Tax Services
Expats / Expatriate Tax
What Americans living abroad need to know about US filing obligations
What Living Abroad Means for Your US Tax Filing
The US is one of the few countries that taxes citizens and permanent residents on worldwide income no matter where they actually live. That brings filings, exclusions, credits, and treaty provisions into the picture that a typical domestic return never has to deal with. It's worth talking to our team about what your specific filing requires.
Making sense of worldwide compliance, including the FEIE, foreign tax credits, and treaty benefits available to you.
Key Things to Know
- Worldwide income basics
- Exclusions & credits
- Foreign account reporting
Ready when you are
Operational Milestones
Assess
The starting point is a full look at residency status, income sources, foreign accounts, and any international business interests to map out a complete tax profile.
Optimize & prepare
From there, every exclusion, credit, and treaty benefit that applies gets identified, and the required federal, state, FBAR, and FATCA filings get prepared.
Comply & advise
Ongoing guidance follows as tax law, residency, and business structures change, with an eye kept on offshore-disclosure compliance throughout.
Included Services & Outcomes
Expat Tax Penalties Can Stack Up Quickly
Unreported foreign accounts, missed FBAR filings, and treaty provisions applied incorrectly can all trigger steep IRS penalties, frequently $10,000 or more for each violation. Getting this right isn't optional once income or assets are held abroad.
Questions
Expats / Expatriate Tax FAQ
Do US citizens living abroad still have to file?
Yes. The US taxes citizens and permanent residents on worldwide income no matter where they live, and the filing requirement applies even when exclusions or credits bring the actual tax owed down to zero.
What exactly does the Foreign Earned Income Exclusion do?
The FEIE lets qualifying US taxpayers living abroad exclude a set amount of foreign earned income from US taxation, over $120,000 for 2024. Confirming eligibility and getting the full benefit of it is exactly the kind of thing a preparer should be checking on your behalf.
What is FBAR, and does it apply to me?
FBAR (FinCEN Form 114) comes into play once foreign financial accounts add up to more than $10,000 combined at any point in the year. Penalties for skipping it can be severe, which is exactly why timely, accurate reporting matters.
Does this apply to digital nomads and remote workers too?
It does. Digital nomads, freelancers, and remote workers earning income while living abroad face the same US tax obligations as anyone else, and there's real value in a preparer who helps you stay compliant while making full use of the exclusions and credits available.
What happens tax-wise if US citizenship is renounced?
Renouncing citizenship triggers an expatriation tax, essentially a mark-to-market exit tax applied to worldwide assets. Understanding and planning for those implications, both before and after renunciation, is exactly where a good preparer can help.
Resources
Expats / Expatriate Tax insights
Living Abroad and Behind on US Filings?
Set up a free consultation. We'll review where things stand, quote a flat fee, and lay out exactly what we'd do differently.