Foreign Earned Income Exclusion

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 however requires all […]

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 […]

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 […]

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 […]

American tax rules require all US citizens and green card holders, including expats, to file US taxes on their global income. It’s unusual for expats to have to file: most countries just require residents to file, or just tax income arising in the country. As a result, American expats often have to file two tax […]

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 […]

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 […]