For Americans living abroad or maintaining financial ties overseas, US tax compliance goes beyond just filing an annual tax return. One of the most important, and often misunderstood, requirements is the Foreign Bank Account Report (FBAR). If you’re a US citizen or resident and have foreign financial accounts that exceed certain thresholds, you may need to report them. But what if you share a foreign bank account with a non-US spouse?
What is an FBAR?
The FBAR is not filed with your tax return. Instead, it’s a separate filing submitted to the Financial Crimes Enforcement Network (FinCEN) via FinCEN Form 114. The purpose of the FBAR is to report foreign financial accounts that a US person has a financial interest in or signature authority over.
You must file the FBAR if:
- You are a US citizen, green card holder, or US resident, and
- The total value of all foreign financial accounts you own or control exceeds $10,000 at any point during the calendar year.
This includes checking and savings accounts, investment accounts, retirement accounts, and even certain foreign mutual funds.
What counts as a Joint Account?
A joint account refers to any foreign financial account that is legally owned by more than one individual. If your name and your spouse’s name both appear on the account, or if you both have the ability to withdraw or manage the funds, it likely qualifies as a joint account under FBAR rules.
Even if your non-US spouse is the primary account holder and you’re listed only as a co-signer or secondary user, the account can still trigger FBAR reporting.
Do you need to report a Joint Account with a non-US spouse?
Yes. If you’re a US person and your name is on a joint foreign account, that account must be reported on your FBAR if the total value of all your foreign accounts exceeds the $10,000 threshold.
It does not matter whether your spouse is a US person or not. What matters is that you are a US person and your name is on the account. The fact that your spouse is not subject to US tax law does not exempt you from your own FBAR reporting requirement.
Common Misunderstanding: “It’s their account, not mine”
It’s common for US citizens living abroad to assume they don’t need to report an account because it belongs to their non-US spouse. But if you’re listed on the account, even if you never touch it, you have a reportable financial interest.
The IRS and FinCEN are focused on access and control, not just who deposited the money or uses the account most often.
Does your non-US spouse need to file an FBAR?
In most cases, no. If your spouse is not a US citizen, green card holder, or US tax resident, they are not subject to FBAR requirements. The FBAR only applies to US persons.
So, while you must report the joint account, your spouse does not need to file an FBAR unless they themselves meet the US person criteria.
Do you need your spouse’s information?
Yes. To file your FBAR accurately, you will need to provide:
- The name of the financial institution
- The maximum value of the account during the calendar year in USD
- The type of account, such as bank account or investment account
- The joint owner’s name and address
In some cases, gathering this information can be tricky, especially if your spouse is protective of their financial privacy or does not understand US reporting requirements. But the rules don’t allow for exceptions due to marital privacy.
Privacy Concerns of Joint Accounts
It’s not uncommon for Americans married to non-US citizens to experience friction or discomfort when disclosing joint financial details to the IRS or FinCEN. Many non-US spouses worry about their privacy, question why their information is needed, or fear foreign government scrutiny.
Here’s what you can explain to help ease concerns:
- The FBAR is filed with FinCEN, not the IRS
- It is not a tax form and does not result in taxation of the non-US spouse’s income
- The account is being reported solely because of your legal access or ownership
- The report is confidential and not shared with foreign tax authorities unless part of formal intergovernmental agreements
If your spouse is still concerned, speak with a tax advisor familiar with expat issues. They may recommend structuring accounts differently in the future or exploring how to limit reportable ownership going forward.
Signature Authority
Even if you don’t own a joint account but have signature authority—meaning you can sign or control the account—you may still need to report it on your FBAR. For example, if your non-US spouse gives you legal authority to access their account but your name isn’t on it, this could still trigger an FBAR obligation.
There are some exceptions, such as for employees of US companies, but generally signature authority counts.
What happens if you don’t report a Joint Account?
Failing to file an FBAR or failing to include all joint accounts can result in serious penalties:
- Non-willful penalties up to $10,000 per violation
- Willful penalties up to the greater of $100,000 or 50 percent of the account balance
The IRS does allow for voluntary disclosure and streamlined filing compliance if you’ve missed FBARs in the past but can certify that it wasn’t intentional. If you’re behind, get help as soon as possible to catch up without facing maximum penalties.
If you’re a US citizen or green card holder with joint foreign accounts, it’s essential to understand your FBAR filing obligations regardless of your spouse’s citizenship. Sharing an account with a non-US spouse does not exempt you from reporting.
While the process may feel intrusive or complicated, filing the FBAR properly can help you avoid steep penalties and demonstrate good-faith compliance with US tax rules.
If you’re unsure whether your joint accounts need to be reported, or if you’ve missed FBAR filings in past years, we’re here to help.
