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Connect on LinkedInMaximum account value is the highest value a foreign financial account reached during the calendar year. For U.S. expats, it is used to determine and report foreign account values for FBAR and may also matter for Form 8938 and other international reporting.
Why it matters for U.S. expats
Maximum account value can create a reporting requirement even when the year-end balance is low. A foreign account that briefly held salary, savings, sale proceeds, pension funds, or a transfer from another account may push the aggregate value of foreign accounts above the FBAR threshold, so expats need to review the highest balance during the year, not just the balance on December 31.
Common questions
1. What does maximum account value mean for FBAR?
For FBAR, maximum account value means the highest value of the account during the calendar year, converted into U.S. dollars for reporting.
2. Does maximum account value use the year-end balance?
No. FBAR uses the highest value during the year, not the year-end balance. Form 8938 also asks for the maximum value of each specified foreign financial asset reported.
3. How do U.S. expats find the maximum account value?
Review bank, brokerage, pension, or account statements for the highest balance during the year. If exact daily values are not available, use the best available records and keep support for the estimate.
4. What exchange rate is used for FBAR maximum account value?
FBAR values are converted into U.S. dollars. Filers usually use the U.S. Treasury year-end exchange rate when it is available.
5. What exchange rate is used for Form 8938 maximum value?
Form 8938 uses the exchange rate on the last day of the tax year to convert the maximum value of a specified foreign financial asset into U.S. dollars, unless a permitted financial account statement rate applies.
6. Does maximum account value include joint accounts?
Yes. For FBAR, a U.S. person with financial interest in a joint foreign account reports the full maximum value of the account, not only their share.
7. Does maximum account value include accounts with signature authority only?
Yes. Accounts over which a U.S. person has signature authority can be reportable on FBAR if the aggregate foreign account value exceeds the threshold.
8. Can transfers between foreign accounts double-count for FBAR?
Yes. FBAR looks at the maximum value of each account. If the same money moves from one foreign account to another during the year, both accounts may show a maximum value and count toward the aggregate account value.
9. Do foreign accounts with no income still need maximum value reporting?
Yes. An account can be reportable for FBAR or Form 8938 even if it earned no interest, dividends, or other income.
10. What records should U.S. expats keep for maximum account value?
Keep monthly or annual statements, transaction histories, account numbers, institution names and addresses, currency used, exchange-rate source, maximum balance calculation, and any evidence supporting estimated values.
Related forms
- FinCEN Form 114: FBAR reporting
- Form 8938: FATCA reporting for U.S. expats
- Schedule B: Interest and Ordinary Dividends
- Form 1040: U.S. Individual Income Tax Return
When to get help
Professional guidance is important when:
- Your foreign accounts briefly exceeded $10,000 in aggregate during the year.
- You moved money between several foreign accounts.
- You hold joint accounts, business accounts, pension accounts, or brokerage accounts.
- You have signature authority over an employer’s or company’s foreign account.
- You are unsure which exchange rate to use.
- You cannot find exact maximum balances for older years.
- You missed prior FBAR or Form 8938 reporting.
Bright!Tax can calculate maximum account values, determine whether FBAR or FATCA reporting applies, and prepare the required foreign account forms. Get started with Bright!Tax.
Related Bright!Tax guides
Official sources
- IRS: Report of Foreign Bank and Financial Accounts
- FinCEN: Report Foreign Bank and Financial Accounts
- IRS: Instructions for Form 8938
- U.S. Treasury: Treasury reporting rates of exchange
Reviewed by
Katelynn Minott, CPA & CEO
Last reviewed
July 2026