Tax Tip #254

When it comes to income tax, living abroad doesn’t mean you are off the hook. As an expatriate — a US citizen living outside of the country — you are still required to file a US income tax return and report worldwide income.

The bad news? When filing as an expat, there are many rules to be aware of, and noncompliance with some of the tax rules — such as failure to report a foreign bank account — can carry penalties of $10,000 or more. 

Now for the good news: There are strategies to minimize double taxation, such as utilizing the foreign earned income exclusion, the foreign housing exclusion or deduction or the foreign tax credit. 

Not all CPAs have the expertise to assist expat clients, but Goldstein & Loggia does. Know an expat who needs tax help? Reach out to a member of our team.