Foreign Earned Income Exclusion

All Americans are required to file US taxes, wherever in the world they live. For the millions of US expats and Digital Nomads who are self employed, there are several exemptions that they can use to reduce or in most case completely eliminate their US tax liability (although they still have to file). The principle […]

The Foreign Earned Income Exclusion lets US expats exclude the first around $100,000 (the exact figure rises a little each year) of their earned income from US taxes. It’s a great choice for many expats who earn less than this threshold, and sometimes a good option for expats who earn above the threshold too. To […]

All American expats who meet the minimum income thresholds (currently around $10,000 – though this may rise to nearer $12,000 if and when the Trump Tax Reform Plan is passed – or just $400 for self-employment income) are required to file US taxes reporting their worldwide income, wherever in the world they live. The IRS […]

Moving abroad is the adventure of a lifetime, but if you have student loans it’s important to understand the consequences for expats. For example, it’s a good idea to set up autopay (some loan servicers even offer a small discount for this) to ensure that you don’t miss any payments, and also to ensure that […]

American expats are, unfortunately, still required to file US taxes from abroad. Thankfully though, there are several exclusions that reduce or in most cases eliminate their US tax liability. The foremost among these is the Foreign Earned Income Exclusion. Not owing US taxes doesn’t exempt expats from having to file a US tax return though, […]

All US citizens and green card holders have to file a US tax return and pay US tax, whether they live in the States or abroad, and wherever in the world their income is earned or paid. This can expose many expats living and working abroad to the possibility of paying taxes both in their […]

All Americans are required to file an annual federal income tax return if they earn over around $10,000 (or just $400 of self employment income), wherever in the world they live and whichever country their income originates in. Americans living abroad may also have further US filing requirements under FATCA and FBAR (more about these […]

What is it? The US is the only developed nation in the world to tax based on citizenship rather than residence. As such, US citizens (or green card holders) are liable to pay US income tax on their worldwide income wherever in the world they live. If you live abroad though, you will probably also […]

US citizens and green card holders who live and work outside the US may be able to exclude part or all of their foreign earned income (both wages and income from self-employment) from US tax using the Foreign Earned Income Exclusion (FEIE). To qualify for the FEIE, a person needs to both work and live […]