Question

Open foreign account or just wire service money to US bank?

Forum|Forum|2 years ago
April 20, 2024
1 reply
0 views

Hello!

I understand I need to report a foreign bank account, and the amount over $10,000...and any accrued interest.

Is it worth it to go to all that trouble to get an account in another country or should I just have the money for my service wired directly into my US bank account?

It's not earned income per se, it's more of a goodwill payment, or commission type.

Thanks!

Not A Product Question

P

pk12_2

Employee

@Sanctuaryrh , whether you open a bank account in another country really depends on what you want to do with the monies. The fact that a foreign bank / financial account owned by or having signature authority over, comes under FBAR ( form 114 and on-line only ) or FATCA ( form 8938 along with your return), should have no bearing, IMHO. Yes , these are extra forms to fill out but there are no tax implications.

The fact remains that income from another country is still taxable income to a US person ( citizen/ GreenCard/ Resident for Tax Purposes). So I would not dwell too much on the FBAR / FATCA requirements.

That is my view

Is there more I can do for you ?

S

SanctuaryrhAuthor

Hello @pk12_2

Thank you for your response. You're right, it's not really going to make a difference whether I report it from there (with forms) or wire it here and pay tax on it. I think I was making it a little too confusing.

Thank you!

☺️