Top 5 US Tax tips for US Expats

1.     File your US tax return each year

 

Millions of US Expats fail to file their tax return every year. If your income exceeds the filing threshold (which is set very low) you are required to file a return.

 

2.     Use the Foreign Earned Income Exclusion to save

 

The FEIE allows you to exclude a set amount of foreign earned income. However, in order to do so you must qualify through one of two residency tests.

 

3.     Reduce taxes with Foreign Tax Credit

 

You can also save on US taxes through Foreign Tax Credit.  This can be extremely useful if you reside in a high-tax country.

 

4.     Offset some of your housing costs

 

Through Foreign housing exclusion you can offset some of your living expenses from abroad.

 

5.     Get caught if you are behind

 

If you have failed to file your file your tax return it is never too late to catch up. The IRS has created a Streamlined Offshore Filing Procedure to help innocent taxpayers get caught up.