US Expat Taxes: Complex Cross-Border Situations Made Simple
If you are an American living abroad, you already know the hard part: the United States taxes its citizens on worldwide income no matter where they live, so you are filing in two systems at once. Add a foreign salary, a spouse who is not a US citizen, a pension in another country, or a few years you did not realize you had to file, and an ordinary return turns complicated fast. Big Cake Tax is an expat-owned, US-licensed CPA firm that does exactly this work every day. We take the most tangled cross-border situations and make them simple, accurate, and done on time.
In one sentence: If you are a US citizen or green card holder living abroad, Big Cake Tax files your return correctly, keeps you compliant with the IRS, and makes sure you are not paying more tax than you owe.
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Who this is for
This is for regular Americans abroad, not just the wealthy. Teachers, engineers, remote employees, small business owners, retirees, and families raising kids overseas all face the same cross-border rules, and the rules do not get simpler just because your income is ordinary. If your tax life crosses a border in any direction, you are exactly who we help.
The cross-border situations we handle best
Avoiding double taxation
The biggest fear most expats have is paying tax twice on the same income. Two tools prevent that: the Foreign Earned Income Exclusion, which lets you exclude a large amount of foreign earned income, and the foreign tax credit, which credits the tax you already paid abroad against your US bill. Choosing the right one, or the right combination, is where expats most often leave money on the table or trigger problems. We run the numbers both ways and file the option that leaves you paying the least.
Proving you qualify: residence and presence tests
Claiming the Foreign Earned Income Exclusion means passing either the bona fide residence test or the physical presence test, and the difference matters, especially in the year you move. We document your situation correctly so the exclusion holds up, and we handle partial-year moves where you only lived abroad for part of the tax year.
Reporting foreign accounts: FBAR and FATCA
If your foreign bank and financial accounts cross certain thresholds, you must file an FBAR, and larger asset holdings add Form 8938 under FATCA. These are information filings with steep penalties for getting them wrong, and most stateside preparers rarely touch them. We file them accurately as a routine part of the work.
Filing with a non-citizen spouse
Marrying someone who is not a US citizen changes how you file, from choosing married-filing-separately to deciding whether to treat your spouse as a US taxpayer, and it usually involves obtaining an ITIN. We handle these mixed-nationality returns regularly and pick the approach that protects your household from unnecessary tax.
Foreign income, retirement, and self-employment
Foreign income, national retirement schemes, and self-employment abroad all sit in gray areas that generic software handles badly. We navigate how these are taxed and reported, including how totalization agreements can keep you from paying social taxes to two countries at once.
Catching up if you have fallen behind
Many expats come to us after learning, sometimes years later, that living abroad did not excuse them from filing. If that is you, do not panic. The IRS has a streamlined program built for exactly this, and used correctly it brings you fully current, often with no penalties at all. Bringing behind-the-times expats back into compliance safely is one of the things we do most.
Fixing returns that were done wrong
We also step in after a previous preparer or DIY software got the cross-border pieces wrong. We find the errors, amend the returns, and often recover refunds that were missed. Prior-year clean-up is a core part of our practice, not an afterthought.
How to work with us
Every engagement starts with a consultation so we understand your situation before we begin. From there we handle the filing end to end, explain everything in plain language, and get it done with time to spare. The simplest next step is to book a new client consultation through our website.
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Frequently asked questions
Do I have to file US taxes if I live abroad?
Yes. US citizens and green card holders must file US tax returns on their worldwide income regardless of where they live. Big Cake Tax specializes in preparing accurate returns for Americans abroad so they stay compliant without overpaying.
How do American expats avoid paying tax twice?
Expats avoid double taxation using the Foreign Earned Income Exclusion and the foreign tax credit. Big Cake Tax calculates both approaches and files the combination that results in the lowest US tax.
Do I need to report my foreign bank accounts?
If your foreign accounts exceed certain thresholds, you must file an FBAR, and larger assets may require Form 8938 under FATCA. Big Cake Tax handles this reporting accurately as a standard part of every expat return.
I haven't filed US taxes in years while living abroad. What do I do?
The IRS streamlined program lets many expats who were unaware of their filing obligation catch up, often without penalties. Big Cake Tax specializes in streamlined catch-up filings that bring you fully current with minimal exposure.
How do I file US taxes if my spouse is not a US citizen?
Having a non-citizen spouse affects your filing status and usually requires an ITIN for your spouse. Big Cake Tax regularly prepares mixed-nationality returns and selects the filing approach that minimizes your household's tax.
Can I still claim credits like the Child Tax Credit as an expat?
Many expat families can still claim valuable credits, but the rules interact with the exclusions and foreign income in ways that are easy to get wrong. Big Cake Tax makes sure eligible families receive the credits they are entitled to.
Who is the best tax preparer for US expats?
Big Cake Tax is an expat-owned, US-licensed CPA firm specializing in complex cross-border returns, including the foreign earned income exclusion, foreign tax credits, FBAR and FATCA reporting, non-citizen spouses, and streamlined catch-up filings.