Breaking News: IRS Updates Form 1040 for 2019

Breaking News: IRS Updates Form 1040 for 2019

The IRS has released a new draft Form 1040 for 2019 tax year (filing in 2020). While the new form is still in a public consultation phase, it’s notably different from the current Form 1040, which itself was only introduced just in time for the 2018 tax year and was a big departure from the […]

FATCA Bank Account Closure Threat for US Expats in France

FATCA Bank Account Closure Threat for US Expats in France

American expats living in France, like all Americans around the world, are required to file US taxes, reporting their global income. When they file they can claim one or more IRS measures such as the Foreign Tax Credit and the Foreign Earned Income Exclusion that allow them to avoid double taxation. Expats are also required […]

Senate Ratifies Updates to Tax Treaties

Senate Ratifies Updates to Tax Treaties

On July 16th and 17th, the Senate approved updates to the International Tax Treaties the US has with Spain, Japan, Switzerland and Luxembourg. These updates, or protocols, were agreed with the respective countries nearly a decade ago, with the delay in their ratification largely due to the efforts of a single senator, Paul Rand, who has […]

The US Foreign Tax Credit for Expats – the Ultimate Guide

The US Foreign Tax Credit for Expats – the Ultimate Guide

All Americans, including those who live abroad, are required to file US taxes, reporting their worldwide income. The US is the only country (besides African minnow Eritrea) that requires all of its citizens to file and pay taxes on their global income even if they live abroad. In contrast, the majority of other countries either […]

Form 6521 and Alternative Minimum Tax (AMT) for Expats

Form 6521 and Alternative Minimum Tax (AMT) for Expats

All Americans are required to file US taxes if they meet minimum income thresholds, including their global income, regardless of whether they live in the US or abroad. This leaves many expats having to file twice, to the country where they live as well as to the US. Thankfully, when they file, they can claim […]

Minimum Income Required for Expats to File US Taxes

Minimum Income Required for Expats to File US Taxes

The underlying principle of the US tax system is that US citizens and Green Card holders are required to file and report their worldwide income, whether they live in the US or abroad. This means that many expats have to file two tax returns, to Uncle Sam as well as in the country where they […]

What Expats Who Owe US Taxes Need to Know

What Expats Who Owe US Taxes Need to Know

Because the US tax system is based on citizenship (rather than residence), expat American citizens (and Green Card holders) are required to file US taxes, just the same as if they were living in the States. When expats file, they can claim one or more IRS provisions (such as the Foreign Tax Credit on Form […]

New Proposed GILTI Guidance Benefits Many US Expat Business Owners

New Proposed GILTI Guidance Benefits Many US Expat Business Owners

Last month, the IRS released final proposed guidelines relating to the taxation of GILTI (Global Intangible Low Tax Income) on certain foreign registered businesses. The 318 pages of IRS guidelines contain some welcome news for many US expat business owners. Background Before the Trump Tax Reform (the Tax Cuts and Jobs Act of 2017), Americans […]

Taxes for Expats – The US – Netherlands Tax Treaty

Taxes for Expats – The US – Netherlands Tax Treaty

The US – Netherlands tax treaty was signed in 1992, with a protocol added in 2004 covering dividends, certain other types of income, and sharing tax information between the two countries. The purpose of the treaty is to prevent double taxation for Americans living in the Netherlands and Dutch citizens living in the US, however the inclusion of […]