Managing Money Abroad

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 […]

Healthcare doesn’t work the same everywhere, and for U.S. citizens abroad, that difference can be more than just a cultural adjustment. From government-run systems to private international plans, the structure of healthcare (and how you pay for it) can vary significantly from country to country. If you’re used to employer-sponsored coverage or options unique to […]

When retirement planning involves two passports, two careers, and possibly a few countries along the way, the details can get muddled rather quickly. One spouse may have a full U.S. Social Security record, while the other has a work history spent mostly outside the American system. Luckily, spousal Social Security benefits can be just the […]

You file from abroad, report your foreign salary, maybe claim the FEIE or foreign tax credits—and then something odd happens. A credit disappears, a deduction shrinks, or your Roth IRA eligibility quietly evaporates. The culprit is often one number: your Modified Adjusted Gross Income (MAGI). MAGI matters because it’s the IRS’s gatekeeper for a long […]

Every investor hits a rough patch. But for U.S. expats, a dip in your portfolio isn’t just bad luck—it’s a tax opportunity in disguise. Tax loss harvesting is the strategy of turning your investment losses into real-life tax savings by offsetting capital gains and lowering your taxable income. It’s like spring cleaning for your portfolio—except […]

Every tax season, U.S. filers face an eternal question: tax deductions vs tax credits—which one actually saves you more money? It’s a bit like asking whether you’d rather have a coupon that takes a few dollars off your dinner bill, or a gift card that covers the whole entrée. Both are great, but they work […]

Your laptop says “New York,” your laundry says “Lisbon.” Welcome to the club. Thanks to remote everything, plenty of people now work for a U.S. company while living in Spain, Japan, Canada—or wherever the Wi-Fi behaves. Here’s the catch: who you are (U.S. citizen, green card holder, non-U.S. hire, or freelancer) changes the rules. Payroll, […]

It’s a question that comes up for expats almost every year: “Should I choose the standard deduction or itemized deductions?” The answer — as with so many things in life — is “it depends.” But if you need help choosing between itemized deductions vs. the standard deduction, we’re here to help. While the standard deduction […]

After years of saving for retirement, if you hold qualified US retirement accounts, you’ll need to take required minimum distributions (RMDs) at some point. While the rules around RMDs and RMD taxation are complex — especially if you live outside of the United States — they’re also essential to understand when retirement planning in order […]

When tax season rolls around, many expats find themselves wondering: Should I do my own taxes? While it is possible to do taxes by yourself or with the help of tax preparation software, it’s not exactly ideal. The US tax code contains many complexities as is. Factor in expat status, and it gets all the […]