Author Topic: New requirement for US citizens with assets in foreign countries  (Read 4274 times)

Offline Lee2

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New requirement for US citizens with assets in foreign countries
« on: February 13, 2014, 05:29:57 AM »
Just in case any of the US citizens on this forum might fit into what appears to be new regulations for 2013, you might wish to check out the link if you have assets other than a home or have over $10,000 in a foreign country at anytime during last year.
http://www.irs.gov/Businesses/Comparison-of-Form-8938-and-FBAR-Requirements

Quote
Comparison of Form 8938 and FBAR Requirements
The new Form 8938 filing requirement does not replace or otherwise affect a taxpayerís obligation to file FinCEN  Form 114 (Report of Foreign Bank and Financial Accounts). Individuals must file each form for which they meet the relevant reporting threshold. 
:) Happily married since 1994 & live part of the year in Cebu and the rest in S. Florida.

Offline Tally J

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Re: New requirement for US citizens with assets in foreign countries
« Reply #1 on: February 13, 2014, 07:15:20 AM »
Thank you, Lee.  Information like this is most helpful for those of us that are lax in researching more government regulations and requirements that are routinely passed and implemented.  You may have just saved me many $s in fines.

Offline Lee2

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Re: New requirement for US citizens with assets in foreign countries
« Reply #2 on: February 13, 2014, 07:37:15 AM »
That is the main reason I post information, in hopes of helping members/people so none of us gets in trouble or fined. Happy my post may have helped you and thanks for letting me know. Often we post on forums to never even know if anyone reads what we post, so it is always refreshing when someone like yourself does.
:) Happily married since 1994 & live part of the year in Cebu and the rest in S. Florida.

Offline Art, just a re(tired) Fil-Am

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Re: New requirement for US citizens with assets in foreign countries
« Reply #3 on: February 13, 2014, 09:13:52 AM »
I just did a trail run doing my annual U.S. income tax return and since the new ruling concerning money and assets came up as one of question to answer. I really didn't have a problem with it since we do not have any assets here in the Philippines other than our home, which is exempt anyway in reporting it and we always keep less than $10,000 in our RP local bank to avoid filling out extra IRS forms, which would add to the cost of our tax preparation!
Since we reside the entire calendar year here in the Philippines, we're exempt from U.S. State tax owing them nothing, but since being in a higher income tax bracket, we owe the Federal government some money back, but not as much as the previous years, since I didn't have enough tax withholding from my U.S.government pensions!
All and all my tax preparations went well and it only took me 30 minutes to complete on-line using Turbo Tax again this year and it will only cost us a $56.98 filing fee of our joint tax return 1040 short form on-line without itemizing or declaring anything or taking any tax credits or whatever! It's as simple as it gets and gets simpler every year!
It's still too early to e-file our income tax returns, so what I did was that I just suspended/stopped the process until the 1st week of April to complete the e-filing process on-line providing their method of automatic payment, which will only take a few minutes to officially electronically file our ITRs.   
« Last Edit: February 13, 2014, 09:22:15 AM by Art Re(tired) Fil/Am »
"Life is what we all make it to be"!
"It's always a matter of money"!
"Do on to others as they would do on to You, but do it first"!
"Different strokes for different folks"!
"Que Sera Sera"!

Offline meylou

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Re: New requirement for US citizens with assets in foreign countries
« Reply #4 on: February 13, 2014, 11:17:58 AM »
Thank you, Lee. This is very good information.
What we think we become... Buddha
:)

Offline Lee2

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Re: New requirement for US citizens with assets in foreign countries
« Reply #5 on: February 13, 2014, 04:18:43 PM »
You are welcome Meylou. Now I just hope when I get back to Florida in May that I can figure out how to fill the required forms myself once I figure out if I am required to. :(
:) Happily married since 1994 & live part of the year in Cebu and the rest in S. Florida.

