FBAR vs. Form 8938: A detailed guide to key differences and filing thresholds (2026)

If you hold money outside the US, two separate reporting rules may apply to you. FBAR (FinCEN Form 114) is filed with the Financial Crimes Enforcement Network if the aggregate maximum value of your foreign financial accounts exceeds $10,000 at any point during the calendar year.

Form 8938 is filed with the IRS as part of your tax return once your specified foreign financial assets cross a higher threshold that starts at $50,000 (2025) for US residents. Many US expats have to file both.

Quick summary:

• File an FBAR if you have a financial interest in, or signature authority over, foreign accounts totaling more than $10,000 (2025) at any point in the year.
• File Form 8938 if you are a US person whose specified foreign financial assets exceed the IRS threshold for your filing status and residency.
• File both when both tests are met. Filing one does not satisfy the other.

If you are not sure which applies, use the quick decision path below:

1. Did your foreign accounts ever exceed $10,000 combined in 2025? → FBAR required.
2. Did your specified foreign financial assets exceed your Form 8938 threshold? → Form 8938 required.
3. Both true? → Both forms required, filed separately.

What is FBAR (FinCEN Form 114)?

FBAR is an annual report of foreign bank, brokerage, and similar accounts held outside the US. It is required if the aggregate maximum value of those accounts exceeds $10,000 at any time during the calendar year.

Take a typical case we see often: an American professional in Paris whose two local accounts quietly grew to $12,400 in 2025. That single fact triggered an FBAR filing obligation, even though neither account crossed $10,000 on its own.

Here is what you need to know:

• Who files: US persons (citizens, residents, corporations, partnerships, LLCs, trusts, and estates) with a financial interest in, or signature authority over, at least one foreign account.
• What is reported: The maximum value of each foreign account during the year, converted to USD.
• Where it is filed: Electronically through the BSA E-Filing System. Paper filing is not accepted.
• Deadline: April 15, 2026, with an automatic extension to October 15, 2026. No separate request is needed.
• Records: Keep account records for five years from the FBAR due date.

FBAR is not a tax form and does not itself create tax liability. It is a Bank Secrecy Act report used to detect unreported income and money laundering.

FBAR civil penalty maximums are adjusted annually for inflation. As of the most recent adjustment (January 2025, per 31 CFR §1010.821), the non-willful maximum is $16,536 per report (post-Bittner, this generally applies per annual FBAR, not per account).

The willful maximum is the greater of $165,353 or 50% of the account balance at the time of the violation. Confirm current amounts at FinCEN.gov before relying on these figures.

The key point: even moderate foreign balances can require filing FinCEN Form 114, and timely reporting helps prevent the penalty exposure below.

For a step-by-step walkthrough of the filing process, see our detailed FBAR filing guide.

What is Form 8938?

Form 8938 is the IRS statement of specified foreign financial assets. It was introduced under the Foreign Account Tax Compliance Act (FATCA) and is attached to your annual income tax return, not filed separately.

Form 8938 reaches further than FBAR. It covers:

• Foreign financial accounts (bank, brokerage, custodial)
• Directly held foreign stocks and securities not held in a financial account
• Interests in foreign partnerships, corporations, and trusts
• Foreign-issued life insurance or annuities with cash value
• Foreign pension and deferred compensation plans

For US residents, the threshold starts at $50,000 (2025) at year-end or $75,000 at any time for single filers, and $100,000 or $150,000 for joint filers.

Taxpayers living abroad have higher thresholds, discussed in the threshold section below. Certain specified domestic entities, as defined in the Treasury Regulations, must file Form 8938 if they meet the applicable ownership and asset tests and their specified foreign financial assets exceed $50,000 at year-end or $75,000 at any time during the year.

Foreign bank account reporting on Form 8938 overlaps with FBAR. A foreign bank account can appear on both forms. But signature authority alone triggers FBAR without automatically requiring Form 8938. To count for Form 8938, you generally need actual ownership or a beneficial interest in the asset.

