Form 8938 has one of the more nuanced threshold structures in the tax code, because there are two separate tests you have to apply to each threshold:
- The year-end test: the total value of your specified foreign financial assets on the last day of the tax year.
- The any-time test: the highest total value your assets reached at any point during the year.
If you exceed either figure, you must file. The any-time threshold is always higher, which is why an account that dipped to zero by December 31 can still trigger a filing if it spiked earlier in the year.
"Living abroad" has a specific meaning here
The much higher overseas thresholds only apply if you meet the tax definition of living abroad: your tax home is in a foreign country and you meet either the bona fide residence test or the physical presence test (generally 330 full days abroad in a 12-month period). Simply owning foreign assets while living in the U.S. does not qualify you for the higher figures.
Taxpayers living in the United States
| Filing status | More than this on the last day of the year… | …or more than this at any time |
|---|---|---|
| Single / head of household | $50,000 | $75,000 |
| Married filing jointly | $100,000 | $150,000 |
| Married filing separately | $50,000 | $75,000 |
Taxpayers living abroad
| Filing status | More than this on the last day of the year… | …or more than this at any time |
|---|---|---|
| Single / head of household | $200,000 | $300,000 |
| Married filing jointly | $400,000 | $600,000 |
| Married filing separately | $200,000 | $300,000 |
Married filing separately: count only your share, but watch double-counting
If you're married filing separately and hold assets jointly with your spouse, you generally count the full value of a jointly-owned asset to decide whether you cross the threshold — but you and your spouse each report it, which can look like double reporting to a first-time filer. The instructions have specific rules for this; when in doubt, get it checked.
Worked examples
Example 1 — Single filer in the U.S.
Priya is single and lives in Chicago. Her foreign brokerage account peaked at $72,000 in June but ended the year at $48,000. Her year-end value ($48,000) is below $50,000, but her any-time high ($72,000) is below $75,000 too — so she does not have to file Form 8938. (She should still check the FBAR's separate, lower $10,000 threshold, which she clearly exceeds.)
Example 2 — Married couple abroad
Tom and Ana are U.S. citizens living in Portugal, filing jointly. Their combined foreign assets ended the year at $410,000. That's over the $400,000 year-end threshold for a joint return filed from abroad, so they must file Form 8938 — even though their U.S.-resident friends with the same balance would have been over their threshold four times over.
Example 3 — The any-time trap
Marcus is single in New York. He sold a foreign property held in a foreign account, and for two weeks the account held $90,000 before he wired it home. By December 31 the account was empty. His year-end value is $0, but his any-time high of $90,000 exceeds the $75,000 threshold, so he must file.
How to value your assets
You use the fair market value in the foreign currency, converted to U.S. dollars using the U.S. Treasury Bureau of the Fiscal Service year-end exchange rate (or another publicly available rate if Treasury doesn't publish one). We cover the mechanics — including how to handle accounts you can't easily value — in our article Valuing Foreign Assets for Form 8938.
Next steps
- Specified Foreign Financial Assets — what counts toward these totals
- How to File — a walkthrough once you know you're over
- Deadlines & Penalties — what happens if you should have filed and didn't