What is Form 8938 and who must file it?
Form 8938 (Statement of Specified Foreign Financial Assets) is an IRS information return that certain U.S. taxpayers must attach to their annual Form 1040 (or 1040-SR) to report specified foreign financial assets (SFFAs) when the total value exceeds IRS thresholds. U.S. citizens, green-card holders, and other specified individuals who are required to file a U.S. income tax return must file Form 8938 if they hold an interest in foreign financial accounts, stocks, securities, financial instruments, contracts, or interests in foreign entities (including certain foreign pensions or trusts) that meet the reporting thresholds. The form is part of the Foreign Account Tax Compliance Act (FATCA) framework and is filed with the IRS, not separately with FinCEN.
How do Form 8938 thresholds differ for taxpayers living abroad?
Reporting thresholds are significantly higher for individuals whose tax home is in a foreign country and who meet either the bona fide residence test or the 330-full-days physical presence test during any 12-consecutive-month period that ends in the tax year being reported (per IRS Instructions for Form 8938, "Presence abroad"). For the 2025 and 2026 tax years, the thresholds for taxpayers living abroad are:
- Single or married filing separately: more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year.
- Married filing jointly: more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year.
Taxpayers living in the United States face much lower limits (generally $50,000 / $75,000 for single filers). Your preparer determines which set of thresholds applies based on your residency facts and filing status. These limits are not inflation-adjusted annually like some other figures.
What counts as a specified foreign financial asset on 8938?
Reportable assets include foreign bank and brokerage accounts, stocks and securities issued by foreign persons, financial instruments and contracts held for investment that have a foreign counterparty, and interests in foreign entities. Certain foreign pensions, deferred compensation plans, and interests in foreign trusts or estates may also be reportable. The rules differ from the FBAR in important ways: some assets (for example, certain indirect interests or non-account assets) appear only on one form or the other. Real estate held directly is generally not reportable on either, but ownership through a foreign entity often triggers 8938. Many expats must file both forms in the same year when thresholds are crossed.
When and how do you file Form 8938, and what are the penalties?
Form 8938 is due with your timely filed (including extensions) Form 1040 for the year; there is no separate due date or extension. It is prepared as part of your annual U.S. expat tax return package. Failure to file when required can result in a $10,000 penalty, plus $10,000 for each 30-day period after IRS notification (up to $60,000 additional), plus potential accuracy-related or information-return penalties. These penalties are separate from FBAR penalties. See the FBAR reporting page and US expat tax returns service for coordination details. A qualified cross-border preparer models both obligations together and attaches the correct Form 8938 to your return.