Who needs to file FBAR vs. Form 8938?

Whether you need FBAR and Form 8938, only one of them, or neither comes down to three questions: who you are for US tax purposes, what you hold abroad, and how much it is worth.

File FBAR if all three apply:

• You are a US person (citizen, resident, or US entity).
• You have a financial interest in, or signature authority over, at least one foreign financial account.
• The combined maximum value of those accounts exceeded $10,000 (2025) at any point during the calendar year.

File Form 8938 if all three apply:

• You are a specified individual or specified domestic entity.
• You have an interest in specified foreign financial assets.
• The total value of those assets exceeds the applicable IRS threshold for your filing status and residency.

File both when both tests are met. This is common for expats with meaningful foreign investment accounts.

The thresholds below spell out the numbers.

FBAR vs. Form 8938: essential differences

The difference between FBAR and Form 8938 comes down to five things: the agency, the form number, what is reported, when it is due, and how penalties work. The table below covers the essentials.

 

Bottom line: Form 114 vs. Form 8938 is not an either/or question. They are two independent filings, and one does not replace the other.

Side-by-side comparison table

The most commonly confused points, in one place:

• Agency. FBAR goes to FinCEN. IRS Form 8938 vs. FBAR is a filing-destination distinction: Form 8938 goes to the IRS with your return.
• Trigger. FinCEN 114 vs. Form 8938: FBAR uses one flat aggregate threshold ($10,000). Form 8938 thresholds shift based on where you live and how you file.
• Scope. Form 8938 vs. FinCEN 114: Form 8938 covers a broader asset base, including directly held foreign stock and interests in foreign entities that FBAR does not touch.

You may need both forms for the same tax year, reporting some of the same accounts, using consistent USD values.

Not sure whether FBAR, Form 8938, or both apply?

Get FATCA reporting help

OBBBA updates & filing impact on FBAR and Form 8938

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025 (Pub.L. 119-21), did not change FBAR or Form 8938 filing obligations for the 2025 tax year. Despite pre-enactment speculation that duplicative foreign asset reporting would be consolidated or eliminated, the enacted law does not include any provision altering either filing.

• What did not change: The FBAR $10,000 threshold, the Form 8938 residency-based thresholds, the deadlines, and the penalty structure.
• What changed: Nothing directly affecting FBAR or Form 8938 filing rules.
• Why it matters: Both forms remain mandatory for the 2025 tax year filed in 2026, on the same terms as prior years.

Note on penalty amounts: FBAR civil penalty caps are inflation-adjusted annually by assessment date. The amounts in this article ($16,536 non-willful; $165,353 willful) reflect the January 2025 adjustment per 31 CFR §1010.821. Confirm current amounts at FinCEN.gov before publication.

For a broader look at what OBBBA did and did not do, see our OBBBA overview and tax provisions affecting expats.

What are the reporting thresholds for US filers?

Your threshold depends on which form you are filing, where you live, and how you file your return. The FBAR uses a single flat trigger; Form 8938 uses a matrix.

• FBAR: $10,000 (2025) in aggregate across all foreign accounts at any point in the year. Same for US residents and expats.
• Form 8938: From $50,000 (2025) year-end value for single US residents up to $600,000 at-any-time value for married couples filing jointly and living abroad.

The comparison of Form 8938 and FBAR requirements lays out the residency-based split we walk through below.

Three typical cases we see at TFX:

• Emma, a US expat in France, had combined balances of $12,000 during 2025. She crossed the FBAR threshold and had to file FinCEN Form 114 electronically.
• Carlos, a business owner in Spain with foreign investments worth $250,000 at year-end 2025, exceeded the $200,000 Form 8938 threshold for single filers living abroad. He reported them with his income tax return.
• Maya and Daniel, dual citizens filing jointly with accounts abroad totaling $420,000 at year-end 2025, exceeded the $400,000 Form 8938 threshold for married couples living abroad. They filed both FBAR and Form 8938 for the same tax year.

