Do I Need to File a FATCA? Form 8938 Requirements

Del Sol CPA
Jan 23
3 min read

FATCA reporting rules are more detailed than FBAR, and the reporting thresholds are generally higher. Whether you need to file depends on both where you live and the total value of your foreign financial assets.

Do You Meet the Requirement?

IF...

You are a U.S. person (citizen, green card holder, resident alien, or tax resident) and hold or have a financial interest in foreign (non‑U.S.) assets, such as:

Financial (deposit or custodial) account in a foreign institution
Foreign stock or securities (regardless of whether or not they are held in a foreign financial account)
Foreign partnership interests
Foreign mutual funds, hedge funds, or private equity funds
Foreign-issued life insurance or annuity contract with a cash value
Foreign accounts and investment assets that you are holding in trust

AND...

If you reside in the United States:

Unmarried (or Married Filing Separately)
The total value of your foreign financial assets exceeded USD 50,000 on the last day of the tax year, or exceeded USD 75,000 at any time during the year.
Married (filing jointly)
The total value of your foreign financial assets exceeded USD 100,000 on the last day of the tax year, or exceeded USD 150,000 at any time during the year.

If you reside outside the United States:

Unmarried (or Married Filing Separately)
More than USD 200,000 on the last day of the tax year, or more than USD 300,000 at any time during the year.
Married (filing jointly)
More than USD 400,000 on the last day of the tax year, or more than USD 600,000 at any time during the year.

Note:

Nonresident aliens filing Form 1040-NR only are generally NOT required to file FATCA (Form 8938). However, they may still be required to file an FBAR, depending on their foreign financial accounts.
For dual-status taxpayers (dual-status aliens), FATCA reporting applies only to the portion of the year in which the individual is treated as a U.S. tax resident. Assets held during the nonresident portion of the year are not required to be reported.

Exceptions

There are some exceptions when determining whether individuals and their assets are exempt from FATCA reporting, for example:

If, for any reason, you are not required to file a U.S. tax return, you are also not required to file a FATCA report. (This rule applies only to FATCA, not to FBAR.)
If you already reported an asset in IRS forms 3520, 5471, 8621, or 8865, you don’t need to report that asset in your FATCA form, but you do need to indicate which form that asset was previously reported in.
If the asset in question is a domestic bankruptcy trust or domestic investment trust (but other reporting rules apply)
Certain exemptions also apply for specific types of assets belonging to residents of US territories (American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, or the U.S. Virgin Islands)

Please remember: The above list is not exhaustive, and if you are at all unsure whether these or other exceptions apply to you, consider asking a tax professional for help in evaluating your situation and submitting your FATCA form.

For more details, see the relevant page on the IRS website

How can I get help with preparing my FATCA form?

FATCA and FBAR reporting can feel complicated, but you don’t have to handle it alone. At Del Sol CPA and Associates, we provide services and guidance through preparing and filing a compliant FATCA form.

If you have questions or need help, our team is ready to help. Reach out today for personalized assistance.