3 stupid questions

Forum|Forum|2 years ago
December 30, 2023
2 replies
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1. I assume oversea electricity bill accounts shouldnt be reported into Fbar /8938, right?

2. Fbar/8938 are only needed for US resident alien but not for non-US resident alien, right?

3. For my friend, his baby is an American. The couples are not the American and they do not live in the US. Does the baby need to report US tax before university graduation ? What is the minimum requirement for the baby to report tax?

Thanks,

TurboTax Deluxe Online

Best answer by DaveF1006

this is interesting

No. There is no credit for the NAR tax on a US tax return because there is no income to apply it to.

Anonymous_

Employee

I will page @pk12_2

pk12_2

Employee

@Helen123

1. I assume oversea electricity bill accounts shouldnt be reported into Fbar /8938, right?

FBAR and FAYTCA requires ONLY the reporting of Foreign Bank accounts ( and the amounts therein ) and other Specified Assets ( generally liquid or semi liquid )

2. Fbar/8938 are only needed for US resident alien but not for non-US resident alien, right?

FBAR and FATCA rules apply ONLY to US persons ( citizen / GreenCard / Resident for tax purposes )

A US person ( as defined above ) generally would not be required to file a return on world income unless the person is no-longer a dependent of the parents and makes more than US$4400 ( I think -- it is ion that neighborhood).

And NO , the questions are NOT STUPID at all.

Is there more I can do for you?

Helen123Author

many thanks.

So, I assume for Q1 and 2, my original understandings are correct. For 3, if the parents of American baby are not American and they do not live in the USA, the baby doesnt need to report anything to IRS when they are the depent of the parents.

Can you please finally confirm my understanding is correct?

Much appreciated.

SusanY1

Yes, your understanding is correct for your the first question. For the second, it's not clear what you mean by a non-US resident alien. Any US person- citizen, permanent resident alien (whether living in the US or not), or US tax resident (by substantial presence or election) must file the FinCEN 114 and/or 8398 as applicable.

The dollar amounts that trigger the Form 8398 filing are different for residents of the US versus US persons who live outside of the US, but other criteria remain the same. (See more about the dollar amounts HERE.)

The US citizen child files when he or she meets the criteria for filing a tax return. This criterion is the same for children living within the US and those living abroad.

A child can be required to file a tax return even when a dependent of their parent, particularly if the child has significant amounts of unearned income (from dividends, investments, or capital gains) or has income earned from work or self-employment. The IRS has a wizard that helps determine when an income tax return must be filed Do I Need to File a Tax Return?

A US citizen child with foreign assets in bank or investment accounts that exceed $10,000 on any day of the year would also have a filing requirement for FinCEN 114 (FBAR).

While those issues aren't especially common, it is important to be aware that there are instances in which a dependent child living abroad could be required to file a tax return.

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