Form 8938 should be filed to report the ownership of foreign financial assets if the total value of those assets exceeds a pre-established amount. The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse.

Foreign financial assets include any financial account maintained by a foreign financial institution as well as investments in stocks, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U.S. person.

Form 8938 must be attached to the taxpayer’s annual income tax return and it is due the same day as your income tax return: April 15^th for taxpayers living in the US and June 15^th for US citizens living abroad.

If you do not have to file an income tax return for the tax year, you do not need to file Form 8938, even if the value of your specified foreign assets is more than the reporting threshold.

Filing Requirements

Form 8938 must be filed if the following 3 requirements are met.

1. You are:

• A U.S. citizen
• A resident alien of the United States for any part of the tax year
• A nonresident alien who makes an election to be treated as resident alien for purposes of filing a joint income tax return
• A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico 

2. You have an interest in a specified foreign financial asset.

• Any financial account maintained by a foreign financial institution
• Other foreign financial assets held for investment that are not in an account maintained by a US or foreign financial institution, namely:
• Stock or securities issued by someone other than a U.S. person
• Any interest in a foreign entity, and
• Any financial instrument or contract that has as an issuer or counterparty that is other than a U.S. person.

3. The total value of your specified foreign financial assets is more than the reporting thresholds that apply to you. The threshold amount will depend if you live abroad or in the United States.

• Taxpayers not Filing a Joint Return : The total value of your specified foreign financial assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the tax year
• Married taxpayers filing a joint income tax return: The total value of your specified foreign financial assets is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the tax year.

Thresholds for Taxpayer Living in the US

• Unmarried taxpayers living in the US: The total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.
• Married taxpayers filing a joint income tax return and living in the US: The total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year
• Married taxpayers filing separate income tax returns and living in the US: The total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.

• a U.S. payer (such as a U.S. domestic financial institution),
• the foreign branch of a U.S. financial institution, or
• the U.S. branch of a foreign financial institution.