10/27/2026
An ITIN is a U.S. tax identification number for someone who needs one for federal tax purposes but isn’t eligible for a Social Security number. If you live abroad, your non-U.S. spouse or a dependent may need an ITIN to appear on your return or claim an eligible tax benefit. At Bright!Tax, we help Americans […]
10/23/2026
Modified adjusted gross income, or MAGI, helps determine whether you qualify for tax breaks such as education credits and direct Roth IRA contributions. For Americans abroad, excluded foreign income can count toward those limits—even when your U.S. tax bill is low. At Bright!Tax, we check these calculations alongside your exclusions and credits. A small tax […]
10/22/2026
Transferring money internationally can cost more than the fee on the screen. Exchange-rate markups, funding charges, and deductions along the way can all shrink what arrives. At Bright!Tax, we help Americans abroad understand the tax and reporting side of moving money across borders. Here’s what to check before sending savings, paying overseas bills, or supporting […]
10/21/2026
The Windfall Elimination Provision has been repealed, removing WEP reductions from Social Security benefits for January 2024 onward. If a foreign pension or other non-covered pension previously reduced your benefit, you could be entitled to higher payments and a retroactive adjustment. At Bright!Tax, we help Americans abroad understand how those payments fit into their retirement […]
10/20/2026
U.S. parents living abroad can claim the Child Tax Credit if they meet the eligibility rules, with up to $2,200 available per qualifying child for 2026. But qualifying for the credit doesn’t guarantee a refund—and filing Form 2555 to claim the Foreign Earned Income Exclusion prevents you from claiming its refundable portion. At Bright!Tax, we […]
10/16/2026
Moving abroad doesn’t automatically end your U.S. tax obligations. U.S. citizens and resident aliens still have to report worldwide income when they meet the filing requirements, even if they earn everything overseas and pay tax there. At Bright!Tax, we help Americans abroad work through these rules every day. These 14 tips from our expat tax […]
10/14/2026
Taking money from an IRA before age 59½ can mean ordinary income tax plus a 10% early withdrawal penalty. Living abroad doesn’t remove those rules, but your account type and the reason for withdrawing can change what you owe. At Bright!Tax, we help Americans overseas check those details before moving their retirement money. A withdrawal […]
10/15/2026
Your marginal tax rate is the federal income tax rate that applies to your next dollar of ordinary taxable income. A raise or bonus can push part of your income into a higher bracket, but it doesn’t mean everything you earn gets taxed at that higher rate. At Bright!Tax, we help Americans abroad understand what […]
10/12/2026
If you’re a U.S. citizen or resident alien living abroad, cryptocurrency tax reporting still applies when you sell, swap or spend crypto, or receive taxable rewards and payments. Buying with cash and holding it does not create a taxable gain. The reporting depends on what you did—not simply whether you own bitcoin. At Bright!Tax, we […]
10/09/2026
If you renounce U.S. citizenship or give up a long-term green card, the U.S. exit tax can apply if you meet the financial or tax-compliance tests for a “covered expatriate.” It can tax gains on assets you haven’t sold, while pensions and certain other arrangements have separate rules. But expatriating does not automatically mean you […]