Form 8938 Thresholds for Americans Living Abroad
Reviewed by the Fairlight Accounting cross-border tax team — U.S. & Canadian Tax Desks
Form 8938, the Statement of Specified Foreign Financial Assets, is filed with the income tax return under FATCA by U.S. taxpayers whose foreign financial assets exceed set thresholds. The thresholds are higher for people living abroad, and the form covers assets the FBAR does not — which is why expats often file both for the same accounts.
On this page
What are the thresholds for someone living abroad?
To qualify for the higher "abroad" thresholds you must have a tax home in a foreign country and meet the bona fide residence or physical-presence test. Then Form 8938 is required if your specified foreign financial assets exceed:
- Single or married filing separately: $200,000 on the last day of the year, or $300,000 at any time during the year.
- Married filing jointly: $400,000 on the last day, or $600,000 at any time.
Taxpayers living in the U.S. face much lower thresholds — $50,000/$75,000 single and $100,000/$150,000 joint — so an expat who moves home mid-year can cross the line without changing a single account.
What counts as a specified foreign financial asset?
Everything the FBAR covers — foreign bank, brokerage, and pension accounts — plus assets held outside an account: shares of a foreign company held directly, foreign bonds, interests in foreign partnerships and trusts, foreign life insurance with cash value, and contracts with a non-U.S. counterparty. Foreign real estate held directly is not reportable; real estate held through a foreign entity is, through the entity interest. Foreign currency held as cash is not; the account holding it is.
How does Form 8938 differ from the FBAR?
| Form 8938 | FBAR | |
|---|---|---|
| Filed with | Income tax return (IRS) | Separately, Treasury BSA system |
| Thresholds abroad | $200,000+ single / $400,000+ joint | $10,000 aggregate |
| Signature-authority accounts | Not reportable | Reportable |
| Directly held foreign stock, bonds, entity interests | Reportable | Not reportable |
| Valuation | Year-end and maximum | Maximum only |
| Penalty basis | Per form, with continuation penalties | Per report |
Filing one never satisfies the other.
What is the penalty for omitting Form 8938?
A fixed penalty per year for failure to file, with continuation penalties accruing after IRS notice up to a cap — and a 40% accuracy penalty on any underpayment tied to an undisclosed asset. The statute of limitations on the entire return stays open until the form is filed, which matters more in practice than the penalty amount.
Do assets already reported elsewhere need to be repeated?
Partly. Assets reported on Forms 3520, 5471, 8621, or 8865 don't need their details repeated on Form 8938 — you note which forms were filed — but their value still counts toward the threshold.
Frequently asked questions
I'm under the abroad threshold but over the FBAR threshold. What do I file?
The FBAR only. Form 8938 isn't required until your assets exceed the thresholds that apply to you.
Do I value a foreign pension I can't yet access?
Yes, at the value the plan reports; if it reports none, a reasonable estimate or zero with an explanation is permitted. It still counts toward the threshold.
My foreign home is my biggest asset. Does it push me over?
Not if you own it directly. Real estate held in your own name is not a specified foreign financial asset.
I moved back to the U.S. in June. Which thresholds apply?
It depends on your days abroad. The abroad thresholds still apply if you were abroad for 330 full days in a 12-month period ending in that tax year — possible when you'd been abroad for the year before the move. Otherwise the lower domestic thresholds apply. Plan for the form before you move.
Next step
Fairlight Accounting handles U.S. domestic, cross-border (U.S.–Canada), and international tax returns, plus bookkeeping, payroll, and CFO advisory. If you're near the Form 8938 thresholds or unsure which assets count, our U.S. Tax Desk can inventory them against both forms. See pricing or book a free fit call.
Cross-border taxes, handled in one place
U.S. and Canadian filings prepared together by our U.S. and Canadian Tax Desks.
Book a free fit call