Form 8938 has a two-part test. First, you have to be a specified person — either a specified individual or a specified domestic entity. Second, the total value of your specified foreign financial assets has to exceed the reporting threshold that applies to you. If either part isn't met, you don't file. This page covers the first part.
A required tax return comes first
You only file Form 8938 if you are otherwise required to file a U.S. income tax return for the year. If your income is low enough that no return is required, you don't file Form 8938 either — regardless of how much you hold abroad. If you file a return for any reason, though, the threshold test applies.
Specified individuals
You are a specified individual if you are any of the following:
- A U.S. citizen — including citizens living abroad (the higher overseas thresholds may apply, but the obligation doesn't disappear).
- A resident alien for any part of the tax year — for example, a green card holder, or someone who meets the substantial presence test.
- A nonresident alien who elects to be treated as a resident for the year to file a joint return with a U.S. spouse.
- A nonresident alien who is a bona fide resident of a U.S. territory (American Samoa or Puerto Rico, under specific rules).
Specified domestic entities
Beginning with tax years after 2015, certain U.S. entities also have to file Form 8938 if they're formed or used to hold specified foreign financial assets and cross the corporate/trust threshold (generally $50,000 on the last day of the year, or $75,000 at any time). A domestic entity is a specified domestic entity if it is:
- A closely-held domestic corporation or partnership (broadly, one where a single individual owns at least 80%) that has passive income or holds passive assets above set percentages; or
- A domestic trust with one or more specified persons as a current beneficiary.
This rule exists to stop individuals from sidestepping Form 8938 simply by dropping foreign assets into a wholly-owned U.S. holding company or trust.
Financial interest vs. how the FBAR works
One important contrast with the FBAR: Form 8938 is generally about assets in which you have an ownership interest that produces (or could produce) reportable income. Unlike the FBAR, Form 8938 does not pull in accounts over which you merely have signature authority but no financial interest. If your only connection to a foreign account is that you can sign on it for an employer, that can trigger an FBAR but generally not a Form 8938.
Common real-world scenarios
Below are typical situations. These are general illustrations, not a substitute for professional advice on your specific facts.
| Situation | Form 8938 likely required? |
|---|---|
| U.S. citizen in the U.S. with $80,000 in a foreign brokerage account | Yes — over the $75,000 any-time threshold for single filers |
| Green card holder with $30,000 total in foreign accounts | No — under the threshold (but consider the FBAR's separate $10,000 rule) |
| U.S. citizen living in Germany with $250,000 in foreign assets | Depends — the overseas single threshold is $200,000 year-end / $300,000 any time |
| You have signature authority on your employer's foreign account but no ownership | Generally no for Form 8938 (but likely yes for the FBAR) |
| Married couple filing jointly in the U.S. with $120,000 abroad on Dec 31 | Yes — over the $100,000 year-end joint threshold |
What about accounts already reported on other forms?
If a foreign asset is already reported on another information return — such as Form 3520 (foreign trusts and gifts), Form 5471 (foreign corporations), Form 8621 (PFICs), or Form 8865 (foreign partnerships) — you generally don't report it a second time in detail on Form 8938. But you must still note on Form 8938 how many of those other forms you filed. This "duplicative reporting" relief is covered in How to File.
Next steps
- Reporting Thresholds — the exact dollar figures for your filing status and residency
- Specified Foreign Financial Assets — what to actually count toward the threshold
- Form 8938 vs. FBAR — why you may need to file both