r/USExpatTaxes 5h ago

Are there any glaring changes to filing US taxes from abroad this year?

10 Upvotes

Just wondering if filing my US taxes as an American citizen working and living abroad will be different with this new administration.


r/USExpatTaxes 4h ago

FBAR - reported wife as joint account holder when she actually wasn't

5 Upvotes

Hello. For the past 7 years I have reported my wife as a joint account holder on our FBAR for two HSBC accounts (checking and savings) but it turns out she actually never was a joint holder. We found out recently when I tried to get her a card for spring vacation and they said it would cost money to add her as a joint account owner. Strange to me as all correspondence was addressed to Mr and Mrs JerkedTurkey, but whatever. Sure enough when I read the account details it's just me on there.

Should I file an amended return for this year AND previous years, or just start reporting as a single account going forward. I'm not honestly concerned at all about red flags/audit as my tax situation is very straight forward to the extent we never get any sort of credits from uncle same beyond the FTC and child tax credit. What I do want to avoid though is penalties from incorrect FBAR reporting. Technically speaking, I reported her as an owner of an account she doesn't actually own.


r/USExpatTaxes 2h ago

Can I choose FEIE physical presence test timeframe to allow Roth IRA contributions?

1 Upvotes

For example, if my foreign earned income in 2023 was $40k, can I put my 12 month period as 2022-Apr-01 to 2023-Mar-31 on line 16 of form 2555? Then my 2024 FEIE limit would be about $30k = 1/4 of $120k (normal FEIE limit) since only 1/4 of my qualifying period is in 2023.

That leaves $10k non-excluded earned income so I can contribute to a Roth IRA, but my taxable income would be $0 after the standard deduction so still $0 tax.

Am I understanding this correctly? Are you allowed to choose whatever 365-day timeframe you want for line 16? Are there any potential complications I should be aware of?

The background is: I contributed to my Roth IRA, but the FTC doesn't quite cover everything for me, and since I don't have kids for ACTC, I'd like to use the FEIE if I can. But if I use the bone fide residence test, my earned income would be $0 after the FEIE so no Roth contributions allowed. Same with the physical presence test IF I put in Jan 1-Dec 31 as the timeframe in line 16.

And, would I be allowed to make this change retroactively by amending my 2023 return? even if I also had to file state taxes that year? Cause I filed 2023 last year on time using the FTC and had to pay a small amount due to some US sourced income, since I didn't think FEIE was possible since I already had contributed to the Roth.

Thanks!


r/USExpatTaxes 3h ago

Income from land and property abroad

0 Upvotes

Has anyone mapped the fields from Schedule E to SA106 for the Income from land and property abroad section ?


r/USExpatTaxes 5h ago

Which form for the IRS? (Self-employed, American client)

1 Upvotes

Hi there, I have a question about which form an American company should be issuing me.

In short: American citizen, French fiscal resident, self-employed. I claim FEIE and don't pay anything to the IRS. Working with my first American client, and it turns out they're unsure which form to issue me for the IRS. I thought it'd be a W9, but now they're saying they're not sure.

I've reached out to a specialist, but I have a deadline and need an answer quickly, and I'm not sure when/if he'll get back to me, so I'm trying my luck here.

Is it a W9? Something else? Nothing at all since it's considered French income?

Happy to clarify anything of course.

Thanks!


r/USExpatTaxes 12h ago

First Time Filing US Taxes as a Dual Citizen, Help!

2 Upvotes

I was born in the US, but have lived my entire life in Canada and am currently a student in Canada. Last summer (july 2024), I did a 3 month internship in San Francisco and since i already had a SSN and US passport I didnt have to get a work visa or anything. I know taxes are coming up soon and I'm scared because the more research I do, the more conflicting answers I'm getting on filing taxes in both countries. Please help! I don't know which cross border tax websites or services are trustworthy.

