Global Citizenship - Freedom from US and Other Bindings
- Part of Tax Series Tax Planning 101
- Also Series: Retirement Planning and Taxes Series
- Blog, Tag Tax Tag
- Global Citizenships
- Review of Countries to Retire
- US Citizenship and Taxation 101
- Interaction with Global Countries
- Major US States and Global Income
Review of Countries to Retire
US Citizenship and Taxation 101
Should I give it up?
Filing US Taxes from abroad
American expats pay annual U.S. income taxes on worldwide earnings, such as salaries, interest, rental income, business profits and more. U.S. citizens and resident aliens must file taxes and cover what they owe, regardless of where they live. These rules mean expats may have to file and pay taxes in two places.
How difficult is it to file US Taxes as an Expat
Nearly 1 in 4 American expatriates say they are “seriously considering” or “planning” to ditch their U.S. citizenship .. More than 4 in 10 who would renounce citizenship say it’s due to the burden of filing U.S. taxes .. “It can get very complicated very quickly,” .. and 69% don’t feel they should have to file U.S. taxes while living abroad - CNBC reporting on Greenback Expat Tax Services
More than 4 in 10 who would renounce citizenship say it’s due to the burden of filing U.S. taxes
US Taxation of Foreign Income
The IRS has measures to avoid double taxation, including a foreign income exclusion
Dual Taxation Income Exclusions
The IRS has a tax credit
Dual taxation Credits
Reporting of Foreign Balances is Required
Once balances across foreign accounts pass $10,000, expats must file the Report of Foreign Bank and Financial Accounts, known as FBAR, with the Treasury Department.
Some expats may also have to disclose foreign financial accounts, such as savings and investments.
For example, let’s say someone has $5,000 in savings and $4,975 in investments. If their investments grow to $5,025 at any point during the year, they will have to report their accounts
Foreign Tax Credits in US Taxes
US Citizenship Abroad - Basic facts and trends
9 million U.S. citizens are living abroad