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.
Blog
One of the biggest challenges that professionals like pilots and seafarers face is determining how much of their time they spend outside the US. And further, defining what constitutes foreign income – money they earned while outside the states – is tricky as well. As you can imagine, crossing borders isn’t as easily defined when traveling by air or by sea. Additionally, the US government has said money made in or over international waters doesn’t count as foreign income. This means that individuals in these professions must carefully track their time spent in the US, international waters, and foreign countries.
Every taxpayer should keep track of relevant documents and information that they’ll need when preparing their taxes, but it’s especially crucial for those individuals who are more likely to get audited – such as expats or professionals with a tricky situation like a pilot or seafarer! If the IRS requested an audit of a pilot, for example, he or she would have to provide accurate information proving how much money they earned in the US and abroad – because the US requires all citizens to file US taxes, no matter where they live and earn an income.
In many cases, US citizens living as expats can qualify for the Foreign Earned Income Exclusion (FEIE). This allows you to claim up to$105,900 of foreign earned income from your 2019 US expat taxes and $103,900 from your 2018 US expat taxes, meaning you wouldn’t have to pay US taxes on that income. To do so, you must qualify for the Physical Presence Test or the Bona Fide Residence Test:
Physical Presence Test – Requires you to have spent 330 out of 365 days outside of the US.
Bona Fide Residence Test – Requires that you live in a foreign country for a full calendar year without intentions to permanently return to the US.
Generally speaking, a seafarer might easily meet the Physical Presence Test and therefore qualify for the FEIE, depending on where they spent most of their time. Likewise, a pilot who spends much of their time flying internationally might find that setting up residence outside the US benefits him or her when it comes to taxes.
In any instance, these tricky rules complicate US taxes for pilots, seafarers, and other frequent travelers. It’s essential to gain as much knowledge as you can about the rules and laws pertaining to your situation. And if you don’t feel qualified or don’t want to wrap your mind around the technicalities, that’s where a tax professional comes in. Having an expert guide you through the process can take a weight off your shoulders and ensure your bases are covered when it comes to your US taxes – which allows you to spend your time doing what you enjoy!
Greenback can help! Our expat-expert CPAs and IRS Enrolled Agents have a wealth of tax knowledge, so if you’re ready to get started on your US taxes, we’re prepared to make it easy.
Editor’s Note: This was originally published in 2016 and was updated on December 30, 2019.
When you live in the US, tax day is simple: April 15th! When you move abroad, it’s not so straightforward! Learn about all the expat deadlines and extensions you need to know to file.