I am a US citizen, have been living in Germany for over 20 years. I am married to a German citizen and work at a German institution. I pay German taxes and file my US tax return every year as married filing separately. The recent implementation of the 8938 FATCA form has thoroughly confused me and now I am wondering if I have been filing it correctly. I have my own savings accounts, opened in my name only, which naturally satisfies the signature authority/financial interest criteria. However, does this apply to my husband's various investments/accounts, which are in his name only? Am I considered, according to FATCA, to have "financial interest" in his accounts, or not? Should his accounts be listed on the FBAR, but not on FATCA?

ANSWER

The BIDaWIZ Team's Answer:

We're also assuming that your spouse isn't a green card holder (please state if otherwise). The FATCA form reporting for your spouse would also be necessary if you have financial interest as well as signature authority. Based on the facts and circumstances that you've provided, it doesn't appear as though you have direct financial interest in your spouse's financial accounts. It's also certainly helpful that you file as married filing separately. We would also add that even if you did have a financial interest in those accounts, the dollar value is below the amount that would require you to report those assets. Specifically, If you are married and file a separate income tax return from your spouse, you satisfy the reporting threshold only if the total value of your specified foreign financial assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the tax year (reference Form 8938 instructions). As for FBAR requirements, you're likely not required to report your spouses financial accounts as you don't have either financial interest or signature authority over those accounts.