09/18/2024
With over 800 different IRS forms and schedules, it’s easy to feel overwhelmed. Of course, you don’t need to be an expert on all of them — but it is a good idea to familiarize yourself with the most relevant ones to you. As a US expat, two essential forms to be aware of are […]
04/05/2022
FATCA is the Foreign Account Tax Compliance Act, a 2010 US law that aimed to help prevent offshore tax evasion. The law has had many unintended consequences though, particularly for American expats all around the world. US tax rules for expats The American tax system is unusual in that it requires American expats to file […]
04/05/2022
Americans living abroad are subject to US taxation on their worldwide income, as well as a raft of other US reporting requirements, such as having to report their foreign financial accounts each year by filing an FBAR (Foreign Bank Account Report). FBAR reporting is triggered if any American has a total of over $10,000 in foreign accounts […]
04/05/2022
Americans who live abroad are required to continue filing a federal tax return each year, reporting their worldwide income, even if they’re also filing a tax return in the country where they’re living. When expats file their federal return they can claim one or more exemptions that the IRS has made available by filing the […]
05/10/2023
All Americans have to file an annual federal tax return, even if they live abroad. This is because the US taxes based on citizenship, rather than on residence, so if you’re a US citizen (or green card holder), you have to file US taxes reporting your worldwide income regardless of where in the world you […]
08/10/2020
US expats have been required to file US taxes since the nineteenth century, however it’s only since the Foreign Account Tax Compliance Act (better known as FATCA) was passed in 2010 that the IRS has had the means to enforce this requirement. FATCA requires US expats with over $200,000 in financial assets held overseas to […]
07/20/2020
America has an unusual tax system, as it’s based on citizenship rather than residence. This means that all US citizens (and green card holders) are required to file US taxes, whether they live in the US or abroad. Nine million Americans are currently living abroad, however many of them aren’t aware of the requirement for […]
07/20/2020
The Foreign Account Tax Compliance Act (FATCA) was signed into law in 2010 with the aim of cracking down on tax evasion to increase tax revenue following the financial crisis. FATCA contained two important measures that affect expats, a reporting requirement for expats who have financial assets abroad, and a reporting requirement for foreign banks […]
02/19/2021
All Americans, including expats, have to file a US tax return and report their worldwide income. All Americans are also liable to pay US taxes, even on foreign-earned income, however there are some exclusions and exemptions available that remove most US expats from ending up having to pay anything. Expats still have to file though […]
07/04/2024
The US uses a citizenship-based taxation schema, which requires expats to file US taxes, reporting even foreign-earned income, as long as they’re US citizens. Fortunately, there are many exclusions and exemptions available to reduce US tax owed, often to $0. However, filing does become more complicated when foreign financial assets are involved, as these also […]