Reviewed and updated October 16, 2026
Rules and decisions to review
- Foreign wages, self-employment receipts, pensions, investments and rental income need to be considered when determining filing requirements.
- The foreign earned income exclusion and foreign tax credit have different eligibility rules. Neither is an automatic exemption from filing.
- An FBAR generally is required for a U.S. person with reportable foreign accounts whose aggregate value exceeds $10,000 at any time during the calendar year. It is not a separate $10,000 threshold for each account.
- Form 8938 is a separate IRS filing, with different asset definitions and thresholds; filing it does not replace an FBAR.
A practical example
A person with three foreign bank accounts holding $4,000 each may meet the aggregate FBAR threshold even though no individual account exceeds $10,000. Account ownership and signature authority must also be reviewed.
Records to gather
Gather citizenship and immigration history, travel dates, foreign income statements, account maximum balances and prior U.S. returns.
Your next step
Create separate checklists for the income tax return, foreign accounts and foreign financial assets. Ask which filings apply before assuming that reducing income tax has also resolved information reporting.
Official sources
This guide provides general information. The rules depend on the tax year, jurisdiction and your circumstances. Ask our team which filing or planning steps apply to you.
