God bless You Sir!!!!! You have explained this so well and you have taken your time so that everyone like myself who are not accountants can clearly understand!!!! THANK YOU!!!!
Thanks for this video. I'm just filing taxes for the very first time as a resident alien and oh boy does it gets complicated quickly. This type of content helps a lot!
THANK YOU SO MUCH! I tried to fill out first on my own and then I found your video and realized I was filling out the entire thing wrong. Thank you so much!
Hi Nick, how are you doing? Thank you for your video. I have a question regarding a case starting at 14:04 in your video. As I understood you correctly, you say that if we only have $4000 (e.g.) and transfer it between our three accounts during the fiscal year, we have to report FBAR. However, if we can refer to this text from the IRS (FinCen): "the aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported." We could see that we just have to sum our balances for each day of the fiscal year and compare these amounts for each day with $10k. For example: 01/01/2023 Bal_A = $4000 Bal_B = $0 Bal_C = $0 Aggregate value = $4000 (I don’t have to file FBAR). 01/05/2023 Bal_A = $0 Bal_B = $4000 (transferred from A to B). Bal_C = $0 Aggregate value = $4000 (I don’t have to file FBAR). 01/10/2023 Bal_A = $0 Bal_B = $0 Bal_C = $4000 (transferred from B to C). Aggregate value = $4000 (I don’t have to file FBAR). That said, I don’t have to report FBAR for 2023, is that correct?
You do have to file in this case because the high water mark in each account is $4000. So they see it as having $12,000 in your accounts during the year.
great work indeed!! Just curious, What are the chances of getting notice from IRS if there is any issue with FBAR submission? I am going to do it first time myself so little anxious and nervous as well. If you can help with an example, it would be great!!
I have done two more videos on this with examples for 2023 and 2024. Just follow what I do. It is not difficult. If there is a problem, FinCEN, not the IRS will contact you.
Thank you for the video. One little tweak to your instruction in regard to filling out the jointly owned account info. You had mentioned that if you held a joint account with your wife that you should put a "2' in the box marked "Number of Joint owners" I believe that the instructions below (From the IRS site) say that in your example you should only place a "1" (1 other joint owner) in the box, as you do not count the filer. Cheers, John 24. Number of joint owners for this account Item 24. Enter the number of joint owners for the account. If the exact number is not known, provide an estimate. Do not count the filer when determining the number of joint owners.
Subbed, thanks! I need to file a delinquent FBAR for 2021. And my H&R Block TaxPro didn't file a Schedule E part III for our foreign bank account in 2021. Now we live in Asia and can't een call on our phones to get them to amend it. $190 wasted. Never had to amend before 2021 and i'm retired! I'm worried too.
I am not familiar with it. If it is just a transfer service from one bank to another then it doesn't need to be reported. If it is an account that holds your money in a foreign country then it needs to be reported.
@@FinanciallyAware I'm pretty sure it's the latter, because Wise, and probably Revolut, sets you up with actual foreign account numbers, foreign bank addresses etc. Not sure if all of these are real or tricks of modern financial wizardry: I think Wise has invented an electronic version of ancient hawala, when no money actually crosses borders. But still I think it's all real enough to trigger reporting obligations.
Hi Nick.. Thank you! its very clear information.. Can you also please do video on Streamline process like what if person forgot/doesn't know to file FBAR for previous years?
@Financially Aware , Hi Nick, This is great video presentation to undestand everyhting on F-BAR. I have a quick questions and a different scenario on this. Lets Say I have only 1 Account CY 2022 Bank A : Jan - Total Balance - 8000 $ Bank A : Feb - Total Balance - 0$ Bank A : Dec - Total Balance - 8000$ In this case the max is still not reaching the 8.5k $ limit, do I need to report this account ? Thank You So Much in Advance !
Hi Nick! Quick question! I'm a US citizen, but I'm also a dual-citizen. I have a USD bank account in Europe which has never exceeded $10k. I'm currently in Europe and this year, I had 4 wire transfers from my own Bank of America saving account to my account bank in Europe and all the transfer amounts were anywhere between ~$9500 - 9900 USD. (so, never above $10k USD) Now the best part: before each wire transfer, I withdrew all the money (foreign account) which came via wire transfer from my Bank Of America account and waited at least 1 month for the next wire transaction, so basically my foreign bank account never exceeded the threshold of $10k. Considering I had 4 wire international transfers, but each below threshold for any report (
Great video. Thank you. I just have a question about joint account - 2 of my accounts are joint account with my 2 sisters who are not resident of the US. Should I still consider it as joint account? Thank you very much once again.
Thanks Nick for the video, My green card approved on sep 2021 from abroad and landed in US in the month october. I do have above $10k before I get green card. Should i file FBAR?
I love the explanation of this video especially at 15:15 and wondering if this makes any difference if you had income coming from any source (work, gov payments for tax refunds or kids support). If the total doesn't pass 10,000 USD at any point then we don't have to file (so let's say I transfer to non-US partner or withdraw as cash keeping it around 6000)?
Thank you so much. My husband died of Covid last year. I thought he already did file FBAR for me like he had always done for me. I totally forgot it till my probate almost close. Now I hurried to check, he did not file this year. Please help me cause I am very nervous now especially the part of Maximum Account Value. I rewatched your clip on that part many times but my problem is mostly on bank. As you knew money goes in and out throughout of the year. So which amount should I fill that part of Maximum Account Value, whould it be like the biggest deposited amount of the year? Or the balance amount at the end of year? Or the total amount of every money that deposited throughout of the year? Please help me, please . Thank you very much 🙏🙏🙏
I'm glad it was helpful. The Maximum Account Value is the highest balance amount any time in the year, not only at the end of the year. If you had $1 balance on Jan 1, then $1,000,000 balance on July 12th, and then $1 balance again on Dec 31, the Maximum Account Value would be $1,000,000.
@@FinanciallyAware I AM SO HAPPY THAT YOU READ MY COMMENT AND ANSWER MY QUESTION.. My English is not good, so you mean only one deposit amount that highest of the year, right? Thank you in advance. 🙏🙏🙏
Hi ! Thanks for the video! F few questions: 1) Should I fill FBAR jointly if I am married but my wife didn't have > $10000 in all her accounts during 2021 and we didn't have any joint accounts (only I have access and full rights to my accounts which were > $10000) 2) should I fill FBAR for previous years ? (I had a foreign accounts in 2020 but they were < $10000) Thanks!
I don't think your wife has to file since the accounts over $10K were yours and not joint accounts. If you did not go over the $10k mark in previous years, you do not have to file. I am not a tax lawyer or accountant, these are only my opinions. I would double check just to make sure.
Awesome video! One question , I have a bank account that contains both a stock account and a regular account. Would you list them separately or together as one?
Hi very clear and helpful. Any idea what to do with a bank that changes name and acct n° during the year-Do I have to report two accounts? with the maximum value for each
First off, thanks for the great and helpful video. Secondly, I have a question. I went to the treasury website you have linked, but the rates for the 31st aren't up yet . The most updated they have so far is from 9/30/2022. Do you know when they will be posted ?
Thank you, Nick! I just subscribed and will recommend your channel to others. I have questions: (1) I have a personal bank account and co-invested with my spouse in a private equity fund in Europe--the latter is a financial account, correct? (2) The shares of this fund are held by a custodian bank in that country. So, whose information do I need to supply--the fund's or the custodian bank's? (3) The European bank account is under my name only, but the private investments are owned jointly. So, I will file an FBAR for the bank account. Should my husband file another FBAR to show the joint ownership of private investments? Thank you very much again.
It seems you both have to file. One person can file for all accounts if the other person fills out the authorization form. It sounds like the private equity company needs to be listed, not who their bank is. You should check with an accountant to be sure.
Thank you so much for this excelent video! I still have a question: The same bank that holds our checking account holds our mortgage account. So our overall balance never exceeds the threshold of 10.000,-- USD. Do we need to file FBAR? Thank you so much!
Hi Nick, that is a really nice instruction. I just have one question, does a insurance policy count as a foreign financial account? It is more like a retirement insurance, not a whole life insurance which I saw the definition on the website. Also, it just has the money I put in. Thanks!!!
Thanks Nick: I conclude from this that one is not required to file an FBAR for a gold or silver certificate held by the Perth Mint in Australia. Is that correct?
If it is a receipt of physical gold that they hold for you then FBAR is not required. But if you had to open an account with them and wire money into the account and the purchase the gold, you might need to file.
Great video. Two questions - a) I filled FBAR in 2020 and 2021. In 2021, my account balance was less than $10,000. Just to confirm, I do not need to file the FBAR in 2022? b) I closed my account in early 2022, do I need to fill some form to convey that account is closed?
You do not need to file FBAR in 2022 or 2023. If you file IRS Form 8938, it asks if any of the accounts were closed during the calendar year. You would put "yes" for your 2022 calendar year taxes.
I just filed today, first time that I have to and a week late of the extended deadline October 15th, I didn't knew all this, any experience with late filing? I'm very nervous because of the high fines and penalties that am reading on there page.
Sorry, I thought you were replying to my 2023 video. This 2022 video explains it at the 7 minute mark. If your money is in a US branch of a foreign bank, it is not considered a foreign account.
Thank you for this explanatory video. I am married now, but i have a bank account in Europe in only my name. We file our taxes jointly. Do i have to file this jointly too even if the bank account is only in my name?
On your taxes you have to file form 8938 if it meets the threshold. I did a video on that. On FBAR it sounds like only you need to file. I would email FinCEN and ask them just in case.
Thank you for this excellent video which helped me understand how to file. I have a question. I file jointly with my husband but I have accounts in Europe in my name only exceeding $10.000 for 2021, so obviously I need to file. Do I use section 2 since it is only in my name or should I use section 3 since we file jointly? Thank you.
Hi Nick Greta video. I Am retired in mexico. My only income comes from social Security benefits deposited in a mexican bank. Is reportable the account?
What are these Gestapo like reporting requirements? I lived in Israel and Australia as a citizen and none of these countries require the reporting of foreign assets. Looks like if you have a lot of money being a US citizen is a burden. Maybe it's better to be poor in the US: no reporting, no taxes, plenty of welfare and looting opportunities.
What if I am a director of a LTD company based in the UK along with my husband who is a British citizen? We have one joint account where the money goes into paid to us by our company and the one company account. How does he factor into it? How do I fill out the joint account section when he isn't a US citizen?
If it is a joint account then you are required to file FBAR since you are a citizen. You can file on behalf of him though technically he is not required to file unless he is a US person by living or working in the US.
@@FinanciallyAwareA clarification please, I am in a similar boat, married to a non-US citizen and holding some joint accounts, you had said "technically he is not required to file unless he is a US person" Question: Is my spouse required to agree to submit her foreign tax details (TIN) and sign form 114a because she has the misfortune of being married to a US citizen? I understand that I have the need to file the FBAR, but as the citizen of a sovereign foreign Country that seems a bit unfair. I know that my spouse is not in the least bit keen to be sucked into filing tax paperwork for the US.
I have been trying to e file, but everytime i trie to click either the pdf option or the online option, the page crashes. Has anyone else faced the same issue? Pls let me know.
Ok, lil dummy newbie here; If I have an RRSP & LOCKED-LIRA. (Both Reg’d invested/retirement accounts in Canada-managed by my regular bank)- Is TYPE OF ACCOUNT still “BANK”? (Screen is open & otherwise ready to file…) THX!
I don't know anything about retirement accounts outside the US. If you direct the investments in these accounts, then they need to be reported. If the government just pays you a monthly pension type amount, then you don't. It sounds like they are IRA/401K type accounts where you have a balance that you own and buy stocks and bonds with them depending on your own investment goals. This would be a reportable account. Even though it is in a bank, if your can buy securities with them, then I would probably put "securities". It probably doesn't matter if you select "bank" or "securities" since the bank may do both.
@@FinanciallyAware Hi…thanks for replying. Well- I filed it before seeing this…(I searched online & apparently RRSP are not considered “securities”. It’s just a type of “bank account” from what I read- So, entered both Reg. ACCTS. as “Bank”; (They were “set at inception” as to risk level and Bank manages it/picks the investments in the background; I don’t make changes-buy/sell, like an “active trader” or anything). *I hope it makes NO difference; I think “INT. EARNED” (even though not realized) is reported in the IRS tax return? In Canada- you only do that if you cash out creating income. Hopefully, it’s good as-is; every number is entered regardless of the “type”. I didn’t want the screen to shut down on me. I’m sure an expat accountant will let me know if I need to “amend account type”; I’ll double-check when I hire someone.
@FinanciallyAware Hello, I recently moved to Europe to live with my wife and wired over 10K to her checking account where I am just listed as a signer. This is the only account we have overseas. Would I need to file an FBAR? Thank you!
@@FinanciallyAware would this account be listed on Part 4? I think I have financial interest since she’s my wife however technically the funds only belong to her. I was not allowed to be a joint owner but was given signing rights.
FBAR has nothing to do with taxes. You worry about taxes on your IRS forms based on how much you made during the year. The FBAR wants a snapshot of your foreign account balances.
If you can open the pdf, then there is a way to download it. The browser settings determine what happens when you click on a pdf. It may be set to open in a browser window or with a pdf reader like Adobe. Either way on the upper right hand corner there should be a way to save it.
What to enter for Insurance policies, Nick mentioned cash value, but I am still not clear what to enter in the form, the policies sold by LIC India, are largely of type like whole life insurance with something like sum assured, is that the cash value?
I have and account jointly owned with my spouse and she has an account in her name...So how should we file fbar....she should file one with her name and then I file one (which is jointly owned by us) if she provide me approval to do that......or about the joint account, we both can file seperately too showing the same exact details ?
Hi Nick, Great Info, Have a clarification I had 11K in Jan , 9k in May(Spent 2K) , 15.5K in Oct and 12K in Dec, so what's the Maximum Account value I should I be declaring ? Is it 15.5K or 17.5K (11K +(15.5K-9K)) ?
Hello Nick, This requirement is new to my wife and I. My wife is a legal US resident. She has a bank account and a coop account in the Philippines both exceed 10K. Both accounts are not joint with me and are in her previous last name and not our current married name. We file our taxes jointly. So are we required to file this FBAR? This be a issue because both accounts are in a different last name. Any thoughts or advice would be appreciated. Thank you.
Hello, the FinCEN E-filing does not currently work. When I try to open it a window pops open that says there is a problem with the URL. Is this is a common problem? Has anyone else had this problem?
Hi, my husband just got a green card this year January 2023. He haven't works in the U.S. yet. He has a foreign account in 2023 over 20k. When do he needs to file his Fbar... now or next year 2024? Thanks
Hello sir, In 2021, my CDN account goes from 13 K to 11K. From what I am understanding is that I need to report 13 k when I file my FBar in 2022 for the period ending December 31st, 2021, is that correct? In 2023 when I do my f bar for 2022 then I will report just 11k because that will be the highest amount for 2022.
Hi, Nick & followers…Does withdrawing, for eg: $300,000, CAD, in order to reduce a balance, have any tricky or nasty ramifications? I thought I read somewhere that any withdrawal of $10K USD or more is scrutinized or reported(?) So, is it costly at “filing time” to have withdrawn large amounts during the tax year? Thank you for helping us out with this; It pains me to report the same stuff each year, feeling so financially paralyzed. *My online expat tax firm charges $47USD for FBAR Report- (separate from Tax Return).
Let's say you have $305,000 CAD in your account on Jan 1, 2022 and you remove $300,000 CAD on Jan 1, 2022. From FinCEN's point of view, the high water mark for your account is $305,000 CAD and you are required to file for the 2022 year. The $10K withdrawal that triggers the bank filing a report with the IRS is only for cash withdrawals and deposits.
