Do I need to report a Taiwan or foreign bank account?

Having a foreign account is legal — reporting it is required

Many people who move to the U.S. keep their bank accounts in Taiwan, China, or elsewhere. That is perfectly legal. But if you are a U.S. citizen or U.S. tax resident, the account can create up to three separate obligations. Each one has its own rule, and meeting one does not satisfy the others.

Question 1: Do I owe tax on what the account earns?

U.S. citizens and resident aliens are taxed on their worldwide income. Interest your Taiwan account earned while you were a U.S. tax resident is reportable income, even though no 1099 is issued and even if the money never leaves Taiwan.

The account balance is not income. Money you saved before moving, transfers between your own accounts, and true gifts from family are not income just because they sit in the account.

Converting to U.S. dollars

Amounts on your U.S. return must be in U.S. dollars. The IRS's general rule is to use the exchange rate in effect when you receive the income. The IRS also publishes yearly average rates; for 2025 it lists 31.167 Taiwan dollars per U.S. dollar, and it generally accepts any posted exchange rate that you use consistently.

Example: NT$15,000 of interest during 2025 ÷ 31.167 ≈ $481 of interest income.

If Taiwan withheld income tax on that interest, you may be able to claim a foreign tax credit on Form 1116, or deduct qualifying foreign income taxes as an itemized deduction. See the foreign tax credit guide.

Question 2: Do I need to file an FBAR?

You must file an FBAR (FinCEN Form 114) if you are a U.S. person with a financial interest in, or signature or other authority over, at least one financial account outside the U.S., and the combined value of those accounts exceeded $10,000 at any time during the calendar year.

• "Combined" means you add all your foreign accounts together. Two accounts of $6,000 each at the same moment total $12,000 — both must be reported.
• Whether the account earned income has no effect.
• An account in your parents' name can still count if you have signature authority over it.

The FBAR is due April 15 with an automatic extension to October 15. It is filed electronically through FinCEN's BSA E-Filing System — not with your tax return. The full rules are in FBAR: do I need to report my foreign bank accounts?

Question 3: Do I need Form 8938?

Form 8938 has much higher thresholds. For someone living in the U.S., it is required if specified foreign financial assets are worth more than $50,000 on the last day of the year or $75,000 at any time (single or married filing separately), or more than $100,000 / $150,000 if married filing jointly. If you do not have to file an income tax return, you do not have to file Form 8938. See FBAR vs. Form 8938 for the full comparison.

A worked example

Jason moved to the U.S. on an H-1B visa and is a U.S. tax resident for all of 2025. He kept two accounts in Taiwan:

• Income tax: report about $481 of interest on his 2025 Form 1040.
• Schedule B: check "Yes" for a financial interest in a foreign account.
• FBAR: required — the accounts together exceeded $10,000. He reports both accounts, including the small checking account.
• Form 8938: not required if he is single and his foreign assets stayed under $50,000 at year end and $75,000 at all times.