5

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.

Improve this question
1
  • 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
    Commented Feb 23, 2020 at 6:36

1 Answer 1

Reset to default
10

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.

Improve this answer

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .