Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (2024)

1K Shares

This post may contain affiliate links. Please read mydisclosurefor more info.

Taxes. The dreaded word everyone hates.

Even if you don’t have to pay much money in taxes, the prospect of filing them is stressful. No one likes taxes, especially not if you live abroad. That’s when things get really confusing.

As an expat in China and a travel blogger that makes a bit of US income online, my tax situation is ridiculously confusing. I never even got the experience of filing taxes in the US! I jumped straight into the deep end.

I know many of you have this issue too. Whether you own property, work for a US business abroad, or make income in multiple different countries, things can get REALLY messy.

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (2)

Filing my China income from Africa. This is my life.

Using H&R Block For Expat Taxes

Last year I used H&R Block’s free online software to file my taxes. I thought I did a pretty good job, considering I needed to file my Chinese and travel blogging income. I spent hours and HOURS going through every little detail, calculating my income, expenses, housing stipend, and more.

But I did it! I filed my own taxes! …Or so I thought.

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (3)

Where’s all my China income?!

My Messed Up Tax Return

It wasn’t until I started working on my taxes for this year that I realized H&R block was missing all of my China information. I was so confused! Where was my foreign income? Where was my foreign exemption form??

After spending DAYS (I’m actually not kidding) with the H&R Bock help chat, we finally figured it out.

I had filled out my foreign income exemption form (form 2555) without actually declaring my China income. I thought filling out that form WAS declaring my China income! Apparently not.

So rather than point out an error, H&R block just discarded my exemption form and only sent in my travel blogging income. Seriously??!!

When H&R Block finally showed me where to fill out my foreign income, the area was so vague and hard to find, I was absolutely shocked. Not only that, but no one on the help chat knew what I was talking about, or knew anything about declaring foreign income. I had to be escalated to an expert twice!

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (4)

I spent late nights in this office trying to fix my taxes

Re-Submitting My Taxes to the IRS

Because of this debacle, I had to re-submit my taxes to the IRS. Thankfully as an apology H&R Block let me download their 2016 software so I could re-do my taxes. The only annoying thing was that I also had to re-do my travel blogging income as well!

I literally wasted entire days on this. I will never get that time back!

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (5)

H&R Block is not made for this lifestyle!

H&R Block is Not Made for Expats

Companies like H&R block are great for US citizens. Filing my blog income with them was pretty straightforward (except the deductions part… figuring out what deductions fit into which category was enough to break my brain), but when it comes to declaring foreign income, finding deductions, declaring housing stipends and paid flights, and all the complications that come with working abroad, H&R block fails hard.

I was absolutely shocked to discover how little their staff knows about declaring foreign income. Seriously, the amount of time I spent on their help chat is actually criminal.

If you have a complicated tax situation abroad, you do not want to be working with a free software that can’t actually help you.

This is especially true if you have children that are citizens of multiple countries, own property or a business abroad, make income in multiple countries, or anything else of that nature.

If you’re like me, an expat with extra US income, things get really confusing too.

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (6)

Accountants for expats and travelers!

Taxes For Expats: Accountants Trained To Help You

Right around the time all of this was going down, I received a message from Taxes for Expats, an online accounting firm that specializes in taxes for expats and digital nomads. I decided to have them look at my taxes, while I filed them myself on H&R block, just to compare their service to what you can get for free.

It was Taxes for Expats who discovered that I hadn’t declared my China income in 2016 and gave me the instructions on how to amend my taxes with the IRS. Seriously, if my accountant hadn’t noticed this, I would’ve never known I didn’t file my China income!

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (7)

File from anywhere!

How to File With Taxes For Expats

Similarly to H&R Block, Taxes for Expats allows you to fill out all of your tax information online by asking you helpful questions. However, you don’t need to worry about finding the spot to declare your foreign income. It’s all laid out for you.

For complicated issues, Taxes for Expats really makes the form clear too. For example, I left China at the beginning of November, which was a huge hassle on H&R Block because I didn’t spend “the entire tax year” in China. I spent a solid hour on this issue with H&R Block, whereas on Taxes For Expats I simply wrote it in a box.

