Bright!Tax US Expat Tax Blog

What is the Alternative Minimum Tax (AMT) & Form 6251?

Form 6251 Alternative Minimum Tax (AMT) for Expats

Most US expats are familiar with ordinary income taxes, which range from 10% to 37% depending on overall taxable income. Through expat-specific tax breaks, Americans abroad can often greatly reduce or eliminate their US tax liability. While this is generally a good thing, it can make high-income expats more susceptible to the Alternative Minimum Tax […]

What Is a PFIC? Understanding IRS Rules on Foreign Investments

Just found out about PFICs and feeling a little panicked? You’re not alone. Many U.S. expats with foreign investments don’t realize they own a Passive Foreign Investment Company until they’re knee-deep in tax forms—or worse, facing unexpected tax bills. The IRS classifies many foreign mutual funds, ETFs, and investment funds as PFICs, and unfortunately, they come with some of the most […]

Best Virtual Mailbox Services for Americans Living Abroad

Virtual Mailbox Services for expats

The number of Americans living abroad, including expats and Digital Nomads, now totals over nine million. Many of them still receive mail in the US from time to time (or regularly) though, and a Virtual Mailbox Service provides a way for expats to see their US postal mail more or less instantly. The way the […]

Do Astronauts Have to File US Taxes from Space?

Do Astronauts Have to File US Taxes from Space

What do astronauts and American expats have in common? American expats and astronauts both need the ability, courage and conviction to not just venture out into the unknown, but to succeed and thrive there. Unfortunately, they also share an inability to escape the requirement to file US taxes. The US taxes based on citizenship, meaning […]

Superannuation for Americans in Australia – A US Tax Guide for Expats

Superannuation for Americans expats in Australia

All Americans, including expats, are required to file US taxes, reporting their worldwide income. Expats may also have to report their foreign business interests, assets, and bank and investment accounts, including most foreign pension accounts. To avoid double taxation, rather than relying on the international tax treaties the US has signed, expats must claim one […]

IRS Continues Trend of Auditing More Expats in 2018

The IRS Audited More Expats in 2018

The new 2018 IRS Tax Book has confirmed that the IRS continued the trend of auditing a much higher proportion of international tax returns then domestic ones in 2018. While a total of 0.6% of all individual federal income tax returns were audited during the year, the figure for international returns is nearly six times the […]