Tax Rules and Compliance

Your marginal tax rate is the federal income tax rate that applies to your next dollar of ordinary taxable income. A raise or bonus can push part of your income into a higher bracket, but it doesn’t mean everything you earn gets taxed at that higher rate. At Bright!Tax, we help Americans abroad understand what […]

If you’re a U.S. citizen or resident alien living abroad, cryptocurrency tax reporting still applies when you sell, swap or spend crypto, or receive taxable rewards and payments. Buying with cash and holding it does not create a taxable gain. The reporting depends on what you did—not simply whether you own bitcoin. At Bright!Tax, we […]

If you renounce U.S. citizenship or give up a long-term green card, the U.S. exit tax can apply if you meet the financial or tax-compliance tests for a “covered expatriate.” It can tax gains on assets you haven’t sold, while pensions and certain other arrangements have separate rules. But expatriating does not automatically mean you […]

Green card holders must report their worldwide income to the IRS, even when they live and work outside the United States. Moving abroad does not end U.S. tax residency, and paying tax in another country does not replace your U.S. return. At Bright!Tax, we help green card holders work out what belongs on that return, […]

It’s not always easy to get detailed information about green cards. The US Citizenship & Immigration Services (USCIS) website can be technical and dense, which may leave you even more confused. As a dedicated tax firm for US immigrants and Americans abroad, we’re well familiar with green cards — so we’ve put together a brief, easy-to-understand guide.

Missing the tax deadline doesn’t stop you from filing, but what happens next depends largely on whether you owe the IRS or the IRS owes you. If you’re due a refund, you generally won’t face a late-filing penalty; if you owe tax, penalties and interest can build until you file and pay. At Bright!Tax, we […]

Discovering that you should have filed U.S. tax returns, FBARs or international information forms can be unsettling—but non-willful mistakes can often be corrected through the IRS Streamlined Filing Compliance Procedures. At Bright!Tax, we help Americans work through this process every day. The streamlined procedures allow eligible taxpayers to correct missed foreign income and reporting without […]

Falling behind on U.S. taxes while living abroad does not automatically mean facing years of penalties. If your mistake was non-willful and you meet the IRS’s non-residency rules, the Streamlined Foreign Offshore Procedures let you file overdue or corrected returns and FBARs without the usual failure-to-file, information-return or FBAR penalties. At Bright!Tax, we often work […]

If you failed to report foreign income or accounts because you genuinely misunderstood the rules, the Streamlined Filing Compliance Procedures can give you a way to catch up with reduced penalties—or no offshore penalties at all if you qualify for the foreign procedure. At Bright!Tax, we regularly hear from Americans who have lived abroad for […]

If you live in the U.S. and previously filed tax returns without reporting foreign income or financial assets, the Streamlined Domestic Offshore Procedures may let you correct the problem with a single 5% penalty. You must meet the IRS eligibility rules, certify that your conduct was non-willful and submit three years of amended returns plus […]