IRS Form 8938 TurboTax is used to disclose foreign financial assets information. It refers to the Statement of Specified Foreign Financial Assets. The form requires Foreign Financial Institutions to fill out the form and report back to the IRS. If you do not fill out the form timely, you might face penalties. The IRS has prepared several programs to fulfill the requirements. Here is the article to know everything about TurboTax software, like when to file, steps to get the form 8938, who has to file, etc.
Here are a few things you need to know about IRS form 8938:
- There is a hefty fine if you do not file the form
- It depends on the type of assets
- The value of your foreign assets is essential.
Form 8938 TurboTax- Steps To Get It
Here are the steps to get the TurboTax Deluxe-
- Firstly, launch the TurboTax application
- Secondly, click on the Search icon and click the link
- After that, navigate to the Foreign Financial Assets window
- Then, tap Yes, I have foreign financial assets option
- Choose whether you live in a foreign country
- After that, tap Continue to proceed further
- Then, follow the on-screen instructions
- Finally, fill out the required details.
Form 8938 TurboTax- General Requirements
Go through the steps-
- Firstly, taxpayers need to include specified foreign investment reporting with their tax returns
- The requirements vary based on US residency and non-US residency
- It is different from FBAR
- You may need to fill out both forms FBAR and 8938
- You can file it jointly, separate, and unmarried
- US residents vs. non-US residents.
Joint Income Tax Return For US Residents
If you are married and anyone from you or your spouse files a joint tax return, then follow these instructions-
- Firstly, satisfy the reporting threshold
- The total value should be more than $100,000 on the last day of the tax year
- The total value must be more than $150,000 on any day of the tax year.
Joint Income Tax Return For Non-US Residents
If you are married and anyone from you or your spouse files a joint tax return, then follow these instructions-
- Firstly, satisfy the reporting threshold
- The total value should be more than $400,000 on the last day of the tax year
- The total value must be more than $600,000 on any day of the tax year.
Read More:- Form 8862 on TurboTax: How To Solve the Reduced EIC Problem
Single Or Unmarried Or Separate Tax Return For US Residents
If you are unmarried or separate and files a separate tax return, then follow these instructions-
- Firstly, satisfy the reporting threshold
- The total value should be more than $50,000 on the last day of the tax year
- The total value must be more than $75,000 on any day of the tax year.
Single Or Unmarried Or Separate Tax Return For Non-US Residents
If you are unmarried or separate and files a separate tax return, then follow these instructions-
- Firstly, satisfy the reporting threshold
- The total value should be more than $200,000 on the last day of the tax year
- The total value must be more than $300,000 on any day of the tax year.
Form 8938 TurboTax- Foreign Assets
There are a lot of assets that do not come under foreign assets, but you need to report them. Here are the examples-
- Foreign Life Insurance Policies
- Foreign Business Accounts
- Foreign Corporate Accounts
- Foreign Retirement Plans
- Foreign Trusts
- Foreign Mutual Funds
- Foreign Securities Accounts
- Foreign Investment Accounts
- Foreign Savings Accounts
- Foreign Bank Accounts.
IRS considers these foreign assets-
- Homes and Rental Properties of any foreign trust, partnership, and estate.
- It includes Retirements accounts, mutual funds, and bank accounts
- Financial contracts issued by a foreign insurer
- Foreign party stocks, bonds, securities
- Notes & Bonds offered by foreign countries individuals.
Form 8938 TurboTax- Deadlines & Penalties
The due date for the FATCA reporting is similar to the tax return date-
- Special Circumstances Extension- December
- Extension- October
- Foreign Residents- June
- US Residents- April
Here are the penalties for the IRS form 8938-
- Interest in foreign entities
- Certain foreign securities
- Financial accounts
- Foreign financial assets.
- Each information will cost you $10,000
- Additional $10,000 is added for each month
- Maximum of $50,000 per return.
IRS Form 8938 TurboTax- Who Must File?
Form 8938 is a statement of specified foreign financial assets. Following people must file the TurboTax form-
- Certain domestic corporations, Trusts, and Partnerships
- It includes resident aliens, certain non-resident aliens, and US citizens
- Meet the current criteria.
Form 8938 TurboTax- Steps To Send It
Here are the simple steps to get the IRS form 8938-
- Firstly, go to the library of templates
- Secondly, select Form 8938 from the list
- After that, open the template in your online editor tool
- Then, follow the guidelines and fill out the required details
- Enter address, date, and signature in the boxes
- After that, ensure that the details are correct
- Then, complete the Downloading process by tapping Done
- Finally, send or mail in your documents.
Form 8938 TurboTax- Benefits & Mistakes
Here is the list of some expected Benefits & Securities-
| Benefits | Mistakes |
| Intuitive Interface | Filing the form when it is not required |
| Superior Editor | Provide single bank accounts |
| Trackable Files | Typo |
| Powered By Clouds | Status of the filing person |
Conclusion
Form 8938 TurboTax instructions and fill-up process might be hard to understand. Still, you can follow the steps mentioned above to fill out the form without any error. We are here to help you file the IRS form 8938, just consult our experts and fix your error code quickly. Wire IT Solutions offers advanced accounting services, software support, and bookkeeping services for small, medium, and large-scale companies. If you have any queries, then comment in the comment section below.
