Tax Rules and Compliance

All Americans whose income exceeds certain thresholds must file (and potentially pay) United States taxes. Due to the US’s system of citizenship-based taxation, this is true even for American citizens and resident aliens living abroad. But no matter what currency their income is issued in, US expats must report it in US dollars (USD) — […]

Wondering how to move abroad from the United States? You’re not alone. Whether you call it wanderlust, itchy feet, or travel fever, many people feel a calling to embark on adventures overseas.  An estimated 5.4 million Americans live overseas, with more and more making the move every day. And with many countries having a lower […]

The purchase or sale of a home stateside can be challenging enough. Abroad, you also have to navigate the US expat tax reporting requirements, which can be a little confusing to say the least.  As a US expat, you may already know that your worldwide income must be reported on your American tax return and […]

The US is one of only two countries that uses a citizenship-based tax system rather than a territorial one. This means that the IRS taxes all US citizens, including dual citizens and Americans who live in other countries. So even if you already paid taxes in the country where you live abroad, if you are a […]

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 […]

Do expats pay state taxes? If this question isn’t top of mind when planning an international move, it’s understandable. There are a lot of other (frankly more exciting) things to think about.  Amidst all the excitement, though, it’s important to keep practical details (such as your tax obligations) in mind. The US operates on a unique […]

The IRS Standard Deduction allows Americans to deduct a fixed amount of their income from US tax when they file their federal return. The Standard Deduction lets Americans avoid the hassle of itemizing their actual deductions when they file. The amount of the Standard Deduction was very low before the 2017 Tax Cuts and Jobs […]

Over a million Americans have retired abroad, and millions more aspire to. The most common benefits include a better climate, affordable healthcare, and a better standard of living on retirement income. The most popular destination for Americans retiring abroad is Mexico, due to the twin appeals of its proximity and affordability. Many folks move there […]

Americans who move abroad are required to continue filing US taxes, reporting their worldwide income. This means that American citizens abroad often have to file two tax returns. The tax treaties that the US has with around 100 other countries don’t mitigate the risk of double taxation either, as they contain a ‘saving clause’ meaning […]