@@FinanciallyAware Yes, but are you forced to prove how you spent or relocated the $300,000? I’m thinking I may as well do “big home Reno’s” since I’m so stuck here & my cash isn’t working for me anymore- So…does IRS have you sending receipts to them as proof of where the cash went? *Just wondering because it is so invasive. (Might be smart to reduce house profit margin (if I sell) and lower acct. peak values to eliminate 8938- going forward. Mmmm…
@@FinanciallyAware Interesting…it’s weird that they track a few thousand here or there…in case you’re into criminal activity, but you can empty an account? That’s good news if true.
Sir , I have a question , my mom was able to retire her government pension, they created a law where they allowed their citizens to have to option to get all their money ( >10k in her case ) and created a bank account in her home country for it. I guess she should’ve transfer it to her account here in the US 🥴. since she created a account for her home country to put that pension money , she filed an fbar 114 yesterday. What’s next now ? She is very afraid she has to pay taxes for it ? Also that account is closed will it be a problem for the IRS to verify if she had that account at some point ?
It depends on the country and if the money is in a shielded type of account. If she took the lump sum in the year that she was a US taxpayer, she may owe taxes on it. If she took it before, then maybe not. Also, if the money was transferred into and IRA type of account, it may be shielded from tax. You need to do some research and possibly talk to an accountant.
Hi, am interested to know if FBAR applies to my case in 2021. I understand you are not a CPA and this is purely your personal opinion. My mother (not a US citizen, living in the Philippines) was diagnosed with a terminal disease in 2021 and decided to add all her 4 children (myself included) as co-signers to her Philippine based brokerage account that has a high mark above $10,000 in 2021. I am the only US citizen among the 5 co-signers in the account. All my siblings are also based in the Philippines. Do I have to file the FBAR? All the investment income taxes from this account are paid fully by our mother based on the local tax code in the Philippines. Thanks
I'm sorry to hear about your mother. My guess is that since any one co-signer can take all the money out of the bank account, then I would guess that you are liable to file FBAR for this account.
Thank you for so much detailed video! Do you know if Indian PPF (en.wikipedia.org/wiki/Public_Provident_Fund_(India)) considered to be reportable to FBAR? It's a tax savings accounts where accumulated interest is not taxable and have a longer maturity of around 15 years. Really appreciate if you can clear the confusion.
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God bless You Sir!!!!! You have explained this so well and you have taken your time so that everyone like myself who are not accountants can clearly understand!!!! THANK YOU!!!!
Thank you James. I am very glad when I hear my videos help people.
Thanks for this video. I'm just filing taxes for the very first time as a resident alien and oh boy does it gets complicated quickly. This type of content helps a lot!
Glad it was helpful!
agree
Thank you sir. I was really overwhelmed with this stuff but now I have more clarity. You saved my life!
I'm glad it helped you.
Nick, excellent video which does not leave any doubts. Great job.
I had lots of questions before I saw the video.
Glad it was helpful!
THANK YOU SO MUCH! I tried to fill out first on my own and then I found your video and realized I was filling out the entire thing wrong. Thank you so much!
Glad I could help!
Hi Nick, how are you doing?
Thank you for your video. I have a question regarding a case starting at 14:04 in your video.
As I understood you correctly, you say that if we only have $4000 (e.g.) and transfer it between our three accounts during the fiscal year, we have to report FBAR.
However, if we can refer to this text from the IRS (FinCen): "the aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported."
We could see that we just have to sum our balances for each day of the fiscal year and compare these amounts for each day with $10k.
For example:
01/01/2023
Bal_A = $4000
Bal_B = $0
Bal_C = $0
Aggregate value = $4000 (I don’t have to file FBAR).
01/05/2023
Bal_A = $0
Bal_B = $4000 (transferred from A to B).
Bal_C = $0
Aggregate value = $4000 (I don’t have to file FBAR).
01/10/2023
Bal_A = $0
Bal_B = $0
Bal_C = $4000 (transferred from B to C).
Aggregate value = $4000 (I don’t have to file FBAR).
That said, I don’t have to report FBAR for 2023, is that correct?
You do have to file in this case because the high water mark in each account is $4000. So they see it as having $12,000 in your accounts during the year.
thank you, when first looking at form I was confused. haha. you simplified it, great job, and made it easy for a first time user!!! cheers!!!!
That's what I like to hear. Thank you.
A bit long winded at the beginning but I quickly saw you had chapters to navigate to the actual form. Great advice and guide! Very helpful.
Thank you. Yes, I put the chapters so people can just watch the parts that apply to them.
great work indeed!! Just curious, What are the chances of getting notice from IRS if there is any issue with FBAR submission? I am going to do it first time myself so little anxious and nervous as well. If you can help with an example, it would be great!!
I have done two more videos on this with examples for 2023 and 2024. Just follow what I do. It is not difficult.
If there is a problem, FinCEN, not the IRS will contact you.
Thank you very much! you are the best!
I'm glad it was helpful.
Thank you so much. Your video was extremely informative and I was able to successfully able to file the FBAR.
I'm glad to hear that.
Very detailed and clearly explained, appreciate it !
Glad it was helpful!
Thank you so much! It was really helpful.
