What are the Form 8938 reporting thresholds?

For unmarried taxpayers living in the U.S.: the total value of specified foreign financial assets must be more than $50,000 on the last day of the tax year or more than $75,000 at any time during the year. For married filing jointly, the thresholds double to $100,000 and $150,000. For U.S. taxpayers living abroad, the thresholds are higher: $200,000 on the last day or $300,000 at any time ($400,000/$600,000 for married filing jointly).

Do I need to file both FBAR and Form 8938?

Many taxpayers with foreign assets must file both. Because FBAR has a lower threshold ($10,000 vs. $50,000+), anyone who needs to file Form 8938 typically also needs to file FBAR — but the reverse is not true. You may need FBAR without needing Form 8938 if your foreign accounts total between $10,000 and $50,000. We evaluate both requirements for every client with foreign assets.

What if I already paid tax on that foreign income?

Form 8938 is an information reporting requirement, separate from the taxation of the underlying income. Even if you properly reported and paid tax on all foreign income generated by your foreign assets, you still must file Form 8938 if the asset values exceed the thresholds. The penalty for failing to file Form 8938 is $10,000 per year, with additional penalties if the failure continues after IRS notification.

Form 8938 — Statement of Specified Foreign Financial Assets

Q: What's the difference between FBAR and Form 8938?

FBAR (FinCEN Form 114) is filed with the Financial Crimes Enforcement Network and applies when foreign financial accounts exceed $10,000 in aggregate. Form 8938 is filed with your tax return and has higher thresholds — $50,000 on the last day of the tax year or $75,000 at any time (for unmarried taxpayers living in the U.S.), doubled for married filing jointly. The forms also differ in what assets they cover. FBAR focuses on financial accounts, while Form 8938 also covers foreign stock, partnership interests, and certain other financial instruments not held in a financial account. Some taxpayers must file both; filing one does not satisfy the other.

Q: What assets count for Form 8938?

Form 8938 covers specified foreign financial assets, which include: financial accounts maintained at foreign financial institutions; foreign stock and securities not held in a financial account; interests in foreign entities such as foreign partnerships and foreign corporations; and financial instruments or contracts with foreign counterparties. Foreign real estate held directly (not through a foreign entity) is generally not reportable on Form 8938. Foreign pension plans and certain foreign trust interests may require special analysis.

Overview

What Is Form 8938?

Form 8938, Statement of Specified Foreign Financial Assets, is an IRS information return required under the Foreign Account Tax Compliance Act (FATCA). It is filed as part of your annual tax return and reports specified foreign financial assets whose total value exceeds certain thresholds. Unlike the FBAR (filed separately with FinCEN), Form 8938 is attached to your Form 1040 and has its own, generally higher, reporting thresholds.

Form 8938 was introduced as part of FATCA in 2010 to combat offshore tax evasion. It requires U.S. taxpayers to disclose a broad range of foreign financial assets — including accounts at foreign banks, foreign stocks and securities, interests in foreign entities, and financial instruments with foreign counterparties. For unmarried taxpayers living in the U.S., the filing threshold is $50,000 on the last day of the tax year or $75,000 at any time during the year (doubled for married filing jointly).

Because Form 8938 covers different (and in some ways broader) asset types than FBAR, many taxpayers with foreign assets must file both forms. The two requirements overlap but are not identical. At TaxWise LLC, we review your full foreign asset picture and ensure both forms are filed when required — accurately, consistently, and on time.

Who It's For

Who Needs to File Form 8938?

Investors with Foreign Portfolios

Foreign stocks, bonds, mutual funds, ETFs held directly (not through a U.S. brokerage) are specified foreign financial assets if their total value exceeds the Form 8938 thresholds.

Owners of Foreign Business Interests

Interests in foreign partnerships and foreign corporations are reportable on Form 8938. Even minority ownership stakes can trigger reporting if the value exceeds the thresholds.

Taxpayers with Foreign Accounts Above $50,000

If your foreign bank, brokerage, or other financial accounts exceed $50,000 (single) or $100,000 (married), Form 8938 generally applies — in addition to FBAR.