You also have the ability to chat with a tax expert if you’re confused by any of the questions. It’s always better to ask rather than accidentally fill out the form incorrectly.

For an extra fee, you can even submit an excel or word document with all of your business expenses for the year, and the accountant will decide which expenses go where. For a busy digital nomad running her own travel blogging business with a TON of random miscellaneous deductions, this is a lifesaver.

For all you travel bloggers out there: imagine not having to worry about which category your new camera lens or hosting provider falls in. I spent HOURS on this with H&R block and had to google each category to see what expenses went where.

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (8)

Chat with your accountant via email!

Working With a Professional Accountant

Once you’re done filling out the tax questionnaire, your accountant will have a look and get back to you. You’ll then be told how much you owe, which you either approve, or you can flag for questions.

If for some reason the amount is lower or higher than you expected, I definitely recommend flagging your tax return. For example, my taxes came back much higher than I expected, and when I chatted with myaccountant, he told me the tax was coming from my travel blogging income, which didn’t make much sense to me. How could I owe more tax than I actually made in profit?

Once I realized where it was coming from, I went back through the form and realized I’d forgotten to type a decimal, making $5,030.30 into $50,303. Whoops…

While that was a huge mistake and I definitely wouldn’t have accidentally paid $6,000 in taxes, it was nice having an accountant there to tell me exactly where he got the numbers so I could go back and fix it. I would’ve taken me forever if I had to go back through and try to find the error myself.

This was obviously much better than what I had to go through with H&R block who A) submitted my taxes without declaring my foreign income and B) couldn’t even tell me where to declare my foreign income!

Get $25 Off Your Taxes!

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (9)

consult them before you move abroad!

What Other Services Do Taxes for Expats Offer?

In addition to filing your taxes, there are some other pretty helpful services that Taxes For Expats offer.

The first one I want to mention is tax projections for expats. This is a super helpful service because you can discover the approximate amount of tax you’ll pay if you move abroad. While this isn’t necessary for the average expat, it’s a great service for those planning on opening or moving a business abroad, or expats deciding whether or not to sell an international property.

Taxes For Expats will also check your own tax returns for errors (would’ve been helpful last year), or file amended tax returns to help you get a refund!

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (10)

Is Taxes For Expats Worth the Cost?

For an average tax filing, the cost of working with Taxes For Expats is $350. Personally, I think this is pretty fair for their service. Many of my friends who work with accountants online pay about this much as well.

If you want them to compile and categorize your expenses for you, it’s just an extra $100. The best part is that they’ll only charge this fee if this process will save you more than $100 on your taxes, so you’re never paying for a service you don’t use.

If you’re completely overwhelmed by the idea of taxes, or if you have a confusing filing situation, I think the price is definitely worth it. If you have a lot of random expenses, own property or a business abroad, or make money in multiple countries, hiring Taxes For Expats can definitely save you money… or will at least save you from spending HOURS on a help chat with people who have no idea how to help you.

However, if you’re already comfortable filing your own taxes and you have a very straightforward expat situation, you’re probably fine using free software you’re comfortable with.

Get $25 Off Your Taxes!

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (11)

Don’t forget about your taxes!

Ahhh! When Are US Taxes Due?

For those of you reading this and panicking (typically me), US taxes were due April 18th, 2018. However, as an expat, you have an extension until June 15th.

That said, June 15th is coming up fast, so you’ll want to start filing your taxes ASAP. If you’re literally having a panic attack right now, just consider getting in touch with Taxes For Expats, who can do the hard work for you.

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (12)

Are you an expat?

Let’s Hear From You!

Have you ever filed taxes as an expat? Did you ever have a tax mishap like me? What tax services have you used from abroad? Let me know in a comment below!

If you have any major questions about filing taxes as an expat (that you think I’ll be able to answer), or on the process of filing taxes from abroad with both H&R Block and Taxes For Expats, be sure to get in touch by leaving a comment. I’m always checking for new comments and I’ll be sure to get back to you as soon as I can!

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (13)

Pin Me!

Thanks again to Taxes For Expats for having a look at my taxes in exchange for an honest review. As always, I wouldn’t promote or mention a company I didn’t trust, especially not with something as important as your taxes and finances. Again, if you have any questions about my experience let me know!

