U.S. TAX GUIDE IN THE UAE
When should I file Form 8938?
- US Residents: Typically file by April.
- Foreign Residents: Deadline extends to June.
- Extension Option: Filing an extension can push the deadline to October.
What are the filing thresholds for Form 8938?
- Single Filers: File if foreign financial assets exceed $300,000 at any point or $200,000 at year-end.
- Married Filing Jointly: File if assets exceed $600,000 during the year or $400,000 at year-end.
What types of assets are reported on Form 8938?
- Financial Accounts: Report foreign accounts, cash, stocks, shares, and overseas pensions.
- Exclusions: Do not report US-based assets like 401(k) or IRA.
Are there penalties for not filing Form 8938?
- Standard Penalty: $10,000 for failing to file.
- Additional Penalties: Higher penalties for reporting errors or omissions.
Why should I seek professional advice when filing Form 8938?
- Complex Filing Requirements: Ensures accurate and compliant filing.
- Avoiding Penalties: Helps prevent costly penalties.
- Tailored Advice: Provides guidance based on your unique financial situation.