US Expat Tax Help: Your Guide to Filing From Abroad
Living overseas is exciting. Figuring out your US taxes from another country? Less so. This page breaks it all down in plain language: what you need to file, what benefits can lower your bill, and how to get expert help wherever you are in the world.
Book a Free ConsultationDo I Still Need to File US Taxes From Abroad?
The short answer: almost certainly yes. The United States is one of only two countries in the world that taxes its citizens on worldwide income, no matter where they live. If you are a US citizen or green card holder and your income is above the filing threshold, you are required to file a federal tax return every year.
This surprises a lot of people. You might be paying taxes in the country where you live and assume that takes care of everything. It does not, at least not automatically. The US still wants to hear from you.
Here is the important part that often gets lost: filing does not mean you owe money. The US tax code includes powerful provisions specifically designed to prevent double taxation for Americans abroad. Most expats who file correctly owe little or nothing to the IRS. The requirement is about reporting, and the tools available to you are generous.
Tax Benefits That Can Reduce or Eliminate Your US Tax Bill
The US tax code offers three main tools for expats. Used correctly, they can bring your US tax obligation to zero. Here is how each one works.
Foreign Earned Income Exclusion (FEIE)
This is the big one for most expats. The FEIE lets you exclude up to $130,000 (2025 tax year) of foreign earned income from US taxation. If you earn under this threshold, your US income tax could be zero.
To qualify, you need a tax home in a foreign country and must meet one of two tests: the bona fide residence test (you are a resident of a foreign country for a full tax year) or the physical presence test (you are outside the US for at least 330 full days in a 12-month period).
Foreign Tax Credit (FTC)
Already paying income taxes to another country? The Foreign Tax Credit lets you offset your US tax bill dollar-for-dollar with the taxes you pay abroad. This directly prevents double taxation.
For expats living in high-tax countries like the UK, Germany, France, Japan, or Australia, the FTC alone often eliminates the entire US tax liability. You may even have excess credits to carry forward.
Foreign Housing Exclusion
Living in an expensive city abroad? The Foreign Housing Exclusion lets you exclude or deduct certain housing expenses (rent, utilities, insurance) that exceed a base amount, on top of the FEIE.
The limits vary by city. Places like London, Hong Kong, Tokyo, and Zurich have higher caps that reflect the cost of living. This can be a meaningful additional benefit if you are in a pricey market.
Want to Know Which Benefits Apply to You?
Every expat situation is different. A free 15-minute call with Tajma can clarify exactly which exclusions and credits work best for your specific circumstances.
Book Your Free ConsultationForms and Filings: What You Actually Need to Submit
Expat tax returns involve a few more forms than a typical domestic return. Here is a plain-language guide to the most common ones.
| Form | What It Does | Who Needs It |
|---|---|---|
| Form 2555 | Claims the Foreign Earned Income Exclusion and/or Foreign Housing Exclusion | Expats with foreign earned income who meet the bona fide residence or physical presence test |
| Form 1116 | Claims the Foreign Tax Credit for income taxes paid to another country | Expats who pay income tax in their country of residence |
| FBAR (FinCEN 114) | Reports foreign bank and financial accounts to FinCEN (not the IRS) | Anyone whose foreign accounts exceed $10,000 in combined value at any point during the year |
| Form 8938 (FATCA) | Reports specified foreign financial assets to the IRS | Expats whose foreign assets exceed $200,000 at year-end (or $300,000 at any point) |
| Form 1040 | Your standard US individual income tax return | All US citizens and green card holders above the filing threshold |
Other forms may apply depending on your situation. If you own part of a foreign business, you may need Form 5471. If you have a foreign pension, there may be additional reporting. If you received a large gift from a foreign person, Form 3520 comes into play. Your tax specialist will identify exactly which forms apply to you.
How Qorri Tax Helps Expats
Working with a tax professional who understands international tax makes a real difference. Here is what the process looks like when you work with Tajma.
- Free consultation call. A 15-minute conversation to understand your situation. Where do you live? What kind of income do you earn? Do you have foreign accounts or investments? No documents needed for this first call. You walk away with clarity on what needs to happen.
- Personalized quote. After the call, you receive a written, flat-fee quote. No hourly billing, no surprise invoices. You know the cost before you commit to anything.
- Document collection. Tajma sends you a clear checklist of what she needs. W-2s, foreign tax documents, bank statements for FBAR purposes, and anything else relevant to your return. Everything can be shared securely online.