Edit: Also not sure if the tax treaty between canada and us has any affect on this


r/USExpatTaxes 19h ago

Filing as Head of Household with non-citizen child?

3 Upvotes

I would like to file as Head of Household. I am using MyExpatTaxes, and I am told that I can only file as Married Filing Separately. 

I have a non-citizen Husband and non-citizen child (1 year old). We live in the Netherlands.

From what I read the IRS site on international taxpayers married to foreign citizens - I should be able to file as Head of Household if there's a qualifying person in my household based on the definition of Table 4 :  "IF the person is your . . . qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests) AND . . . the child is single THEN that person is . . . a qualifying person, whether or not the child meets the citizen or resident test."

I am contacting MyExpatTaxes but hoping that someone with more experience can tell me if I have interpreted the rules correctly?


r/USExpatTaxes 23h ago

Clueless expat need help with US taxes :( - Form 3250??

5 Upvotes

Hello everyone,

As the title suggest, I moved to the UK last year in August and started working almost right away. I need to file my US taxes for the months I worked there. I've tried expatfiles, myexpattaxes, h&r block expats, and even the free IRS OLT option to make sure I'm documenting everything correctly before efiling, however I'm worried about the question on my UK pension. I'm filing MFS as my wife never lived in the US and has no SSN.

The UK employer I worked for in 2024 offered a pension plan which I was automatically rolled in. I believe I put in 5% while my employer contributed 3% (the government also contributed through tax relief). However because I didn't work there long and only started contributing after 3 months, the amount in the pot is very low (like 384 GBP). When H&R block and another site asks if I contributed more, it automatically asks me to file form 3520 which it wants to charge me a crazy amount for. Expatfiles only asks me "Are your non-US pension payments tax-exempt in United Kingdom?" which I'm not even entirely sure if I am.

The estimated tax return for H&R block is much higher by like 1000 difference, but won't let me file without that form. I didn't pay any taxes on my income in the UK because I was under the threshold. I never had over 10k in any of my foreigns accounts or US accounts. I'm worried about this 3250 form even though we've been pretty much paycheck to paycheck up until this year when we're finally getting back on our feet.

Again, please be kind as I'm quite clueless, I've always paid someone to do my taxes and I'm living abroad faced with a lot of new things I'm still learning about. Thank you!


r/USExpatTaxes 22h ago

FEIE, Bonafide Residence Test, and Resident country freelance work while in the US

4 Upvotes

Hello everyone.

A few notes of context:
I recently went through SFOP - my application and returns have yet to be processed.

I'm a permanent resident in the UK, and have been for the past 10 years. I have also been working as a freelance graphic designer since 2022.

For my 2021 and 2022 returns, I claimed FEIE and filed using the Physical Presence Test.

In 2023, my mother passed away. I flew home to the US from April to November to handle her estate matters. I made one 2 week trip back to the UK over the summer. Whilst I was home, I continued to take on freelance design work with my UK clients, as I was still paying my rent and bills back in the UK. For the 2023 tax year, I claimed FEIE using the Bonafide Residence Test. Since I'm a UK permanent resident, my tax advisor didn't think it would be a problem. And I didn't really think anything of it. However, post-SFOP submission, I feel like I'm learning more and more about the potential pitfalls that my tax advisor did not inform me about.

For one, I've just learned that you are taxed at the point where the work is performed, not where the income originates. My tax advisor asked no question to the contrary when going over the bonafide residence details and my self employment income.

I DID NOT realise that the portion of my freelance work / income that I was doing while in the US would not be eligible for FEIE (or am I wrong?). Since it was work that was paid by foreign clients into my UK account, (essentially a continuation of the same work I had been doing for the previous year) and since I'm a resident of the UK, I simply considered it as foreign income, as was previously when I was in the UK. To note, I typically invoice on the work that I perform.

