Anyone who must file or pay US taxes from abroad are required to file the FBAR once their financial accounts have reached the FBAR filing threshold as stated below. The best thing is that you can file your FBAR within minutes through the MyExpatTaxes app!
The Foreign Bank Account Report is a form needs to be filled out if you have had $10,000 or more combined from all foreign financial accounts at any one time during the year. The filing deadline is October 15th, and penalties for not filing can be hefty.
Calculating Total Value for FBAR
Curious to know about calculating the total balance for all your overseas financial accounts? Here’s an example:
You have 3 bank accounts: 2 from Italy, 1 from the US. You have a pension set up in Italy because you work for an employer, and life insurance from an Italian company you have been funding for 10 years.
Now, you need to calculate the maximum balance of the year for all foreign accounts – ignoring US accounts because they don’t count. Sum up the total from your foreign financial accounts, and convert the money into USD. Now you can determine whether you need to file an FBAR.