Filing US taxes as an American living abroad can be confusing, and lots of questions arise. On this page, we cover some of the most commonly asked expat tax questions. If you can’t find the answer you’re looking for, search our expat tax blog, or get in touch.
All American citizens and Green Card holders have to file a US tax return every year reporting their worldwide income. They may also have to report foreign businesses and foreign bank accounts, investments and pensions.
Expats have to pay any US taxes due (or an estimated amount) by April 15th, however they receive an automatic filing extension until June 15th, and they can request a further extension to October 15th.
The Foreign Earned Income Exclusion is an IRS provision that lets expats reduce their US tax bill by excluding up to a set threshold of their foreign income. If you pay foreign taxes, it may be more beneficial claiming the Foreign Tax Credit, though.
Expats have to report their non-US registered bank (and other financial) accounts by filing an FBAR (Foreign Bank Account Report) form, and financial assets on IRS Form 8938, if they exceed certain thresholds.
The IRS taxes rental income and capital gains worldwide.
Most often, yes. Seek advice.
The source of earned income and employee benefits generally depends on the physical location of the taxpayer when earning the income. If earned in a foreign country, it is considered foreign source.
The source of unearned income meanwhile generally depends on the location of the payor or the property that generates the income. As a result, dividends and interest received from the U.S. government or domestic corporations is considered a U.S. source.
The IRS has a one-time amnesty program called the Streamlined Procedure that lets expats catch up with their federal tax filing from abroad without facing penalties.
It depends on the rules in the US state where you last lived, and on…
Tax Samaritan’s filing process is simple: first, complete our tax quote questionnaire so we can find out more about your circumstances. We are also available to meet by phone or video call to assist you complete the questionnaire. We then provide a quote and engagement letter. Once you’re happy, you sign it, and we request the information we need from you to complete your tax return. We prepare your return in the most beneficial way possible for you to review, and when you’re happy, we e-file it for you.
