02/07/2019
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 […]
12/10/2018
Because all American citizens and green card holders are required to file a US tax return, reporting their worldwide income, the IRS provides a number of exemptions that can be claimed that help expats minimize (and most often eliminate entirely) their US tax liability. These exemptions must be claimed when expats file their federal […]
09/17/2018
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, […]
09/11/2018
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. […]
08/13/2018
Many expats are surprised or even shocked when they discover that they have to file US taxes from abroad. They may be paying foreign taxes where they live already, and anyway no other country (except Eritrea) requires expats to continue filing if they move abroad. While the US has tax treaties with over 100 other […]
05/10/2018
Americans living abroad are required to continue filing US taxes just as if they were still living in the States, reporting their worldwide income. In fact, filing US taxes is often more complex for American expats than for Americans living in the States, as they often have extra reporting requirements under FATCA or FBAR, while […]
04/09/2018
Trump’s 2016 election campaign promised tax reform, and in December 2017, after just under a year in office, he delivered on his campaign promise by signing into law the Tax Cuts and Jobs Act. The bill was written and passed quickly, and as any tax cuts had to be funded by other measures, many people’s […]
03/12/2018
US expats are required to file US taxes, reporting their worldwide income, regardless of the fact that they live abroad. Many expats are also required to file taxes in the country where they live, too, raising the possibility of double taxation on the same income. To avoid this scenario, the IRS has put in place […]
02/12/2018
American expats are still required to file US taxes from abroad. This is because the US taxes based on citizenship, rather than on residence like most other countries. While the tax treaties that the US has with around 100 other countries don’t alleviate expats from having to pay US taxes, the IRS has put in […]
01/11/2018
Americans who live abroad are still required to file a US tax return, reporting their worldwide income. Expats can claim the Foreign Earned Income Exclusion and/or the Foreign Housing Exclusion however, which allow them to pay less (or in many cases no) US tax (although they still have to file a US return to claim […]