FBAR (FinCEN Form 114) and Form 8938 (Statement of Specified Foreign Financial Assets, under FATCA) both ask many U.S. persons to list foreign accounts and assets. They are not substitutes. Different agencies, different thresholds, different due dates, and overlapping account lists mean plenty of people file both in the same year. Filing FBAR does not erase Form 8938, and Form 8938 does not replace FBAR.
Foreign tax on dividends is a separate relief tool: Foreign tax credit basics. Foreign-domiciled funds can also be PFIC traps on Form 8621: PFIC basics for US investors. Filing path: Filing taxes for beginners. Account framing: Investing basics for beginners.
Side-by-side (plain language)
| Feature | FBAR (FinCEN 114) | Form 8938 (IRS) |
|---|---|---|
| Who gets it | Financial Crimes Enforcement Network (Treasury), filed through BSA e-filing | Internal Revenue Service, attached to your income tax return (or filed as required if no return) |
| Typical trigger | Aggregate foreign financial accounts exceed $10,000 at any time during the year (high-level rule) | Higher filing thresholds that vary by filing status and whether you live in the U.S. or abroad (check current IRS tables) |
| What is listed | Foreign bank, brokerage, and similar financial accounts | Specified foreign financial assets (accounts plus certain foreign stocks, partnerships, etc., under IRS definitions) |
| Overlap | Many foreign bank and brokerage accounts appear on both | Same accounts can also appear on FBAR |
| Common mistake | “I filed 8938, so I skipped FBAR” | “I filed FBAR, so I skipped 8938” |
Threshold dollars, asset definitions, and joint-filing rules change. Confirm the current-year IRS Form 8938 instructions and FinCEN FBAR instructions before you decide you are under the line.
Who often files both
Educational patterns where both forms commonly show up:
- A U.S. citizen keeps a HSBC or local bank account abroad plus a U.S. Schwab taxable brokerage.
- An expat uses FEIE on Form 2555 and still has foreign checking above FBAR’s aggregate test (FEIE basics; FEIE does not waive FBAR/8938).
- Someone inherits or opens a foreign brokerage that holds foreign mutual funds (watch PFIC + reporting overlap).
- A dual resident maintains accounts in Canada, the U.K., or the EU while filing a U.S. Form 1040.
U.S.-registered funds at Vanguard, Fidelity, or Schwab are usually not “foreign accounts” for these forms just because they hold international stocks. The foreign account or foreign-domiciled asset is what matters. Foreign withholding on a U.S. fund’s dividends is an FTC issue, not automatically an FBAR line (Foreign withholding basics).
Worked example: one year, two filings
Alex lives in Texas, files single, and keeps:
- A Barclays UK current account that peaked at $18,000 during the summer after a property sale deposit
- A Interactive Brokers Ireland-linked foreign brokerage worth $45,000 at year-end (and higher mid-year)
- A domestic Fidelity 401(k) and Roth IRA (U.S. custodians)
Educational pattern: the foreign bank + foreign brokerage aggregate clearly clears the $10,000 FBAR any-time test, so Alex calendars FinCEN 114 (generally due mid-April with an automatic extension to October in many years; confirm current FinCEN due date). Separately, Alex checks IRS Form 8938 threshold tables for a U.S.-resident single filer. If the specified foreign assets meet the year-end or maximum-during-year thresholds in the instructions, Alex attaches Form 8938 to the Form 1040 as well. Filing only one of the two would leave a gap.
Alex does not treat the domestic Fidelity retirement accounts as FBAR foreign accounts.
Practical habits
- Inventory every foreign bank, brokerage, pension pot, and foreign-held stock certificate once a year (max balance and year-end).
- Compare that list to both FinCEN FBAR and IRS 8938 instructions. Do not stop after one form.
- Keep statements from foreign banks (HSBC, Barclays, Deutsche Bank, local credit unions abroad) with your tax PDF.
- If you hold foreign mutual funds or UCITS ETFs, ask a CPA about PFIC Form 8621 and whether those assets also appear on 8938.
- Penalties for non-filing can be severe. “I didn’t know” is a weak plan after the fact.
Checklist
- List foreign financial accounts and peak balances for the tax year.
- Run the FBAR $10,000 aggregate any-time test (confirm current FinCEN wording).
- Run the Form 8938 threshold table for your filing status and residence.
- File FinCEN 114 electronically when required; attach Form 8938 when required.
- Separate FTC / FEIE elections from account-reporting duties.
- Re-check instructions after moves abroad, inheritances, or new foreign logins.
Educational only. Not tax, legal, or compliance advice. FBAR and Form 8938 thresholds, definitions, due dates, and penalties change; verify with current FinCEN and IRS instructions and a qualified tax professional before you file or decide you are exempt.