8938 Form

What is 8938 Form?

The 8938 Form, also known as the Statement of Specified Foreign Financial Assets, is a document required by the IRS for taxpayers who have certain foreign financial assets that meet the reporting threshold. It is crucial to understand the purpose and requirements of this form to comply with tax laws.

What are the types of 8938 Form?

There are two main types of 8938 Form that individuals may need to file: 1. Form 8938 for Individuals: This is the standard form that individuals must complete if they meet the reporting threshold. 2. Form 8938 for Joint Filers: This form is used when filing jointly with a spouse if both individuals meet the reporting requirements.

Form 8938 for Individuals
Form 8938 for Joint Filers

How to complete 8938 Form

Completing the 8938 Form may seem intimidating, but with the right guidance, it can be a straightforward process. Here are the steps to complete the form: 1. Gather all necessary information: Before starting the form, ensure you have all the required financial data and supporting documents. 2. Identify reportable assets: Determine which assets need to be reported on the form based on the reporting threshold and specific guidelines provided by the IRS. 3. Fill in personal details: Enter your personal information, including name, address, tax identification number, and the year of the form. 4. Provide asset details: Fill in the relevant information for each reportable asset, including the description, maximum value, and income generated from each asset. 5. Calculate and report the aggregate value: Aggregate the values of all reportable assets and report the total on the form. 6. Sign and date the form: Review the completed form and sign and date it before submission.

01
Gather all necessary information
02
Identify reportable assets
03
Fill in personal details
04
Provide asset details
05
Calculate and report the aggregate value
06
Sign and date the form

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Questions & answers

The filing of Form 8938 does not relieve you of the separate requirement to file the FBAR if you are otherwise required to do so, and vice-versa. Depending on your situation, you may be required to file Form 8938 or the FBAR or both forms, and certain foreign accounts may be required to be reported on both forms.
Certain U.S. taxpayers holding specified foreign financial assets with an aggregate value exceeding $50,000 will report information about those assets on new Form 8938, which must be attached to the taxpayer's annual income tax return.
A financial asset that is reported on Form 8938 (FATCA) does not necessarily need to be reported on your FBAR form and vice versa.
To get to the 8938 section in TurboTax (requires Deluxe or higher): Open or continue your return if you're not already in it. Search for 8938 and select the Jump to link at the top of the search results. On the Foreign Financial Assets screen, select Yes, I have foreign financial assets.
How to File Form 8938. You can fill out a physical copy of Form 8938 and mail it with the rest of your tax return and tax payment by the annual federal tax filing deadline. You can also e-file it with the rest of your electronic tax return.
Even though the FinCEN Form 114 and Form 8938 forms are similar — and may overlap as to the reporting of certain foreign assets — the forms are not mutual exclusive from each other. In other words, a US Person Taxpayer may be required to file either (or both) forms in the same year, for the same accounts.