Form 8938 Detailed Guide: Thresholds and Filing Requirements

What Is Form 8938?

Form 8938, also known as the FATCA (Foreign Account Tax Compliance Act) disclosure, is an IRS form that requires U.S. persons to report specified foreign financial assets. Unlike the FBAR, Form 8938 is attached to your annual tax return. It has been relatively unchanged for decades, making the thresholds easy to memorize.

Filing Thresholds for U.S. Residents

If you live in the United States and are unmarried or married filing separately, you must file Form 8938 if your specified foreign financial assets exceed $50,000 on the last day of the tax year, or $75,000 at any time during the year. For married couples filing jointly, these thresholds are doubled to $100,000 at year-end or $150,000 at any time.

The distinction between year-end and anytime thresholds is important. Even if you sold all foreign assets before year-end, if you exceeded $75,000 ($150,000 MFJ) at any point during the year, you must still file.

Higher Thresholds for Expats

U.S. persons living abroad enjoy significantly higher filing thresholds, recognizing that expatriates naturally hold more foreign assets. Single filers or those filing separately must file if their foreign assets exceed $200,000 at year-end or $300,000 at any time during the year. For married filing jointly, the thresholds double to $400,000 and $600,000 respectively.

Form 8938 vs. FBAR

Form 8938 and the FBAR serve similar purposes but have important differences. The FBAR covers foreign financial accounts and is filed with FinCEN, while Form 8938 covers a broader range of specified foreign financial assets and is filed with the IRS as part of your tax return. The filing thresholds also differ significantly — FBAR uses $10,000 aggregate, while Form 8938 starts at $50,000. You may need to file both if your foreign assets meet both thresholds.