Money

[Nich-Nick 3,354]

Ok just to check if i understood correctly, i got less than 30k in my saving account back in my home country, I will have file FBAR is this correct?

. The 100k is it both of my husband earning combined with my savings? (I don't work I'm a full time mom since we got married) my husband has filed jointly since we are married but I earn nothing and we were living overseas, didn't have a green card or any visa to the U.S. So we didn't declare it before.

And only my bank interest would be tax

You will do FBAR on your 2015 $30k account by June 30 of next year. Submit report online. If I remember it correctly you list account number, where it is, and highest balance during 2015. It might also ask if it earned any interest and if you reported your interest on the tax return. I have forgotten the exact details because we do both FBAR and FATCA and the form details are not fresh in my mind. Just follow the directions. It is not difficult.

If your name is on a foreign account or combination of accounts exceeding $100k during 2015, that account is reported on FATCA. That also goes for a U.S. Citizen who holds money in a foreign account. For an individual tax filer it is $50k. It bumps up to $100k when you file with a spouse. The whole thing is actually aimed at USCs who try to hide money in offshore accounts and not pay tax on earnings from those investments. But as an immigrant who files as tax return for 2015, it applies to you as well. Read all the details, for there are many. Foreign pension accounts are part of FATCA as well. That's why we file it each year...to report the foreign pension holdings. There is no tax on it.

Bank interest is taxable. Dividends paid by stocks are taxable. Capital gains are taxable. That is when you sell an investment for more than you paid for it (like a stock). The profit is taxable in part depending on how long you held the investment. New money paid to you in the tax year is taxable, but not the whole value in the investment account.

[newbie87 20]

You will do FBAR on your 2015 $30k account by June 30 of next year. Submit report online. If I remember it correctly you list account number, where it is, and highest balance during 2015. It might also ask if it earned any interest and if you reported your interest on the tax return. I have forgotten the exact details because we do both FBAR and FATCA and the form details are not fresh in my mind. Just follow the directions. It is not difficult.

If your name is on a foreign account or combination of accounts exceeding $100k during 2015, that account is reported on FATCA. That also goes for a U.S. Citizen who holds money in a foreign account. For an individual tax filer it is $50k. It bumps up to $100k when you file with a spouse. The whole thing is actually aimed at USCs who try to hide money in offshore accounts and not pay tax on earnings from those investments. But as an immigrant who files as tax return for 2015, it applies to you as well. Read all the details, for there are many. Foreign pension accounts are part of FATCA as well. That's why we file it each year...to report the foreign pension holdings. There is no tax on it.

Bank interest is taxable. Dividends paid by stocks are taxable. Capital gains are taxable. That is when you sell an investment for more than you paid for it (like a stock). The profit is taxable in part depending on how long you held the investment. New money paid to you in the tax year is taxable, but not the whole value in the investment account.

Ok thanks, one last question, do I mention it in our tax return since we will be filing jointly?

[Nich-Nick 3,354]

Ok thanks, one last question, do I mention it in our tax return since we will be filing jointly?

Mention what?

[newbie87 20]

The bank interest.

[Nich-Nick 3,354]

The bank interest.

Yes look at the form. Line 8a is for total interest earned anywhere. https://www.irs.gov/pub/irs-pdf/f1040.pdf

Schedule B is where you itemize it. https://www.irs.gov/pub/irs-pdf/f1040sb.pdf

for example...

Wells Fargo Bank $5.10

Bank of America $10.90

Barclay's Bank. $20.00

Total $36.00 (goes on the form 1040, Line 8a)

[newbie87 20]

Yes look at the form. Line 8a is for total interest earned anywhere. https://www.irs.gov/pub/irs-pdf/f1040.pdf

Schedule B is where you itemize it. https://www.irs.gov/pub/irs-pdf/f1040sb.pdf

for example...

Wells Fargo Bank $5.10

Bank of America $10.90

Barclay's Bank. $20.00

Total $36.00 (goes on the form 1040, Line 8a)

Thank you thank you a million. It all make so much sense now. Never though in a million year I would have declare it but I guess that's what happen you become a resident

[Nich-Nick 3,354]

Thank you thank you a million. It all make so much sense now. Never though in a million year I would have declare it but I guess that's what happen you become a resident

Only the interest paid to you or spouse in 2015.

[newbie87 20]

Only the interest paid to you or spouse in 2015.

How does it work for FBAR??? It said to report any amount that's over 10,000??? I still need to buy planes tickets and Christmas gifts? What amount should I put on the FBAR form??? And do I need to provide them with any evidently?

[newbie87 20]

Also was I supposed to report it before becoming a U.S. Resident????? Ugh im going to stop reading irs page it's too much info and contradicts each other

[Nich-Nick 3,354]

How does it work for FBAR??? It said to report any amount that's over 10,000??? I still need to buy planes tickets and Christmas gifts? What amount should I put on the FBAR form??? And do I need to provide them with any evidently?

Also was I supposed to report it before becoming a U.S. Resident????? Ugh im going to stop reading irs page it's too much info and contradicts each other

It is not that complicated. I do not know your history or where you are right now so can't give the perfect answer.

If you are in the US in 2015 and file a joint tax return for 2015 with your USC spouse, then you are a US person under the tax code. It is not your immigration status.

So you have 6 months after 2015 ends to report foreign holdings if they are more than a total of $10k.

You report the highest amount that was in the account t during the year. Doesn't matter if you spent a lot of money for Christmas presents. If during the summer for example, you had more in the account(s), you report the higher value.

So Mr. X has the following foreign balances during 2015

Bank 1- $2000

Bank 2 - $3000

Total = $5000. NO FBAR. He is under the $10k threshold.

Mr. Z has the following foreign balances during 2015

Bank 1- $2000

Bank 2 - $3000

Bank 3 - $6000

Total = $11,000. YES FBAR. His total foreign exceeds the $10k threshold. He fills out the report listing all three banks and the highest balance during the year. He has until June 30, 2016 to submit the report. FBAR is not a tax return form. It is a separate report. He pays no tax on his $11,000.

He does not submit documentation showing his foreign bank statements. It is self reported.

[newbie87 20]

Ok so right now my account A is total 28k

And account B is 200$

If between now and June 30, , do I just note down whatever is left? Or do I still note down $28200?

[Nich-Nick 3,354]

Ok so right now my account A is total 28k

And account B is 200$

If between now and June 30, , do I just note down whatever is left? Or do I still note down $28200?

The question is "What is the MOST money you had in foreign accounts during 2015?"

It is not about what you ended the year 2015 with.

Example

$25,000 Jan 2015

$25,100 Feb 2015

$26,000 Mar

$27,000 Apr

$28,000 May

$29,500 June <------ Report

$29,400 July

...

$28,000 Nov

$5,000 Dec 2015

You note down the highest amount account A had during the whole year 2015, even if you spend a lot of it by Dec 31. Pick the highest balance between Jan1 and Dec 31.

Same for Account B. The highest it reached in 2015.

Report both accounts next year before June 30.