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.
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The minimum income amount depends on your filing status and age. In 2017 for example, the minimum for single filing status if under age 65 is $10,400. If your income is below that threshold, you generally do not need to file a federal tax return. Review our full list for other filing statuses and ages.
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