Guidelines

Is there a penalty for not filing Form 8938?

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Is there a penalty for not filing Form 8938?

Information return penalties: Where a taxpayer must file a Form 8938, disclosing his or her interest in “specified foreign financial assets,” fails to do so for any tax year, the taxpayer is subject to a penalty of $10,000.

Do expats have to pay US taxes?

Most American expats do not owe U.S. taxes Yes, U.S. citizens must file a yearly tax return even if they live abroad—however, U.S. expats don’t usually owe anything. In most situations, U.S. expats can offset foreign-earned income with: The Foreign Tax Credit (FTC) The Foreign Earned Income Exclusion (FEIE)

What is the difference between FBAR and Form 8938?

FBAR, is that the Form 8938 is only filed when a person meets the threshold for filing AND has to file a tax return. So, if a person does not have to file a tax return (because for example, they are below the threshold) than the 8938 is not required in the current year either.

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What is the difference between Form 114 and Form 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. Form 8938 and Instructions can be found at About Form 8938.

Why do American expats have to pay taxes?

Most expats do not pay US expat taxes because of the Foreign Earned Income Exclusion and Foreign Tax Credit benefits. However, expats still need to file taxes annually if their gross worldwide income is over the filing threshold. So even if you do not owe any taxes to the IRS, you still may need to file.

What tax forms do US expats need?

US Expat Taxes Explained: Common Expat Tax Forms

  • What Tax Forms Expats Need: Start With Form 1040.
  • Form 2555 – Foreign Earned Income Exclusion (FEIE)
  • Form 1116 – Foreign Tax Credit (FTC)
  • Form 8938 – Statement of Specified Foreign Assets.
  • Form 8833 – Treaty-Based Return Position Disclosure.
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How long can a U.S. citizen live abroad?

International Travel U.S. Immigration law assumes that a person admitted to the United States as an immigrant will live in the United States permanently. Remaining outside the United States for more than 12 months may result in a loss of lawful permanent resident status.

Who should fill Form 8938?

Unmarried individuals residing in the United States are required to file Form 8938 if the market value of their foreign financial assets is greater than $50,000 on the last day of the year or greater than $75,000 at any time during the year.