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U.S. taxpayers abroad

Living abroad changes the facts—not the need to check U.S. reporting.

A local bank account, workplace pension, investment platform, or entity interest can be ordinary where you live and still raise a U.S. reporting question. FATCA preparation translates that local financial picture into the federal return context.

Last reviewed September 5, 2026

Common reasons expats request a review

  • A first U.S. return after moving abroad or learning that citizenship-based filing may apply.
  • Foreign pensions, retirement arrangements, insurance products, or investment accounts.
  • Joint accounts with a non-U.S. spouse or family member.
  • A local business, partnership, corporation, or trust interest.
  • Earlier returns that did not include Form 8938 or related foreign-asset information.

Higher thresholds are conditional

The Form 8938 instructions provide higher thresholds for qualifying taxpayers living abroad. The taxpayer must meet the applicable tax-home and bona fide residence or physical presence conditions. Merely holding a foreign address is not enough.

Local and U.S. treatment may differ

A product’s familiar local label does not determine its U.S. tax classification. Preparation may require plan statements, account terms, entity records, and country-specific facts. Local-law advice is outside scope unless a qualified local professional is separately involved.

Form 8938 is only one possible international reporting form. The engagement letter should identify exactly which returns and forms are included.

Primary sources