FBAR vs Form 8938: Which Do You File, or Both?
The FBAR and Form 8938 both report foreign accounts, but they have different thresholds, deadlines, filing systems and penalties. Here is how they compare for Americans living in the UK, and how to tell whether you file one, the other or both.
Two reports that look alike but follow different rules: comparing them side by side shows whether you file one or both.
Written by the US UK Tax Experts team, cross-border tax specialists
FBAR vs Form 8938: an introduction
The short answer on FBAR vs Form 8938 is that they are separate reports, and many Americans in the UK file both. The FBAR goes to FinCEN once your foreign accounts pass $10,000. Form 8938 goes to the IRS with your tax return, but only above much higher thresholds for people living abroad. Filing one never replaces the other.
This article compares the two side by side. For the full reporting picture, read our guide to FBAR and FATCA reporting. Our FBAR and FATCA service explains how we prepare both each year.
Why FBAR vs Form 8938 confuses so many people
Both forms list foreign accounts, so they look like duplicates. However, they come from different laws and go to different agencies. The FBAR comes from the Bank Secrecy Act and is filed with FinCEN, the US financial crimes agency. Form 8938 comes from FATCA, the Foreign Account Tax Compliance Act, and is filed with the IRS. Consequently, the rules differ on almost every point.
What are the thresholds for each form?
The FBAR threshold is $10,000 in total at any time in the year. For Americans living abroad, the Form 8938 threshold starts at $200,000 at year end or $300,000 at any time for a single filer.
The FBAR threshold
According to the IRS FBAR page, you file if your foreign accounts together exceeded $10,000 at any time in the calendar year. The test is cumulative, so all accounts are added together. The figure does not change with where you live or your filing status. Therefore, almost every American with a UK salary account files an FBAR.
The Form 8938 thresholds abroad
The IRS page on whether you need Form 8938 sets higher thresholds for people living abroad. For a single filer, or married filing separately, you file above $200,000 on the last day of the year or $300,000 at any time. For a joint return, the figures are $400,000 and $600,000. You count as living abroad if you meet the bona fide residence test or are physically present abroad for 330 days in 12 months.
The Form 8938 thresholds in the US
The thresholds are much lower for people living in the US. The IRS comparison of Form 8938 and FBAR requirements gives $50,000 at year end or $75,000 at any time for single filers. For joint filers, it is $100,000 and $150,000. So an American who moves back to the US may need Form 8938 at far lower balances.
What does each form cover?
The FBAR covers foreign financial accounts, including those you can only sign on. Form 8938 covers specified foreign financial assets, which includes accounts and some assets held outside accounts.
Reported on both
The IRS comparison lists items that go on both forms. These include accounts at foreign financial institutions, foreign mutual funds and foreign life insurance or annuities with a cash value. For example, a UK current account, a savings account and an investment platform account appear on both. Foreign shares held in a foreign account are covered too, through the account.
FBAR only
Some items appear only on the FBAR. Accounts you have signature authority over, without a financial interest, are one example. Signature authority alone does not trigger Form 8938. Accounts at a foreign branch of a US bank are another. Additionally, indirect interests through an entity you own more than half of can belong on the FBAR. Therefore, an employee who signs on a company account may file an FBAR but not Form 8938.
Form 8938 only
Other items appear only on Form 8938. They include foreign shares held directly, rather than in an account, and interests in foreign partnerships. Foreign hedge funds and private equity funds are listed too. Consequently, someone with UK company shares held on a share certificate may report them on Form 8938 but not on the FBAR.
Neither form
Some assets go on neither form. The IRS comparison lists foreign property held directly, foreign currency and precious metals held directly, and foreign social security type benefits. Therefore, owning a house in Bristol does not by itself go on either report. However, the rent and any gain still go on your tax return.
Where and when is each form filed?
The FBAR is filed online with FinCEN, separately from your tax return. Form 8938 is attached to your Form 1040 and follows its deadline.
Filing the FBAR
The FBAR is filed through the BSA E-Filing System, as FinCEN explains on its FBAR page. It is due on 15 April, with an automatic extension to 15 October. You do not need to ask for the extension. Importantly, the FBAR is never sent with your tax return.
Filing Form 8938
Form 8938 is attached to your annual return and is due with it, including extensions. The IRS Form 8938 page links the form and its instructions. Notably, if you do not have to file a tax return for the year, you do not file Form 8938, even above the threshold. The FBAR has no such exception.
Valuing the assets
Both forms report a maximum value converted into dollars. The FBAR uses the end-of-calendar-year exchange rate. Form 8938 uses the rate at the end of the tax year, which for most individuals is the same date. Our article on the FBAR exchange rate explains which rate to use. Therefore, the two forms usually show matching dollar values for the same account.
What are the penalties for each?
Both carry penalties for failing to file, but they work differently. The FBAR penalty is set per report and adjusted for inflation, while the Form 8938 penalty is a fixed amount with continuation charges.
FBAR penalties
Under 31 CFR 1010.821, the non-wilful maximum is $16,536 for penalties assessed on or after 17 January 2025. In Bittner v. United States, the Supreme Court held in 2023 that it applies per report, not per account. Wilful penalties are far higher, up to the greater of a fixed amount or 50% of the balance. The underlying rule is in 31 USC 5321.
Form 8938 penalties
The Form 8938 penalty comes from section 6038D of the Internal Revenue Code. It is $10,000 for failing to file. If you still do not file after an IRS notice, a further $10,000 applies for each 30 days, up to $50,000 more. In addition, the IRS comparison notes that criminal penalties may apply to both forms.
