FATCA

Having lived in Nicaragua for 8 years, I found the book an entertaining recap!

One area that interests me is bank accounts and FATCA limits. To open a bank account you have to supply your US social security number, so our IRS can check on reporting requirements.

It's my understanding that once you have an account and maintain the balance below $10,000, there is no reporting requirement.

Comments for FATCA

Average Rating starstarstarstarstar

Click here to add your own comments

Rating
starstarstarstarstar
Foreign Account Tax Compliant Act
by: Maggie

Hi there!

I am glad you found my eBook about retiring in Nicaragua a useful recap for you - despite having lived in Nicaragua for 8 years already (longer than I!).

A bit of background about FATCA for our international readers who may not know about it...

Since March 2010, the "Foreign Account Tax Compliant Act" (FATCA) requires U.S. citizens and residents to report their foreign financial assets that exceed certain thresholds to the IRS.

Individuals need to use Form 8938 to report these assets with their annual tax return.

Only specified foreign financial assets have to be reported, and only if the aggregate value exceeds US$ 50,000.

The IRS website provides an overview over the types of assets that need to be reported, e.g. deposits in a foreign account, stocks and securities, mutual funds, etc.

In addition, FATCA requires foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers.

I couldn't find any information about the reporting threshold for banks, but for individuals it's $50,000 (for all assets combined).

Hope that helps,

Maggie

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Retire Overseas: Nicaragua - Reviews.

What Our Visitors Say