3 Important Tax Tips for First-Time Expats
- By Elizabeth Hammond
- •
- 15 Dec, 2022
- •
Reduce stress and prioritize the right information during tax season using these important tax tips for first-time expats so you’re always prepared.
Doing taxes in the U.S. can be daunting at times, but moving overseas can make things a bit more confusing. Unfortunately, the confusion doesn’t mean you can avoid doing your taxes, so what should you know before moving abroad? Learn the basics today with these important tax tips for first-time expats.
Remember, Living Abroad Doesn’t Disqualify You From Taxes
One of the essential tips for expats is to never assume that you are exempt from taxes because you live outside of the United States. Simply put, you must file a tax return if you’re a U.S. citizen. More specifically, the U.S. government requires its citizens who meet their designated income threshold to file their taxes. Even if you don’t have income from the United States that year, you can’t overlook filing taxes if you want to remain a law-abiding citizen.
Work With Expat Tax Experts
Expat tax filings can get confusing, but experts are available to help you file correctly, reduce bills, and more. When you team with expat tax experts to tackle your taxes, you can make the initial learning curve more manageable and productive. For instance, our expatriate tax services offer expats a way to sift through the confusion and gain more clarity to avoid simple mistakes. Just because you’re living in another country doesn’t mean you can’t work with a U.S. tax professional service.
Never Ignore Foreign Bank Accounts
As previously mentioned, U.S. citizens who surpass a certain income threshold pay taxes, but that income isn’t just covering the United States. When accounting for your income on taxes, make sure you include your foreign bank accounts using Form 114, aka the Foreign Bank Account Report (FBAR).
It’s understandable when someone assumes that a foreign bank account doesn’t apply to U.S. taxes, but it’s not that simple. Luckily, now that you know about Form 114, you can avoid neglecting your foreign bank accounts when filing taxes. You also don’t have to worry about learning a new due date because the FBAR is due by Tax Day in April. After evaluating our important tax tips for first-time expats, you can start prioritizing the right next steps to ensure you file your taxes properly every year.
