Form 8938 Thresholds Quick Guide: Living in the U.S. vs Abroad, Single vs Joint (FBAR Cross-Check)

Author: Gloria Liu, CPA ｜ YCL Tax, Accounting & Advisory

Bottom line in one breath

If you are a U.S. tax resident (citizen, green-card holder, or resident under the substantial-presence tests) holding China bank/brokerage accounts or other “specified foreign financial assets,” whether you must attach Form 8938 (FATCA) turns first on two facts: whether you “live abroad” for Form 8938, and single/MFS versus married filing jointly. For people living in the United States, common thresholds are unmarried >$50,000 on the last day (or >$75,000 at any time) and MFJ >$100,000 / >$150,000. Qualifying “abroad” filers use much higher thresholds. Form 8938 does not replace the FBAR—see our published FBAR vs 8938 article for the full contrast. Inventory assets now and do compliance planning.

Background

Form 8938 comes from FATCA, is administered by the IRS, and reports specified foreign financial assets with the federal income-tax return (including any extension). IRS pages and the Form 8938 instructions (revision labeled November 2021) set dollar thresholds by residence and filing status, and the official comparison chart stresses that 8938 and FBAR (FinCEN Form 114) are parallel. For Cary / RTP clients with PRC accounts, the classic mix-up is crossing the FBAR $10,000 line while remaining well below 8938—or missing non-account foreign assets that push 8938 over the line.

Old vs. new (threshold matrix)

These threshold bands have been stable for years; “contrast” here means U.S. vs abroad and single/MFS vs joint, plus a short FBAR duty split (not a new-statute rewrite).

1. U.S. · unmarried or MFS: total specified foreign financial assets >$50,000 on the last day or >$75,000 at any time → generally file 8938 (if an income-tax return is required).

2. U.S. · MFJ: >$100,000 last day or >$150,000 any time.

3. Abroad · unmarried or MFS: >$200,000 / >$300,000.

4. Abroad · MFJ: >$400,000 / >$600,000 (joint thresholds can apply even if only one spouse lives abroad—follow current IRS text).

5. “Living abroad”: foreign tax home plus bona fide residence for the full year or 330 days in foreign countries during a 12-month period ending in the tax year (and related tests)—part-year Cary↔Shanghai moves need facts (待核).

6. Specified domestic entities: >$50,000 / >$75,000 when the entity definition is met.

7. Vs FBAR: FBAR tests foreign financial accounts aggregating >$10,000 at any time and is filed with FinCEN; 8938 usually has higher thresholds, a broader asset set, and rides with the IRS return. Full comparison: slug fbar-vs-form-8938.

8. Penalties: failure-to-disclose civil amounts commonly described as up to $10,000, plus additional $10,000 per 30 days after notice (additional capped at $50,000 → about $60,000 total framework), plus other possible consequences. Goal: timely, accurate disclosure.

Self-check: does this affect you?

1. You hold PRC or other foreign bank/brokerage assets, certain funds, or foreign stock not held in an account.

2. Your life is centered in Cary / RTP—test the U.S. thresholds first; do not casually use the abroad bands.

3. You are posted long-term overseas and may meet tax-home + 330-day or bona fide residence tests.

4. On a joint return, aggregate both spouses’ specified foreign financial assets.

5. You already track FBAR but have never separately stress-tested Form 8938.

Simplified example (illustration only)

Assume Mr. Wang in RTP is a U.S. tax resident, single, with a U.S. tax home:

1. China bank + brokerage year-end about $40,000, intra-year high about $55,000, no other specified assets → below U.S. single $50k / $75k → maybe no 8938; still test FBAR vs $10,000.

2. Same year he holds China company shares outside a brokerage account worth about $80,000 → combined specified assets may cross the line → 8938 may be required.

3. If he truly qualifies as living abroad, the same dollars might stay under 8938—but “abroad” must be supported by facts, not aspiration.

There is no “China account = always / never 8938” rule of thumb.

Action timeline

1. Now: List specified foreign financial assets (including non-account interests); note title, joint ownership, year-end vs peak values.

2. Pick the band: U.S. vs abroad; single / MFS / MFJ.

3. Test 8938, then cross-check FBAR (see the dedicated comparison article).

4. File on the right rail: 8938 with Form 1040 (and extension); do not send 8938 to FinCEN.

5. 2026 reminder: You are reporting tax year 2025 assets. If prior years may be missing, evaluate remediation separately (e.g., DIIRSP pathways)—do not selectively fix only the easy year.

What YCL can do

1. Form 8938 threshold modeling: U.S./abroad, filing status, asset classification.

2. Dual-track checklist with FBAR (cross-reference; FinCEN filing remains separate).

3. Workpapers for China accounts and non-account foreign equity (current instructions control).

4. High-level options if prior-year disclosures may be incomplete (procedure choice is facts-specific).

5. Bilingual compliance planning from Cary (RTP) and Shanghai, with CPA Chenchen Liu and Gloria, including a Free Consultation entry point.

FAQ

Q: I live in Cary but travel to China often—can I use the higher abroad thresholds?

A: Not based on travel alone. You must meet the tax-home and presence / bona fide residence tests in the instructions—facts matter.

Q: If I file Form 8938, do I still need an FBAR?

A: Yes, if you meet FBAR tests. The regimes are parallel; see fbar-vs-form-8938.

Q: Are these dollar thresholds inflation-adjusted every year?

A: Public IRS materials present these bands as fixed threshold amounts (unlike some other inflation-adjusted figures). Still re-check the current-year instructions each season (待核 habit).

Book a consult

YCL Tax, Accounting & Advisory

Web: yclcpa.com ｜ Email: info@yclcpa.com

Phone: 919-802-8376 / 980-202-0666 ｜ WeChat: YCLUSA

U.S. office: 1140 Kildaire Farm Rd. STE 208, Cary, NC 27511

Shanghai office: 2-516, Zhongye Xiangteng Plaza, Lane 31, Jiatong Road, Shanghai

Free Consultation available by appointment.

Disclaimer

This article is general tax information only and is not tax, legal, or investment advice for any person or business. Application depends on asset facts, residence, filing status, currency conversion, and current IRS rules. Items marked 待核 require pre-filing verification. Consult a licensed professional for advice specific to you.