FBAR question
 

When it comes to filing this I am not sure if I understand it correctly when it comes to the value of the accounts.

I have 2 accounts, a checking and savings. Neither of these accounts on any single day in the year come close to reaching $10,000 US$.

If I added up over a period of 12 months it obviously does since I make more than $10,000 most years and my pay check goes into the account, but there is never a single point where there is ever $10,000, the savings always has a $0 balance.

Does this FBAR filing only need to be done if there is a single time when the balance is $10,000 or is it over the entire year with every deposit added up?

I just trying to ensure I am filing what needs to be, its mind boggling confusing for me.

I live in Canada of course, no investment accounts, no retirement accounts, just a simply checking account but it never see's a balance of $10,000 at any single point in time.

Hope that makes sense, not sure I am explaining it well.

Re: FBAR question
 

It's the aggregate balance of all the accounts at any point, not the sum of the total deposits throughout the year.

Re: FBAR question
 

My understanding has always been:

Write a list of all non US accounts.

Then the Maximum value (high water mark) of account during calendar year.(Enter the maximum value of the account in U.S. Dollars during the calendar year being reported)

Now add them all up to seen if they are over $10k

e.g. If you had 2 accounts and had $6k in 1 and moved it to another account non US account, the high balance would be $6k in both so your total would be $12k, and reportable despite you only having $6k.

If you had 1 account and were paid $5k a month in to it and spent it all or transferred it to a US account you high balance would only be $5k, despite $30k having “moved through” the account.

Re: FBAR question
 

The rule is that it is the total of the highest balance in local currency in all non-US bank accounts held during the year. For example, if you have three non-US bank accounts and two of them have $2 each as the highest balance and the third had $9,997, you will have to file the FBAR, declaring ALL of your accounts. Please note, the total is GREATER than $10,000.

The exchange rate to use is the one for December 31st of the tax year, which is given here: https://www.fiscal.treasury.gov/reports-statements/treasury-reportiTng-rates-exchange/current.html

Re: FBAR question
 

Thanks. Looks like I don't need to file then, my highest balance at any point is nowhere close to 10,000.

I file my US tax returns but never even thought about this FBAR until recently when there was an article about Canada Revenue planning to start issuing fines for non-compliance. My other concern is my bank closing my account, I have had to Canadian banks since 2010 close my accounts for being a US person, basically I don't have enough money for the banks to justify keeping me as a customer and dealing with the US rules.

Re: FBAR question
 

No private pension funds in excess of $10,000?

The advice that I received when I moved was that they are reportable, so I've filed mine on an FBAR each year.

Re: FBAR question
 

No pension, no investments, no assets of any kind, renting so no property owned either. I'd like to have a pension but its not a benefit employers do anymore well at least private sector, but maybe white collar professionals do, dunno, but at the low paying low skill jobs it's not something offered.

I do hope to one day have enough income to cover life + save but at the moment saving isn't doable if we want to have housing.

But lacking all these things does make filing taxes simple.

Re: FBAR question
 

It may be worth looking at this:

https://www.investopedia.com/article.../04/031704.asp

"Many people struggle to carve out the funds they need to build up their retirement nest eggs. Fortunately, a non-refundable tax credit, known as the retirement savings contribution credit, can make it substantially easier to save."

Re: FBAR question
 

I don't know if those tax credits apply to low income person living outside the US? I think the IRS defers taxes on RRSP until withdraw, but the tax free savings account Canada allows as far as I know the IRS doesn't view it as tax free, so I never signed up for one.

RRSP is registered retirement savings plan, more professional higher paying jobs can often have these as employment benefit with employer matching contributions to some level, but never worked for one of those companies...ha ha

One can open their own and contribute up to whatever annual limit they have, government is smart and limits how much one can put into it each year.