Holders of Foreign Insurance & Annuity Contracts

Certain foreign life insurance policies and annuity contracts with cash surrender value may be specified foreign financial assets requiring Form 8938 reporting.

Those with Foreign Derivative Contracts

Financial instruments or contracts issued by a foreign counterparty — including options, swaps, and other derivatives — may require Form 8938 reporting.

Anyone Already Filing FBAR

If you file FBAR, you should check whether Form 8938 also applies. While the Form 8938 threshold is higher, you may cross it without realizing it.

Common Situations

When Form 8938 Filing Is Required

You hold foreign stocks or mutual funds in a non-U.S. brokerage

Foreign securities held in a foreign brokerage account are generally reportable on both FBAR (the account itself) and Form 8938 (the account value, plus direct holdings of foreign stock not in an account).

You own part of a foreign business

Even a small partnership interest or shares in a foreign corporation can trigger Form 8938 if the total value of all your specified foreign financial assets exceeds the thresholds.

You have a foreign pension with significant value

Certain foreign pension and retirement accounts may qualify as specified foreign financial assets for Form 8938 purposes, especially if the account has a determinable cash value.

You transferred assets to a foreign trust or entity

Interests in foreign trusts and certain foreign entities are reportable. The interaction between Form 8938 and Form 3520 (for foreign trusts and gifts) requires careful coordination.

You moved to the U.S. and brought foreign assets

New U.S. residents often hold significant foreign assets — investment portfolios, savings accounts, business interests — acquired before becoming a U.S. tax resident. These now require reporting.

You hold foreign bonds or notes issued by foreign entities

Foreign bonds, debentures, and notes are specified foreign financial assets. The issuer's nationality, not where the instrument is held, determines whether it is foreign.

Documents to Gather

What You Need to Prepare Form 8938

Having these documents helps us prepare Form 8938 accurately and coordinate it with your tax return and FBAR filing.

Foreign financial account statements (bank, brokerage, investment) for the full tax year
Year-end balances and highest balances for each foreign account during the year
Foreign stock certificates or brokerage statements showing non-U.S. securities held directly
Documentation of interests in foreign partnerships, corporations, or other foreign entities
Foreign pension and retirement account statements with cash surrender values
Foreign insurance policy statements showing cash value
Records of foreign derivative contracts, options, swaps, or other financial instruments
Foreign currency exchange rates at year-end and at the date of any large transactions
Prior year Form 8938 filings, if any
Prior year FBAR (FinCEN Form 114) filings, if any
Your completed federal tax return (Form 1040) — Form 8938 attaches to your return
Documentation for any foreign trust interests (coordinate with Form 3520 if applicable)

Our Process

How We Prepare Your Form 8938

Identify All Reportable Assets

We review your full financial picture to identify which assets are specified foreign financial assets for Form 8938 purposes. This includes accounts, securities, entity interests, and financial instruments. We apply the asset-by-asset analysis that the IRS instructions require.

Determine Thresholds & Filing Requirement

We calculate the total maximum fair market value of your specified foreign financial assets and compare it to the applicable thresholds — which vary based on your filing status and whether you live in the U.S. or abroad. If you don't meet the threshold, no filing is needed.

Prepare Form 8938 & Coordinate With Related Filings

We prepare Form 8938 with accurate asset descriptions, values, and currency conversions. We cross-check with your FBAR filing to ensure consistency and coordinate with Form 3520 if you have foreign trust or gift reporting obligations. The form is then filed as part of your tax return.

Prior-Year Compliance & Amendments

If you discover you should have filed Form 8938 in prior years, we help you come into compliance. This may involve amending prior-year returns with completed Forms 8938 and, in some cases, discussing penalty relief or voluntary disclosure options with you.

FBAR vs Form 8938

Key Differences Between FBAR and Form 8938

Where Filed

FBAR is e-filed directly with FinCEN (BSA E-Filing System). Form 8938 is attached to your federal income tax return (Form 1040).

