08/01/2024
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 […]
12/21/2024
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. […]
10/21/2020
The majority of Americans use tax software to file their US taxes. In the light of this, it’s strange that the IRS has been changing Form 1040 over the last couple of years, as very few people use it. Instead, the majority either employ a tax preparer, who uses software, or input their information into […]
07/14/2023
A consequence of the Tax Cuts and Jobs Act in 2017 was the introduction of IRS Form 8992: Global Intangible Low Taxed Income (GILTI). While its purpose was to discourage multinational corporations, like Apple,1 from evading US taxes, this legislation inadvertently impacted American expat small business owners worldwide. For US business owners operating as Controlled […]
07/14/2023
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 […]
09/18/2024
With over 800 different IRS forms and schedules, it’s easy to feel overwhelmed. Of course, you don’t need to be an expert on all of them — but it is a good idea to familiarize yourself with the most relevant ones to you. As a US expat, two essential forms to be aware of are […]
02/01/2025
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 […]
01/29/2025
Two years after Donald Trump signed into law his Tax Reform, in the last few days of December 2019 he signed another law called the SECURE (Setting Every Community Up for Retirement Enhancement) Act. The law comes into immediate effect in 2020. It is designed to allow American taxpayers, including expats, to better plan and […]
10/21/2020
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 […]
04/05/2022
FATCA is the Foreign Account Tax Compliance Act, a 2010 US law that aimed to help prevent offshore tax evasion. The law has had many unintended consequences though, particularly for American expats all around the world. US tax rules for expats The American tax system is unusual in that it requires American expats to file […]