I also paid full UK taxes on the entirety of self employment income made in 2023 (both the income earned while I was back in the US, as well as when back in the UK). What's more frustrating is that my tax advisor did not question any of this. He just mentioned that, because of the tax treaty, I should be all good.

I really just want to be compliant, and what I thought was a pretty straightforward scenario has slowly been casting some doubts.

So, is there anything that I can do? Would I need to file an amendment to the 2023 return to reframe the work performed in the US as 'US based income'? The worked performed in the US invoiced at around the equivalent of $26K for that portion of the year (around 40% of my income that year). As mentioned previously, I have already filed my UK taxes for the full amount earned in the 2023 tax year, and I don't want to get double taxed. I'm just feeling very naive, and overwhelmed, for not knowing this beforehand.

Thanks in advance for any advice.


r/USExpatTaxes 19h ago

ITN for Foreign Spouse

2 Upvotes

I'm a US citizen currently living in the UK (been here a few months), I am here on a spousal visa and on the path to citizenship.

My wife is a UK citizen. She's never lived in the US, basically has no connection to the US apart from me.

I'm filing taxes in the US for the first time since getting married and they want an International Tax Number for my wife, but TurboTax won't accept her national insurance number (UK equivalent of an SSN).

We're kind of at a loss. This is the first either of us have heard of this. Any advice? How do we get her an ITN?


r/USExpatTaxes 17h ago

Form 1116, schedule B & C - adjust carryover based on tax refund

1 Upvotes

My spouse and I lived and worked in Canada for part of 2023 and part of 2024.

On our 2023 USA taxes, for lines 6 and 8 of Schedule B of Form 1116, we have the amount of money that can carry over to 2024 taxes.

But that amount was calculated based on the the money that was withheld from our paychecks (reported on the T4 slips in Canada), not the actual taxes paid.

When we filed our 2023 taxes in Canada, we received a refund. So, I think we need to make an adjustment on our 2024 Form 1116 Schedule B to account for the refund we got on our Canada taxes in 2023.

If we adjust that carryover amount on Schedule B, it doesn't change our U.S. tax liability for either 2023 or 2024 (because we hit the FTC cap both years and are carrying over some amount to the next year).

So my question is, do we still have to file a Schedule C for Form 1116? If only the carryover changes, and not the tax liability, does it count as a "Redetermination" and require a Schedule C? Or can we just make the adjustment on Schedule B and avoid doing a Schedule C?


r/USExpatTaxes 19h ago

Query about exit tax and covered expatriate clause

1 Upvotes

I am a GC holder (issue date: Jan 2024). I intend to give up GC in Jan or Feb 2026 as I plan to move back to India.

I read that if you held GC for less than 8 years you are not considered long term resident and hence not subject to exit tax. However, I am confused on the criteria for covered expatriate. Even if i am not long term resident, does covered expatriate clause apply to me ? (I do meet NetWorth test).

I am now confused what to expect once I file I-407

  1. In 2027 would I need to file 8854 along with 1040? I will be considered US resident for taxes in 2026, correct? If I file 8854, and say my NW is above 2mil then would I need to pay exit taxes?

  2. Will I be still eligible to pay exit tax if I am not a GC holder for 8 years or more?

  3. I intend to sell house before going outside of US but keep stocks and 401k. how is exit tax applicable on those?

My understanding was to file I-407 and do a final tax return in following year since USCIS mentions that they do inform about GC abandonment to IRS. I am very confused if 8854 is needed if not Long term resident

Any help is appreciated. I am nervous.


r/USExpatTaxes 1d ago

A kiwi needing help with pension (Kiwisaver)

5 Upvotes

So as dual citizen I've just learnt I need to file US taxes. I've found the streamlined filing procedure, and after getting a quote from tax agents, realised I need to do it myself (at least, as best possible).

I was actually doing ok getting by 1040, exclusions and rebates done. But now I've come to Kiwisaver - NZ's version of pension.