Offline Alsgopherwerks

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Re: New requirement for US citizens with assets in foreign countries
« Reply #6 on: February 14, 2014, 04:27:59 AM »
All and all my tax preparations went well and it only took me 30 minutes to complete on-line using Turbo Tax again this year and it will only cost us a $56.98 filing fee of our joint tax return 1040 short form on-line without itemizing or declaring anything or taking any tax credits or whatever! It's as simple as it gets and gets simpler every year!
It's still too early to e-file our income tax returns,

???  Not sure what you mean by the "short form", and what filing fee?  I also have used Turbo Tax for the last several years and have never paid a fee.  They do try to get me to let them do the state tax form  which does have a charge but I always refuse.  My situation: 1099-R for company retirement and SSA-1099 for SS and  I use the 1040A.  As for filing, I ran it on January 17, as soon as TT came on-line; TT had a notice saying that the IRS would not accept E-Filing until the end of the month (which I knew) but accepted it anyway.  They then sent me an E-Mail on the 21st saying that it had been accepted ???!!!  Now waiting on the IRS for the refund which I hope to have by the end of next week.  As for state, in CT they use the federal AGI for the basis and allow a deduction on the tax for your town property tax so I have "0" state tax.
It is impossible to make anything foolproof because God made some very clever fools.

Offline Art, just a re(tired) Fil-Am

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Re: New requirement for US citizens with assets in foreign countries
« Reply #7 on: February 14, 2014, 05:45:12 AM »
All and all my tax preparations went well and it only took me 30 minutes to complete on-line using Turbo Tax again this year and it will only cost us a $56.98 filing fee of our joint tax return 1040 short form on-line without itemizing or declaring anything or taking any tax credits or whatever! It's as simple as it gets and gets simpler every year!
It's still too early to e-file our income tax returns

???  Not sure what you mean by the "short form", and what filing fee?  I also have used Turbo Tax for the last several years and have never paid a fee.  They do try to get me to let them do the state tax form  which does have a charge but I always refuse.  My situation: 1099-R for company retirement and SSA-1099 for SS and  I use the 1040A.  As for filing, I ran it on January 17, as soon as TT came on-line; TT had a notice saying that the IRS would not accept E-Filing until the end of the month (which I knew) but accepted it anyway.  They then sent me an E-Mail on the 21st saying that it had been accepted ???!!!  Now waiting on the IRS for the refund which I hope to have by the end of next week.  As for state, in CT they use the federal AGI for the basis and allow a deduction on the tax for your town property tax so I have "0" state tax.
OK Alsgopherwerks!
I know you from another forum, but you need not color highlight my OP, everyone on here can read just fine! Besides, some maybe color blind and color highlighting my OP won't do any good!
Example, the color yellow seems to just hide the entire sentence you colored in my OP!
You see what I mean?
I too know that my taxes can be done for free via Turbo Tax, but I go ahead anyways and let Turbo Tax on-line do my State Tax, since we do live in the Philippines most or the entire calendar year and I just don't want IRS in my business about an audit, which I know is slim to none! I do what I do in filing our taxes to give us some assurances for IRS to stay out of our business and it works, I've only had one audit in my lifetime and that was many years ago!
So, it's "to each their own" in how one does their taxes! We have nothing to declare or itemize on our tax forms and that's why we end up paying Federal, "0" to State and due to the fact that I don't have enough Federal tax withholding from my U.S. government pensions, which I'm slowly getting around to straightening it out so as to just break even at the end of the year, which is really no big deal!
Anyways, we are happy, content, set in our ways and living comfortably here in the Philippines!
I just can not tolerate the extreme cold weather and annual allergy season in the U.S., especially when one gets older! The Philippines is always nice and warm all year round and my allergies have completely disappeared thank goodness and I finally feel wonderful ever since we retired here 16 years ago! :)   
« Last Edit: February 14, 2014, 08:43:34 AM by Art Re(tired) Fil/Am »
"Life is what we all make it to be"!
"It's always a matter of money"!
"Do on to others as they would do on to You, but do it first"!
"Different strokes for different folks"!
"Que Sera Sera"!