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Are you a United States citizen that is living abroad?
"Expat tax return"
"Expats living abroad may need to file state taxes"
"Expat tax return"
U.S. Citizens & Resident Aliens Abroad
If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad.
Expats living abroad are subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code.
Many Americans living abroad qualify for special tax benefits, such as the foreign earned income exclusion and foreign tax credit, but they can only get them by filing a U.S. return.
"Owing taxes"
You may be relieved that many expats usually don’t owe taxes to the IRS when living abroad. This reason comes down to a few tax benefits and exclusions that prevent Americans from double taxation on foreign income and owing unnecessary fees.
"Fbar reporting"
"Expats living abroad may need to file state taxes"
"Expat tax return"
The Foreign Bank Account Report (FBAR) is a form every US expat may need to file.
If you have had at least $10,000 in savings in any foreign financial accounts at any one time during the tax year, even if you do not need to file a US tax return, you may have to file an FBAR because of this obligation.
Therefore, whether you have a foreign bank account, like savings, checking, or investments, you’ll need to file the FBAR.
Additionally, you need to file if you have signatory authority over a foreign financial account (e.g., shared bank account with your spouse).
"Expats living abroad may need to file state taxes"
"Expats living abroad may need to file state taxes"
"Expats living abroad may need to file state taxes"
US citizens living abroad may have to file State taxes, remember you’re not automatically excluded from paying state taxes if you’re living abroad.
Generally, Americans abroad only need to file a state tax return along with their federal tax return if:
They are considered domiciled (having a permanent home) in that state.
Have lived in the state for a part of the tax year (January 1st-December 31st).
They have earned money working in the state even if temporarily.
We will need review your state’s filing requirements since all US states have their laws. We will inform you if you need to file state taxes.
We file income tax returns in all 51 states including Puerto Rico.
American parents can receive tax credits even living abroad
"Child tax credit"
Expat families can save on their US taxes through the Child Tax Credit. So, regardless of where a US citizen’s family lives or works, the US provides financial assistance in tax refunds and credits.
For each qualifying child under the age of 17 and has a valid Social Security Number a $1,600 tax credit can be claimed.
This credit can go towards any US taxes that are owed. Otherwise, if families don’t owe tax, then this money becomes refundable.
If you lived within the US for more than half of 2024, then you can claim an even higher refund!
"The foreign earned income exclusion"
Known as the (FEIE), expats can exclude up to $120,000 of foreign earned income from their 2024 US expat taxes.
To be eligible for the FEIE, expats can use the "Physical Presence" Test or the "Bona Fide Residence" (see test below)
Physical Presence Test: You were outside of the US for 330 full days in a consecutive 12 month period, beginning or ending in the tax year.
Bona Fide Residence test: You were a registered resident and subject to local taxes in your host/foreign country for a full calendar year.
"Foreign tax credits"
The (FTC) is a dollar-for-dollar tax reduction from the IRS that goes towards your foreign earned income. You can avoid double taxation using the FTC by:
1. By checking whether your income is passive or falls into another foreign tax credit category.
2. Identifying which income is foreign sourced.
3. Keeping records of all unused foreign tax credit for next year.
4. Calculating the maximum foreign tax credit amount you can claim on your tax return through Form 1116.
"The deadline"
The 2025 tax filing deadline for expats is: June 17th, 2025 as the final deadline is October 15th 2025.
If expats don’t meet the filing and/tax payment deadlines, penalties and fines can happen:
Common penalties include:
Failure to file – when you don’t file your tax return by the return due date, April 15th, or extended due date if an extension to file is requested and approved.
Failure to pay – when you don’t pay the taxes reported on your return in full by the due date, April 15th. An extension to file doesn’t extend the time to pay.
Failure to pay properly estimated tax – when you don’t pay enough taxes due for the year with your quarterly estimated tax payments, or through withholding, when required.
"Self employed expats living abroad have different responsibilities"
As a self-employed expat you need to file a 1040 tax return as well as paying a self-employment tax separately after calculating your net profit.
Both Social Security taxes and Medicare taxes will be paid by you.
Our team of tax professionals will assist you in calculating your self-employment taxes.
The 2025 self-employment tax rate is 15.3% on your net profit.
"We love Tax time"