La Quinta, CA
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Monday, April 20, 2015

Reporting RRSP's on 8938 as Foreign Assets on U.S. Tax Return

If you are wondering whether you need to file form 8938 Statement of Specified Foreign Financial Assets, please read the following regarding ownership of RRSP's as a United States Citizen, greencard holder, or U.S. resident***.

***If you are a Canadian who is not a resident of U.S. but have elected to be treated as a U.S. resident for the purposes of filing a joint return (U.S. resident spouse), you are also required to file 8938 if you meet the requirements.


How do I report RRSP's on my U.S. 1040 Form 8938?

Report each Canadian RRSP on Part VI of the 8938. Do not separate assets (i.e. stocks) in the account. Remember to convert the amount into U.S. dollars. Use the Treasury currency conversion rates at the end of tax year.

At what point do I need to report my RRSP's on 8938?

You need to report ALL of your foreign financial assets (including RRSP's) if you meet these reporting thresholds.  These are as of 2015 and you may need to look up more recent thresholds.

  • Unmarried and living in the U.S. ----------------$75K Anytime during year or $50K at end of year
  • MFS and living in the U.S. ----------------------$75K Anytime during year or $50K at end of year
  • Married and living in the U.S. ---------------$150K Anytime during year or $100K at end of year
  • Unmarried and NOT living in the U.S. ------$300K Anytime during year or $200K at end of year
  • Married and NOT living in the U.S. ---------$600K Anytime during year or $400K at end of year 

 In order to qualify for the thresholds that apply to those not living in the U.S., your tax home will need to be in a foreign country (i.e. Canada) AND you will need to meet either be a Bona-fide resident of a foreign country (i.e. Canada) for the entire tax year (Bona-Fide Residency Test), OR you need to be present in a foreign country for at least 330 days of the tax year (physical presence test). 

As always, you should review with a cross-borders tax preparer when filing form 8938 involving Canadian RRSP accounts. We can prepare U.S. income tax forms and file U.S. income tax returns. We are located in California in the Palm Springs area. Give Borders Bookkeeping a call. 

(760) 895-3516