Tax Rules and Compliance

Living abroad doesn’t exempt you from filing a U.S. federal income tax return, but it can complicate the details. One of the most common issues expats run into has nothing to do with foreign income or tax credits – it’s identification.  If your spouse or dependent doesn’t have a Social Security number (SSN), you may […]

The Foreign Tax Credit (FTC) can reduce your U.S. tax bill by the amount of qualifying foreign income tax you paid—but only up to the U.S. tax attributable to that foreign-source income. That limit is why paying $22,000 overseas doesn’t necessarily give you a $22,000 credit on your U.S. return. At Bright!Tax, we often see […]

Transferring money internationally sounds simple right up until the fees, exchange rates, and “small” charges start quietly taking bites out of the total. For expats, those losses add up fast. Rent, family support, savings transfers, mortgage payments—when money crosses borders regularly, the difference between a decent transfer and a bad one can mean hundreds or […]

Sending money to family—or receiving help from them—often feels like a personal, no-strings-attached decision. Just a transfer, a gift, a bit of support across borders. But when you’re a U.S. taxpayer, those transfers don’t always stay personal. The IRS has its own definition of what counts as a “gift,” along with limits, reporting rules, and […]

A lot of people assume a green card mostly matters for immigration. And then tax season rolls around, they’re living abroad, earning abroad, maybe paying tax abroad—and the U.S. still expects a return. That’s because for tax purposes, green card holders are generally treated like U.S. tax residents, even when they live overseas. In other […]

Sometimes, the only thing more overwhelming than realizing you forgot to file something is figuring out how to fix it without making it worse. If you’ve left foreign bank accounts off your FBAR (Report of Foreign Bank and Financial Accounts), but all your foreign income was already reported on your U.S. tax return, the IRS […]

Imagine you have $4,000 in a checking account, $3,500 in savings and $3,000 in an investment account—all held outside the United States. None contains more than $10,000. Together, however, they hold $10,500. If all three accounts are reportable, you must file an FBAR. An FBAR is simply a report of certain foreign financial accounts you […]

Living abroad comes with a lot of perks—new foods, new friends, and the chance to answer “where are you from?” in increasingly creative ways. But for U.S. citizens, green card holders, and resident aliens living in a foreign country, there’s one not-so-fun challenge that comes with the adventure: double taxation. The IRS loves to keep […]

Crypto used to feel invisible—wallet address, a few trades, maybe some staking, and not much scrutiny. That era is over. The tax rules themselves haven’t dramatically changed, but enforcement and reporting have. By the 2026 filing season, the IRS has far more visibility into digital asset activity, and taxpayers are expected to match their records […]

It’s not a fitness challenge. You won’t need a stopwatch, a yoga mat, or to prove how many push-ups you can do in a minute. But the physical presence test is a test—one that can save you thousands in U.S. taxes if you pass. Think of it as the IRS’s version of “Are you really […]