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Abroad in America
As a non-US citizen living and working in the United States, you face many new challenges when it comes to learning and understanding a completely new financial and tax system. Pension plans, taxation of income (both here and abroad), and investments, along with retirement accounts and estate planning considerations, can seem overwhelming. This often leads to inaction and mistakes. The goal of this podcast is to help non-US citizens and cross-border families living and working in America implement effective strategies to take full advantage of the opportunities to create wealth offered to you in the United States, both while you are in America and even once you have left. Sit back and listen as you go behind the scenes with financial planner, author, and speaker Jimmy Miller to learn how to make your time in America as financially rewarding as possible. Be sure to subscribe so you don't miss out on any future episodes. Visit https://www.BaobabWealthAbroad.com for more information and free resources.
Abroad in America
FATCA Explained: Form 8938 and Foreign Account Reporting for Expats
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There’s an important reporting rule that affects many expats living or working in the United States — and it often shows up as a surprise.
In this episode of Abroad in America, we break down FATCA and Form 8938, one of the most misunderstood parts of U.S. tax reporting for people with financial connections outside the country. While many expats are familiar with the FBAR requirement, Form 8938 operates under a different set of rules and applies to a broader range of foreign financial assets.
If you maintain bank accounts, investments, pensions, or other financial assets outside the United States, understanding how FATCA works — and how Form 8938 fits into your tax return — is essential to staying compliant and avoiding unnecessary penalties.
We explain the purpose behind FATCA, why foreign banks now report account information to the U.S. government, and how Form 8938 requires individuals to disclose certain foreign financial assets as part of their annual tax filing.
You’ll also learn how Form 8938 differs from the FBAR, why the reporting thresholds are different, and why some expats may have to file one form, the other, or both.
In this episode, we cover:
What FATCA is and why the law was created
How foreign banks report U.S. account holders to the IRS
What Form 8938 is and how it fits into your tax return
The difference between FATCA reporting and FBAR reporting
Which foreign financial assets must be disclosed
The reporting thresholds that trigger Form 8938 filing
Why some expats must file both Form 8938 and the FBAR
Potential penalties for failing to file when required
For many expats, these rules can seem complicated at first. But once you understand the purpose behind FATCA and how Form 8938 works, the reporting process becomes much clearer — and much easier to manage.