01/20/2023
For some Americans moving abroad, filing taxes as an expat is the furthest thing from your mind. On the other hand, other Americans may already be researching how to claim the Foregin Earned Income Exclusion in preparation for their big move (more on this shortly!). No matter where you fall on the spectrum of preparedness […]
06/20/2022
Living abroad as a US expat comes with many benefits – the opportunity to immerse yourself in a new culture and build new communities of friends and colleagues, all while exploring the world at large. And yet, along with all of these freedoms and experiences, comes potential frustrations as well. Example: When it comes to […]
06/14/2022
Let’s face it, Americans don’t have the best relationship with taxes and the IRS. According to a CBS News/YouGov survey, over 60% of Americans believe they’re paying more than their fair share on their US tax return. Taxes are a particularly annoying issue as Americans still have to declare their income to the IRS wherever […]
05/23/2022
Moving overseas to live and work in a new country can be stressful. It’s not easy to sell your things, say goodbye to loved ones, and learn to adapt yourself to a new culture that may not even speak the same language as you. But an aspect of moving overseas that scares many Americans away […]
02/24/2022
The Bona Fide Residence Test allows Americans living abroad to claim the Foreign Earned Income Exclusion, as well as the Foreign Housing Exclusion or Deduction. Americans living abroad are still liable to file and pay US taxes, and the Foreign Earned Income Exclusion provides a way for Americans to exclude income earned while living abroad […]
02/22/2022
Americans living abroad have to file a US federal tax return and declare their worldwide income, and they may also be liable to pay US income tax. One of the primary provisions that expats can use to exclude their income earned abroad from US tax liability is the Foreign Earned Income Exclusion. This lets Americans […]
12/09/2021
Updated February 1, 2023 The US is one of just two countries in the world with a citizen-based taxation system. Under this system, all citizens and permanent residents must file tax returns regardless of where in the world they live. Unfortunately, this means that expats are often required to file taxes (and are sometimes subject […]
07/22/2021
The Foreign Housing Exclusion allows American expats to deduct reasonable housing expenses from their taxable earned income. The Foreign Housing Exclusion is granted in conjunction with the Foreign Earned Income Exclusion, but neither are granted automatically: you have to apply for them and file form 2555 with your annual return. The Foreign Housing Exclusion is […]
04/08/2021
Americans living abroad have to file US taxes, reporting all of their worldwide income, regardless where in the world they are or where their income originates or is paid. Many expats struggle to understand this requirement, especially seeing as most other countries only tax residents and income accrued in the country. The US tax system […]
12/15/2020
With all Americans, including expats, having to report their worldwide income by filing a US federal tax return every year, the Foreign Earned Income Exclusion provides Americans living abroad a way to reduce their US tax bill (in many cases to zero). In 2021, for many Americans expats around the world filing their 2020 US […]