Threshold

FBAR: $10,000 aggregate. Form 8938: $50,000-$600,000 depending on filing status and whether you live in the U.S. or abroad.

Assets Covered

FBAR covers financial accounts. Form 8938 covers accounts plus foreign stock, foreign partnership interests, and certain foreign financial instruments.

Due Date

FBAR: April 15 with automatic extension to October 15. Form 8938: Due with your tax return (April 15, or October 15 with extension).

Penalties

FBAR: Up to $10,000 (non-willful) or greater of $100,000/50% of balance (willful). Form 8938: $10,000 initial penalty, up to $50,000 for continued failure.

Statute of Limitations

Form 8938 failure to file extends the IRS assessment statute for your entire return. FBAR has its own separate assessment statute.

Watch Out For

Common Form 8938 Mistakes

Pitfalls to Avoid

Assuming FBAR covers everything — Form 8938 covers assets FBAR doesn't (like directly held foreign stock and foreign partnership interests). Filing FBAR does not satisfy your Form 8938 obligation.
Using the wrong valuation — Form 8938 requires the maximum fair market value during the tax year. For assets denominated in foreign currency, you must convert to U.S. dollars using the year-end exchange rate.
Not knowing the thresholds vary by filing status and residence — The threshold is higher for married couples and much higher for taxpayers living abroad. You should verify your specific threshold each year.
Missing foreign assets held through non-U.S. structures — Assets held through foreign trusts, foreign corporations, or foreign partnerships may still be attributable to you for Form 8938 purposes if you have a sufficient ownership interest.
Failing to report on an amended return — If you discover you should have filed Form 8938 for a prior year, you generally should amend that year's return. The IRS can assess penalties for each year of non-compliance.

FAQ

Frequently Asked Questions

What's the difference between FBAR and Form 8938?

FBAR is filed with FinCEN when foreign financial accounts exceed $10,000. Form 8938 is filed with your tax return and has higher thresholds ($50,000 single, $100,000 married). Form 8938 also covers additional asset types beyond accounts — foreign stock, foreign partnership interests, and financial instruments with foreign counterparties. Many taxpayers must file both; filing one does not satisfy the other.

What are the Form 8938 thresholds?

For unmarried taxpayers living in the U.S.: more than $50,000 on the last day or more than $75,000 at any time. For married filing jointly: more than $100,000/$150,000. For taxpayers living abroad: more than $200,000/$300,000 (single) or $400,000/$600,000 (married). These thresholds are based on the total value of all specified foreign financial assets.

Do I need both FBAR and Form 8938?

If your foreign asset values exceed the Form 8938 thresholds, you almost certainly need both. Because FBAR has a lower threshold, anyone who needs Form 8938 typically needs FBAR too. However, the reverse is not always true — you may need FBAR without Form 8938 if your total is between $10,000 and $50,000.

What assets count for Form 8938?

Form 8938 covers: financial accounts at foreign institutions; foreign stock and securities not held in accounts; interests in foreign entities (partnerships, corporations); and financial instruments with foreign counterparties. Directly held foreign real estate is generally not reportable on Form 8938, though it may be if held through a foreign entity.

What if I already paid tax on that income?

Form 8938 is an information reporting requirement, separate from tax on the income. Even if you properly reported and paid tax on all income from foreign assets, you still must file Form 8938 if the asset values exceed the thresholds. The penalty for non-filing is $10,000 per year, with additional penalties for continued failure after IRS notification.

Get Started

Need Help with Form 8938?

We'll determine whether you need to file, prepare accurate Form 8938s, and coordinate with your FBAR and tax return filings.

Book a Consultation Upload Documents Securely

Or email us at [email protected] | Phone: [Phone Number]

IRS Circular 230 Disclosure: Any tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding federal tax penalties or promoting, marketing, or recommending any transaction or matter addressed herein.

Important: Do not send sensitive personal information such as Social Security numbers or banking details through unsecured forms or email. Use our secure client portal for document uploads. The information on this page is for general informational purposes only and does not constitute professional tax advice. Every taxpayer's situation is unique — please consult with a CPA regarding your specific facts and circumstances.