Tax Rules and Compliance

The US requires all Americans to file US taxes every year, reporting their worldwide income. This includes Americans living abroad. Additionally, American expats have to claim exemptions such as the Foreign Tax Credit and the Foreign Earned Income Exclusion to reduce their US tax bill. Most US taxpayers living abroad can reduce their US tax bill to […]

All American citizens and Green Card holders are required to file a US federal tax return every year, reporting their global income, even if they live abroad. Americans may also have to report any foreign registered businesses, financial assets, and bank or investment accounts that they may have. Neither international tax treaties nor filing foreign […]

Many US citizens living abroad aren’t sure whether they need to file US taxes. In this article we’re going to clear up a few common misconceptions, and provide some strategies for success. Do US citizens living abroad have to file US taxes? Yes. All US citizens, including those living abroad, who earn more than the […]

The underlying principle of the US tax system is that US citizens and Green Card holders are required to file and report their total worldwide income, whether they live in the US or abroad, and wherever in the world their income is earned or sourced. This means that many expats have to file two tax […]

What do astronauts and American expats have in common? American expats and astronauts both need the ability, courage and conviction to not just venture out into the unknown, but to succeed and thrive there. Unfortunately, they also share an inability to escape the requirement to file US taxes. The US taxes based on citizenship, meaning […]

Americans living abroad are required to file a US tax return, reporting their worldwide income, just as if they were living in the States. To avoid paying US taxes as well as foreign taxes on their worldwide income, the IRS has made a number of provisions available, such as the Foreign Tax Credit and the Foreign […]

With Winter, thoughts perhaps turn more often to the idea of retirement in a sunnier climate. There are lots of other good reasons for Americans to retire abroad too, such as a better quality of life, more affordable healthcare, and the opportunity to explore another culture. One important consideration for Americans who would like to […]

Americans who move abroad are required to continue filing US taxes, reporting their worldwide income, wherever in the world they may live. The US is almost unique in having this requirement for expats to file. As expats may also have to pay taxes in the country where they live, the IRS has provided some exemptions, […]

Living and working abroad is an incredibly exciting opportunity. Because the U.S. taxes based on citizenship though, Americans living in a foreign country such as Italy have to continue filing a federal U.S. tax return from abroad, while most also often being subject to a foreign tax regime in the country where they live, too. […]

This article was last updated in February 2023. There are a variety of different reasons that Americans living abroad participate in foreign pension plans. Some qualify for them after settling abroad permanently, some are granted them as part of their compensation for work done abroad.  Regardless of where they live or how they came to […]