To calculate your FBAR maximum values correctly, see our guides on how to determine the maximum annual account balance for FBAR and the FBAR exchange rate to use.

FBAR filing threshold and limit (FinCEN Form 114)

The FBAR filing threshold is more than $10,000 in aggregate across all foreign accounts at any point during the calendar year. It is calculated using the maximum aggregate value, not the year-end balance.

Example: a US person holding three foreign accounts with peak balances of $4,000 each ($12,000 combined peak) must file. The threshold applies equally to US residents and US persons living abroad.

Two points that trip up filers:

• Joint accounts count in full. For a joint account you own with a non-US spouse, the full account value counts toward your $10,000 threshold, not half.
• Signature authority counts. If you can direct transactions on a foreign account (a parent’s account, an employer’s account), you may have an FBAR filing obligation even without ownership.

Quick checklist:

1. List every foreign financial account you owned or controlled in 2025.
2. Find the peak balance for each.
3. Convert each to USD using the Treasury year-end rate for 2025.
4. Sum the peak balances.
5. If the total exceeds $10,000, file FBAR.

Foreign accounts over $10,000 in 2025?

File your FBAR correctly

Form 8938 filing thresholds by residency and filing status

Form 8938 thresholds vary by filing status and by whether you live in the US or abroad. Both year-end value and highest value at any point during the year are tested. Cross either one and you file.

 

Thresholds are unchanged for the 2025 tax year filed in 2026. Certain specified domestic entities, as defined in the Treasury Regulations, must also file if they meet the applicable ownership and asset tests and their specified foreign financial assets exceed $50,000 at year-end or $75,000 at any time.

Two examples:

• A US resident, single, with a foreign brokerage account worth $60,000 on December 31, 2025, crossed the $50,000 year-end threshold and must file Form 8938.
• An expat couple filing jointly with foreign assets that hit $610,000 mid-year but ended the year at $390,000 still must file. The $600,000 at-any-time threshold was crossed.

For a broader overview of what US expats file each year, see our US expat taxes guide.

FBAR vs. Form 8938 threshold: key difference

The two thresholds are independent. Meeting one does not automatically trigger the other.

 

Remember this: A US expat filing jointly and living abroad may owe FBAR at $12,000 aggregate but not Form 8938 until year-end value reaches $400,000 or any-time value reaches $600,000. Both tests operate independently under FBAR and Form 8938 filing requirements.

Examples: Who files what?

The easiest way to see how the thresholds work in practice is to walk through a few real filing situations.

Scenario 1 – FBAR only
Alex lives in Berlin and has two German bank accounts. The combined peak balance in 2025 was $15,000. Alex owns no foreign stock, no foreign entity interest, and no reportable foreign retirement plan.
Result: FBAR only.

Scenario 2 – FBAR only (a common misread)
Priya and Sam are US citizens filing jointly from Singapore. Their foreign bank accounts peaked at $12,000, and they hold foreign mutual funds worth $250,000 at year-end 2025. FBAR is triggered by the $12,000 in accounts. Form 8938 is not triggered because the MFJ-abroad threshold is $400,000 at year-end or $600,000 at any point during the year – and $250,000 clears neither.
Result: FBAR only.

Scenario 3 – Both
Karen is a US resident, single, with a foreign brokerage account holding $60,000 at year-end 2025 and a mid-year peak of $70,000. FBAR is triggered because the account exceeded $10,000. Form 8938 is triggered because $60,000 exceeds the $50,000 year-end threshold for US-resident single filers.
Result: Both FBAR and Form 8938.

For a real-world case, see how we helped a US expat in Spain catch up on US taxes. If your spouse also has accounts, see whether your FBAR needs to include your spouse’s accounts.

What counts as reportable assets

FBAR looks at where the money sits. Form 8938 looks at what you own. The table below sorts the most common asset types.