Glad it helped!
Thank you for the video. One little tweak to your instruction in regard to filling out the jointly owned account info. You had mentioned that if you held a joint account with your wife that you should put a "2' in the box marked "Number of Joint owners" I believe that the instructions below (From the IRS site) say that in your example you should only place a "1" (1 other joint owner) in the box, as you do not count the filer.
Cheers, John
24. Number of joint owners for this account
Item 24. Enter the number of joint owners for the account. If the exact number is not known,
provide an estimate. Do not count the filer when determining the number of joint owners.
Thank you John. I believe you are correct. My mistake. Thank you for sharing it with others.
Thank you very much my dude, keep up the great work.
Thanks, will do!
Thank you for your excellent explanation, you are appreciated !
Glad it was helpful!
Very helpful!! Thank you for making this.
Glad it was helpful!
great video! thank you!
I'm glad you found it useful. i have an updated video for 2023.
Indeed God bless you!
Thank you. I'm glad it was helpful.
LIFE SAVER!!!
I'm glad you found it helpful.
Very good info provided. Thank you
Glad it was helpful!
Subbed, thanks! I need to file a delinquent FBAR for 2021. And my H&R Block TaxPro didn't file a Schedule E part III for our foreign bank account in 2021. Now we live in Asia and can't een call on our phones to get them to amend it. $190 wasted. Never had to amend before 2021 and i'm retired! I'm worried too.
Always check their work before they file for you.
So helpful! Thank you so much!
I'm glad it was helpful.
Thank you, God bless you.
I'm glad it helped.
a great help. Thank you so much.
I'm glad it was helpful.
brilliant, thanks much!
Fantastic info. Thanks
Glad it was helpful!
Great info, thank you. What about Wise (former Transfer Wise) accounts in foreign currency, are those need to be reported?
I am not familiar with it. If it is just a transfer service from one bank to another then it doesn't need to be reported. If it is an account that holds your money in a foreign country then it needs to be reported.
@@FinanciallyAware I'm pretty sure it's the latter, because Wise, and probably Revolut, sets you up with actual foreign account numbers, foreign bank addresses etc. Not sure if all of these are real or tricks of modern financial wizardry: I think Wise has invented an electronic version of ancient hawala, when no money actually crosses borders. But still I think it's all real enough to trigger reporting obligations.
THANK YOU!!
You're welcome!
Thank you so much!
Glad it helped!
Hi Nick.. Thank you! its very clear information..
Can you also please do video on Streamline process like what if person forgot/doesn't know to file FBAR for previous years?
I don't know about that. I would contact FinCEN before they contact you.
@Financially Aware ,
Hi Nick,
This is great video presentation to undestand everyhting on F-BAR. I have a quick questions and a different scenario on this.
Lets Say I have only 1 Account CY 2022
Bank A : Jan - Total Balance - 8000 $
Bank A : Feb - Total Balance - 0$
Bank A : Dec - Total Balance - 8000$
In this case the max is still not reaching the 8.5k $ limit, do I need to report this account ?
Thank You So Much in Advance !
In this case you do not need to file FBAR.
Hi Nick!
Quick question! I'm a US citizen, but I'm also a dual-citizen.
I have a USD bank account in Europe which has never exceeded $10k.
I'm currently in Europe and this year, I had 4 wire transfers from my own Bank of America saving account to my account bank in Europe and all the transfer amounts were anywhere between ~$9500 - 9900 USD. (so, never above $10k USD)
Now the best part: before each wire transfer, I withdrew all the money (foreign account) which came via wire transfer from my Bank Of America account and waited at least 1 month for the next wire transaction, so basically my foreign bank account never exceeded the threshold of $10k.
Considering I had 4 wire international transfers, but each below threshold for any report (
No, you do not have to file FBAR because it never exceeded $10K.
Great video. Thank you. I just have a question about joint account - 2 of my accounts are joint account with my 2 sisters who are not resident of the US. Should I still consider it as joint account? Thank you very much once again.
As long as one person on that joint account is required to file FBAR, I would file and consider it a joint account.
Thanks Nick for the video, My green card approved on sep 2021 from abroad and landed in US in the month october. I do have above $10k before I get green card. Should i file FBAR?
It sounds like you should.
I love the explanation of this video especially at 15:15 and wondering if this makes any difference if you had income coming from any source (work, gov payments for tax refunds or kids support). If the total doesn't pass 10,000 USD at any point then we don't have to file (so let's say I transfer to non-US partner or withdraw as cash keeping it around 6000)?
As long as the high water mark off all accounts added together do not exceed $10,000 then you do not have to file.
@@FinanciallyAware Thanks for the reply. Much appreciated
Thank you so much. My husband died of Covid last year. I thought he already did file FBAR for me like he had always done for me. I totally forgot it till my probate almost close. Now I hurried to check, he did not file this year.
Please help me cause I am very nervous now especially the part of Maximum Account Value. I rewatched your clip on that part many times but my problem is mostly on bank. As you knew money goes in and out throughout of the year. So which amount should I fill that part of Maximum Account Value, whould it be like the biggest deposited amount of the year? Or the balance amount at the end of year? Or the total amount of every money that deposited throughout of the year?
