2024 Changes coming to your 2023 US Tax Return For Expats and Americans outside the USA.

Filing your US Taxes from abroad just got easier in 2024. Nathalie Goldstein, IRS Enrolled Agent and CEO of MyExpatTaxes outlines what you need to know as an Expat.
Updates include:
* New FEIE amount
* Latest Standard Deduction
* Changes to the Child Tax Credit
* And more!
00:00 Welcome
01:20 What's changed in 2024?
02:30 Refundable Child Tax Credit Increase
04:07 Clean Vehicle Credit
04:50 Last year to claim Covid Stimulus Relief
05:45 IRS Direct Free File
06:30 Who needs to file US Taxes
07:52 Deadlines for US Expat Taxes
08:25 More Information

[@FransceneJK98]

Wait, if I earn $120,000 or less abroad as a salary, I am exempt from paying US taxes??? No kids or property. Just strictly income taxes I mean. I thought I had to pay twice, in the foreign country AND the US. 😖😖😖 this is the new tax law right? It got updated January 1, 2024

[@MyExpatTaxes]

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!

[@breakfastcrew]

is anyone else running into issues with efiling services requesting a us phone number for authentication? seems like a new requirement for 2023 filing.

[@MyExpatTaxes]

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

[@user-tq5ev6pk9k]

Thanks for your explanations. I would like you to clarify us how both child tax credit and income exclusion work? In other words the relation between CTC and income exclusion.

[@MyExpatTaxes]

If you use the FEIE, or Foreign Earned Income Exclusion, you won’t be eligible to receive any portion of the Child Tax Credit as a refund as it excludes $120,000 of taxable income. And to receive the CTC, you have to have taxable income. This doesn’t mean you have to be double-taxed, however! You can use the Foreign Tax Credit instead. If you claim the Foreign Tax Credit, you are still eligible for the US Child Tax Credit refund.

[@user-tq5ev6pk9k]

@@MyExpatTaxes thanks! I appreciate it.

[@ctek9]

Wait, I can opt out of foreign earned income exclusion to get a child tax credit? How does that work?

[@MyExpatTaxes]

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.

[@ExpatinTokyo]

My mom passed away last May and I no longer have a home address in the states and I haven’t been back to the states since 2009. What do I do about my stateside address now?

[@MyExpatTaxes]

You may use your foreign address.

[@ExpatinTokyo]

@@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

[@MyExpatTaxes]

@@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.

[@ExpatinTokyo]

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

[@ExpatinTokyo]

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

[@vladhilko]

Thank you for the video! I have a question: When do I need to start counting the threshold value for filing taxes? For instance, if I won the green card, worked in Europe all year, and became a U.S. resident only on December 1, 2023, do I need to earn $13,850 after becoming a resident to file taxes? Or is $13,850 the earnings for the whole year, including before I became a resident? Thanks for your reply!

[@MyExpatTaxes]

Generally, you need to file a tax return regardless as a dual status filer if you get a greencard mid year. This is because you cannot use the standard deduction so the filing thresholds don’t necessarily apply to you.

[@vladhilko]

Thank you! Do you know if dual-status residents can at least deduct income from Europe if they are eligible for the Foreign Earned Income Exclusion? Or does this not apply to them either? 🤔

[@MyExpatTaxes]

If you are required to file a US tax return, even as a dual-citizen, then you may be eligible for the FEIE! @@vladhilko

[@vladhilko]

Thank you!

[@basterowy]

Did I understand correctly that if I'm single and make less 13,850$ abroad, I don't have to file taxes?

[@MyExpatTaxes]

Correct, however, we would still recommend it as you may be eligible to receive a refund.

[@MyExpatTaxes]

@@concinnitas That depends on how you made a living in 2023? Did you only live off your savings? Filing 1040 won't take care of your NY state return if one is needed, but if you enter their information into MyExpatTaxes filing software, we can check if one would be required or not.

[@FransceneJK98]

@@MyExpatTaxeshow does state tax filing work if you don’t live in any US state anymore? Why would I pay TX taxes or file there if I’m not a resident there anymore?

[@MyExpatTaxes]

@@FransceneJK98 Hi there! Here is an article that explains state taxes for Americans living abroad: www.myexpattaxes.com/expat-tax-tips/state-taxes/state-taxes-as-an-expat/ However, Texas does not have a state income tax, so you likely do not need to worry about this.

[@Brunomish]

I have always been on income exclusion, but I never filed taxes as a US citizen. I moved abroad when I was 18 years old and never kept residency in the US since. And I never knew I had to file annually. It took me so long to finally get a job and all, but I'm still on the income exclusion. Should I file anything?

[@MyExpatTaxes]

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.

[@enjoystraveling]

Is it true that they the IRS made a new rule that if you live abroad in you’re a US citizen and not only taxed if you’re above a certain amount but you pay an extra tax for being an es pat as if you gave up your citizenship but you did not ??

[@MyExpatTaxes]

Hi there, you can exclude up to $120,000 using the FEIE (Foreign Earned Income Exclusion). You may also use the FTC (Foreign Tax Credit) on the same return if applicable to reduce your US tax bill.

[@ExpatinTokyo]

My son only made 6,997 in foreign income does he need to file at all?

[@MyExpatTaxes]

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.

[@ExpatinTokyo]

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

[@MyExpatTaxes]

@@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/

[@FransceneJK98]

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

[@MyExpatTaxes]

@@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!

[@skyclarking-123]

Is there a correct way to mail taxes from abroad?

[@MyExpatTaxes]

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