 

Common gray areas to watch:

• Foreign retirement plans. Reporting depends on the plan’s legal structure and applicable IRS and FinCEN rules, not simply on whether the plan has a cash value. Employer-provided plans may qualify as specified foreign financial assets even if you cannot access the funds now, but treatment requires a facts-and-circumstances analysis.
• Foreign mutual funds and ETFs. Holdings in a reportable foreign financial account are generally reported on both forms when thresholds are met. Direct holdings should be evaluated separately under Form 8938 rules. Separately, these may be treated as PFICs, triggering Form 8621 reporting.
• Cryptocurrency. As of the 2025 tax year, FinCEN has not finalized proposed FBAR rules for virtual currency held directly. Digital assets held through reportable foreign financial accounts may still trigger FBAR. Form 8938 reporting depends on whether the asset is held through a specified foreign financial account or otherwise qualifies as a specified foreign financial asset under current IRS guidance.

For how FATCA and the OECD Common Reporting Standard interact, see our guide to FATCA and CRS reporting requirements.

Clear filing steps and timely deadlines

Filing FBAR and Form 8938 is a five-step process. The FBAR deadline is April 15, 2026, with an automatic extension to October 15, 2026. Form 8938 is due with your income tax return, including any valid extension. For calendar-year filers living abroad, the return is generally due June 15, 2026, with an optional extension to October 15, 2026.

Step 1 – Confirm what applies.
The $10,000 FBAR trigger and the Form 8938 thresholds ($50,000 to $600,000, depending on filing status and residency) are tested independently.

Step 2 – Gather documents.
Collect bank statements, ownership documents, and account numbers for every foreign account and specified foreign financial asset you own or otherwise must report.

Also identify any foreign accounts over which you have signature authority – often confused with Form 8938 signature authority – as this is an FBAR concept that may create a filing obligation even when the account is not reportable on Form 8938.

Step 3 – Convert balances to USD.
For FBAR, use the Treasury Bureau of the Fiscal Service rate on December 31 of the reporting year, or another verifiable rate if no Treasury rate is available. For Form 8938, follow the exchange-rate guidance in the Form 8938 instructions, using the Treasury Bureau of the Fiscal Service rate when applicable or another permitted publicly available rate applied consistently.

Step 4 – File FBAR electronically.
Submit FinCEN Form 114 through the BSA E-Filing System. Certain financial professionals with signature authority but no financial interest have an extended due date through April 15, 2027.

Step 5 – Attach Form 8938 to your federal return.
It is filed with Form 1040 as part of your federal income tax return. Keep account records for five years from the FBAR due date.

Deadline summary:

 

If you need more time, see how to file for a tax extension and additional time to file FBAR.

When both FBAR and Form 8938 apply to you

You file both FBAR and Form 8938 when your foreign account balances exceed $10,000 and your total specified foreign financial assets exceed the applicable Form 8938 threshold. Each form applies an independent test.

Crossing the FBAR threshold does not automatically mean Form 8938 is due, and vice versa.

Common overlap patterns:

• Expats with large foreign brokerage or bank balances that exceed both the $10,000 FBAR trigger and the $200,000 (single, abroad) or $400,000 (MFJ, abroad) Form 8938 year-end threshold.
• US residents with a single foreign account above $50,000 at year-end.
• Filers holding both bank accounts and non-account foreign assets (foreign stock held directly, foreign entity interests).

 

Two facts to keep straight:

• FBAR covers foreign financial accounts. Form 8938 covers a broader set of specified foreign financial assets, some of which are not in accounts.
• The Bittner v. United States ruling (2023) clarified that non-willful FBAR penalties generally apply per annual report, not per account. Willful penalties are still assessed per account.

Common mistakes that derail full compliance

Small errors on foreign reporting stack up fast. The most common ones we see:

1. Assuming FBAR covers everything. Filing FBAR without checking Form 8938 misses a separate FATCA obligation. Fix: run both tests every year.
2. Using inconsistent values. Reporting the same account at materially different USD values on FBAR and Form 8938 can invite questions. Fix: use an appropriate, documented exchange rate for each filing and apply your chosen methodology consistently.
3. Skipping joint or signature-authority accounts. Both count toward your FBAR threshold. Fix: include every account you own, co-own, or control.
4. Ignoring the highest-value-at-any-time test. A Form 8938 filing can be triggered by mid-year value alone, even if year-end value is below the threshold. Fix: check both tests.
5. Assuming one form replaces the other. It does not. Fix: file each form independently when its test is met.