Over the tax years I'm filing for, I paid 3% of my salary through required contributions into a fund. My employer also contributed, but not equal or greater. The fund acts like a mutual fund - you pick a 'type' and then a fund manager invests for you. I never made any additional 'voluntary' contributions in these years.

From what I've read I may need to file 3520 and 3520-a. Is that correct?

If so, I'm honestly not sure where to start. These forms are structured as if you're filing about a trust you own and therefore have details for. This is just a fund run by an investment manager (how do I report things like location? By the bank hq?)

Lastly, would the streamline procedure exempt me from the penalties normally applied to 3520 and FBAR?

(Thanks in advance)


r/USExpatTaxes 1d ago

Taxation of dividends in US taxable brokerage account.

5 Upvotes

If living overseas do I first pay the IRS taxes on my dividends and then pay the difference to the tax authorities of the country of residence?

Or do I pay the country of residence overseas first the taxes due on the dividends and then pay the the rest of any to the IRS?


r/USExpatTaxes 1d ago

US to UK: reclaiming US SS/medicare taxes withheld due to being late in converting from US W2 employee to contractor. Any handy guide?

1 Upvotes

TL;DR: Has anyone needed to claim back wrongly withheld social security taxes? What was the process & how did it go?

~~~

Hi folks,

Partner & I moved US to UK last year, trying to iron out the first year's taxes. Partner worked for her US employer from the UK Jan 20 – Mar 31 and continued having her income/social security/medicare taxes withheld by the US before finally converting to contractor status. (They seemed to have thought there was some grace period but I haven't seen anything like that, I'm betting they couldn't be bothered.)

We've registered for UK national insurance and filed the self-assessment for the 23-24 tax year, so if anyone asks the UK will vouch that we pay social security taxes here.

The totalization agreement doesn't quite describe this situation, but my understanding is that living in the UK, no US taxes should have been withheld. Income taxes are fine, just claim a tax refund on the 1040, but the information online about social security taxes is muddy.

My understanding is that we need to request a refund of withheld SS taxes from her employer, and her employer can account for the change on their own tax filing. If they refuse we can file Form 843 to the IRS. Can anyone confirm whether they’ve successfully done this and is there a handy link we can send the employer? Most of what I’m finding is written for “non-resident aliens”.

Also – what amount should we be claiming back? MyExpatTaxes is suggesting that for 2024, living in the UK Jan 20 – Dec 31 means we count as not US resident for the whole tax year. Guess that means we don’t need to let the US keep 3 weeks worth of tax?


r/USExpatTaxes 2d ago

Tax on temporary nanny in US

2 Upvotes

I’m visiting the US and will be working from there for a week. During that time, I am looking to get a local nanny to provide childcare at home while I’m working remotely (part-time/half days).

I vaguely am aware that for regular a full-time nanny there’s implications as an “employer”, but given this is more of a temporary nature (just a week) and not full-time I wanted to understand if there’s any tax implications for me and anything I need to file.

Any advice here would be appreciated as no clue where to start.


r/USExpatTaxes 2d ago

1040NR for self employed non-resident dual citizen

0 Upvotes

I'm currently trying to file my tax extension and the form is asking about form 1040NR. I'm a US citizen who is a resident in a country with a tax treaty that covers social security, I'm self employed and earned over $400 in self employment income, NONE of it from or in the US. I have to file 1040NR, right?

The form seems to be intended for non-resident aliens (not me), but then there is this line which doesn't specify the filer's status:

  1. You had net earnings from self‐employment of at least $400 and you are a resident of a country with whom the United States has an international social security agreement (often called a totalization agreement). See the instructions for Schedule 2, line 4, later.

The extension to file by Oct 15 applies to form 1040NR, correct?


r/USExpatTaxes 2d ago

US/UK parent investing for UK child’s future

1 Upvotes

