02/08/2016
Until around a year ago, many honest, law-abiding US expats felt a real disincentive to file their historic tax returns as a result of pending and serious IRS penalties. Another large group of expats believed that as they didn’t owe taxes in the US, having paid higher tax rates abroad, they didn’t have to file […]
02/08/2016
US citizens and green card holders who live and work outside the US may be able to exclude part or all of their foreign earned income (both wages and income from self-employment) from US tax using the Foreign Earned Income Exclusion (FEIE). To qualify for the FEIE, a person needs to both work and live […]
02/08/2016
US citizens and green card holders living abroad are required to report their worldwide income to the IRS. They may also have to pay foreign income tax in their country of residence. Paying the full rate of tax on the same income to two different countries is called double taxation. The Foreign Tax Credit is […]
02/08/2016
Mexico is the number one destination for US expats. The US State department estimates that there are over 1 million American citizens living in Mexico, and it’s easy to understand why. A heady combination of high levels of personal freedom, low taxes, a relaxed culture and a friendly people gives Mexico a wide appeal. Factor […]
02/08/2016
All US citizens and green card holders have to file a US federal income tax return every year if their income is above the minimum threshold of around $10,000, irrespective of whether they live in the States or abroad. The threshold applies to worldwide income, and it doesn’t matter if you live in another country […]
02/08/2016
Following recent disclosure that the IRS will soon have the ability to revoke passports of US citizens who owe more than $50,000 of back taxes, fines and interest, we thought it was an opportune moment to take a look at what information the IRS is collecting on Americans living abroad. Historically, the IRS relied on […]
02/08/2016
Hidden inside a highway funding bill that Congress is expected to pass later this month, is a measure that will give the State Department the ability to revoke the passports (or deny their renewal) of people who are behind on their taxes, the Wall Street Journal recently reported. The new law will affect people who […]
02/08/2016
FATCA (the Foreign Account Tax Compliance Act), made law in 2010, compels US citizens and green card holders to declare their foreign bank accounts, earnings and assets to the IRS each year. It also compels foreign banks and financial institutions that want to do business with the US (so basically all of them) to declare […]
02/08/2016
Living abroad can and should be one of life’s great adventures, however for Americans federal tax requirements become more complex once you are living outside the US, and in some cases a lot more, depending on your particular situation. Alongside US federal obligations, Americans who are residents in another country will also probably have parallel […]
02/08/2016
As US expats, we are obliged to file annual returns and pay taxes to the IRS wherever we live in the world. So it would make sense in a way, given the choice, to live somewhere with very low or even no domestic tax rates. Of course most of us don’t have the choice of […]