Red-flag self-audit before filing:

• Are you using an appropriate, documented exchange rate for each filing, and is your chosen methodology applied consistently?
• Have you tested both the year-end and at-any-time thresholds for Form 8938?
• Have you included every signature-authority account on FBAR?

If you find an issue, see how to fix common FBAR mistakes and what happens if you don’t file your expat tax return.

Penalties for missing required filings

NOTE! All FBAR penalty amounts cited in this article reflect the January 2025 inflation adjustment under 31 CFR §1010.821. These amounts are adjusted annually. Confirm current figures at FinCEN.gov before relying on them.

FBAR and Form 8938 have separate enforcement tracks, and missing both in the same year creates parallel penalty exposure. The IRS FBAR and Form 8938 comparison confirms that filing one does not relieve the obligation to file the other.

Willful conduct changes the exposure significantly, and the distinction between non-willful and willful is fact-specific.

FBAR penalties and enforcement

FBAR civil penalty maximums are adjusted annually for inflation. As of the most recent adjustment (January 2025, per 31 CFR §1010.821), the caps are:

• Non-willful: Up to $16,536 per annual FBAR report. Under Bittner, this generally applies per report, not per account.
• Willful: The greater of $165,353 or 50% of the account balance at the time of the violation.

Confirm current amounts at FinCEN.gov before relying on these figures.

Criminal penalties can also apply in serious cases: fines of up to $250,000 and up to five years in prison, or $500,000 and up to ten years when paired with other violations. These apply only in a narrow set of cases.

Two practical points:

• Recordkeeping matters. Keep account records for five years from the FBAR due date. If FinCEN or the IRS asks and you cannot produce records, your exposure grows.
• Fighting a proposed FBAR penalty is possible.

See what happens when you fight FBAR penalties in court and our full FBAR penalties guide.

Form 8938 penalties and how they can stack

Form 8938 penalties often hit at the same time as FBAR violations, creating a double layer of exposure. The FATCA reporting penalty structure is layered:

• Initial penalty: $10,000 for failure to file a complete and correct Form 8938 by the due date, including extensions.
• Continuation penalty: If you do not file within 90 days after the IRS mails a notice of failure to file, an additional $10,000 applies for each 30-day period the failure continues, up to $50,000 additional. Total exposure per form: up to $60,000.
• Accuracy-related penalty: 40% on any tax underpayment attributable to undisclosed foreign assets.
• Extended assessment window: Six years, instead of the usual three.

A parallel-penalty illustration: an expat who misses both filings for the 2025 tax year can face up to $16,536 under FBAR (Jan. 2025 adjustment) and up to $60,000 under Form 8938. Each form covers different information, so one does not offset the other.

For deeper coverage of Form 8938 penalty risk and options for correction, see our guide to FATCA penalties for non-compliance.

How to stay compliant and avoid trouble

A four-step compliance routine keeps most expats out of penalty territory:

1. Map every foreign account and asset to the correct form at the start of each year. Bank accounts to FBAR. Bank accounts, foreign stock, foreign entity interests, and cash-value insurance or pensions to Form 8938 if the threshold is met.
2. Calendar both deadlines. April 15 for FBAR (extended to October 15 automatically). April 15 or June 15 for Form 8938, depending on residency, extended to October 15 with Form 4868.
3. Keep records for five years from the FBAR due date. Bank statements, exchange rate sources, ownership documents.
4. Review annually. Thresholds, penalty amounts, and filing rules can change, and your circumstances can too.

If you hold foreign assets, review the reporting side of your return before filing, not after. Two useful references: our expat IRS tax form checklist and the tax documents checklist.

This article is brought to you by Taxes for Expats, helping Americans abroad file US returns since 1999.

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