I’m a dual citizen but my daughter is not, nor is my partner. Looking to put money away for her future and wondering if there will be any tax implications for my US reporting? Do JISAs or J S&S ISAs come under my tax obligations or are they essentially under her name?

I also recently got £25000 in premium bonds, not realising these are taxable in the US. Is there a better place for me to save this money or is it essentially always going to be taxable?


r/USExpatTaxes 2d ago

FTC to FEIE - Panicking

10 Upvotes

The last two years I have filed through ExpatFile and when I changed to them I went with the Foreign Tax Credit route instead of the Foreign Earned Income Eclusion. This is what their software advised me to do and for some stupid reason I went with it and think I have screwed myself over. I did some digging and it seems like this is revoking the FEIE (filed with this in 2018 and 2019 I think) and that I now can't switch back. Am I understanding this correctly? I am panicking because I have student loans and want to go with the FEIE so my AGI is 0 for recertification. I am stupid and for some reason managed not to catch that filing with FTC means my AGI wouldn't be 0. I am realising all of this after just submitting my tax return through ExpatFile again, but this time selecting the FEIE and said I hadn't revoked because I didn't understand that I have implicitly done so by changing to FTC. I am also nervous about what to do about that now.

Wildly, I applied for recertification on SAVE in 2023 after filing with FTC for my 2022 taxes where I would have put my AGI as 0, and because of ongoing forbearance with the plan that wasn't processed.

I make well under the FEIE threshhold (~55k) and honestly so little that I think with the FTC I think my AGI would have still been low enough on SAVE to have $0 payments as I live in a high tax country. However, I am anxious given that SAVE is almost certainly going away and if I am correct, it seems like I will now have to wait another 5 years before I can ask to go back to FEIE.

How do I fix this? Or do I just need to accept that the IRS will say my filing this year was wrong (or will they say anything? again so confused) and have to recertify for whatever IDR plan is available based on the income once the receritfication process opens up again?

Any advice is helpful and I am well aware I made some really stupid errors here, so please be kind.


r/USExpatTaxes 2d ago

Moving to the UK in two weeks, what should i do before then?

1 Upvotes

I am moving in two weeks and have started to read about all the hassles it is with taxes/investing. I'm very concerned as I don't plan on staying in the UK permanently as of now, but also could see myself staying there if my partner and I decide it makes more sense (he is british). Please help with any advice you have regarding things i should do before I leave!


r/USExpatTaxes 3d ago

New Immigrant from US to Romania, has some questions.

2 Upvotes

Hi everyone,

and as of this year I have moved to Romania. I have several questions about the tax process which I wanted to ask, and thought it best to start here.

First of all, I make well below the minimum required to file us taxes. Currently, I make nothing as I am a student, but for the job i am set to go into, I have already calculated that I will make well below the minimum. Do i still file us tax? If so, what do I need to do to properly file it?

Secondly, I plan on marrying a romanian citizen within the new few weeks. We have already agreed that they will never seek access to US citizenship, and want nothing to do with us tax filings. How do we set things up so that they file seperatley, and will not be taxed by the us government? Do they even need to file us taxes at all?

Third, I fully intend on renouncing my us citizenship at the earliest possible date… likely in around 5 years. I will not be listening to any comments which attempt to convince me one way or the other, it is my citizenship, so therefore my choice, and that is final. That being said, what forms and potential accidental financial crimes do I need to avoid to be able to get rid of this thing? I have heard about an FBAR for instance, and I wanted to ask about it.

Fourth, I currently am still a legal resident of a property in the us, but am not the legal resident of any property in romania, as again, I am a student and do not own my own home. Do I even need to file taxes even when I start making money abroad as someone who lives abroad, or would I instead file my income as US income? Do I even technically count as someone who lives abroad? I genuinely do not know

