Form 8938 Basics

Detailed rules are here, but we have prescribed the basics for you here as well, below.

If you have an income tax filing responsibility in any year, then you must file the New International Tax Form 8938 and follow its rules: It applies for all US residents having foreign cash, mostly, whether in life insurance, FDs, or savings, etc.. (US citizens, Green card holders, and most importantly, H1B, L1 visa holders who pass the substantial presence test:

Threshhold amounts:

If you are substantially present in the USA, threshholds are as follows:

    Single
     
  • Balance of more than $50,000 or more on last day of year;
  • Or, more than $75,000 at anytime during year

  • Filing Joint
  • Balance of more than $100,000 or more on last day of year;
  • Or, more than $150,000 at anytime during year


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Those US Citizens & GC Holders living abroad, threshholds are as follows
:
    Single
     
  • Balance of more than $200,000 or more on last day of year;
  • Or, more than $300,000 at anytime during year

  • Filing Joint
  • Balance of more than $400,000 or more on last day of year;
  • Or, more than $600,000 at anytime during year

    • “Living abroad" means you are a US Citizen/Greencard holder, who meets one of the following:
    • You're either a a bona fide resident of a foreign country or countries for an uninterrupted period that includes the entire tax year, or
    • You are a US citizen or GC Holder, who during a period of 12 consecutive months ending in the tax year is physically present in a foreign country or countries at least 330 days.

    • Instructions or the notice below does not say whether home in India or foreign country is required to be reported.
      If taxpayer has no Income Tax filing responsibility (meaning, he is below exemption amount to file US 1040)..then above thresholds are disregarded, and no 8938 is required.

 

 

 

 

 

 

 

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2017 Annual Adjustment Amounts: Tax Rates, Deductions, & Exemptions;


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2016 Annual Adjustment Amounts: Tax Rates, Deductions, & Exemptions;

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2015 Annual Adjustment Amounts: Tax Rates, Deductions, & Exemptions;

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2014 Annual Adjustment Amounts: Tax Rates, Deductions, & Exemptions;

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Questions & Answers on NII & Additional Medicare Tax

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Are you living abroad and a dual citizen?? Click here.

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"OVDI" (Offshore Voluntary Disclosure Program) Remains Open For Those With Undisclosed Foreign Income/Assets;

Other Options other than OVDP remain open too, like Streamlined Procedures.

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DNA India, a leading Mumbai daily, quotes Vimlan Tax Services. Click here...

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Mileage Rates for 2016 are here..

  1. 54 cents per mile for business miles driven (down from 57.5 cents in 2015);
  2. 19 cents per mile driven for medical or moving purposes;
  3. 14 cents per mile driven in service of charitable organizations;


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Mileage Rates for 2015 are here..

  1. 57.5 cents per mile for business miles driven (up from 56 cents in 2014);
  2. 23 cents per mile driven for medical or moving purposes;
  3. 14 cents per mile driven in service of charitable organizations;


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International Income Tax Liability...


Worldwide Income Reporting and Foreign Accounts

Most people filing US tax returns know if they are a US Citizen or a Greencard holder, but most do not know if they are a US "tax" resident. You may read the April 2011 E-newsletter we put out which explains the classifications mentioned above or call our office to request an appointment with a qualified tax advisor to discuss your case. Our December 2015 E-newsletter is out as well.