Foreign Earned Income Exclusion

Because the US taxes based on citizenship, American expats have to file US taxes from abroad, reporting all of their global income. Many Americans also have to file foreign taxes too, depending on the rules in the country (or countries where they live). Americans also often have to report their foreign registered bank and investment […]

All Americans are required to file a US tax return if they earn over $12,000 (in 2018), or just $400 of self-employment income, worldwide, even if they live abroad. This is because the US taxes based on citizenship rather than based on residence. Many expats are also required to report their foreign bank accounts, investments, and […]

The United States has an unusual tax system compared to most other countries, in that it taxes all US citizens on their worldwide income, regardless of where in the world they live. Most other countries either tax just residents, or only folks with income sourced in the country. The US tax system though requires all […]

All Americans (including green card holders) are required to file US taxes, reporting their worldwide income, including expats. Many expats mistakenly assume that they don’t have to file US taxes if they don’t have US sourced income, or due to a tax treaty, however all Americans who earn over $12,000 or just $400 of self-employment […]

Many Americans living abroad have heard that their income up to a certain threshold is exempt from US taxation. The truth is a little more complicated however. Due to America having a citizenship based taxation system, all Americans, including expats, are required to file a federal tax return each year, reporting their worldwide income. When […]

Living abroad is an incredible experience, so it’s easy to understand why over nine million Americans have made the move overseas. The American tax system is unusual though, in that expats are still required to file a US federal tax return, reporting their worldwide income, regardless of whether they are also filing foreign taxes or […]

Because the US taxes based on citizenship rather than on residence, all American citizens and green card holders, including expats, have to file US taxes, wherever in the world they live.   To mitigate the risk of double taxation (expats having to pay taxes abroad as well as to the US) that the requirement raises, […]

When Americans move abroad, they are usually more focused on the adventure ahead than on getting to grips with US tax rules for expats. In fact, many assume that their foreign income is tax exempt. It’s counter-intuitive, in a way, that US expats are required to file US taxes from abroad, declaring their worldwide income. […]