U.S. Expat Tax Services for Americans Living Abroad

Americans abroad need a U.S. tax strategy that reflects life outside the United States.

Freyman CPA provides U.S. tax preparation and planning for citizens and resident taxpayers living internationally. We help clients address worldwide income reporting, foreign taxes, foreign accounts, state residency questions and other U.S. filing requirements that can arise after a move abroad.

Whether you moved for work, family, retirement or a long-term change of lifestyle, the goal is to keep the U.S. side organized and compliant while planning intelligently around your international circumstances.

U.S. Filing Does Not Stop at the Border

U.S. citizens and resident aliens generally remain subject to U.S. income tax filing rules on worldwide income while abroad. International taxpayers may also encounter special exclusions, credits and information-reporting obligations that do not appear on a typical domestic return.

Expat Tax Services

U.S. individual income tax preparation for Americans abroad

Foreign earned income exclusion analysis

Foreign tax credit analysis

FBAR preparation and reporting support

Form 8938 and foreign financial asset reporting

Foreign income and currency reporting considerations

State residency and domicile analysis

Business-owner and self-employed expat tax coordination

Estimated-tax planning

Pre-move and post-move U.S. tax planning

Foreign Earned Income Exclusion

The foreign earned income exclusion can be valuable for qualifying taxpayers, but it is not automatic. Eligibility generally requires a foreign tax home and satisfaction of either the bona fide residence test or physical presence test. The maximum exclusion is adjusted by tax year.

Foreign Tax Credits

Foreign tax credits may reduce U.S. tax when qualifying income taxes are paid to another country. The interaction between credits, exclusions and different categories of income can be complex, so the appropriate approach should be based on the taxpayer’s actual income and foreign-tax profile.

FBAR and Foreign Asset Reporting

An income tax return may not be the only U.S. filing required. A U.S. person generally has an FBAR filing obligation when the aggregate value of covered foreign financial accounts exceeds $10,000 at any time during the calendar year. Form 8938 is a separate reporting regime with its own thresholds and rules. Depending on the taxpayer’s circumstances, one, both or neither may apply.

State Tax After Moving Abroad

Expat planning should also consider the state the taxpayer left behind. Domicile and residency rules vary, and continuing ties or state-source income may create filing issues even after a taxpayer is physically living overseas.

Frequently Asked Questions

Do Americans abroad have to report worldwide income?

U.S. citizens and resident aliens generally report worldwide income under U.S. filing rules, even while living outside the United States.

What is the FBAR threshold?

A U.S. person generally must file an FBAR when the aggregate value of covered foreign financial accounts exceeds $10,000 at any time during the calendar year, subject to the detailed rules and exceptions.

Is Form 8938 the same as the FBAR?

No. They are separate reporting requirements with different rules, thresholds and filing procedures. A taxpayer may need to file both.

Can I use both the foreign earned income exclusion and foreign tax credits?

The provisions can interact, and the same income/tax cannot simply be used twice without regard to the rules. The appropriate treatment depends on the taxpayer’s facts.

Can you help if I am behind on U.S. filings?

Potentially, yes. The correct approach depends on the years involved, prior filings, foreign accounts and the taxpayer’s facts. The situation should be reviewed before selecting a filing procedure.

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Work With Freyman CPA

Need a U.S. CPA who understands life abroad? Schedule an expat tax consultation with Freyman CPA.