H1 visa holders who have bank accounts overseas, do they need to declare

H1 visa holders have bank accounts overseas, do they need to declare Huang Huili I have a bank account in Taiwan. Do I need to declare it before April 15 this year? I am...

Huang Huili

I have a bank account in Taiwan. Do I need to declare it before April 15 this year? I am an H-1B visa holder and do not have a green card? Last year, the United States promulgated a new regulation, FATCA, which targets the disclosure and tax return of the value-added portion of overseas financial assets of US taxpayers. Subsequently, this regulation only specifically targets taxpayers’ overseas financial accounts and financial assets, not all overseas assets. Moreover, the new law still does not tax financial assets, but only requires disclosure, and only the income part needs to be taxed. Next, let’s take a closer look at the provisions of the new law. For U.S. taxpayers who meet the requirements of FATCA, an additional Form 8938 needs to be completed and submitted together with Form 1040 to the IRS before April 15. 8938 needs to fill in the amount of overseas income (interest, dividends, taxes, etc.); while the TD F 90-22.1 form only needs to fill in the account information, and does not need to fill in the income or the appreciation of financial assets. 8938 is required to be submitted to the IRS together with the 1040 tax return before April 15, but Form TD F 90-22.1 is required to be submitted to the U.S. Treasury Department on June 30, and specifically states not to be submitted with the tax return. The status of the declarer who needs to submit Form 8938 includes U.S. citizens, U.S. permanent residents; or non-immigrant visa holders who meet the "substantial presence test" and have lived in the United States for more than 183 days, such as certain H-1, L-1 visa holders, etc. Asset classes that need to be reported to the United States include: financial accounts in overseas financial institutions; and holdings of stocks or other securities issued by non-U.S. companies; any financial products or contracts with overseas entities as issuers or counterparties, mutual funds and other private investment funds. For financial assets that need to be "used for investment", as for real estate, if it is a private real estate that is obviously for personal use, it is not a financial asset, while shares in a real estate company used for investment are financial assets.

For tax returns on overseas non-financial asset income, other forms are required, such as Form 2555. Amounts required to be reported If unmarried and residing in the United States: Total foreign financial assets exceed $50,000 at the end of the tax year or total foreign financial assets exceed $75,000 at any time during the tax year. Married and residing in the United States and filing jointly with your spouse: Total foreign financial assets exceed $100,000 at the end of the tax year or total foreign financial assets exceed $150,000 at any time during the tax year. Taxpayers who reside outside the United States and file independently: Total foreign financial assets exceed $200,000 at the end of the tax year or total foreign financial assets exceed $300,000 at any time during the tax year. Living outside the U.S. but filing jointly with your spouse: Total foreign financial assets exceed $400,000 at the end of the tax year or total foreign financial assets exceed $600,000 at any time during the tax year. Failure to declare overseas financial assets in accordance with the law will result in a fine of up to US$10,000. If you still fail to declare or pay taxes in accordance with the law after being notified by the IRS, the fine will rise to US$50,000. For under-declared portion, a penalty of up to 40% of the insufficient amount may be imposed. Retrospective (recovery) of overseas income is based on the new FATCA regulations, which apply to the disclosure of overseas financial assets of taxpayers after March 18, 2010, that is, starting from the 2011 tax return. Another important part of the new FATCA regulations is that it requires overseas financial institutions operating in the United States, such as banks, to join an agreement with the IRS before June 30, 2013. The main content of the agreement is that these overseas financial institutions must conduct specific identity investigations and other due diligence reviews of their depositors and report relevant information about their U.S. depositors to the IRS. Overseas financial institutions that do not participate in the agreement must withhold and surrender 30% of their U.S. income to the IRS.