I'm a US citizen and retired and collecting social security benefits. I have a bank account in a foreign country. Will I lose my social security benefits and medicare insurance or do I need to declare my savings account and pay taxes on it?

ANSWER

Expert Eva Morgan's Answer:

As US citizen you are required to disclose any foreign bank accounts over $10,000 by filing FinCen (FBAR). You will also have to include form 8938 with your return if value of the account is over $50,000 if single or $100,000 if married filing joint return. There's no tax on the value of the account, however if the savings account is generating interest every year, the interest is taxable income to you. You will not loose your social security benefits or Medicare, but if the interest is significant, some of your benefits could be subject to income tax.

Eva Morgan, EA

Ohio

4 yrs experience

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