Form 8938 Explained: FATCA Foreign Asset Reporting
The FATCA form, its thresholds at home and abroad, what it covers that the FBAR doesn't, and the penalty
Reviewed by the Fairlight Accounting cross-border tax team — U.S. & Canadian Tax Desks
Form 8938, the Statement of Specified Foreign Financial Assets, is the IRS's foreign asset report under FATCA. It's attached to the income tax return and required when foreign financial assets exceed thresholds that are higher than the FBAR's — and much higher for people living abroad. It overlaps with the FBAR but isn't the same: many people file both.
On this page
Thresholds
| Filer (thresholds not indexed — same for 2026) | Year-end value above | Or at any time above |
|---|---|---|
| Unmarried or married filing separately, in the U.S. | US$50,000 | US$75,000 |
| Married filing jointly, in the U.S. | US$100,000 | US$150,000 |
| Unmarried or married filing separately, abroad | US$200,000 | US$300,000 |
| Married filing jointly, abroad | US$400,000 | US$600,000 |
Form 8938 versus the FBAR
| Form 8938 | FBAR | |
|---|---|---|
| Filed with | The IRS, with the tax return | FinCEN, separately |
| Threshold | US$50,000 and up | US$10,000 aggregate |
| Covers | Accounts, plus foreign stocks held directly, interests in foreign entities, foreign partnership interests | Accounts only, including signature authority |
| Signature-only accounts | Not reported | Reported |
| Penalty | US$10,000, up to US$50,000 more after notice | Up to US$16,536 per report (non-willful, 2026) |
Canadian specifics
RRSPs, RRIFs, and TFSAs are specified foreign financial assets — reportable even though RRSPs and RRIFs are exempt from Form 3520 under Rev. Proc. 2020-17 (CPP/QPP and OAS rights are not); Canadian real estate held directly is not; shares of a Canadian private company held directly are; assets reported on a timely filed Form 3520, 3520-A, 5471, 8621, or 8865 aren't detailed again — Part IV just records how many of each form you filed — but their value still counts toward your threshold.
Frequently asked questions
Do I need Form 8938 if I file an FBAR?
Possibly — they're separate requirements. Above the Form 8938 threshold, you file both.
What is the Form 8938 threshold for U.S. citizens living in Canada?
US$200,000 at year-end or US$300,000 at any time (unmarried or married filing separately); double for joint filers — provided your tax home is abroad and you meet the bona fide residence or 330-day presence test.
Does my Canadian home go on Form 8938?
No — real estate held directly isn't a specified foreign financial asset.
What's the penalty for not filing Form 8938?
US$10,000, with up to US$50,000 more if not filed after an IRS notice.
Official sources
The IRS explains: “Use Form 8938 to report your specified foreign financial assets if the total value of all the specified foreign financial assets in which you have an interest is more than the appropriate reporting threshold.” — Internal Revenue Service, About Form 8938, Statement of Specified Foreign Financial Assets, https://www.irs.gov/forms-pubs/about-form-8938
Next step
Fairlight Accounting is a cross-border accounting and tax practice with a U.S. Tax Desk and a Canadian Tax Desk. Our U.S. Tax Desk and Canadian Tax Desk handle Form 8938 and FBAR reporting for U.S. persons with Canadian assets. See pricing or book a call.
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U.S. and Canadian filings prepared together by our U.S. and Canadian Tax Desks.
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