Expat Tax Services

If you’re a U.S. citizen or green card holder living in another country, you still have to file a U.S. tax return each year. That rule applies no matter where you earn your income or how long you’ve lived outside the country. Many people don’t realize this until they get a notice from the IRS or miss out on valuable exclusions and credits because they didn’t file correctly.

Living abroad comes with new financial obligations, including tax forms that most people in the U.S. never see. You may need to report foreign bank accounts, claim foreign income exclusions, or apply for tax credits to avoid double taxation. USA Tax Gurus helps people in your position handle these issues with confidence and accuracy, so you can file the right way and avoid problems later.

Why Hire Us For Your Expat Tax Needs?

USA Tax Gurus works with clients across more than 25 countries and handles U.S. returns for both individuals and small businesses living overseas. When you choose USA Tax Gurus, you’ll get service that’s reliable, responsive, and accurate.

Benefit	Why It Matters
Experienced With International Filings	USA Tax Gurus prepares expat returns year-round. We know how to account for foreign income, housing exclusions, treaty positions, and other specifics at tax time.
Works With a Global Client Base	We support clients living in Europe, Asia, the Middle East, South America, and more. No matter your time zone, you’ll have access to support that works with your schedule.
Helps With FBAR and FATCA Reporting	You’ll get help preparing and filing required foreign account disclosures. These forms often trip up first-time filers, but USA Tax Gurus can walk you through what needs to be included.
Back Tax Filing Support	If you’ve missed one or more years, the firm can help you get caught up using IRS-approved methods that reduce or eliminate penalties.
Flat Fee Pricing	USA Tax Gurus provides transparent, flat-rate pricing so you know what to expect before we get started.
Direct Communication	You’ll work with licensed professionals who respond to your questions directly and explain your return in plain language. You won’t be passed from one person to another or struggle to get answers when you need them.

Choosing the right tax partner can reduce your stress and improve your filing results. USA Tax Gurus combines technical skill with responsive service, helping expats stay in good standing with the IRS while keeping their time abroad tax-compliant. 

Who Needs Expat Tax Services?

You may need expat tax services if you live outside the U.S. for most of the year and still hold U.S. citizenship or a green card. The IRS considers you a tax resident even if you haven’t been in the country for months. That means you still have to report your income and file tax forms just as you would if you lived stateside.

This applies to more than full-time employees abroad. If you run a business overseas, hold a foreign pension, or earn rental income from property outside the U.S., those earnings must be reported. The same goes for dual citizens and people with green cards who now live in another country, even if they haven’t used their U.S. address in months.

You’re also required to report any foreign bank accounts, assets, or investments if they cross certain thresholds. Failing to do that can trigger penalties, even if the accounts don’t produce much income. If you’re unsure what applies to you, it’s worth checking early, before the IRS does.

Do U.S. Expats Have to File Taxes?

Yes, you do. If you’re a U.S. citizen or green card holder and your income meets the minimum filing threshold, you’re required to file a federal tax return each year, no matter where you live. That includes income earned from foreign employers, self-employment, rental properties, or investments.

Many people assume that moving overseas ends their U.S. tax responsibilities, but that’s not the case. The U.S. uses a citizenship-based tax system, which means the obligation follows you even if you haven’t set foot in the country recently. You may qualify for exclusions or credits, but you still have to file to claim them.

The good news is that most expats don’t end up paying taxes twice. The IRS offers tools like the Foreign Earned Income Exclusion and Foreign Tax Credit to help you reduce or eliminate what you owe. But if you skip filing altogether, you won’t qualify for those benefits—and that can lead to penalties or missed refunds.

Key U.S. Tax Requirements for Expats

Living abroad doesn’t remove your U.S. tax filing duties. In fact, you may need to submit extra forms depending on how you earn, bank, or invest outside the country. If you leave out any required forms (even when you don’t owe tax), you could face penalties or delays.

• Form 2555 (Foreign Earned Income Exclusion): You may be able to exclude part of your foreign wages or self-employment income if you meet the requirements of the bona fide residence test or the physical presence test. This form can also help you deduct housing costs if you live in a high-rent country.
• Form 1116 (Foreign Tax Credit): If you pay income taxes to a foreign government, you may be able to use this form to reduce your U.S. tax bill. The credit applies to many types of income, including wages, dividends, and interest.
• FBAR (FinCEN Form 114): If the total value of your foreign bank and investment accounts exceeds $10,000 at any point during the year, you must report them by filing this form online. It’s separate from your regular tax return, but still required.
• Form 8938 (FATCA Reporting): If the value of your foreign assets passes IRS thresholds based on your filing status, this form must be filed with your federal return. It usually includes accounts already reported on the FBAR.
• State Tax Filings: Some states may keep taxing you if they see you as a resident, which could happen if you own property, maintain a driver’s license, or have family ties there. You may need to take extra steps to end those connections.

Common Expat Tax Challenges

When you live overseas, filing U.S. taxes can be more complicated. You may struggle with paperwork from foreign banks or employers, or run into trouble determining which forms apply to you. These issues can delay your return or lead to penalties if something is missing or incorrect.

• Choosing Between Exclusions and Credits: Many expats aren’t sure when to use the Foreign Earned Income Exclusion or the Foreign Tax Credit. Picking the wrong one can increase what you owe or reduce your refund.
• Late or Missed Filings: If you didn’t know you had to file while abroad, you may already be behind. Late tax returns or skipped FBAR forms can trigger penalties, even if you don’t owe anything.
• Currency Conversion and Recordkeeping: Foreign income and expenses must be converted to U.S. dollars using accepted exchange rates. Without good records, that step can lead to errors on your return.
• Mismatched Tax Years: U.S. tax returns follow the calendar year, but some countries use a different cycle. That difference can make it harder to claim credits or prove when foreign taxes were paid.
• Self-Employment Complications: If you run a business overseas, you may face extra forms, different reporting rules, and separate deadlines. Tracking expenses across two systems frequently leads to confusion.

