Do I have to file Form 8938 for foreign assets? Confused about thresholds

The filing requirements for Form 8938 depend on your filing status, where you live, and the total value of your foreign financial assets. For a single taxpayer living in the US (which appears to be your situation), you're required to file Form 8938 if the total value of your specified foreign financial assets exceeds $50,000 on the last day of the tax year OR exceeds $75,000 at any time during the tax year. With your foreign investment account worth about $65,000, you would need to file Form 8938 if that was the value on the last day of the tax year, since it exceeds the $50,000 threshold. However, if the account fluctuated and was worth $65,000 at some point during the year but dropped below $50,000 by year-end, you'd still need to file if it ever exceeded $75,000 during the year. Keep in mind that the Form 8938 requirement is separate from the FBAR (FinCEN Form 114) filing requirement, which has a $10,000 threshold. You might need to file both forms depending on your situation.

After struggling with these exact Form 8938 filing requirements last year, I discovered taxr.ai (https://taxr.ai) which totally saved me. I uploaded my foreign account statements, and it analyzed everything to tell me exactly which forms I needed to file. The tool showed me that I actually had multiple reportable foreign assets that I hadn't even considered (like that small pension account from when I worked abroad), and calculated my total foreign assets correctly. It even explained which threshold applied to my situation. The best part was that it flagged potential FATCA reporting issues that I would have completely missed. Definitely worth checking out if you're trying to figure out if you need to file Form 8938.

I wanted to follow up about that taxr.ai service I was skeptical about earlier. I tried it and I have to admit it was actually really helpful. I discovered I had been calculating my foreign asset values incorrectly for years! The tool showed me that some of my foreign mutual funds were actually PFICs (Passive Foreign Investment Companies) that required additional reporting on Form 8621, which I had no idea about. It also confirmed that I needed to file Form 8938 because I had exceeded the threshold when counting ALL my foreign assets together, not just my main account. I was able to correct my previous returns before any issues arose. Definitely saved me from potential headaches with the IRS.

If you're still confused about Form 8938 requirements, I'd recommend calling the IRS directly. But good luck getting through! I spent HOURS on hold trying to get clarification about my foreign reporting requirements last month. Finally found this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in less than 20 minutes. They have this system that navigates the IRS phone tree and waits on hold for you, then calls you when an agent picks up. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with gave me specific guidance on my Form 8938 situation and confirmed I needed to file based on my circumstances. Apparently the threshold calculations are even more complex than what's in the basic instructions.

OK I have to admit I was completely wrong about that Claimyr service. After being stuck on this Form 8938 question for weeks and getting nowhere, I decided to try it yesterday out of desperation. It actually worked exactly as described. I put in my number, and about 35 minutes later I got a call connecting me directly to an IRS agent. I didn't have to wait on hold at all. The agent was super helpful and confirmed that in my specific situation, I DO need to file Form 8938 because I have multiple types of foreign assets that collectively exceed the threshold, even though no single account does. Apparently, there are some complicated aggregation rules I was missing. Would have never figured this out from just reading the instructions.

Don't forget to also look at whether you need to file FinCEN Form 114 (FBAR) in addition to Form 8938. The thresholds are different! FBAR is required if your foreign accounts together exceed $10,000 at any time during the year, which is much lower than the Form 8938 thresholds. I got hit with a penalty for missing the FBAR even though I filed Form 8938 correctly. The systems don't talk to each other, so filing one doesn't mean you're covered for the other.

Don't feel bad about being confused - Form 8938 requirements are super complicated. I'm a US expat and had to figure this out when I moved abroad. Here's a cheat sheet I made for myself: Single living in US: - $50k on last day of year OR - $75k at any time during year Married filing jointly in US: - $100k on last day of year OR - $150k at any time during year Living abroad (filed extension or qualify for foreign earned income exclusion): - Single: $200k on last day of year OR $300k any time - Married filing jointly: $400k on last day OR $600k any time Hope this helps someone!

For tax purposes, "living abroad" typically means you qualify as a bona fide resident of a foreign country or meet the physical presence test (330 days outside the US in a 12-month period). It's not just about where you happen to be on a particular day. The key is that you need to have filed for an extension to file your tax return OR qualify for the foreign earned income exclusion to use the higher thresholds. Just being physically outside the US temporarily doesn't automatically qualify you for the higher Form 8938 thresholds. If you're unsure about your status, it's worth checking IRS Publication 54 (Tax Guide for U.S. Citizens and Resident Aliens Abroad) or consulting with a tax professional who specializes in expat tax issues.

Great question and thanks to everyone for the detailed responses! I went through a similar situation last year and want to add a few points that might help: 1. Make sure you're counting ALL specified foreign financial assets, not just bank accounts. This includes foreign stocks, bonds, mutual funds, and even interests in foreign partnerships or trusts. 2. The valuation date matters a lot. You need to track the maximum value during the year AND the end-of-year value. I recommend keeping quarterly statements or screenshots of account balances throughout the year. 3. Currency conversion can be tricky - you must use the Treasury's published exchange rates for the specific dates, not just any random exchange rate you find online. One thing I learned the hard way: even if you don't meet the Form 8938 threshold, you might still need to file other forms like 3520 or 5471 depending on what types of foreign assets you have. The reporting requirements can overlap but they're all separate obligations. Also, penalties for not filing Form 8938 when required are steep - $10,000 initially, then $10,000 for each 30-day period of continued non-filing up to $60,000. Definitely better to file when in doubt!