US Expat Tax Services
Tax preparation and planning for US citizens and green card holders living abroad. FBAR, FATCA, foreign income exclusions, and international compliance expertise.
The United States is one of only two countries that taxes citizens on worldwide income regardless of where they live (the other is Eritrea). If you're a US citizen or green card holder living abroad—or a DFW resident with foreign income, accounts, or assets—you face complex tax obligations most preparers don't understand. Our CPAs specialize in expatriate taxation and international compliance, helping Americans abroad stay compliant while minimizing their US tax burden.
US Tax Obligations
US citizens and green card holders must file US taxes on worldwide income, regardless of where you live.
You Must Report:
- Foreign employment & self-employment
- Rental & investment income
- Pensions & any other income
- Foreign accounts (FBAR) & assets (FATCA)
⚠️ Non-compliance penalties: Up to $12,500/account/year (non-willful)
Foreign Earned Income Exclusion (FEIE)
| Requirement | Details |
|---|---|
| 2026 Exclusion | Up to ~$130,000 |
| Income Type | Earned only (not investments) |
| Form | 2555 |
Qualification (meet ONE):
- Bona Fide Residence: Resident of foreign country for full tax year
- Physical Presence: 330 days abroad in any 12-month period
Housing costs above base amount also excludable.
Foreign Tax Credit (FTC)
Credit US taxes for foreign taxes paid—prevents double taxation.
| Feature | Details |
|---|---|
| Form | 1116 |
| Carryback | 1 year |
| Carryforward | 10 years |
Often better than FEIE for high-tax countries or income above exclusion limit.
FBAR vs. FATCA
| Requirement | FBAR | FATCA (Form 8938) |
|---|---|---|
| Threshold | $10K aggregate anytime | $200K year-end / $300K anytime* |
| Form | FinCEN 114 | 8938 (with return) |
| Due Date | Apr 15 (auto ext. to Oct 15) | With tax return |
| Penalties | Up to $12,500/account | $10K-$60K |
*Higher for married filing jointly. Many assets require BOTH forms.
Tax Treaty Benefits
US has treaties with ~70 countries. Benefits include:
- Reduced withholding on dividends/interest/royalties
- Exemptions for students, teachers, researchers
- Tie-breaker rules for dual residents
- Social security totalization
- Pension taxation rules
Must claim on return (Form 8833). Not automatic.
Streamlined Filing (Catch-Up)
Haven't been filing? IRS offers amnesty for non-willful taxpayers:
| Requirement | Amount |
|---|---|
| Delinquent Tax Returns | 3 years |
| Delinquent FBARs | 6 years |
| Penalties | None (if non-willful) |
✓ Voluntary disclosure is always better than IRS discovery.
Self-Employment Tax
- FEIE does NOT exclude SE tax — may owe 15.3% on foreign self-employment
- Totalization agreements — ~30 countries exempt you from US SE tax if covered abroad
- Without agreement — may pay into both systems or neither
Pro Tips
File Every Year
Even if you owe no US tax, file your return. The statute of limitations doesn't start until you file, and some credits/exclusions require timely filing.
Don't Forget State Taxes
Some states (California, New Mexico, Virginia) continue to tax former residents who move abroad. Properly severing state residency is critical.
Keep Meticulous Records
Document your physical presence, foreign tax payments, and account balances. Reconstruction is difficult from abroad.
Frequently Asked Questions
Need Help With Your Taxes?
Our DFW CPAs specialize in helping individuals and businesses minimize their tax burden. Schedule a free consultation to discuss your specific situation.