3 Major Myths About Expat Tax Filing

YOU DON’T HAVE TO FILE A US TAX RETURN BECAUSE YOU LIVE ABROAD

Not so!  US citizens and permanent residents must file a tax return no matter where they live or earn money, unless they do not meet the standard filing requirements.

IF YOUR FOREIGN INCOME IS BELOW THE FOREIGN EARNED INCOME EXCLUSION, FILING IN THE US IS NOT REQUIRED.

Totally false!  Although the FEIE (foreign earned income exclusion) allows expats to exclude $104,100 (2018) of their income, a return must be filed to claim this benefit.  Often times this exclusion is disallowed by the IRS if you wait too long to claim the benefit, so it makes good sense to file your return on time.

INCOME EARNED OFFSHORE IS NOT REPORTED ON YOUR US TAX RETURN.

Wrong!  US citizens and permanent residents must report their worldwide income on their annual filing which includes: compensation, business income, sale of assets, interest, dividends, and any other monies earned no matter how or where.

Contact us for complete answers to your expat tax questions!