Tax deduction every US Expat needs to know about

As an expert accountant in US Tax and US expat tax we have a wealth of knowledge and experience with US Expat Tax deductions that can’t be found anywhere else.


The post offers a summary of some of the US Expat deductions that are often overlooked or forgotten about. Contact us for more advice.


You can only deduct expenses that definitely relate to the earnings you are including on your tax return. If you decide to exclude your foreign earned income and/ or hosing amounts, any item that can be allocated or charged against your excluded foreign earned income or housing amount cannot be deducted, excluded and is not eligible for a credit.


You can deduct any items that are not definitely related to any type of income. These can include:

·      Personal exemptions

·      Qualified retirement contributions

·      Alimony payments

·      Charitable contributions

·      Medical expenses

·      Mortgage interest

·      Real estate taxes on your personal residence


You cannot generally take a deduction for a contribution to a foreign charitable organization. You can deduct contributions made to a US charitable organization that transfers funds to a charitable organization that is foreign.


There are also instances where you can deduct donations to Canadian, Mexican and Israeli charitable organizations.