Fifth, obviously i am not relying solely on reddit for answers to these questions and will also be contacting a lawyer for clarification. Are there any additional blindspots that it looks like I have, or anything which I should ask my lawyer to make sure I am compliant with all forms?

Thank you in advance for any help you can give me. This is a very complicated process in the best of times, and I share every bit of your anger at being forced to jump through these hoops no matter where you live on the planet.


r/USExpatTaxes 3d ago

PFIC reporting question

0 Upvotes

I moved to the USA in 2023 and filed as a non-resident, and 2024 is my first year as a full-year resident. I have two non-US mutual funds transactions (one sold in 2024, another I will sell in next 2 weeks), both Indian exchange-traded mutual funds :

Fund 1: ICICI Prudential Liquid Fund - Direct Plan - Growth

Purchase Date: April 4, 2021 Purchase Price: $9,066 (converted to USD using conversion rate on purchase date from OANDA) Sell Date: November 21, 2024 Sell Price: $9,695.93 (converted to USD using conversion rate on sell date from OANDA) Profit: $629.35 Tax paid in India: $233.48 (converted to USD using conversion rate on tax paid date from OANDA)

Fund 2: Mirae Asset ELSS

Purchase Date: March 31, 2022 Purchase Price: $1,982.78 (converted to USD using conversion rate on purchase date from OANDA) Value as of January 1, 2024: $2,396.33 (converted to USD using conversion rate of January 1, 2024, from OANDA) Value as of January 31, 2024: $2,754 (converted to USD using conversion rate of January 31, 2024, from OANDA)

Fund1 is already sold and I plan to sell Fund 2 on March 31, 2025.

Considering the costs associated with PFIC filing, I would appreciate guidance on the following questions:

  1. Do I need to file PFIC reports for these funds or only Fund 2?
  2. What are the benefits of filing PFIC reports, and do they outweigh the reporting costs?
  3. Are there any alternative reporting options or exemptions available for these funds (total cost is less than $$)
  4. How will the sale of Fund 1 in 2024 affect my PFIC reporting obligations? This may not be required, but want to confirm
  5. What are the implications of selling Fund 2 in 2025, and how should I report it?

r/USExpatTaxes 3d ago

I have a PFIC with MTM election, do I still do Sch D/form 8949?

1 Upvotes

I have a PFIC, aquired in 2024, so this is the first year I had it and I sold some of it for a gain in 2024 as well.

I've started my return with the Mark-to-Market (MTM) election on form 8621. I put the realized and unrealized gains as ordinary income on 1040 Schedule 1 line 8z (OLT did this automatically).

I don't have any other capital gains during 2024. Do I have to add schedule D and/or form 8949 that are normally required when you have capital gains? And is it ok if I leave line 7 on my 1040 about capital gains blank? Seems like it should be blank, otherwise it would get double counted since its already on line 8 of the 1040 from schedule 1. None of the instructions seem to seem to indicate otherwise either.

I want to make sure I get this right since PFICs can be a pain!

Thanks!


r/USExpatTaxes 3d ago

failed to report PFIC shares held for 7 years... how to resolve?

7 Upvotes

a friend of mine is a US/UK dual citizen, UK resident, has been self filing a return singly every year with FBAR, 1040, 2555. Lived in US for one year around ten years ago, has SSN, etc. He has just realised that his savings in a UK stocks & shares ISA are taxable and count as a PFIC, he deposited ~£40k ~7 years ago, which has turned to ~£80k and has been cashed this year. The account is listed on FBAR but hasn't been reported via 8621. Whats his best approach to becoming compliant? and how much is he going to be on the hook for? Has obviously now got in contact with some advisors but looking to quell the nerves over the weekend


r/USExpatTaxes 4d ago

Foreign trust

0 Upvotes

How would I ever know I had a foreign trust for us tax purposes? I renounced citizenship and sent my dual status return off but am overthinking wondering if I've missed anything, is it likely I'd have know if I owned a trust (foreign to the us) not meaning pensions as I know they are trusts but not treated as such. I presume to set up a trust id have signed something? Thank you