Sorry another FBAR question!
#1
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Joined: Feb 2014
Location: Blakesley
Posts: 11
Sorry another FBAR question!
Hi there,
I am currently in the process of filing my tax returns and slowly following the guidance from you fine people here on BE.com.
However I have now come across FBAR. As of yet I do not have an average value of $10,000 across all my accounts so am I being stupid when I ask, should I file an FBAR?
If not then by this August I'll have accumulated $10,000 in savings so at what point do I file?
This has to be the single most annoying piece bureaucracy I've ever had the displeasure of encountering.
I am currently in the process of filing my tax returns and slowly following the guidance from you fine people here on BE.com.
However I have now come across FBAR. As of yet I do not have an average value of $10,000 across all my accounts so am I being stupid when I ask, should I file an FBAR?
If not then by this August I'll have accumulated $10,000 in savings so at what point do I file?
This has to be the single most annoying piece bureaucracy I've ever had the displeasure of encountering.
#2
Re: Sorry another FBAR question!
If during 2013 you did not have a total of $10,000 or more in overseas accounts which you have signatory authority over, you do not need to file a FBAR form.
If during 2014 you do meet that criteria you need to file a FBAR form after the end of the year and before July 1 2015. While the form is not part of your tax return to the IRS I think most of us file the FBAR form with the US Treasury when we do our tax return. Gets it done and dusted while doing taxes etc is on the agenda.
If during 2014 you do meet that criteria you need to file a FBAR form after the end of the year and before July 1 2015. While the form is not part of your tax return to the IRS I think most of us file the FBAR form with the US Treasury when we do our tax return. Gets it done and dusted while doing taxes etc is on the agenda.
Last edited by lansbury; Feb 15th 2014 at 6:18 pm.
#3
Re: Sorry another FBAR question!
It's been answered above, but I moved it to the main US forum as it's not a visa question.
#4
Re: Sorry another FBAR question!
If at any point during the year, even if for only one second, the total CUMULATIVE value of all your accounts overseas is > $10,000, then you must report the existence of those accounts during the next year's tax filing process on April 15 and then file the actual FBAR by the FBAR filing deadline which is usually June 30. So you click the box on the April 15 filing form, and then submit the actual FBAR by June 30.
So if on say August 23, 2014, you have $5,000 in UK account #1, and $3,000 in UK account #2, and $.05 in UK account 3, and $2,000 in Isle of Mann Account #4, you must report accounts 1,2,3 & 4 when you file the FBAR on June 30, 2015 and click the box on your 2014 tax return which you will file on April 15, 2015.
You used the term "average balance" which I believe is not the requirement. It's the maximum aggregate balance at any one time during the year that you have to watch out for.
And if you have even more (i.e. say $50k) then you start to worry about FATCA.
#5
Re: Sorry another FBAR question!
Hi,
If at any point during the year, even if for only one second, the total CUMULATIVE value of all your accounts overseas is > $10,000, then you must report the existence of those accounts during the next year's tax filing process on April 15 and then file the actual FBAR by the FBAR filing deadline which is usually June 30. So you click the box on the April 15 filing form, and then submit the actual FBAR by June 30.
So if on say August 23, 2014, you have $5,000 in UK account #1, and $3,000 in UK account #2, and $.05 in UK account 3, and $2,000 in Isle of Mann Account #4, you must report accounts 1,2,3 & 4 when you file the FBAR on June 30, 2015 and click the box on your 2014 tax return which you will file on April 15, 2015.
And if you have even more (i.e. say $50k) then you start to worry about FATCA.
If at any point during the year, even if for only one second, the total CUMULATIVE value of all your accounts overseas is > $10,000, then you must report the existence of those accounts during the next year's tax filing process on April 15 and then file the actual FBAR by the FBAR filing deadline which is usually June 30. So you click the box on the April 15 filing form, and then submit the actual FBAR by June 30.
So if on say August 23, 2014, you have $5,000 in UK account #1, and $3,000 in UK account #2, and $.05 in UK account 3, and $2,000 in Isle of Mann Account #4, you must report accounts 1,2,3 & 4 when you file the FBAR on June 30, 2015 and click the box on your 2014 tax return which you will file on April 15, 2015.
And if you have even more (i.e. say $50k) then you start to worry about FATCA.
...."click on the box on your return"........where is that?
Last edited by MMcD; Feb 16th 2014 at 5:25 pm.
#6
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Joined: Oct 2007
Location: Charlotte,NC
Posts: 1,717
Re: Sorry another FBAR question!
A taxpayer who has an interest in or signature authority over certain foreign accounts must inform the government of the existence of the account each year by checking the box in Part III, line 7a, on Schedule B, Interest and Ordinary Dividends, of the taxpayerās Form 1040.
#7
Re: Sorry another FBAR question!
Wow OrangePants, you "saved my bacon".....
I just checked my TurboTax forms (not yet filed)....against what I've filed in previous years.....and it was because of your quick reply (above) - that I caught fact that incorrect info had been entered on Schedule B part III
(I knew FBAR was req'd. for me - but still - don't want 1040 (schedule B) inconsistencies from one yr. to next to trigger any 2nd looks from you-know-who
So a BIG thank you to you
I just checked my TurboTax forms (not yet filed)....against what I've filed in previous years.....and it was because of your quick reply (above) - that I caught fact that incorrect info had been entered on Schedule B part III
(I knew FBAR was req'd. for me - but still - don't want 1040 (schedule B) inconsistencies from one yr. to next to trigger any 2nd looks from you-know-who
So a BIG thank you to you
#8
BE Forum Addict
Joined: Oct 2007
Location: Charlotte,NC
Posts: 1,717
Re: Sorry another FBAR question!