Related

Comments

comments

1K Shares

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia (2024)

FAQs

Taxes For Expats: How to File Your US Taxes From Abroad - Adventures Around Asia? ›

If you are a U.S. citizen or resident living or traveling outside the United States, you generally are required to file income tax returns, estate tax returns, and gift tax returns and pay estimated tax in the same way as those residing in the United States.

Do US citizens living abroad have to file US tax returns? ›

If you are a U.S. citizen or resident living or traveling outside the United States, you generally are required to file income tax returns, estate tax returns, and gift tax returns and pay estimated tax in the same way as those residing in the United States.

Can US expats file taxes online? ›

File your own expat taxes online

Our easy U.S. tax software for expats is uniquely designed to let you take control and file your taxes yourself with accuracy and confidence — and will help you find every credit and deduction you deserve.

How do US expats pay taxes? ›

An expat is someone who moves from their native country and settles abroad. American expats must file a federal tax return and possibly pay U.S. taxes if they earn above a minimum income threshold are typically eligible for an automatic 2-month extension to file, but not to pay any owed taxes.

How does a foreigner file a US tax return? ›

Nonresident aliens will use Form 1040-NR to file their returns instead of Form 1040, which U.S. citizens and resident aliens use.

Do US citizens living abroad pay double taxes? ›

The US is one of the few countries that taxes its citizens on their worldwide income, regardless of where they live or earn their income. This means that American expats are potentially subject to double taxation – once by the country where they earn their income, and again by the United States. NOTE!

How much foreign income is tax free in the USA? ›

Each year, the limit on how much of your foreign-earned income may be exempt is adjusted for things like inflation. For the tax year 2022, the limit was $112,000 per person. For 2023, the limit was increased to $120,000 per person.

Does the IRS go after expats? ›

Further, expatriated individuals will be subject to U.S. tax on their worldwide income for any of the 10 years following expatriation in which they are present in the U.S. for more than 30 days, or 60 days in the case of individuals working in the U.S. for an unrelated employer.

What is the tax exemption for expats in the US? ›

The Foreign Earned Income Exclusion, or FEIE, is also known as Form 2555 by the IRS. This expat benefit allows you to avoid double taxation by excluding up to a certain amount of foreign earned income from your US taxes. In 2024, for the 2023 tax year, you can exclude up to $120,000 of foreign earned income.

Does TurboTax handle expat taxes? ›

Yes, TurboTax will be able to prepare your ex-pat return. You will be able to prepare the Schedule Es for rental or Royalty income, Schedule B for interest income and Foreign Tax Credits. If you need help while you are preparing the return, you can come back here to ask specific questions!

What happens if an expat doesn't pay US taxes? ›

For US expats, filing taxes late can result in several penalties, especially concerning informational forms. The most common penalty is the failure-to-file penalty, which is 5% of the unpaid taxes for each month the return is late, up to a maximum of 25%.

What is the US exit tax for expats? ›

Mark-to-Market Exit Tax

Covered expatriates must pay a capital gains tax on all other assets above an inflation-adjusted exclusion limit ($767,000 in 2022, up from $744,000 in 2021) as if they sold those assets on the day prior to the date of expatriation.

Do retired expats pay US taxes? ›

Americans who retire overseas still have tax obligations. Typically, you will have to file a tax return with both the US government and your new host country. You may even have to file a tax return with the US state you used to live in.

How do I report foreign income taxes to the US? ›

When it comes time to file your U.S. tax return, you will typically use Form 1040, the standard individual tax return form. You will report your foreign earned income on this form, specifying the source and amount of income. If you are eligible for the FEIE, you will also complete Form 2555.

Do nonresident aliens have to file US tax returns? ›

You must file Form 1040-NR, U.S. Nonresident Alien Income Tax Return only if you have income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. Refer to Foreign Students and Scholars for more information.

