When do I file Form 8938?
- US Residents: Typically, the filing deadline is April 15.
- Foreign Residents: An automatic extension extends the deadline to June 15.
- Extension Option: If an extension is filed, the due date is extended to October 15.
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What are the filing thresholds for Form 8938?
- Single Filers: Must file if foreign financial assets exceed $300,000 at any point during the year (2023) or $200,000 at the end of the year.
- Married Filing Jointly: The thresholds are higher, requiring filing if joint assets exceed $600,000 during the year (2023) or $400,000 at year-end.
What types of assets should be reported on Form 8938?
- Financial Accounts: The focus is on financial accounts held outside the US, not on real estate assets.
- Included Assets: Assets like cash, stocks, shares, and overseas pension or retirement accounts are considered.
- Exclusions: US-based assets like 401k or IRA are not reported on Form 8938.
Are there any penalties for not filing Form 8938?
- Standard Penalty: Failing to file can lead to a penalty of approximately $10,000.
- Case-Dependent Penalties: Additional penalties may be imposed based on specific circumstances, particularly in cases of reporting errors.
Why should I get professional advice when filing Form 8938?
- Complex Filing Requirements: Form 8938 can be challenging to understand, especially for US expats with diverse financial portfolios.
- Avoiding Penalties: Professional guidance can help ensure accurate reporting and compliance, thereby avoiding hefty penalties.
- Tailored Advice: Tax professionals can provide personalized advice based on an individual’s unique financial situation and filing status.
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 the UAE. Partnering with a specialist expat accountant can help you navigate complex tax regulations and optimize your tax situation.
