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20 Dec 2024

IRS reminds retirees to take required minimum distributions by December 31, 2024

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19 Dec 2024

Get ready for 2025 tax filing: Essential IRS updates and tips

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18 Dec 2024

Minimum income to file taxes in 2025: Who needs to file and why you might want to anyway

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Featured reads
20 Dec 2024

IRS reminds retirees to take required minimum distributions by December 31, 2024

Read more
19 Dec 2024

Get ready for 2025 tax filing: Essential IRS updates and tips

Read more
18 Dec 2024

Minimum income to file taxes in 2025: Who needs to file and why you might want to anyway

Read more
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IRS reminds retirees to take required minimum distributions by December 31, 2024

As the year draws to a close, the IRS is reminding retirees aged 73 and older about the importance...
Dec 20, 2024

Get ready for 2025 tax filing: Essential IRS updates and tips

As the 2025 tax season approaches, the IRS has rolled out key updates and tools to help taxpayers ...
Dec 19, 2024

Minimum income to file taxes in 2025: Who needs to file and why you might want to anyway

Determining whether you need to file a tax return in 2025 boils down to your income, age, and fili...
Dec 18, 2024

Beware of the "pig butchering" scam: a growing threat to your privacy and finances

Evelyn, a 50-year-old navigating Los Angeles' tough dating scene after heartbreak, met Bru...
Dec 05, 2024

How to change your name after marriage with the IRS: A guide to avoid tax season woes

Disclaimer ...
Dec 05, 2024

Federal court blocks nationwide enforcement of Corporate Transparency Act (CTA)

Overview: A major setback for the Corporate Transparency Act On December 3, 2024, a fe...
Dec 05, 2024

To Include or Not to Include Your Foreign Spouse’s Income on Your US Expat Tax Return

Living overseas and married to a ...
Dec 02, 2024

Do US citizens living abroad pay taxes?

Many of our clients ask us, do US citizens living abroad pay taxes? How do I know I’m meetin...
Nov 28, 2024

Roth IRA vs. traditional IRA: Which retirement account is right for you?

Disclaimer ...
Nov 14, 2024

IRS announces inflation-adjusted tax penalties for 2025

The IRS has announced new inflation-adjusted tax penalties for 2025, impacting taxpayers, business...
Nov 14, 2024

IRS announces e-filing shutdown for system update

The Internal Revenue Service (IRS) has scheduled a temporary shutdown of its e-filing system for i...
Nov 12, 2024

IRS announces 2025 retirement contribution limits and adjustments

The IRS has released updated retirement contribution limits for 2025, covering 401(k)s, IRAs, SIMP...
Nov 12, 2024

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IRS 101
How to obtain a copy of past returns

Prior year transcripts - who to call, which forms to fill out, etc.
How IRS can find you abroad

A common misunderstanding is that US citizens abroad do not have to file tax returns
Expatriate tax audits

Audits are no fun, especially when the documents are not standard US tax forms; TFX can help
Tax penalties & interest

How the IRS computes tax, interest, and other penalties & what you can do to avoid them
Received IRS notice?

Scary IRS letters? We will help you debunk them and form an action plan to fix any issues
Can you e-file US tax return from abroad

TFX is an authorized e-file firm and e-files tax returns for taxpayers globally
How to pay IRS electronically from abroad

If you do have a tax bill, what are the ways you can pay the IRS?
How to file an amended return

We can amend prior filed returns to ensure you get the deductions & credits you are eligible for
IRS mailing addresses

In cases where E-filing is not permitted (IRS rules), we outline where and how to snail mail the returns
Can overseas Americans get an IRS refund?

Short answer: Yes. Long answer: Certainly, but your tax return needs to be optimized.
IRS statute of limitations

The IRS can’t chase you forever; we break down the rules behind the IRS statute of limitations
ITIN Q&A

What are ITINs, who needs one, how to get one, and when they expire
All IRS 101
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Glossary of tax terms

Expatriate tax glossary. Commonly used terms explained
Definition of US tax terson

More complicated than it sounds. How ‘US Person’ is defined by the IRS and what it means to you
Resident & non-resident aliens

“Resident” can have many different meanings for the IRS.
Foreign bank account report: FBAR

FinCEN Form 114 and filing requirements explained. Who needs to file, when, and why?
Form 8938 (FATCA)

Filing requirements, penalties, and other considerations
Foreign retirement accounts

How is your nest egg treated by the IRS? It depends on the country and the plan
Foreign income exclusion (FEIE)

Save over $100,000 on your US tax return with this nifty exlcusion. But, it’s complicated
Foreign tax credit (FTC)

How to avoid double taxation
Physical presence test

One of two ways to meet the Foreign earned income exclusion (FEIE)
Bona fide residence test

Second method to meet the Foreign earned income exclusion (FEIE)
Partial year exclusion

Moving overseas (inbound or outbound) midyear is not uncommon
All tax concepts
Expat tax 101
Why file

It’s the law. But, outside of legal reasons, many taxpayers may also benefit from refunds
Expat tax deadlines & due dates

There are many different deadlines & possible extensions - TFX can keep you abreast.
Minimum filing requirements

What are the minimum thresholds that trigger tax filing requirements?
Tax documents required

Which documents you may require in getting caught up to date on your tax returns
Do expats file state taxes?

