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I have approximately $26,600.00 in a foreign bank account...this account is used for daily living expenses. I am wondering when reporting this on IRS Form 8938 if I will have to pay US Taxes on this money? I pay Federal income tax on my Military Retired Pay and Social Security payments already. Any assistance is greatly appreciated.

  • FBAR (aka FinCEN form 114) and (IRS) form 8938 are different and either or both can apply to a US person's foreign accounts. If your total is $27k, 8938 does not apply but FBAR does. See irs.gov/businesses/… – dave_thompson_085 Feb 23 at 6:36
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The FBAR reporting does not result in any tax liability; you have nothing to worry about.
You don't pay taxes for having money, you pay taxes for making money (=income).

The main reason the IRS wants to know about foreign accounts is to follow illegal money streams.

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