Download Our Overview for US Citizens Living Abroad

Taxation of US Citizens Living Abroad

  1. Do I have US income tax filing obligations as a US citizen living abroad?

Yes.  The US taxes US citizens on their worldwide income regardless of where they reside.  This is different than almost all other countries in the world which generally assess income tax based on residence.  US citizens living abroad are required to file annual income tax returns if their income is above certain levels.

  1. What is the Report of Foreign Bank and Financial Accounts (FBAR)?

A US citizen is required to file an FBAR if they have financial accounts located outside the US and the total on deposit in all such accounts at any time during a calendar year exceeds $10,000.  The FBAR is a separate tax filing requirement from the US income tax return.

  1. What is the Foreign Account Tax Compliance Act (FATCA)?

A US citizen with foreign financial assets above certain filing thresholds is required to file a special FATCA Form with their US income tax return reporting the value of their foreign financial assets.  This is an informational Form that does not carry income tax consequences.  However, significant penalties can be assessed for failure to file the FATCA Form.

  1. How do I become compliant with my US tax filing obligations?

A US citizen who is not compliant with their US tax filing obligations will need to file past US income tax returns, FBARs, and FATCA Forms to become compliant with their US tax filing obligations.  Our office works with US citizens living abroad to become compliant with their US tax filing obligations.