How do I report foreign income on US tax return TurboTax? ›

How to file my foreign earned income?
  1. Log into your account.
  2. Select Wages and income>other income.
  3. Miscellaneous Income, 1099-A, 1099>start.
  4. Scroll to the bottom of the page to Other Reportable Income.
  5. Other taxable income, answer yes.
  6. Then give a brief description of the income and the amount listed.
Feb 15, 2024

What happens if you live abroad and don't file taxes? ›

As a US citizen living abroad, you can certainly catch up on your taxes without facing penalties and fines. There are IRS programs like the Streamlined Filing Compliance Procedures or voluntary disclosure programs, which require filing delinquent tax returns and FBARs while certifying non-willfulness.

Do I need to file state taxes if I live abroad? ›

Some U.S. citizens and residents living abroad must file a state tax form, but not all expats are required to do so. What U.S. expats do for state taxes depends on which state they lived in before their move to another country.

Who does not have to file a US tax return? ›

In most cases, if your only income is from Social Security benefits, then you don't need to file a tax return. The IRS typically doesn't consider Social Security as taxable income.

Do you have to file taxes if you are not a US citizen? ›

You must file Form 1040-NR, U.S. Nonresident Alien Income Tax Return only if you have income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. Refer to Foreign Students and Scholars for more information.

Top Articles
How To File For Bankruptcy: A Comprehensive Guide - IHSANPEDIA
What to Tell Your Kids When You're Deep In Debt - Debt Discipline
Foxy Roxxie Coomer
Elleypoint
Chatiw.ib
Dollywood's Smoky Mountain Christmas - Pigeon Forge, TN
Rainbird Wiring Diagram
Devotion Showtimes Near Mjr Universal Grand Cinema 16
Mohawkind Docagent
Corpse Bride Soap2Day
Campaign Homecoming Queen Posters
Natureza e Qualidade de Produtos - Gestão da Qualidade
Theycallmemissblue
OpenXR support for IL-2 and DCS for Windows Mixed Reality VR headsets
Labor Gigs On Craigslist
Craigslist Mpls Cars And Trucks
Bahsid Mclean Uncensored Photo
Bfg Straap Dead Photo Graphic
Unlv Mid Semester Classes
Justified Official Series Trailer
Lancasterfire Live Incidents
Jayah And Kimora Phone Number
Army Oubs
Wausau Marketplace
ZURU - XSHOT - Insanity Mad Mega Barrel - Speelgoedblaster - Met 72 pijltjes | bol
Palm Springs Ca Craigslist
Ubg98.Github.io Unblocked
Healthier Homes | Coronavirus Protocol | Stanley Steemer - Stanley Steemer | The Steem Team
Azpeople View Paycheck/W2
Scheuren maar: Ford Sierra Cosworth naar de veiling
South Bend Weather Underground
Southland Goldendoodles
Wrights Camper & Auto Sales Llc
Goodwill Of Central Iowa Outlet Des Moines Photos
Kristy Ann Spillane
Mastering Serpentine Belt Replacement: A Step-by-Step Guide | The Motor Guy
Calculator Souo
Wega Kit Filtros Fiat Cronos Argo 1.8 E-torq + Aceite 5w30 5l
Atlantic Broadband Email Login Pronto
Xemu Vs Cxbx
Gwu Apps
Powerspec G512
Arcadia Lesson Plan | Day 4: Crossword Puzzle | GradeSaver
Los Garroberros Menu
Hk Jockey Club Result
How to Install JDownloader 2 on Your Synology NAS
Sara Carter Fox News Photos
Motorcycles for Sale on Craigslist: The Ultimate Guide - First Republic Craigslist
Mega Millions Lottery - Winning Numbers & Results
Ihop Deliver
Uncle Pete's Wheeling Wv Menu
Scholar Dollar Nmsu
Latest Posts
Article information

Author: Annamae Dooley

Last Updated:

Views: 5562

Rating: 4.4 / 5 (65 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Annamae Dooley

Birthday: 2001-07-26

Address: 9687 Tambra Meadow, Bradleyhaven, TN 53219

Phone: +9316045904039

Job: Future Coordinator

Hobby: Archery, Couponing, Poi, Kite flying, Knitting, Rappelling, Baseball

Introduction: My name is Annamae Dooley, I am a witty, quaint, lovely, clever, rich, sparkling, powerful person who loves writing and wants to share my knowledge and understanding with you.