FBAR stands for FinCEN Report 114 — the Foreign Bank and Financial Accounts report. Any US person (including H1B visa holders who meet the "substantial presence test") who has foreign bank accounts with a combined value exceeding $10,000 on any single day in a calendar year must file.
What is FBAR?
FBAR stands for FinCEN Report 114 — the Foreign Bank and Financial Accounts report. Any US person (including H1B visa holders who meet the "substantial presence test") who has foreign bank accounts with a combined value exceeding $10,000 on any single day in a calendar year must file.
Who must file?
- H1B holders who pass the IRS Substantial Presence Test (usually after ~3 years)
- Accounts included: Indian savings, current accounts, FDs, NRE/NRO accounts, PPF (if you have signing authority), any joint accounts
What counts toward the $10,000?
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All your foreign accounts are aggregated. So even if each account individually stays under $10,000, if together they crossed $10,000 on a single day — you must file.
| Account Type | Counts for FBAR? |
|---|---|
| Indian savings account | Yes |
| Fixed Deposits (FD) | Yes |
| NRE account | Yes |
| NRO account | Yes |
| PPF (if you have signing authority) | Yes |
| Stock broker accounts in India | Yes |
How to file FBAR
FBAR is filed electronically through the BSA E-Filing System at bsaefiling.fincen.treas.gov. It is separate from your tax return — it goes to FinCEN, not the IRS.
Deadline: April 15. Automatic extension to October 15 if you miss it (no need to request).
FBAR vs FATCA (Form 8938)
Many H1B holders get confused between FBAR and FATCA. They are different:
| FBAR (FinCEN 114) | FATCA (Form 8938) | |
|---|---|---|
| Threshold | $10,000 any single day | $50K end-of-year / $75K at any point |
| Filed with | FinCEN (separate from IRS) | Attached to your 1040 |
| Penalty | Up to $10K/account non-willful | Up to $10K per failure |
You may need to file both. Many H1Bs who have NRE accounts + FDs + savings together crossing $50K must file both FBAR and Form 8938.
Common FBAR mistakes
- Including accounts you don't control (FBAR only applies if you have a "financial interest or signature authority")
- Converting balances to USD incorrectly — use the December 31 Treasury exchange rate for year-end values
- Missing FD accounts thinking they're not "bank accounts"
- Not filing just because the balance was under $10K at year-end (peak balance during the year triggers filing)
Watch the full H1B tax mistakes video →
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