Hey we made a mistake in our first year. My OH was used to filing single and does not have overseas accounts and then 2011 was our first year of filing joint. He and/or the accountant didn't even think to ask me and I didn't look at the tax return, just blindly signed it. I only realized because of the knowledgable peeps here on BE and got my FBAR in for June 30 that year and then had to amend with the 8938. Scary stuff.
#9
Re: Sorry another FBAR question!
>$50,000->$250,000 is for FATCA (it is a sliding scale based on filing status and residence--please double check your own specifics).
As for click the box, I'm not even sure where it is, but I know I do it on TaxCut Pro and it prints out somewhere. I think the other poster found the exact line item you should look for in the forms.
Last edited by penguinsix; Feb 17th 2014 at 8:24 am. Reason: FBAR/FATCA typo
#10
Re: Sorry another FBAR question!
but then ( you seem to contradict that when...) you say $50,000 is threshold for FBAR.
I think that's probably a typo - but for the OP and anyone coming to this tax arcana as a newbie - don't you mean $50,000 is threshold for requirement to file form 8938 with your IRS return?
#11
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Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,129
Re: Sorry another FBAR question!
You're saying $10,000 is threshold for FBAR requirement filing
but then ( you seem to contradict that when...) you say $50,000 is threshold for FBAR.
I think that's probably a typo - but for the OP and anyone coming to this tax arcana as a newbie - don't you mean $50,000 is threshold for requirement to file form 8938 with your IRS return?
but then ( you seem to contradict that when...) you say $50,000 is threshold for FBAR.
I think that's probably a typo - but for the OP and anyone coming to this tax arcana as a newbie - don't you mean $50,000 is threshold for requirement to file form 8938 with your IRS return?
For married filing jointly those figures are doubled.
http://www.irs.gov/pub/irs-pdf/i8938.pdf
#12
Re: Sorry another FBAR question!
correct!
But why does Penguinsix keep re-iterating :
">$10,000 is for FBAR
>$50,000->$250,000 is for FBAR
I don't care...you and I understand the requirements, and this is nit-picking for us and many others in the forum....
However, so many first time filers come here seeking info and guidance (as I did when 1st confronted with "foreign income" a couple of years ago).
And so - as an archive - when it comes to tax matters - I feel it's terribly important to not end up providing misleading information (which it appears to me, is the case right now)
But why does Penguinsix keep re-iterating :
">$10,000 is for FBAR
>$50,000->$250,000 is for FBAR
I don't care...you and I understand the requirements, and this is nit-picking for us and many others in the forum....
However, so many first time filers come here seeking info and guidance (as I did when 1st confronted with "foreign income" a couple of years ago).
And so - as an archive - when it comes to tax matters - I feel it's terribly important to not end up providing misleading information (which it appears to me, is the case right now)
#13
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,129
Re: Sorry another FBAR question!
correct!
But why does Penguinsix keep re-iterating :
">$10,000 is for FBAR
>$50,000->$250,000 is for FBAR
I don't care...you and I understand the requirements, and this is nit-picking for us and many others in the forum....
However, so many first time filers come here seeking info and guidance (as I did when 1st confronted with "foreign income" a couple of years ago).
And so - as an archive - when it comes to tax matters - I feel it's terribly important to not end up providing misleading information (which it appears to me, is the case right now)
But why does Penguinsix keep re-iterating :
">$10,000 is for FBAR
>$50,000->$250,000 is for FBAR
I don't care...you and I understand the requirements, and this is nit-picking for us and many others in the forum....
However, so many first time filers come here seeking info and guidance (as I did when 1st confronted with "foreign income" a couple of years ago).
And so - as an archive - when it comes to tax matters - I feel it's terribly important to not end up providing misleading information (which it appears to me, is the case right now)
I may be wrong since I just realized that the OP resides in the UK. For filing 8938 as a single person residing outside the USA the limits are much higher. From the link I posted above.
Taxpayers living outside the UniĀ ted States. If your tax home is in a foreign country, you meet one of the presence abroad tests described next, and no exception applies, file Form 8938 with your income tax return if you satisfy the reporting threshold discussed next that applies to you.
Unmarried taxpayers. If you are not married, you satisfy the reporting threshold only if 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.
Unmarried taxpayers. If you are not married, you satisfy the reporting threshold only if 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.
Last edited by durham_lad; Feb 17th 2014 at 12:33 am.
#14
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Joined: May 2007
Location: Westchester NY
Posts: 337
Re: Sorry another FBAR question!
We sold an investment property in the UK last year and the proceeds from the sale were in our UK account for about 2 days before we moved them to the US.
We have all the tax issues sorted however not sure if we have to add the UK account to our FBAR even though the funds were only in the account for less than 48 hours.
We have all the tax issues sorted however not sure if we have to add the UK account to our FBAR even though the funds were only in the account for less than 48 hours.
#15
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Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,129
Re: Sorry another FBAR question!
We sold an investment property in the UK last year and the proceeds from the sale were in our UK account for about 2 days before we moved them to the US.
We have all the tax issues sorted however not sure if we have to add the UK account to our FBAR even though the funds were only in the account for less than 48 hours.
We have all the tax issues sorted however not sure if we have to add the UK account to our FBAR even though the funds were only in the account for less than 48 hours.
This year, tax year 2013, FBAR is done online and is pretty easy, unless you need to complete form 8938 as well, which is filed with your tax return. (I have not reached the limit for 8938, just the FBAR reporting)