Things You Should Know About US Expat Taxes Part 1

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on print
Share on email

Any bookkeeping, business or tax article contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor can it be used to avoid tax-related penalties. If desired, we would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.

Understanding the tax code alone is already an intimidating task, add being a US Expat in the mix, and it becomes even more complex and confusing. To avoid committing mistakes or missing deadlines and forms to file, follow our series of blogs where we discuss important things ex-pats should keep in mind!


  1. Expats Must File US Taxes If You Have Income

Things You Should Know About US Expat Taxes

If you are a U.S. citizen or resident alien living outside the United States, you generally are required to file income tax in the same way as those residing in the United States.



  1. Amend Tax Returns from Previous Years If You Noticed a Mistake

Things You Should Know About US Expat Taxes

Preparing and filing US expat tax return is undeniably complicated and it’s not uncommon for taxes to be filed incorrectly or incomplete. If you find that you have failed to report some income on your return or missed filing some forms, you should file an amended return for that tax year.

Form 1040X, Amended US Individual Income Tax Return, is the form you need to file. Make sure to clearly indicate the year for which you are filing an amended return at the top of Form 1040X and you should file different Form 1040X if you are filing amended returns for multiple years.

In the form, you will need to include the information on your original return, the difference between the original and the amended amount, and the actual amended amount. There is also a section on the form for you to state the reason why you are needing to file an amended tax return.



  1. Check If You Qualify for Foreign Tax Credit

Things You Should Know About US Expat Taxes

If you paid or accrued foreign taxes to a foreign country or U.S. possession and are subject to U.S. tax on the same income, you may be able to take either a credit or an itemized deduction for those taxes. Taken as a deduction, foreign income taxes reduce your U.S. taxable income.

Generally, the following four tests must be met for any foreign tax to qualify for the credit:

  • The tax must be imposed on you
  • You must have paid or accrued the tax
  • The tax must be the legal and actual foreign tax liability
  • The tax must be an income tax (or a tax in lieu of an income tax)

On the other hand, there are the Foreign Taxes for which you CANNOT take a credit. Make sure you familiarize yourself with those.



  1. The Foreign Earned Income Exclusion

Things You Should Know About US Expat Taxes

You may qualify to treat up to $105,900 of your income as NOT taxable by the United States. This is a benefit is called Foreign Earned Income Tax Exclusion. To qualify for the exclusion, you must have foreign earned income and must be one for the following:

  • A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.
  • A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.
  • A U.S. citizen or a resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

If you qualify for the exclusion, be sure to elect it by filing Form 2555


If you are an expat and need help with your taxes, our Enrolled Agent can help you! Contact us today at or at 713-855-8035.

Things You Should Know About US Expat Taxes

Share this post NOw

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on print
Share on email

Your Solutions To Success Your Solutions To Success Your Solutions To Success

Small Business Financial Services

We help you cut through the clutter and noise and help you focus on a clear path to success. We help you succeed with a reliable bookkeeping, payroll support and income tax reporting.
Learn more

Individual Income Tax Services and IRS Response Assistance

Stressed during tax season? Surprised with a huge tax bill? Receiving an IRS letter? FAS can help make your year-end tax compliance less stressful with professional tax services.
Learn more

US and Canada Cross Border Tax Services

Our experienced staff, combined with our US and Canada locations, allows us to provide the tax support you need, wherever you are, at home or abroad.
Learn more

What Our Clients Say What Our Clients Say What Our Clients Say

Running a small business is an extremely challenging task. However with a team like FAS, I do not have to worry about our bookkeeping and tax services.

They are truly great team!
Garage Guys Automotive

Very responsive! FAS bookkeeping service has been an integral part of my consulting business.

I highly recommend FAS to business owners who are looking for a reliable business partner to handle their bookkeeping needs.

Bruce Saxton

I have known Christy for about 5 years. She has assisted several of my clients and me personally.

If you are a business owner, Christy makes an outstanding strategic partner. I highly recommend her.

Gerry Brisson

I started looking for a new bookkeeping and tax service firm as my company was no longer getting the service that we deserve from a bookkeeping firm.

I highly recommend FAS to business owners who are looking for a reliable and professional bookkeeping and tax preparation service firm.

Mark Sargent

 Because of the nature of my business and report requirements from corporate that are time-sensitive.

I can count on Cristy and her team’s eye for detail and reliability to deliver accurate and timely financial information.

Terri Foster

We've been with FAS for years and they are one of the most professional and honest people we've worked with.

I highly recommend Cristy, Dennis and FAS Bookkeeping & Tax Services Firm.

Katie To

Being a small business owner means we’re always constrained by time and resource.

I highly recommend FAS for your bookkeeping and tax preparation needs.

Roy Andrade
FAS, with Cristy & Dennis, has been an important part of our progress as a company and I will not hesitate recommending them to business owners who are looking for a serious business partner for such a sensitive financial matter.
Jorge Vasquez
I have referred Cristy to many of our clients and have always been impressed by her professionalism and dedication to her customers.

If you own a small business and operate in the Houston or Katy area you will benefit from working with Cristy on your financials
Roland Parker
Christy is an awesome bookkeeper and adviser. I highly recommend her for personal tax and business tax.

Not only she help with our taxes, she even organize our entire book keeping for very reasonable price.
Kayla Cory
FAS is the best bookkeeping services I have encountered in my 39 years of self employment. They are hard working, ethical and honest in every aspect of their professional lives.

Both Dennis and Cristy have gone way beyond their normal duties to provide services at the highest level.
Marv Conway