Foreign account?

Forum|Forum|1 year ago
April 2, 2025
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I have a small digital wallet in my home country that I use when I travel back. The balance of that account has been less than $150 throughout the whole year as it is only used sparingly.

Should I reply yes to the question about having a financial account located in a foreign country?

It is only used as a prepaid account, with no income, interest or distributions.

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JamesG1

If this is your only foreign account, you do not have to reply Yes to the question about having a financial account located in a foreign country.

Refer to the IRS website Comparison of Form 8938 and FBAR requirements.

FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) requires an aggregate value of financial accounts exceeds $10,000 at any time during the calendar year.

IRS Form 8938, Statement of Specified Foreign Financial Assets requires a total value of assets more than $50,000 on the last day of the tax year, or more than $75,000 at any time during the year.

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LucaXAuthor

Thanks! Just to clarify, this is about Schedule B, Part III, question 7a.

LucaXAuthor

It should also be noted the digital wallet can receive transfers and deposits, as well as has a debit card associated with it. Not sure if that changes things.