https://ecfr.io/Title-31/Section-1010.350. Retrieved .
- Internal Revenue Service, FATCA summary. https://www.irs.gov/businesses/corporations/summary-of-key-fatca-provisions. Retrieved .
- U.S. Department of the Treasury, FATCA: agreements by jurisdiction. https://home.treasury.gov/policy-issues/tax-policy/foreign-account-tax-compliance-act. Retrieved .
- Internal Revenue Service, 26 CFR 1.1471-4. https://www.irs.gov/instructions/iw9. Retrieved .
Dates in this block record when each source was read for this page.