U.S. EXPAT TAX GUIDE – FRANCE
When must Americans living in France file an FBAR?
Americans residing in France need to file an FBAR (Foreign Bank Account Report) if the total value of their foreign bank accounts exceeds $10,000 at any point during the calendar year. This includes accounts where you have ownership or authority, whether held solely or jointly.
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What information do you need to file an FBAR?
To file an FBAR, you need to provide the bank’s name, account number, the highest balance during the year, and the bank’s address. This report is informational and separate from your income tax return, but any interest earned must be reported as income on your tax return.
Do you need to report joint accounts with a non-US spouse?
Yes, you must report joint accounts, including those held with a non-US spouse, on your FBAR. You must also include the name and address of the other account holders.
How do transfers between accounts affect FBAR reporting?
Transfers between accounts, such as moving €5,000 from one account to another, do not change the requirement to report if the total value of all accounts exceeds $10,000. All accounts must be reported, even if some have zero balances temporarily.
Are online payment accounts like PayPal or Wise included in FBAR?
Yes, online accounts such as PayPal or Wise must be reported on the FBAR if their combined balances, along with other financial accounts, exceed $10,000.
Do accounts with negative balances need to be reported?
No, accounts that represent debt, such as credit cards or mortgages, do not need to be included in FBAR reporting.
What is the FBAR deadline, and what if you miss it?
The FBAR is due on April 15, with an automatic extension until October 15. If you miss the deadline, you can use the Streamlined Filing Compliance Procedure to catch up on past filings, which can help avoid penalties, assuming there was no willful evasion.
Why partner with a specialist Expat accountant?
Living outside of the US can make your tax filing requirements complicated. To ensure you pay the minimum amount of taxes, it’s critical to work with an accountant who understands every aspect and avenue for reducing your tax liability. We have a dedicated team of tax accountants who work exclusively with US expats earning and investing in Germany. Partnering with a specialist expat accountant can help you navigate complex tax regulations and optimize your tax situation.
