# Fatca--fbar



## 197649 (Jan 1, 2013)

I have searched and searched for information on these two topics. Here's what I can't find the answer to. My disability pay is direct deposited into a bank in the Philippines. I was reevaluated and was awarded back pay. The back pay exceeded the FBAR AND FATCA reporting requirements.  The issue for me is that these funds deposited are NOT TAXABLE. but I must file both forms to report to the IRS. I don't see on any of the forms where it mentions taxable income.
These laws were written for companies and big $ people not for us folks who struggle to live. Any directions would be appreciated.


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## Bevdeforges (Nov 16, 2007)

The FBAR reporting is strictly the high balance for the year in any foreign accounts. So the taxability of the funds sitting there has no bearing on your need to file, nor on your income taxes (other than possibly indirectly). 

The FATCA reporting is primarily based on "certain financial assets" (and again, their balance, not their tax status). And, if you don't have sufficient income to have to file a tax return, you don't have to file the FATCA forms, though you still are responsible for reporting the accounts and high balances on the FBAR reports.
Cheers,
Bev


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## FFMralph (Dec 22, 2012)

If your gross income (before tax treaty adjustments or other exclusions) is above the threshold for your age and filing status, you are required to file a federal income tax. This means that if your bank account balance exceeds the thresholds (highest balance or year end balance) for your filing status you must file FACTA forms (Form 8938).

And as Bevdeforges said, FBAR has nothing to do with whether or not you file a tax return. *And remember FBAR and FACTA have different thresholds.*


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## Bevdeforges (Nov 16, 2007)

Let me just add here that, it is perfectly possible to file form 8938 to report a bank account with a balance above the filing threshold ($200,000 if you're resident overseas) in the section that says, essentially, yeah, I have this balance, but the account does not generate income, so there IS no line item related to this account on the 1040. If they have questions about this, they'll get in touch - but I know of several folks who file this way due to the nature of the accounts in question. 
Cheers,
Bev


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