For example, US resident or citizen with savings account overseas.
The account is already being reported under FBAR and tax return form 8938.
I would guess if foreign currency were in a domestic brokerage account it would count as an asset like stocks, but what about if its in a savings account? What exchange rate should be used to report the value?
It doesn’t matter if this money is on the MOON. You are required to report all assets located anywhere that you have.
Conversion to USD the day you submit your forms.
Savings accounts definitely count.
What would make you think you don’t need to include this money you have?
Yes. It needs to be included.
You may have to spend some or all of those foreign savings on tuition.
It‘s clear that it should be reported, that question was if it should be added to the cash or asset totals?
I don’t think the OP is asking to hide the account, so much as the correct way to report it.
I say report it as an asset, not as cash. Cash looses value through inflation. However your foreign bank account is subject to currency risk as well, so it’s value is subject to change more dramatically.
It’s foreign currency in a savings account? Cash, savings, and checking accounts. FAFSA question 41 for the student and question 90 for parents.
Yes…it is reported as an asset just like every other savings or bank account is. Like I said…convert to USD the day you submit your financial aid forms. You should be able to make this conversion online easily.
Cash is a type of asset. The distinction on FAFSA is between several groups of assets: cash, savings, and checking accounts in one group; investments, including real estate in another group; and businesses and/or investment farms in a third group. I think this is what OP is asking about. Foreign currency in a savings account should be reported in the first group.
Yes, the question was if foreign currency would count as an investment or cash? I suppose if its held inside a brokerage accounts its clearly an investment. However if its inside a foreign saving account it might be seen as cash like?
Does this actually make a difference? Possibly cash is more heavily counted against tuition than investments, since unwinding investments might cost transaction and tax expenses.
Don’t overthink this. If it’s in a savings account, report it in the category that includes savings accounts.