How Do I Report My Child’s Foreign Account?

 

Wondering about the tax reporting requirements for your child’s foreign accounts? We can help you determine what you have to report on your or your child’s tax return and how.

First, you’ll need to report your child’s authority over foreign accounts or financial interest in accounts total $10,000 or more during the year. Along with reporting the income on your return, you’ll need to complete FinCEN Form 114: Report of Foreign Bank and Financial Accounts (FBAR). You must electronically file this form through FinCEN’s BSA E-Filing System, and failure to do so could result in a penalty of $10,000 or more.

Reporting Child’s Foreign Income

You can report income from your child’s foreign accounts under their name or under your own taxes. If you include the income with your return, you’ll use Form 8814: Parents’ Election to Report Child’s Interest and Dividends. By doing so, you have an interest in certain foreign financial assets held by your child. Be sure to include this income when you calculate the worth of foreign financial assets over which you have ownership or authority.

Tax matters for your or your child’s foreign accounts and income can get complicated. If you need help documenting or preparing taxes for your foreign accounts, you can rely on the tax pros at H&R Block. They can help ensure you have all your reporting requirements in order.  Find your local H&R Block Office to set up an appointment.

Related Topics

Related Resources

How Do I Withdraw Excess IRA Contributions?

If you’ve contributed too much to your IRA for a given year, you’ll need to contact your bank or investment company to request the withdrawal of the excess IRA contributions. Depending on when you discover the excess, you may be able to remove the excess IRA contributions and avoid penalty taxes.

At-Risk Limits And Reported Income

What are at-risk limits, and how can they help you reduce your reported income? Learn more about at-risk rules and get tax answers at H&R Block.

Is A Life Insurance Payout Taxable Income?

Does the IRS consider a life insurance payout part of your taxable income? Learn more from the tax experts at &R Block.

Investment App Taxes – Robinhood, Acorns & More

Learn more about the tax implications of investment apps like Robinhood, Acorns, Wealthfront & Stash with H&R Block. Accurately report all investment income