One of the main ways expats can reduce their tax bill is by using the Foreign Earned Income Exclusion (FEIE). This money-saving deduction is an absolute lifesaver for many expats, lowering if not altogether eliminating their tax liability. Get the Foreign Earned Income Exclusion info you need for 2019 and 2020 so you know what…
A status of forces agreement, often called a SOFA, is an agreement between a nation that is hosting stationed military forces in their country, and the nation of those forces. Sometimes these agreements are part of a larger swath of military agreements that comprise a more wide-ranging security arrangement. These agreements usually apply to American…
Moving abroad is a stressful process, even moreso when you throw in property purchases abroad and the impact on your US expat taxes. So many issues surround the ownership of foreign property, including market conditions, foreign mortgages, exchange rates, new cultures, and even different legal structures. As you may already know, a US citizen’s worldwide…
The 2017 Tax Cuts and Jobs Act (TCJA) has had a significant impact on US owners of foreign corporations. While US persons have always been subject to US tax on their worldwide income, owners of controlled foreign corporations (“CFCs,” or a foreign corporation with US shareholders that own more than 50% of the corporation) were…
Many aspects of US expat taxes get overlooked by individuals living overseas. Filing requirements, deadlines, and valuable deductions and exclusions are commonly known, but what about Social Security? Expats often forget about the Social Security payments required for US citizens working overseas and are unaware that their benefits may be received in a foreign country….
US citizens and Green Card holders are required to report and pay taxes on their worldwide income each year. This is the case even if you have established an entity in a foreign country. Different entities, whether foreign or domestic, have their own US tax reporting requirements. This article, although not all-inclusive, will discuss the…
Many foreign countries require residents to pay taxes regardless of the citizen’s nationality. For this reason, US expats have an opportunity to claim the Foreign Tax Credit to reduce their US taxes. To utilize this credit, you’ll need to complete Form 1116 and attach it to your US tax return, Form 1040. It sounds simple,…
Understanding foreign pensions can be difficult, especially when you already have to navigate the often-complicated US taxation process while living abroad! Whether you’re planning to retire overseas or move back to the US eventually, you should be aware of these facts regarding your foreign pension. Foreign Pensions and US Taxation: The Basics Over nine million…
Spring is always a busy time of year, but it can feel even more hectic during an election year. Between the primaries and April tax deadlines, it’s important to take just 5 minutes to complete the US Expat Opinion survey and make sure your voice is heard. This survey is an integral part of Greenback’s…
Sweden is one of the most beautiful places to which you could move. But, if you’re banking on a Swedish pension plan to help fund your retirement, you’ll want to find out the implications it could have on your expat taxes. The Pros and Cons of Swedish Pension Plans Let’s talk about the taxation of…
