Ask an AI Accountant

If you are a U.S. resident or citizen with a Canadian bank account, you may need to file additional tax forms to report your foreign bank account. Here are two forms you should be aware of: 1. FinCEN Form 114 (FBAR): If the combined value of your foreign financial accounts (including bank accounts, brokerage accounts, and mutual funds) exceeds $10,000 at any point during the year, you are required to file the FinCEN Form 114, also known as the FBAR (Report of Foreign Bank and Financial Accounts). This form must be submitted electronically through the BSA E-Filing System by April 15th, with an automatic extension to October 15th if needed. 2. Form 8938 (FATCA): If you meet certain thresholds based on filing status and account value, you may need to file IRS Form 8938 (Statement of Specified Foreign Financial Assets) as part of your annual tax return. This form is required under the Foreign Account Tax Compliance Act (FATCA). The thresholds vary depending on your filing status and whether you're living in the U.S. or abroad. For example, if you're single or file as head of household and live in the U.S., you'll need to file Form 8938 if the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year. Thresholds are higher for married and foreign-residing taxpayers. Keep in mind that these forms are for reporting purposes only and do not necessarily result in additional taxes owed. However, failure to file them can result in substantial penalties. So, it's crucial to stay compliant with these requirements if they apply to you.