Foreign accounts & expats
FATCA & Form 8938: reporting your foreign financial assets
Under the Foreign Account Tax Compliance Act (FATCA), many US persons must report foreign financial assets on Form 8938, attached to their tax return, once the value crosses certain thresholds. It is a separate filing from the FBAR — many taxpayers owe both, some owe only one, and the thresholds and what counts as a reportable asset differ between them.
FATCA was enacted to stop US taxpayers from hiding assets offshore, and it created a reporting regime that reaches far beyond people trying to hide anything. If you're a US citizen, green card holder, or resident with money, investments, or interests abroad, FATCA may apply to you — even if every dollar is fully reported as income and there's nothing to hide.
Who must file Form 8938
US persons whose total specified foreign financial assets exceed certain thresholds must file. The thresholds vary by filing status and by whether you live in the US or abroad:
| Filer | Living in the US | Living abroad |
|---|---|---|
| Single / married filing separately | $50,000 / $75,000 | $200,000 / $300,000 |
| Married filing jointly | $100,000 / $150,000 | $400,000 / $600,000 |
Figures shown are commonly cited thresholds; always confirm the current amounts against the official Form 8938 instructions, as they are periodically updated.
What counts as a "specified foreign financial asset"
- Foreign bank and brokerage accounts
- Foreign stock or securities not held in a US account
- Interests in foreign partnerships, trusts, or estates
- Foreign mutual funds and pooled investment vehicles
- Certain foreign pension or deferred compensation arrangements
Foreign real estate held directly in your own name generally is not a specified asset for this purpose — though real estate held through a foreign entity may bring the entity interest into scope.
FATCA vs FBAR — they are not the same filing
This is the single most common point of confusion, and it deserves its own detailed comparison — see our FBAR vs FATCA guide. In short: FBAR (FinCEN Form 114) is filed with the Treasury separately from your tax return and starts at a $10,000 aggregate threshold; Form 8938 is filed with the IRS as part of your tax return and has the higher, filing-status-dependent thresholds above. Many people owe both.
Frequently asked questions
Do I file Form 8938 if I already file an FBAR?
Possibly both. They are separate requirements with different thresholds, different forms, and different filing destinations. Filing one does not satisfy the other.
What if my foreign assets produce no income?
Form 8938 is required based on asset value, not income generated. Even a dormant account with no income can trigger the filing requirement if its value exceeds the threshold.
I'm a green card holder living in the US with a foreign inheritance. Does this apply to me?
Yes, potentially. Green card holders are US persons for tax purposes and are subject to the same worldwide reporting obligations as citizens, using the "living in the US" thresholds.
What if I missed filing in prior years?
Catch-up options exist depending on whether the failure was willful, similar in spirit to FBAR catch-up programs. See our FBAR penalties & voluntary disclosure guide for the general framework, and talk to us about your specific situation.
Not sure whether FATCA applies to you?
Talk it through with a licensed Enrolled Agent — free, and in your language.
Request a free consultationThis page is general educational information, not legal or tax advice for your specific situation, and does not create a client relationship. FATCA thresholds, penalty amounts, and filing procedures change — verify against the current Form 8938 instructions or consult a qualified tax professional before acting.