What Information Should I Gather Before Starting My US Expat Tax Return?

Preparing your US expat tax return involves more than just reporting income. To maximize benefits and ensure compliance, gather the following documents and information:

1. Proof of Foreign Residency or Physical Presence

To qualify for the Foreign Earned Income Exclusion (FEIE), you must meet either:

• Bona Fide Residence Test: Reside in a foreign country for an uninterrupted period that includes an entire tax year.
• Physical Presence Test: Be physically present in a foreign country for at least 330 full days during any 12-month period.

Documentation may include:

• Residency permits, visas, or foreign ID cards.
• A travel calendar detailing your locations throughout the year.

Refer to our Guide on FEIE for more details.

2. Income Documentation

Collect records of all income earned, including:

• Foreign and US wage statements (e.g., pay slips, Form W-2).
• Self-employment income records.
• Interest, dividends, and rental income statements.

3. Foreign Bank Account Information

If you had foreign financial accounts exceeding $10,000 at any time during the year, you must file an FBAR (FinCEN Form 114). Gather:

• Bank statements showing maximum account balances.
• Account details: bank name, account number, and address.

For more information, visit our FBAR Guide.

4. Foreign Housing Expenses

If you qualify for the Foreign Housing Exclusion or Deduction, collect:

• Rent receipts or lease agreements.
• Utility bills (excluding telephone).
• Insurance premiums related to housing.

Details on qualifying expenses can be found in our Guide on Foreign Housing Exclusion.

5. Currency Exchange Rates

Convert foreign income and expenses to USD

• IRS annual average exchange rates.
• Treasury Reporting Rates of Exchange.

Access the IRS exchange rates for accurate conversions.

Having these documents ready will streamline your tax preparation process and help ensure you take full advantage of available exclusions and deductions.

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