2025年9月11日 Worldwide Taxation Explained：Do You Need to Report Foreign Income and Assets to the U.S.？
U.S. Tax Residents and Worldwide Tax Obligations
Do Income and Assets in Taiwan Also Need to Be Reported？
For new immigrants to the U.S., international students on F1/J1 visas, or those who have just obtained a work visa, one of the most common questions is：
“Do I need to report my income, bank accounts, real estate, or stocks in Taiwan or other countries to the IRS?”
yes.
As long as you qualify as a U.S. tax resident, the United States imposes worldwide taxation. This means you are legally required to report all global income and certain foreign assets to the IRS.
Want to know if you are considered a tax resident？
See：U.S. Tax Residency Rules: Understanding the Substantial Presence Test (SPT) and Green Card Criteria in 3 Minutes.
What Is “Worldwide Taxation”？
Which Foreign Income Must U.S. Tax Residents Report？
Once recognized as a U.S. tax residentt, you must report all income earned worldwidet—even if the money never enters the United States. Common categories include：
| Income Type | Example |
|---|---|
| Foreign Salary | Wages from employment in Taiwan |
| Foreign Rental Income | Rental proceeds from property in Taiwan |
| Dividends & Interest | Dividends from Taiwanese stocks, bank deposit interest |
| Capital Gains | Profits from selling stocks or real estate |
| Foreign Company Distributions | Profit-sharing or dividends from a Taiwanese company |
Key Reminder：
Even if the income is not remitted to the U.S., it must still be reported.
What Are FBAR and FATCA？
How Does the U.S. Require Reporting of Foreign Accounts and Assets？
FBAR (FinCEN Form 114)
Who must file？All U.S. tax residents (including citizens, green card holders, and SPT qualifiers)
Threshold：If the aggregate balance of all foreign accounts exceeds USD $10,000 at any time during the year
Covers：Bank accounts, brokerage accounts, joint accounts, foreign currency deposits
FATCA (Form 8938)
Who must file？U.S. tax residents required to file Form 1040
Thresholds：
- Single: Assets > $50,000 at year-end, or > $75,000 at any point during the year
- Married filing jointly: Assets > $100,000 at year-end, or > $150,000 at any point during the year
Covers：Foreign stocks, life insurance with cash value, mutual funds, privately held company shares, foreign trusts
FBAR vs. FATCA：Key Differences：
| Item | FBAR (FinCEN 114) | FATCA (Form 8938) |
|---|---|---|
| Authority | U.S. Treasury – FinCEN | IRS |
| Who Must File | All U.S. tax residents | U.S. taxpayers filing Form 1040 |
| Asset Threshold | > $10,000 in foreign accounts | Depends on residency & filing status (see above) |
| Asset Types | Bank, brokerage, joint accounts, deposits | Stocks, funds, policies, company shares, trusts |
| Filing Method | Filed separately via FinCEN e-file system | Attached to annual Form 1040 |
| Penalties | Non-willful: up to $10,000; Willful: 50% of account balance or $100,000 (whichever is greater) | $10,000 per unreported asset + back taxes + interest |
If you meet both thresholds, you must file BOTH forms. Filing one does not substitute for the other.
How Should New Immigrants and International Students Handle Worldwide Tax Reporting？
Quick Checklist：
Do I qualify as a U.S. tax resident (via SPT or Green Card)？
Does my foreign income exceed reporting thresholds？
Do my foreign assets exceed FBAR / FATCA thresholds？
Have I failed to report prior years？Do I need to file amendments？
Recommended Steps：
Prepare a comprehensive list of U.S. and foreign assets
Consult with a cross-border tax advisor
If prior filings were missed, consider IRS compliance programs (e.g., Streamlined Filing Procedures)
Three Golden Rules of FBAR / FATCA Reporting：
Thresholds are low and easy to exceed—commonly overlooked
Even accounts without income must be reported—ownership/control alone triggers reporting
Tax filing and asset reporting are separate obligations—filing Form 1040 alone does not fulfill FBAR/FATCA duties
Common Q&A
Worldwide Taxation Clarified
01．If I work overseas and have no U.S. income, do I still need to report
Yes. As long as you are a U.S. tax resident (e.g., Green Card holder, SPT), you must report worldwide income, even if earned entirely in Taiwan.
Q2．Do I need to report assets that generate no income？
Yes.
FBAR: Required if foreign accounts exceed $10,000 in total.
FATCA: Required if foreign assets exceed thresholds, regardless of income generation.
Q3．I’m an F1 student. Do I need to report worldwide income？
Generally no, for the first five years. F1/J1 students are usually exempt from the SPT and not considered tax residents.
But after year 6, or if your status changes (e.g., OPT, H-1B), you may become a tax resident—then worldwide income/assets must be reported.
Q4．If I don’t list my foreign accounts on my tax return, will the U.S. know？
Likely yes. The U.S. has FATCA agreements with 110+ countries (including Taiwan). Financial institutions automatically share account information with the IRS. Failure to report may result in：
Back taxes + penalties
Account audits
Long-term tax enforcement and even criminal charges
Q5．If my Taiwanese account is jointly held with my parents, do I need to report it？
Yes. If you have control over the account and balances exceed $10,000, it must be reported on FBAR and counted under FATCA thresholds.
Q6．What are the penalties for non-compliance？
FBAR: Non-willful up to $10,000 per year; Willful = 50% of account balance or $100,000 (whichever is higher)
FATCA: Minimum $10,000 per unreported asset, plus possible additional taxes, interest, and criminal liability
Conclusion：
For U.S. tax residents, reporting foreign income and assets is not optional—it’s mandatory.
Living in the U.S. means complying with worldwide taxation.
Whether you work in Taiwan, hold foreign accounts, or own overseas investments, once you qualify as a tax resident, you must report them to the IRS—or face serious consequences.
Early planning and compliance are key to safeguarding both your finances and immigration status.
The U.S. offers remedial filing programs and legitimate tax planning tools—don’t let lack of knowledge create unnecessary risks.
Have questions about U.S. taxation as a new immigrant？
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