Tax Rules and Compliance

When most people think about income taxes, they think of the taxes automatically withheld from their paycheck — or, if they’re self-employed, the quarterly tax estimates they pay. But, what about taxes on unearned income? Unearned income — also known as passive income — refers to the income you don’t actively work for. This can […]

You may already know that Americans who own rental property in the United States can claim depreciation to reduce their tax liability. What you may not realize, though, is that US expats can also claim depreciation on rental property based abroad. While foreign rental property depreciation has some unique nuances, we’re here to walk you […]

Nine million Americans live abroad, and expats employed by foreign firms in particular, often have foreign retirement accounts. Because the US tax system is based on citizenship, all US citizens, including expats, have to file a tax return to the IRS every year, reporting their worldwide income and assets. Foreign retirement plans often have tax benefits […]

Serving your country overseas comes with its share of challenges, but one you might not expect is navigating the complex world of US taxes. As a member of the US military deployed abroad — one of thousands of Americans working as military personnel supporting US armed forces in combat zones abroad — you’re still required […]

American expats have to differentiate between US and foreign source income when they file their US taxes. All Americans, including Americans living abroad, have to file US taxes, due to the fact that the US taxes based on citizenship. American expats also have to report their foreign registered businesses, and financial (i.e. bank and investment) accounts and […]

Many Americans living abroad get the opportunity to acquire foreign investments at some point in their fiscal journey. While investing in financial vehicles outside of the US can play an important role in diversifying your portfolio and aligning your investment strategy to the economy of your host country, it’s important to understand how foreign holdings […]

As a US citizen or green card holder living abroad, navigating the complexities of American tax rules can be daunting. Unlike many other countries that tax only income earned within their borders or require only residents to file, the US taxes its citizens and green card holders on their global income—no matter where they live. […]

If you’re a self-employed US expat, understanding your tax obligations is essential. Self-employed US expats are not only subject to income taxes but also Social Security taxes. Unlike working for an American employer (or some foreign employers1), you are responsible for keeping track of Social Security taxes when you’re self-employed. This is best done proactively […]

It’s common for longtime US expats to consider the pros and cons of renouncing US citizenship. The annual filing requirement can take a toll on both nerves and patience, leading many to question why, exactly, they maintain their US citizenship. Contrary to popular belief, however, renouncing is a time-consuming process rife with bureaucratic hurdles. To […]

There are several routes to American citizenship, but the main one is that if you’re born in the US then you automatically become an American citizen. Some people are born in the US to foreign parents who may be there temporarily though, perhaps studying, on a temporary work assignment, or just on holiday. These families […]