Question

Form 8938, married filing jointly thresholds when one spouse lives abroad

Forum|Forum|2 years ago
March 3, 2024
1 reply
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Hello,

I have a situation I need some help with.
My wife and I, we are both US citizens and file jointly. However, for 2023 (and even 2022) my wife lived abroad for the entire year. Reporting foreign assets on form 8938 is provisional on certain thresholds depending on whether people lived in the US or overseas. How should I determine the reporting threshold in my specific situation - I am in the US and she's overseas, but we both are US citizens?

Thanks in advance
Svilen

DaveF1006

In reviewing the instructions for Form 8938, there is a section that addresses reporting thresholds. In the section, it mentions thresholds for Taxpayers that live in the US and those that lives overseas. There is no mention of if one spouse lives in the US and one lives overseas. There are two ways to report this.

If you wish to file married filing jointly, file the 8938 if the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year.
You may file your returns separately and have your own 8938. You would file one if you are married and file a separate income tax return from your spouse, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.
Your wife would file separately. The instructions state "if you are married and file a separate income tax return from your spouse, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the tax year".

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