Anything new with IRS stuff?

[Dim Witty]

I've been living on SS for 18 years now and haven't needed to file a tax return. Now my bank has notified me that this year's tax form is available to me. Is this something new, or should I simply ignore it?

 

[BA Bike Guy]

Your bank may have an interest income statement for you. Check with your tax advisor but I think if SS is your ONLY source of income and it's below $25k then you don't have to file, but if you have multiple sources of income, even if it is a small interest income, you may have to file. But I'm no professional so I'd say do more research...

 

[brandon]

Likely automatic mail from the bank.
They’re not figuring out if you need to file or not

From Google:

When You Likely Need to File (and Pay Tax on Benefits)
Your benefits become taxable if your combined income exceeds these base amounts:

• Single, Head of Household, Qualifying Widow(er): Over $25,000.
• Married Filing Jointly: Over $32,000.
• Married Filing Separately: If you lived with your spouse at any time during the year, you likely pay tax.

 

[Dim Witty]

Likely automatic mail from the bank.
They’re not figuring out if you need to file or not

From Google:

When You Likely Need to File (and Pay Tax on Benefits)
Your benefits become taxable if your combined income exceeds these base amounts:

• Single, Head of Household, Qualifying Widow(er): Over $25,000.
• Married Filing Jointly: Over $32,000.
• Married Filing Separately: If you lived with your spouse at any time during the year, you likely pay tax.

Thanks so much, Brandon!

 

[rob0001]

Not new....but if you had any bank or brokerage accounts that ever totalled a combined $10,000 you must file each year some forms

 

[steveinbsas]

Not new....but if you had any bank or brokerage accounts that ever totalled a combined $10,000 you must file each year some forms

Here's what Google AI has to say about this:

"Foreigners (specifically defined as U.S. citizens, green card holders, or resident aliens living outside the U.S.) are required to file Form 8938 in accordance with FATCA each year if they meet specific, higher reporting thresholds for their foreign financial assets. The filing is required when the total value of these assets exceeds specific amounts at the end of the tax year or at any time during the year.
The general deadline for Form 8938 is April 15, with potential extensions available for those living abroad. Reporting thresholds for foreign financial assets for individuals living abroad are higher than for those living in the U.S. and depend on filing status. Filing is necessary only if a U.S. income tax return is required and foreign financial institution assets are held. Assets in foreign currency must be converted to U.S. dollars using the Treasury Department's exchange rate from the last day of the tax year. FATCA reporting (Form 8938) has a higher threshold than FBAR reporting (FinCEN Form 114). Penalties apply for failure to report. While some assets reported elsewhere might not require duplication on Form 8938, they still contribute to the total threshold calculation."

Based on this information, it looks like no US tax payer has to file a form 8938, even if they have an Argentine bank account with more than $10,000 on deposit at any time during the year, as long as they are not required to file a US tax return for the year in question.

 

[rob0001]

Actually, you do have to file an FBAR form each year if you have ever during the year had over $10000 in foreign accounts. It can be done electronically...I never said you had to file a tax return...I said there are forms to be filed. Its clearly written on the IRS website...not Google. If you want it posted here, I can, but I think you can find it.
There is an additional requirement of forms if you go over $50000.
The penalties are fairly harsh if you don't do this. Ask you CPA.

 

[Cordoba]

Actually, you do have to file an FBAR form each year if you have ever during the year had over $10000 in foreign accounts. It can be done electronically...I never said you had to file a tax return...I said there are forms to be filed. Its clearly written on the IRS website...not Google. If you want it posted here, I can, but I think you can find it.
There is an additional requirement of forms if you go over $50000.
The penalties are fairly harsh if you don't do this. Ask you CPA.

I think the point was you could have wayyyyyy over the filing threshold trigger for 8938 in a foreign bank account but if you don't have a 1040 filing requirement to begin with you wouldn't need to file a return or form 8938. So you could have a million dollars in a foreign bank account but if you don't need to file a 1040 you don't need to file 8938.

Funny part in that same situation if you choose to file a 1040 anyway, which is what every CPA would likely recommend (ID Theft, reconciling IRS records, clean filing history), even when not required, then you would need to file 8938 because it would be a required attachment.

FBAR would be different but that can be done directly with FINCEN.

 

[rob0001]

I think the point was you could have wayyyyyy over the filing threshold trigger for 8938 in a foreign bank account but if you don't have a 1040 filing requirement to begin with you wouldn't need to file a return or form 8938. So you could have a million dollars in a foreign bank account but if you don't need to file a 1040 you don't need to file 8938.

Funny part in that same situation if you choose to file a 1040 anyway, which is what every CPA would likely recommend (ID Theft, reconciling IRS records, clean filing history), even when not required, then you would need to file 8938 because it would be a required attachment.

FBAR would be different but that can be done directly with FINCEN.

Yes, but according to my CPA at Deloitte Private if you have over the filing threshold in accounts in Argentina the IRS is getting info through FATCA since September of 2024 for the 2023 tax year. This is when Argentina finally started implementation. He says it takes as much as 3 years for "ding" letters to go out for non-compliance...so you are not at that point yet...you still have time to comply if you choose to do so.
My situation is quite different as I lived in multiple countries for years before coming to Argentina and have many foreign bank accounts. I always have to file a return unfortunately for several reasons.
Do as you please of course.