If you are moving back to the US, you may be breathing a sigh of relief that you no longer have to worry about FATCA or FBAR. Not so fast! You may still have FATCA and/or FBAR reporting requirements even when you are back on US soil. Greenback Co-Founder David McKeegan explains everything you need to know in this brief video.
Hi, everybody. I’m David McKeegan with Greenback Expat Tax Services. Our question today is, “I’m moving back to the US, but I will be retaining my foreign bank accounts and investments, since I plan to retire overseas eventually. How will this change my reporting requirements for FBAR and FATCA?”
For the FBAR, it’s not going to change much. As long as you have over $10,000 in your foreign bank accounts, your cumulative foreign bank accounts, you’re going to need to report those accounts to the US Treasury and that’s due by June 30th each year.
Under FATCA, if you have assets over certain thresholds, which I’ll go over in a moment, then you need to report them on Form 8938. The thresholds are different if you’re living in the United States than if you’re living overseas. If you’re a single filer and you live inside the United States, and the total value on the last day of the tax year is over $50,000 or it’s over $75,000 at any point during the tax year, you would need to report that on the FATCA forms. You have Form 8938.
The same individual, when they’re living overseas, the threshold is much higher. It’s $200,000 on the last day of the year or $300,000 at any point during the tax year. You can see that even if you’re living abroad and you’re not required to file Form 8938, if you do move back to the United States, you may now be required to file Form 8938 because the thresholds are so much lower.
I hope that helps, and if you have any questions, please let us know.
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