How an Expat Tax Advisor Can Help

Trying to meet U.S. tax rules from another country can lead to mistakes, missed forms, or overpaid taxes. A qualified tax advisor can guide you through the filing process, help you use exclusions and credits properly, and make sure your accounts and income are reported correctly. That kind of support can save you time and reduce your risk of penalties.

• Reviewing Your Filing Requirements: A tax advisor can assess your income, assets, and residency status to determine which forms you need to file. This includes your federal return, FBAR, FATCA reports, and any late filings.
• Choosing the Right Tax Breaks: They’ll help you decide whether to use the Foreign Earned Income Exclusion, the Foreign Tax Credit, or a combination of both. This decision can affect how much you owe and whether you’re entitled to a refund.
• Handling Back Taxes or Penalties: If you missed filings in past years, a tax advisor can guide you through IRS amnesty programs like the Streamlined Foreign Offshore Procedures. These options help reduce or eliminate penalties if you qualify.
• Keeping Your Documents in Order: Working with someone who’s familiar with foreign income and reporting rules helps you stay organized. You’ll know what records to keep and how to track income or deductions properly.
• Offering Year-Round Support: Tax issues can come up at any time, especially if your situation changes mid-year. An advisor who works with expats can help you stay on top of your obligations throughout the year, not just during tax season.

Stay Compliant and Save Time With the Right Tax Support

Living abroad doesn’t exempt you from U.S. tax rules, but it doesn’t have to make filing complicated. With professional tax support, you can file correctly, claim the exclusions or credits that apply to you, and avoid mistakes. 

USA Tax Gurus helps expats across the globe stay current, reduce their tax bills, and keep their records in order. If you’re ready to file more confidently and stop worrying about what you might’ve missed, schedule a free consultation today by filling out an online contact form or by calling 213-212-2210.

Expat Bookkeeping FAQS

What Documents Do You Need to File Your Expat Taxes?

To file your U.S. tax return while living abroad, you’ll need records that show your income, foreign accounts, and living situation. Gathering these documents early makes it easier to meet IRS rules and avoid delays. If you’re working with USA Tax Gurus, you’ll receive a secure intake form that helps you collect everything in one place.

• Foreign Income Records: Include pay slips, contracts, or earnings statements from foreign employers. If you’re self-employed, you’ll need a list of income and business expenses for the year.
• Proof of Residency: Depending on which tax break you claim, you may need to show that you lived abroad long enough to meet the physical presence or bona fide residence test. This may include visas, rental agreements, or utility bills.
• Foreign Bank and Investment Account Details: Gather statements from each account you held during the year. Make sure to include account numbers, bank names, and peak balances for FBAR and FATCA reporting.
• U.S. Tax Documents: If you receive U.S.-based income, such as interest, dividends, or retirement distributions, include those forms too. This may include W-2s, 1099s, or brokerage summaries.
• Foreign Tax Payments: If you paid taxes to a foreign country, keep records of tax returns or payment receipts. These documents are needed to claim the Foreign Tax Credit.
• Housing and Other Expense Records: If you plan to claim the housing exclusion, you’ll need proof of rent, utility bills, or related costs tied to your overseas residence.

What Happens If You Haven’t Filed?

Many expats miss filing because they didn’t know they had to submit a return or report their foreign accounts. The IRS allows certain late filers to catch up without penalties, but you need to follow the correct procedures.

• IRS Streamlined Filing Compliance Procedures: This program helps expats who failed to file because they weren’t aware of the requirement. You’ll need to submit the last three years of tax returns and the last six years of FBARs, along with a statement explaining why you’re late.
• Penalties for Non-Filing: If you don’t qualify for the streamlined program and continue to delay, you could face penalties for each missed return or for failing to report foreign accounts. The FBAR penalty alone can reach $10,000 per violation if you’re considered non-willful.
• Loss of Tax Benefits: If you don’t file on time, you can lose access to tax credits or the Foreign Earned Income Exclusion for that year. That means you may owe tax you could’ve avoided by filing properly.

Getting caught up is possible, but waiting too long can limit your options. If you’ve missed one or more years, the best step is to act before the IRS contacts you first. USA Tax Gurus assists expats with late filings and can review your eligibility for penalty relief. We handle the full submission package, including amended forms, bank account reporting, and IRS statements.

When Are Expat Taxes Due?

If you live outside the U.S., you still have to follow the same tax calendar as those living stateside, but with a few extra allowances. U.S. expats get an automatic extension to file, though interest still applies if you owe tax and don’t pay by the regular deadline. 

• April 15: This is the standard U.S. tax deadline for filing and paying any taxes owed. If you owe money and pay after this date, interest begins to accrue, even if you’re an expat.
• June 15: U.S. taxpayers living abroad get an automatic two-month extension to file their return. You don’t need to file any form to receive this extension, but you should include a statement with your return noting that you qualified for it.
• October 15: If you still need more time, you can request an additional extension to October 15 by filing Form 4868. This extension gives you more time to file but doesn’t give you more time to pay.
• FBAR Deadline: The FBAR (FinCEN Form 114) is due on April 15 as well. However, there’s an automatic extension to October 15 if you miss the April deadline, so you don’t need to file a separate request.
• State Deadlines: If your former state requires you to file, check its rules carefully. Some follow the federal calendar, while others have their own deadlines and rules for extensions.

Meeting these deadlines helps keep your record clean and avoids added interest or penalties. USA Tax Gurus tracks these dates for every client and sends reminders to help you stay current.