Why filing one does not cover the other
The two penalties are separate. Therefore, filing Form 8938 does not protect you from an FBAR penalty, and the reverse is also true. In the FBAR vs Form 8938 question, the safe approach is to test each form on its own rules every year.
How do you tell which forms you file?
Run two separate tests each year. First, did your foreign accounts pass $10,000 at any time? Second, did your specified foreign assets pass the Form 8938 threshold for your status and residence?
Test one: the FBAR
List every foreign account, including joint accounts and those you can sign on. Find each account's highest balance in the year. Then check whether the accounts together passed $10,000 on any single day. If they did, you file an FBAR for that year.
Test two: Form 8938
List your specified foreign financial assets, including accounts and directly held foreign shares. Compare the year-end and highest values with the thresholds for people abroad. If either test is passed, and you must file a tax return, you file Form 8938. Our article on Form 8938 for Americans abroad covers the details.
Married couples and joint accounts
FinCEN guidance on reporting jointly held accounts says each joint owner reports the entire account value on the FBAR. On Form 8938, joint filers use the higher joint thresholds. However, if your spouse is not a US person and you file separately, you use the single thresholds. Consequently, the FBAR vs Form 8938 answer can change with your filing status.
What mistakes do people make with FBAR vs Form 8938?
The most common mistakes are assuming one form covers the other, missing accounts that count, and using the wrong thresholds. Each is easy to avoid with a yearly check.
Treating Form 8938 as the FBAR
Some people tick the foreign account box on Form 1040, attach Form 8938 and think the job is done. However, the FBAR is a separate filing with FinCEN. The IRS comparison is clear that the FBAR is not filed with a federal tax return. Therefore, in our experience, the FBAR vs Form 8938 confusion most often leaves the FBAR unfiled.
Using US thresholds while living abroad, or the reverse
The Form 8938 thresholds depend on where you live. People abroad use the higher figures only if they meet the bona fide residence or 330-day test. Consequently, someone who moved to the UK mid-year may not yet qualify for the higher thresholds. Equally, someone who moves back to the US loses them. We check residence each year before applying either set.
Forgetting the spouse filing rules
Spouses can sometimes file one FBAR between them. FinCEN guidance on filing for a spouse allows this where all the other spouse's accounts are jointly owned with the filer. Both spouses also sign Form 114a. Otherwise, each US spouse files their own FBAR. If your spouse is not a US person, only you file, but the joint accounts still go on your FBAR.
Missing small or closed accounts
The FBAR lists every account once the total passes $10,000, even accounts with tiny balances. Accounts closed during the year count too, using their highest balance before closing. Therefore, an old savings account you emptied in March still belongs on that year's FBAR.
A worked example of FBAR vs Form 8938
Consider a typical case. Olivia is 40, a US citizen living in Edinburgh with her British husband. She files US returns as married filing separately. She has a UK current account, a joint savings account and a stocks and shares account on a UK platform. This is an illustrative example, not a real client.
In 2024, her accounts peaked at about $60,000. That is over $10,000, so she files an FBAR listing all three accounts. However, it is well under the $300,000 at-any-time threshold for a separate filer abroad, so no Form 8938 is needed. By 2026, an inheritance lifts her platform account so that her total passes $320,000 during the year. Now she passes both tests, so she files an FBAR and attaches Form 8938 to her return.
What Olivia's case shows
The FBAR applied every year, while Form 8938 applied only when her assets grew. Had she moved back to the US, the lower US thresholds would have applied sooner. Moreover, her UK funds may bring separate PFIC reporting, whatever the outcome of FBAR vs Form 8938. Our article on what FATCA is explains why UK banks also ask about her US status.
How US UK Tax Experts can help
US UK Tax Experts prepares FBARs and Form 8938 alongside your US and UK returns, from one file. We run both tests each year, list every account and asset, and convert the values consistently. Therefore, the two reports and your tax return agree with each other. If you have missed either form in past years, we prepare the catch-up through the right route.
Conclusion
The FBAR and Form 8938 overlap, but they are not the same. The FBAR starts at $10,000 and goes to FinCEN. Form 8938 starts much higher for people abroad and goes to the IRS with your return. Many Americans in the UK file the FBAR every year and add Form 8938 as their assets grow. In the FBAR vs Form 8938 question, the answer is often both.
Contact us
If you are unsure whether you need an FBAR, Form 8938 or both, email hello@usuktaxexperts.com or use our contact form. Tell us what accounts and assets you hold and your filing status. We reply within one working day.
Frequently asked questions
Often, yes. They are separate reports with separate thresholds, and filing one never replaces the other. Many Americans in the UK file the FBAR every year and add Form 8938 once their assets pass the higher thresholds for people abroad.
The FBAR is filed online with FinCEN once foreign accounts pass $10,000 at any time. Form 8938 is filed with your tax return to the IRS, above higher thresholds. They also cover slightly different assets.
If you qualify as living abroad, a single filer files above $200,000 at year end or $300,000 at any time. For a joint return, the figures are $400,000 and $600,000.
On the FBAR, yes, subject to some exceptions. Signature authority alone does not trigger Form 8938. So an employee who signs on a company account may file an FBAR but not Form 8938.
No. Foreign property held directly goes on neither form. However, any rent and any gain on sale still go on your US tax return.
The non-wilful FBAR maximum is $16,536 per report for penalties assessed on or after 17 January 2025, with far higher wilful penalties. Form 8938 carries $10,000, plus up to $50,000 more after an IRS notice. The FBAR vs Form 8938 penalties are separate.
