Discover all the tax services we offer
Get an instance service estimate
Comprehensive guides on everything you need to know from planning your expat journey to filing your expat taxes with ease.
Our Country Guides will help you understand the ins and out of your specific U.S. expat tax requirements.
Access up-to-date articles, breaking news, deadline information and in-depth case studies on US expat taxes.
Get the answers to all your questions and browse Greenback’s most frequently asked customer questions.
Sign up for one of our live webinars hosted by our expert accountant team or watch one on-demand today.
Subscribe to our monthly newsletter to get money-saving tips, expat tax news, and exclusive promos.
Learn how our straightforward pricing, easy process, and an expert team makes us uniquely qualified to simplify the hassle of expat tax filing.
We’ve assembled a team only the most experienced, knowledgeable, and friendly CPAs and IRS Enrolled Agents our clients can trust.
Read our client testimonials to get a feel for the Greenback experience straight from the expats we’ve worked with.
We’re featured in many reliable news sources thanks to our reputation as experts on US taxes abroad.
Whatever your expat tax needs, wheverver in the world, we’d love to hear from you.
In addition to the complicated logistics of moving, learning a new language, and adapting to a new culture, you will also need to learn about foreign taxes for contractors! Many Americans living in foreign countries choose to keep their US home for one reason or another. Because of this, there are some considerations you will need to make in order to maximize your tax benefits. Where will you and your family live while you are working overseas? What will you do with your home in the US while you are working overseas?
Most American expats, both permanent expats and temporary expats, know about the FEIE for freelancers and other expats. This exclusion allows for up to $112,000 (for 2022) of wage income to be excluded from taxation. In order to qualify for the exclusion you need to live and work outside the US for 330 days out of a 365 day window (the window does not need to be a calendar year). This qualifying test is called the Physical Presence Test. If your work contract is for 18 months, most likely you will be able to claim the FEIE on more than one tax year, possibly claiming a portion of the FEIE on 3 years of returns.
If your employment contract abroad will be for more than a year and last indefinitely, you may qualify as a Bona Fide Resident and claim the FEIE without having to count days. Your US home may affect how the IRS classifies you for the FEIE. The IRS considers you to only have one abode, and if you are claiming that you are a Bona Fide Resident of a foreign country, then you cannot have an abode in the US.
The meaning of abode is different than that of tax home. An abode has more to do with where your ties are, where you maintain your economic, family, and personal ties. A tax home is where you primarily live and work, but does not have to be where your family lives. If you live in a foreign country but your family and all your ties are in the US, you abode may be in the US. If you can show that you are living in the foreign country just as you would in the states (living in regular housing, have local bank accounts for convenience, and are integrating into society), but your family chose not to live with you, then your abode would be the foreign country. There is no clear IRS definition of abode; the IRS will look at the totality of your situation.
Choosing to keep your home in the US does not automatically disqualify you from having a foreign abode and claiming the Foreign Earned Income Exclusion. You can choose to rent out the house, have relatives live in the house while you are not there, or leave the house vacant. If you choose to keep the house, and your immediate family members live in the house, then the IRS may request more proof from you that your abode is in another country. You should keep records of your home in the foreign country including rent receipts/contracts, records of foreign IDs obtained, and any other documents that show you were living and integrated in the foreign society.
If you keep this information in mind, keep appropriate records, and work with your tax advisor regarding your particular situation, living and working abroad will not be too “taxing”!
We help expats every day and are experts in expat taxes. If you would like help with your expat tax returns, including Foreign Earned Income Exclusions for contractors, please contact us to get started today!