It’s Your Money > Taxes

New requirement for US citizens with assets in foreign countries

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Lee2:
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 taxpayer’s 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. 
--- End quote ---

Tally J:
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.

Lee2:
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.

Art, just a re(tired) Fil-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.   

meylou:
Thank you, Lee. This is very good information.

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