- Return preparation. Your return is prepared with all applicable exclusions, credits, and treaty positions claimed. Tajma reviews every form with you before filing so you understand exactly what is being submitted and why.
- Filing and ongoing support. Your return is e-filed (or paper-filed where required). After filing, you have a tax professional who knows your situation and can help with questions throughout the year.
Your Specialist: Tajma Qorri
Tajma spent more than ten years in international tax at Plante Moran, Grant Thornton, and Dean Dorton before founding Qorri Tax Service. She works with Americans abroad every day, handling everything from straightforward expat returns to complex multi-country situations involving foreign businesses, pensions, and treaty positions.
Every engagement is handled personally. The person you speak with on your first call is the same person who prepares your return, answers your questions, and files everything. No hand-offs, no junior staff, no matter where in the world you are.
AICPA Member
Ready to Get Started?
A free 15-minute call is all it takes to understand your situation and get a clear path forward.
Book Your Free ConsultationCommon Questions From Expats
Do I still have to file US taxes if I live abroad?
Yes. The United States taxes its citizens and permanent residents on worldwide income, regardless of where they live. If your income exceeds the filing threshold, you need to file a federal return every year, even if you also pay taxes in another country. The good news is that exclusions and credits like the FEIE and Foreign Tax Credit usually reduce your US tax bill significantly, and many expats end up owing nothing.
What is the Foreign Earned Income Exclusion (FEIE)?
The FEIE lets qualifying expats exclude up to $130,000 (2025) of foreign earned income from US taxation. To qualify, you need a tax home in a foreign country and must meet either the bona fide residence test or the physical presence test (330 days abroad in a 12-month period). You claim it on Form 2555.
What is the Foreign Tax Credit?
The Foreign Tax Credit (Form 1116) lets you offset your US tax liability dollar-for-dollar with income taxes you have already paid to another country. This prevents double taxation on the same income. For expats in high-tax countries like the UK, Germany, or Japan, the FTC alone often eliminates any US tax owed.
Can I use both the FEIE and the Foreign Tax Credit?
You can use both, but not on the same income. For example, you might exclude your salary under the FEIE and then use the Foreign Tax Credit for investment income or income above the exclusion limit. The best strategy depends on your specific situation, including where you live and what types of income you earn.
What is an FBAR and do I need to file one?
FBAR (FinCEN Form 114) is a report of your foreign bank and financial accounts. If the combined value of all your foreign accounts exceeds $10,000 at any point during the year, you are required to file an FBAR. It is filed separately from your tax return, electronically through the BSA E-Filing System, and is due April 15 with an automatic extension to October 15.
What happens if I have not filed for several years?
If you have fallen behind on filing, do not panic. The IRS has a program called the Streamlined Foreign Offshore Procedures (SFOP) designed specifically for Americans abroad who were unaware of the filing requirement. Qualifying filers can catch up by submitting three years of tax returns and six years of FBARs with zero penalties. It is more common than you think, and there is a clear path to getting current.
Do I get an automatic filing extension as an expat?
Yes. US citizens and residents living abroad on April 15 automatically get a two-month extension to June 15 to file their return. You can also request an additional extension to October 15. However, any tax owed is still due by April 15, so if you expect to owe, make an estimated payment by that date to avoid interest.
How much does it cost to work with Qorri Tax?
Every engagement begins with a free 15-minute consultation call. After that, you receive a written, flat-fee quote based on the complexity of your situation. There are no hourly surprises. Expat returns typically range from $2,500 to $5,000 depending on the number of forms, foreign accounts, and country-specific considerations involved.
Helpful Resources for Expats
Want to go deeper on a specific topic? These guides cover the details.
The Complete US Expat Tax Guide
A comprehensive deep dive into FEIE, FTC, treaty positions, and planning strategies for Americans abroad.
Canada-US Cross-Border Tax Guide
Specific guidance for Americans in Canada or Canadians with US ties, including treaty benefits.
Dual Citizen Tax Guide
If you hold US citizenship alongside another nationality, this covers your unique filing situation.
Expat Tax Services Overview
Details on how Qorri Tax works with Americans abroad, including pricing and what is included.
FBAR Filing Help
Everything you need to know about reporting your foreign bank accounts.
Behind on Filing? The Streamlined Path
If you have missed a few years, the IRS Streamlined program offers a zero-penalty way to catch up.
Not Sure Where to Start?
That is completely normal. Expat tax questions rarely have one-size-fits-all answers. A free 15-minute call with Tajma will give you clarity on your specific situation, what you need to file, and what it will cost. No pressure, no commitment.
Book Your Free Consultation