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Greenback Expat Tax Services - FATCA Explained for US Expats: What to Report & When to File Form 8938

Thumbnail of the video “Greenback Expat Tax Services - FATCA Explained for US Expats: What to Report & When to File Form 8938”
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Author: Greenback Expat Tax Services
Categories: Personal Finance
Tags: finance
Views: 2 · Last viewed: 2026-10-15 07:48 UTC

Short Summary

Main recommendation: If you are a US taxpayer with foreign assets, you should check whether you must file Form 8938 (FATCA, the Foreign Account Tax Compliance Act) with your Form 1040, based on the value of your foreign assets at year-end and during the year. The video explains that FATCA covers foreign assets such as ownership interests in foreign companies, foreign partnerships, or LLCs, which are not held in a financial institution and therefore fall outside the FBAR.

Key Points

  • FATCA is the Foreign Account Tax Compliance Act, and its purpose is reporting foreign assets you hold overseas.
  • Ownership interests in foreign corporations, foreign partnerships, or LLCs are included even though they are not held in an institution, so they are excluded from the FBAR but still belong on FATCA reporting.
  • Form 8938 is filed as part of your individual tax return, Form 1040.
  • The filing thresholds depend on your filing status and whether you live in the United States or outside it.
  • The video's test has two stages: a year-end test first, then a test of the highest values held during the year if the first test is not met.

Details Worth Noting

  • Concrete instructions:
    • Add up the value of all your foreign assets as of the last day of the year, December 31.
    • If that total is above the threshold for your filing status and residence, file Form 8938 with your Form 1040.
    • If it is not above that threshold, add up the highest values of your foreign assets during the year, January 1 through December 31.
    • If that higher-value total is above the higher threshold for your filing status and residence, file Form 8938.
    • If neither test is met, you do not have to file Form 8938.
  • The video does not state the actual threshold dollar amounts; it says they vary by filing status and by whether you live in the United States or abroad.
  • The FBAR is the reporting that covers foreign accounts held at financial institutions, which the video contrasts with FATCA assets.
  • The video is an introductory explanation and does not cover penalties, exceptions, or specific asset types beyond the examples given.

Bottom Line

Whether you need to file Form 8938 depends on checking your foreign asset values against the thresholds for your own filing status and residence, starting with the December 31 value and then the year's highest values.