Please help me, please . Thank you very much 🙏🙏🙏
I'm glad it was helpful. The Maximum Account Value is the highest balance amount any time in the year, not only at the end of the year. If you had $1 balance on Jan 1, then $1,000,000 balance on July 12th, and then $1 balance again on Dec 31, the Maximum Account Value would be $1,000,000.
@@FinanciallyAware I AM SO HAPPY THAT YOU READ MY COMMENT AND ANSWER MY QUESTION.. My English is not good, so you mean only one deposit amount that highest of the year, right? Thank you in advance. 🙏🙏🙏
Hi ! Thanks for the video!
F few questions:
1) Should I fill FBAR jointly if I am married but my wife didn't have > $10000 in all her accounts during 2021 and we didn't have any joint accounts (only I have access and full rights to my accounts which were > $10000)
2) should I fill FBAR for previous years ? (I had a foreign accounts in 2020 but they were < $10000)
Thanks!
I don't think your wife has to file since the accounts over $10K were yours and not joint accounts. If you did not go over the $10k mark in previous years, you do not have to file.
I am not a tax lawyer or accountant, these are only my opinions. I would double check just to make sure.
Awesome video! One question , I have a bank account that contains both a stock account and a regular account. Would you list them separately or together as one?
Separately. They have different account numbers right?
Hi very clear and helpful. Any idea what to do with a bank that changes name and acct n° during the year-Do I have to report two accounts? with the maximum value for each
Good question. I would just maybe put the new bank and account and put (changed from ) the old bank name and account.
First off, thanks for the great and helpful video. Secondly, I have a question. I went to the treasury website you have linked, but the rates for the 31st aren't up yet . The most updated they have so far is from 9/30/2022. Do you know when they will be posted ?
Yeah, I see it is still 9/30/22. Check back in a week or so.
@@FinanciallyAware thank you !
Thank you, Nick! I just subscribed and will recommend your channel to others. I have questions: (1) I have a personal bank account and co-invested with my spouse in a private equity fund in Europe--the latter is a financial account, correct? (2) The shares of this fund are held by a custodian bank in that country. So, whose information do I need to supply--the fund's or the custodian bank's? (3) The European bank account is under my name only, but the private investments are owned jointly. So, I will file an FBAR for the bank account. Should my husband file another FBAR to show the joint ownership of private investments? Thank you very much again.
It seems you both have to file. One person can file for all accounts if the other person fills out the authorization form. It sounds like the private equity company needs to be listed, not who their bank is. You should check with an accountant to be sure.
Thank you so much for this excelent video! I still have a question: The same bank that holds our checking account holds our mortgage account. So our overall balance never exceeds the threshold of 10.000,-- USD. Do we need to file FBAR? Thank you so much!
The money you owe on a mortgage is not included in the $10,000 threshold.
Hi Nick, that is a really nice instruction. I just have one question, does a insurance policy count as a foreign financial account? It is more like a retirement insurance, not a whole life insurance which I saw the definition on the website. Also, it just has the money I put in. Thanks!!!
I'm sorry I know very little about insurance policies. If there is a cash value to it, then I would include it.
Thanks Nick: I conclude from this that one is not required to file an FBAR for a gold or silver certificate held by the Perth Mint in Australia. Is that correct?
If it is a receipt of physical gold that they hold for you then FBAR is not required. But if you had to open an account with them and wire money into the account and the purchase the gold, you might need to file.
Great video.
Two questions - a) I filled FBAR in 2020 and 2021. In 2021, my account balance was less than $10,000. Just to confirm, I do not need to file the FBAR in 2022?
b) I closed my account in early 2022, do I need to fill some form to convey that account is closed?
You do not need to file FBAR in 2022 or 2023. If you file IRS Form 8938, it asks if any of the accounts were closed during the calendar year. You would put "yes" for your 2022 calendar year taxes.
I just filed today, first time that I have to and a week late of the extended deadline October 15th, I didn't knew all this, any experience with late filing? I'm very nervous because of the high fines and penalties that am reading on there page.
I would email FinCEN and let them know this is your first time filing. See what they say.
Thank you so much. This very useful. Does this apply to Moneycorp as well? I opened an account in their New York branch and they are based in the UK.
Sorry, I thought you were replying to my 2023 video. This 2022 video explains it at the 7 minute mark. If your money is in a US branch of a foreign bank, it is not considered a foreign account.
@@FinanciallyAware thank you so much.
Thank you for this explanatory video. I am married now, but i have a bank account in Europe in only my name. We file our taxes jointly. Do i have to file this jointly too even if the bank account is only in my name?
On your taxes you have to file form 8938 if it meets the threshold. I did a video on that. On FBAR it sounds like only you need to file. I would email FinCEN and ask them just in case.
@@FinanciallyAware Got it, thank you
So if my wife doesn’t have access to my international bank account only my name is on the account is she still required to file?
No, only you are required to file.
Is VUL (life with investment insurance policy) a type of security? Or should I list it as “other” on the FBAR form?
I'm not sure. If it has a cash value, you should list it.
Does filing during the automatic extension period count as “filed late”? Not sure if the section should be checked on the 2nd page.
Good question. I would check that box off if you are filing after April 18th because technically it is late.
Thank you for this excellent video which helped me understand how to file. I have a question. I file jointly with my husband but I have accounts in Europe in my name only exceeding $10.000 for 2021, so obviously I need to file. Do I use section 2 since it is only in my name or should I use section 3 since we file jointly? Thank you.
