Great question! It sounds like you're referring to the Foreign Earned Income Exclusion (FEIE). Here's how it works: As a US citizen living and working abroad, you may be able to exclude up to a certain amount of your foreign earned income from your US taxable income. For the 2024 tax year, this exclusion amount is $120,000. This means that if you earn $120,000 or less from your salary abroad, you can exclude that amount from being taxed by the US. Each year, this amount increases slightly!

Thank you so much!

It is still considered foreign earned income as you are physically outside of the US doing the work.

Hi there! You can get caught up on your taxes via the Streamline Procedure: www.myexpattaxes.com/streamlining/ It includes: 3 years of tax returns and 6 FBARs without failure-to-file or FBAR penalties. If you qualify, you will not be subject to penalties such as failure-to-pay, failure-to-file, or FBAR penalties-awesome! The program also allows you to file amended returns to claim missed returns on qualified foreign pension plans.

Thank you very much for calling out a VERY BIG LOAD of BULLSHIT. 😊❤😊

Yes, you can use the FTC (Foreign Tax Credit)

We are so glad it helped!

Must be enough to equal IRA contribution.

Hi there, if you have a business operating from abroad, you will need to claim that as foreign-earned income on your US tax return. That doesn't necessarily mean that you will owe! Here is an article that may be of interest to you: www.myexpattaxes.com/expat-tax-tips/self-employment/small-business-guide-for-americans-abroad/

If you want to file and claim them (married filing jointly, with dependents), then they need ITINs. Otherwise, file marry filing separately, and no ITIN is needed, but you cannot claim them. You can model your return without them first on MyExpatTaxes, and if you need them for further deductions, look to change to include them and start the ITIN application process.

If you are requesting a refund, or no check or money order enclosed, mail your U.S. tax return to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad

Hi there - if you have not filed your taxes since moving abroad, you are not technically under the FEIE. To use this option, you must file a return! We suggest you consider Streamlining to get caught up and receive those COVID stimulus payments if eligible.

By using the Foreign Tax Credit! American families abroad should not be using the FEIE if they are due for a Child Tax refund! According to the IRS law, families using the FEIE cannot claim the refundable Child Tax Credit. There is a better, more different method to reduce US tax liability to $0. The Foreign Tax Credit is a straightforward approach. It gives US expats a $ for $ (or pound, euro, yen, etc.) credit from income taxes paid to your foreign host country against any US taxes owed. Generally, the FTC works best if you live in higher-taxed countries like the European Union.

Glad it was helpful!

Hi there! If your wife is not a US citizen, you can file under Married Filing Separately to keep her out of the US tax system. When you file with MyExpatTaxes, our software will guide you through the process to keep things simple and understandable!

You may use your foreign address.

@@MyExpatTaxes so I will no longer have to worry about state taxes? I’m from Kansas and I’m a registered voter still in Kansas

@@ExpatinTokyo No Kansas residency and no Kansas sourced income = no Kansas return needed. Kansas may still request a return using the mailing address, but you can file a nonresident return with $0 Kansas-sourced income.

@@MyExpatTaxes what about dividends from my money market account and my checking and savings account?

I’m retired us military and I have an American bank account that my retirement pension goes to. The state of Kansas doesn’t tax military pensions. But I’m wondering about my checking, savings and money market account dividends

Hi there, it depends on his filing status. Assuming that he is a young person and single; if he did not earn more than $13,850 in wages (not self-employed!) then he does not need to file.

@@MyExpatTaxes if he had more than $10,000 in his foreign bank account will he have to file that? Can that be filed separately?

@@ExpatinTokyo Yes, if he had more than $10,000 in a foreign bank account he will need to file an FBAR. This can be filed separately from a tax return: www.myexpattaxes.com/fbar/

@@MyExpatTaxesI thought it’s $120,000? I’m confused

@@FransceneJK98 Hi there! The need to file is based off of certain thresholds (Are you married to a US citizen? Are you married to a non-US citizen? Are you single? etc). Then there is the FBAR: if you have more than $10,000 in any combination of foreign bank accounts, you will need to file a Foreign Bank and Financial Accounts (FBAR) to FinCEN. This report is mandatory for those with $10,000 USD or more; and is not reported to the IRS, so you are not taxed on this money. Hope this makes sense!

Hi there! The FBAR is not reported to the IRS, it is reported to FinCEN (Financial Crimes Enforcement Network) "is a bureau of the United States Department of the Treasury that collects and analyzes information about financial transactions in order to combat domestic and international money laundering, terrorist financing, and other financial crimes." We can understand that it is frustrating, but it is mandatory.

Let us know your email with MyExpatTaxes. You don't need the certificate of coverage to file, but we need you to confirm you were registered as self-employed there to invoke the treaty.

@@MyExpatTaxes we filled and payed our taxes this morning, because we are afraid of the IRS. I don't even know how we can get that certificate of coverage here

@@lovitac Hi there! Nathalie just let me know that she has reached out to you via email.

@@MyExpatTaxes hi! She confirmed that Chile is part of the countries with the treaty. We both are registered in Chile as self-employed, we have been paying for our health here since we moved here two years ago. We were able to get the "certificate of coverage" that you get for being registered, however, that certificate doesn't show any amount of payments, is just a certificate showing that you are registered. My question is (we emailed this, with no answer yet), If we have the certificate of coverage, that shows that we are registered, but doesn't show the amounts payed, is that enough for the IRS to invoke the treaty? We already filled our taxes with you and payed FICA taxes. Can we fix that and get our money back? Thanks

@@lovitac Hi there! We are glad that you have confirmed with Nathalie that Chile is a part of the countries with the treaty. She has let me know that she has responded to you via email on how to best amend your situation. Thank you!

Forgot to comment we are living in New York State

Hi there! If they were filed, you would have needed to sign off on the FBARs. For the stimulus checks, you would have either received a check in the mail or a direct deposit from the IRS.

Hi there! The Foreign Tax Credit could work if you're paying Foreign Taxes on your income. AND, if you're visiting customers & projects in the US, this would be considered US-sourced income and might require state tax returns to be filed (depending on the specific states we're talking about). Please feel free to reach out to our support team for more help, [email protected]

Hi there! We'd love to be able to help, can you let us know what you mean by "how"?

Thank you so much for your kind words!

Hi there! It sounds like the MyExpatPlanning service would be of interest to you, please check it out here: www.myexpattaxes.com/planning/

We would suggest you check out our article about the Foreign Earned Income Exclusion and Foreign Tax Credit: www.myexpattaxes.com/expat-tax-guide/expat-tax-benefits/ Both of these benefits are designed to help US expats avoid double-taxation!

US Expats are required to file a US tax return even while living abroad if they meet the threshold for their applicable filing status. Thankfully, due to tax benefits, most expats will not end up owing the IRS!

If you own more than 10% of a foreign corporation, you will need to file Form 5471.

If the RRSP plan is employer related, then you cannot exclude it via the Canadian/US Tax Treaty. Normally only Old Age Savings pension income is seen as social security benefits and possibly excluded. In any case Form 8833 is needed to claim treaty benefits, so you basically need to still do a full reporting. Sorry!

Those issues are exactly why we created MyExpatTaxes. File without a US number or bank account!