It depends. State taxes are one of the most misunderstood aspects of expat tax.
Common tax forms

Thousands of tax forms exist, but which select few you really need to understand
Dependents & exemptions

How to understand these two terms & use them to your advantage to obtain tax refunds
Foreign spouse tax implications

How to understand these two terms & use them to your advantage to obtain tax refunds
Totalization agreements

Why these complex terms can mean a lot to self-employed individuals & digital nomads
Green Card holders

US tax filing requirements & credits specific to permanent residents
Surrendering citizenship or Green Card

Big life choice that also carries hidden tax implications & filing requirements
Social security survivor benefits

Will your non-US spouse be sble to receive survivor, dependent, or spousal benefits?
All expat tax 101
Who we help
Americans working abroad

US citizens & Green Card holders who are living and working outside the US
American educators abroad

TFX has partnerships with many international schools to assist their staff with tax filings
American contractors overseas

Contractor taxes contain many nuances, especially for potential state tax filing requirements
Employees of international organizations

Aid workers (& other staff) of the UN, EC, WHO or WB have many tax advantages and tax complexities
Pilots

Thx for keeping us safe in the sky! International pilot taxes are *almost* as complex as flying a jet
Military

Working in war zones or stationed abroad, TFX can help understand filing requirements
Digital nomads

Global citizens who earn a living without a permanent establishment
Retirees abroad

TFX files returns for American retirees globally & ensures their nest eggs are protected
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We support entrepreneurs globally & explain how to make the most of your hard-earned earnings
Green Card holders

Permanent residency has tax implications - we explain what you need to know
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Born with a U.S. citizenship but never filed tax returns? TFX can help.
Dual citizens with US passports

Multiple citizenship is in vogue! TFX explains your U.S. tax filing requirements
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Why hire
a professional?

to prepare your expatriate tax return?

Why hire a professional?

Expat taxes are complicated. Seriously.

As an individual, (i.e. not a business or charity) you will need to file a Form 1040 and the associated schedules, much the same way you did in the US. In addition you may qualify for the Foreign Earned Income Exclusion, the Foreign Housing Deduction or the Foreign Housing Exclusion in which case you would have to file the appropriate forms as they have a number of advantages and can save you a significant amount of money.

In a recently issued report by the U.S. Treasury approximately 10% of expat tax returns were filed with erroneous foreign earned income tax exclusions due to overstatement or inaccuracies on the Form 2555.

TFX Quiz

TFX quiz

We have prepared a quiz for you to test your Expat Tax knowledge.

Reconciling host country tax year to the U.S.

The U.S. tax year begins on January 1st and ends on December 31st. Not all countries operate on this system. For example Australia, Hong Kong, New Zealand, and the UK all have different tax year schedules that don't coincide with the calendar year. The IRS requires that you (or your tax preparer) prepare your return according to the U.S. tax year, which means taking your tax statements from your host country for two years and extracting the appropriate information to then plugging it into your U.S. tax return.

IRS hired additional 800 agents to ensure expats are filing

The hole in the budget the Obama administration is trying to fill is about $400 billion. The Government estimates that offshore tax abuse costs the US Treasury as much as $100 billion each year and the President authorized an additional $128 million for the 2010 IRS budget. Part of this money will be spent on 800 new IRS agents to try to track down individuals and businesses who have not been filing and paying taxes.

Changes in tax code

The U.S. tax code changes every year, especially when there are major changes in the political landscape (as happened in 2008 and 2010 with Presidential and Congress elections). There are a number of changes that occurred between the 2008 and 2009 tax years that impact expacts - including changes to the Alternative Minimum Tax, Child-Related Tax Changes, Earned Income Credit, Education Related Tax Changes, Increases to the exclusion payments made under a long-term care insurance contract, Itemized Deduction Changes, Increased Penalties for Failure to File your Income Tax Return, Changes to the Personal Exemptions, and others. More changes are likely to occur during late 2010 as Congress debates repeal of the Bush tax cuts. If you are not a tax professional you probably do not have the time or inclination to keep up with all of these changes every year.

State return complexities

Every state has its own rules and certain states make it more difficult to avoid filing their tax return. If you lived in California, New Mexico, South Carolina or Virginia you may still have a tax domicile in that State and therefore would need to file a return each year. A tax domicile can be claimed if you maintain a State Drivers License, State Voter Registration, bank accounts in that State, property etc.

Please see State Taxation for Expats for more info.

Commercial tax software not designed with expats in mind

Commercial tax programs are designed for taxpayers living in the U.S., not U.S. citizens living abroad. As such they are very likely to miss exclusions and deductions that are only available to Expats. You may save a few dollars upfront, but you could end up losing a significant amount in overpaid taxes or missed credits in the long run.

Leave it to the experts

Can you think of anything you would rather do this weekend than spend it trying to sort out your taxes? The list is probably endless...