I would file for both of you even though the accounts are only in your name. It covers both of you just in case.
@@FinanciallyAware Thank you
May I know if my MPF accounts (a kind of retirement fund) in Hong Kong need to be filed with FBAR too?
If you control what the investments are then you probably have to file FBAR.
Hi Nick Greta video. I Am retired in mexico. My only income comes from social Security benefits deposited in a mexican bank. Is reportable the account?
Not unless there is over $10,000 in the account any time during the year.
We will be moving to Europe an opened a Bank account. This account is funded from our U.S. Bank account. Do we have to file an FBAR? Thank you.
If you keep over $10,000 USD in the European bank, then yes.
What are these Gestapo like reporting requirements? I lived in Israel and Australia as a citizen and none of these countries require the reporting of foreign assets. Looks like if you have a lot of money being a US citizen is a burden. Maybe it's better to be poor in the US: no reporting, no taxes, plenty of welfare and looting opportunities.
Yes, they want to keep everyone on the US plantation and make it very hard to comply with their rules for foreign accounts.
A us citizen is a legal entity, not a real man.
What about if I use leverage in my account. For example, I have 10k in a Foreign account and than borrow 90k. Should I report 10k or 90K?
Good question. I would only report your money, not the borrowed money.
What if I am a director of a LTD company based in the UK along with my husband who is a British citizen? We have one joint account where the money goes into paid to us by our company and the one company account. How does he factor into it? How do I fill out the joint account section when he isn't a US citizen?
If it is a joint account then you are required to file FBAR since you are a citizen. You can file on behalf of him though technically he is not required to file unless he is a US person by living or working in the US.
@@FinanciallyAwareA clarification please, I am in a similar boat, married to a non-US citizen and holding some joint accounts, you had said "technically he is not required to file unless he is a US person"
Question: Is my spouse required to agree to submit her foreign tax details (TIN) and sign form 114a because she has the misfortune of being married to a US citizen?
I understand that I have the need to file the FBAR, but as the citizen of a sovereign foreign Country that seems a bit unfair.
I know that my spouse is not in the least bit keen to be sucked into filing tax paperwork for the US.
I have been trying to e file, but everytime i trie to click either the pdf option or the online option, the page crashes. Has anyone else faced the same issue? Pls let me know.
Try it on a different browser.
Ok, lil dummy newbie here;
If I have an RRSP & LOCKED-LIRA. (Both Reg’d invested/retirement accounts in Canada-managed by my regular bank)-
Is TYPE OF ACCOUNT still
“BANK”?
(Screen is open & otherwise ready to file…) THX!
I don't know anything about retirement accounts outside the US. If you direct the investments in these accounts, then they need to be reported. If the government just pays you a monthly pension type amount, then you don't. It sounds like they are IRA/401K type accounts where you have a balance that you own and buy stocks and bonds with them depending on your own investment goals. This would be a reportable account. Even though it is in a bank, if your can buy securities with them, then I would probably put "securities". It probably doesn't matter if you select "bank" or "securities" since the bank may do both.
@@FinanciallyAware Hi…thanks for replying. Well- I filed it before seeing this…(I searched online & apparently RRSP are not considered “securities”. It’s just a type of “bank account” from what I read-
So, entered both Reg. ACCTS. as “Bank”; (They were “set at inception” as to risk level and Bank manages it/picks the investments in the background; I don’t make changes-buy/sell, like an “active trader” or anything).
*I hope it makes NO difference; I think “INT. EARNED” (even though not realized) is reported in the IRS tax return? In Canada- you only do that if you cash out creating income.
Hopefully, it’s good as-is; every number is entered regardless of the “type”.
I didn’t want the screen to shut down on me.
I’m sure an expat accountant will let me know if I need to “amend account type”; I’ll double-check when I hire someone.
@FinanciallyAware Hello, I recently moved to Europe to live with my wife and wired over 10K to her checking account where I am just listed as a signer. This is the only account we have overseas. Would I need to file an FBAR? Thank you!
If you are a signer then you are a part owner. I believe you have to file FBAR for this.
@@FinanciallyAware would this account be listed on Part 4? I think I have financial interest since she’s my wife however technically the funds only belong to her. I was not allowed to be a joint owner but was given signing rights.
so weird that this is a thing! Do you have to pay tax on this?
FBAR has nothing to do with taxes. You worry about taxes on your IRS forms based on how much you made during the year. The FBAR wants a snapshot of your foreign account balances.
I don't see a way to download the PDF?
If you can open the pdf, then there is a way to download it. The browser settings determine what happens when you click on a pdf. It may be set to open in a browser window or with a pdf reader like Adobe. Either way on the upper right hand corner there should be a way to save it.
What to enter for Insurance policies, Nick mentioned cash value, but I am still not clear what to enter in the form, the policies sold by LIC India, are largely of type like whole life insurance with something like sum assured, is that the cash value?
I do not know enough about insurance to give you a confident answer.
According to this video : th-cam.com/video/sjp4q1Wgnb4/w-d-xo.html
You need to report the surrender value of your policy.
I have and account jointly owned with my spouse and she has an account in her name...So how should we file fbar....she should file one with her name and then I file one (which is jointly owned by us) if she provide me approval to do that......or about the joint account, we both can file seperately too showing the same exact details ?
