reporting thresholds when you are a non US residents

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coco1106
Posts: 80
Joined: Sun Jan 20, 2019 3:40 pm

reporting thresholds when you are a non US residents

Post by coco1106 »

https://www.irs.gov/businesses/corporat ... -taxpayers


Reporting Thresholds
Reporting thresholds vary based on whether you file a joint income tax return or live abroad. If you are single or file separately from your spouse, you must submit a Form 8938 if you have more than $200,000 of specified foreign financial assets at the end of the year and you live abroad; or more than $50,000, if you live in the United States. If you file jointly with your spouse, these thresholds double. You are considered to live abroad if you are a U.S. citizen whose tax home is in a foreign country and you have been present in a foreign country or countries for at least 330 days out of a consecutive 12-month period.

Taxpayers living abroad. You must file a Form 8938 if you must file an income tax return and:

You are married filing a joint income tax return and the total value of your specified foreign financial assets is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year. These thresholds apply even if only one spouse resides abroad. Married individuals who file a joint income tax return for the tax year will file a single Form 8938 that reports all of the specified foreign financial assets in which either spouse has an interest.
You are not a married person filing a joint income tax return and the total value of your specified foreign financial assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year.

Can any one help me on this, form 8938,...............do you file this form the first year you are a non US resident ??? it says you are considered to live abroad if you have been present in a foreign country for at least 330 days out of 12 months ?? what if I was only present 150 days ?

Does this mean if you have been abroad since Aug 2019 and then you file USA returns for jan to july , canadian for aug to dec (5 months) approx 150 days then form 8938 does NOT have to be files with the first return ????????

I know I asked a similar question previously , but I cant get a answer, I have tried calling IRS.
nelsona
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Re: reporting thresholds when you are a non US residents

Post by nelsona »

This form is filed every year whether or not you live in US, IF you meet the threshold for residents or non-resident, depending on your situation. If you've had sufficient specified assets in Canada in past years (RRSPs bank accounts, property, etc) you would have had to submit that form with your return. The only thing that is different when you are not a US resident on the last day of the year is the reporting threshold (it is higher if you live abroad, as they assume you will have more foreign assets if abroad).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
coco1106
Posts: 80
Joined: Sun Jan 20, 2019 3:40 pm

Re: reporting thresholds when you are a non US residents

Post by coco1106 »

Hi Nelsona, thanks

We have never filed foreign reporting forms since we did not have any thing to report in Canada.,,,we left Canada 27 years with about $200 in our my purse.

I think when we sell the house in USA and transfer funds we may reach the threshold at some point.
Although the funds will only be at TD for a short time, since we will be buying our new home with the funds.


The part that was totally throwing me off was
""Married individuals filing jointly residing outside the United States and satisfying either the bona fide resident or physical presence tests are required to file Form 8938, if the market value of their foreign financial assets is greater than $400,000 on last day of the year or greater than $600,000 at any time during the year."
The bona fide resident/ physical presence test was not clear to me ? when I looked this up it mentioned 330 in a foreign country ??

So even if we have are residents in another country for 1 month we file this form ?
coco1106
Posts: 80
Joined: Sun Jan 20, 2019 3:40 pm

Re: reporting thresholds when you are a non US residents

Post by coco1106 »

Meant to say 330 days
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: reporting thresholds when you are a non US residents

Post by nelsona »

AS I said earlier, whether you are considered residing abroad only affects the threshold. Since you won't meet any of those tests for 2019, you will need to follow the married US resident thresholds.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
coco1106
Posts: 80
Joined: Sun Jan 20, 2019 3:40 pm

Re: reporting thresholds when you are a non US residents

Post by coco1106 »

Many thanks.
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