Frequently Asked Questions (FAQs)

  • Yes, as a US citizen or Green Card holder, you’re required to file a US tax return each year—no matter where in the world you live or earn your income. This obligation includes reporting your global income, even if you've already paid taxes in another country. The good news? There are special provisions like the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC) designed to prevent double taxation. Navigating these rules can be tricky, but our team is here to simplify the process, ensure your compliance, and help you take full advantage of every legal exemption available to reduce your US tax burden.

  • Form 5471 (“Information Return of U.S. Persons With Respect to Certain Foreign Corporations”) must be filed by U.S. citizens, green-card holders, and domestic entities that own or manage qualifying shares in a foreign corporation.

  • Standard deadlines: April 15 is still “Tax Day” for all U.S. taxpayers. If you live outside the United States on that date, you automatically receive a two-month extension to June 15—no form required, but interest accrues on any balance due after April 15.

    Additional extensions:

    Form 4868 gives you until October 15.

    If you need more time to meet the Physical-Presence Test for the Foreign Earned Income Exclusion, Form 2350 can extend you past October (often to December 15).

    In extreme cases you can request an extra two months (to December 15) with a written statement, though approval isn’t guaranteed.

  • The FEIE lets qualifying Americans exclude up to $126,500 of foreign “earned” income for 2025 (salary or self-employment) from U.S. federal tax. To claim it you must:

    • Pass either the Physical-Presence Test (330 full days abroad in a 12-month window) or the Bona-Fide Residence Test (establishing a tax home and genuine residency in another country for a full calendar year).

    • File Form 2555 with your return.
      You can also exclude or deduct certain foreign housing costs. The FEIE lowers—or sometimes eliminates—your U.S. tax, but Social Security/Medicare self-employment taxes may still apply.

  • Yes—usually through the Foreign Tax Credit (FTC). By filing Form 1116, you can claim dollar-for-dollar credits for income taxes paid to another country, up to specific limit calculations. Many expats combine the FTC with (or instead of) the FEIE to offset residual U.S. liability on high-tax-country income. Tax treaties and totalization agreements may provide additional relief for pensions or Social Security-like taxes.

  • Track three things carefully:

    1. Days in each country—to see if you meet the 330-day Physical-Presence Test or create local tax residency elsewhere.

    2. Type of income—employee wages vs. self-employment vs. passive (e.g., rental). Self-employment may trigger U.S. SE tax even if the FEIE zeros out income tax.

    3. Local thresholds—some countries tax short stays; others don’t. A digital nomad often mixes the FEIE, FTC, and careful itinerary planning to minimize combined worldwide tax.

  • Your domicile state is the state you regard as your permanent home—where you intend to return. States like California, New York, and South Carolina aggressively assert ongoing residency if you keep voter registration, a driver’s license, dependents, or significant ties there. Unless you formally sever those ties and establish domicile elsewhere, the state can tax worldwide income even while you’re abroad. Part of expat planning is a clean “state exit.”

  • U.S. rental income remains U.S.-source and fully taxable by the IRS (and often by the state where the property sits). You must:

    • File Schedule E each year, claiming expenses and depreciation.

    • Report any rental-property gain tax on sale via Form 4797 or Schedule D.

    • Consider state non-resident returns if your domicile differs from the rental property’s location.
      Foreign taxes rarely offset this income because it is sourced to the U.S.; the FEIE does not apply to passive income.

  • The IRS offers Streamlined Foreign Offshore Procedures:

    • File the last three delinquent returns and up to six FBARs (foreign bank reports).

    • Pay any tax due plus interest; the usual failure-to-file and accuracy penalties are waived for taxpayers who certify non-willful conduct.
      If you face IRS notices or more complex issues (foreign corporations, PFICs), professional help is strongly recommended.

  • Yes. We provide 45-minute video consultations tailored to expat, digital-nomad, and multi-state scenarios. After a document review, we deliver a written action plan covering FEIE vs. FTC strategy, domicile exit, rental property optimization, and compliance catch-up steps. Ongoing full-service filing and tax-resolution packages are also available.