That is tricky. I would have one person file both accounts and the other provide approval.
Thank you, Nick
Would you elaborate on that please?
Hi Nick, Great Info, Have a clarification I had 11K in Jan , 9k in May(Spent 2K) , 15.5K in Oct and 12K in Dec, so what's the Maximum Account value I should I be declaring ? Is it 15.5K or 17.5K (11K +(15.5K-9K)) ?
It is the highest balance during the year, so $15.5k.
Hello Nick,
This requirement is new to my wife and I.
My wife is a legal US resident. She has a bank account and a coop account in the Philippines both exceed 10K. Both accounts are not joint with me and are in her previous last name and not our current married name. We file our taxes jointly. So are we required to file this FBAR? This be a issue because both accounts are in a different last name. Any thoughts or advice would be appreciated. Thank you.
It sounds like a complicated situation. I think you should ask FinCEN or an accountant. It sounds like at a minimum, your wife needs to file an FBAR.
Hello, the FinCEN E-filing does not currently work. When I try to open it a window pops open that says there is a problem with the URL. Is this is a common problem? Has anyone else had this problem?
try it on another browser
Hi, my husband just got a green card this year January 2023. He haven't works in the U.S. yet. He has a foreign account in 2023 over 20k. When do he needs to file his Fbar... now or next year 2024? Thanks
Next year.
Thanks
Hello sir,
In 2021, my CDN account goes from 13 K to 11K. From what I am understanding is that I need to report 13 k when I file my FBar in 2022 for the period ending December 31st, 2021, is that correct? In 2023 when I do my f bar for 2022 then I will report just 11k because that will be the highest amount for 2022.
Yes that is correct. You may not have to file in 2023 if the 11k is in CDN and the exchange rate is such that this is less than $10K USD.
Hi, Nick & followers…Does withdrawing, for eg: $300,000, CAD, in order to reduce a balance, have any tricky or nasty ramifications?
I thought I read somewhere that any withdrawal of $10K USD or more is scrutinized or reported(?) So, is it costly at “filing time” to have withdrawn large amounts during the tax year?
Thank you for helping us out with this; It pains me to report the same stuff each year, feeling so financially paralyzed. *My online expat tax firm charges $47USD for FBAR Report- (separate from Tax Return).
Let's say you have $305,000 CAD in your account on Jan 1, 2022 and you remove $300,000 CAD on Jan 1, 2022. From FinCEN's point of view, the high water mark for your account is $305,000 CAD and you are required to file for the 2022 year. The $10K withdrawal that triggers the bank filing a report with the IRS is only for cash withdrawals and deposits.
@@FinanciallyAware Yes, but are you forced to prove how you spent or relocated the $300,000? I’m thinking I may as well do “big home Reno’s” since I’m so stuck here & my cash isn’t working for me anymore- So…does IRS have you sending receipts to them as proof of where the cash went? *Just wondering because it is so invasive. (Might be smart to reduce house profit margin (if I sell) and lower acct. peak values to eliminate 8938- going forward. Mmmm…
You do not have to prove you spent it.
@@FinanciallyAware Interesting…it’s weird that they track a few thousand here or there…in case you’re into criminal activity, but you can empty an account? That’s good news if true.
if a "friend" has a holdnaut crypto lending account and more than 10k this is reportable to FBAR?
I don't know what holdnaut is. Right now, crypto on foreign exchanges is not reportable. That will most likely change in the future.
@@FinanciallyAware crypto lending platform based in singapore simillar to celsius.
Sir , I have a question , my mom was able to retire her government pension, they created a law where they allowed their citizens to have to option to get all their money ( >10k in her case ) and created a bank account in her home country for it. I guess she should’ve transfer it to her account here in the US 🥴. since she created a account for her home country to put that pension money , she filed an fbar 114 yesterday. What’s next now ? She is very afraid she has to pay taxes for it ? Also that account is closed will it be a problem for the IRS to verify if she had that account at some point ?
It depends on the country and if the money is in a shielded type of account. If she took the lump sum in the year that she was a US taxpayer, she may owe taxes on it. If she took it before, then maybe not. Also, if the money was transferred into and IRA type of account, it may be shielded from tax. You need to do some research and possibly talk to an accountant.
Thank you !
Hi, am interested to know if FBAR applies to my case in 2021. I understand you are not a CPA and this is purely your personal opinion.
My mother (not a US citizen, living in the Philippines) was diagnosed with a terminal disease in 2021 and decided to add all her 4 children (myself included) as co-signers to her Philippine based brokerage account that has a high mark above $10,000 in 2021. I am the only US citizen among the 5 co-signers in the account. All my siblings are also based in the Philippines. Do I have to file the FBAR? All the investment income taxes from this account are paid fully by our mother based on the local tax code in the Philippines. Thanks
I'm sorry to hear about your mother.
My guess is that since any one co-signer can take all the money out of the bank account, then I would guess that you are liable to file FBAR for this account.
Thank you for so much detailed video! Do you know if Indian PPF (en.wikipedia.org/wiki/Public_Provident_Fund_(India)) considered to be reportable to FBAR? It's a tax savings accounts where accumulated interest is not taxable and have a longer maturity of around 15 years. Really appreciate if you can clear the confusion.
I am not familiar with it. If you direct the investments then it needs to be reported.
Thank you!
I'm glad it was helpful.