US Expat Tax Preparation
Discuss your US filing history, foreign income and account reporting before choosing a preparation service.
Plan Your Expat Filing Scope
Start with your residence history, income sources, foreign accounts and previous returns. Use a consultation to discuss the filing work you need and confirm the services, fees and responsibilities before an engagement.
- US expat tax return preparation
- Foreign Bank Account Reporting (FBAR)
- Foreign Earned Income Exclusion optimization
- Foreign tax credit planning
- FATCA compliance (Form 8938, etc.)
- Streamlined filing procedures for delinquent returns
Expat Tax Packages
Compare the current packages, included forms and additional-service terms on our pricing page. Your consultation can help identify which scope fits your return.
US Expat Tax Filing
Living abroad does not by itself remove US tax filing obligations; whether a return is required depends on your filing circumstances. Review eligibility for exclusions, credits and treaty provisions before deciding which positions to take.
- Foreign Earned Income Exclusion (Form 2555) — maximum $132,900 for tax year 2026, subject to eligibility, eligible income and qualifying days
- Foreign Tax Credit (Form 1116) to help reduce double taxation
- FBAR filing (FinCEN Form 114): review financial interest or signature authority and the $10,000 aggregate account threshold
- FATCA compliance (Form 8938, 5471, etc.)
- Streamlined Filing Procedures for catching up on past returns
Important: Eligible taxpayers abroad generally receive a two-month extension to file and pay, but must attach a qualifying statement to their return. Interest still accrues from the regular payment deadline.
Cross-Border Tax & Treaty Planning
Treaty treatment depends on residence, the income category and the specific provisions that apply. Treaties generally do not remove US worldwide-income taxation for US citizens and treaty residents, subject to exceptions. Review the applicable treaty before claiming a credit, exemption or reduced rate. IRS tax treaty guidance.
- Tax residency tiebreaker analysis (US vs. foreign country)
- Dual-status returns for the year you moved
- Treaty-reduced withholding on dividends, pensions & royalties
- Foreign retirement account treatment (RRSP, ISA, PFIC, etc.)
- ITIN applications for foreign nationals with US income
Before the consultation: List the countries where you lived, worked or held accounts. Confirm the scope of US and foreign-country work before engaging a preparer.
US Expat Tax Filing Requirements
US citizens and resident aliens abroad generally follow the same federal income-tax filing rules as people living in the United States. Whether you must file depends on your income, filing status, age and other filing requirements. When a return is required, report taxable worldwide income, including foreign wages, business income and investment income. IRS filing requirements.
Use the IRS filing requirements for the tax year you are filing; the applicable threshold depends on filing status, age and other circumstances. Count worldwide gross income before the foreign earned income or housing exclusion when checking whether a return is required. Foreign-account reporting has separate rules: an FBAR may be required even when no federal income-tax return is due. IRS filing requirements.
Qualifying US citizens and resident aliens abroad receive an automatic two-month extension to file and pay federal income tax, generally to June 15 for calendar-year filers. On the regular due date, you must either live and have your main place of business or post of duty outside the United States and Puerto Rico, or be serving in the military or navy outside those locations. Attach a statement to your return explaining how you qualify. Interest still accrues on tax unpaid after the regular due date. If you need more time to file, submit Form 4868 by the extended deadline to request an extension to October 15; this does not further extend the time to pay. IRS extension requirements.
For an individual income-tax return, the failure-to-file penalty generally starts at 5% of unpaid tax for each month or partial month late, up to 25%. The calculation changes when failure-to-pay penalties also apply; a minimum penalty may apply after 60 days. Reasonable-cause relief may be available. IRS late-filing penalty rules. FBAR and Form 8938 have separate penalty rules, and FBAR civil penalty amounts are adjusted for inflation. Eligible taxpayers who meet the Streamlined Foreign Offshore Procedures requirements can catch up with relief from specified penalties. Non-willful certification alone is not enough: residency and all submission requirements must also be met. Tax and interest remain payable, and previously assessed penalties are not automatically removed. IRS streamlined eligibility and relief.
Key Tax Benefits for US Expats
While the US citizenship-based taxation system can feel burdensome, Congress has enacted several provisions specifically designed to prevent double taxation for Americans living abroad. Understanding these benefits — and knowing which ones to use — is critical to minimizing your US tax liability.
Foreign Earned Income Exclusion (FEIE)
For tax year 2026, the maximum foreign earned income exclusion is $132,900 per qualifying person, limited by eligible income and qualifying days. You must have foreign earned income and a foreign tax home, and meet the applicable bona fide residence or physical presence test. The physical presence test requires at least 330 full days in foreign countries during 12 consecutive months; the bona fide residence rules depend on citizenship and residence status. IRS exclusion eligibility. The exclusion is claimed on Form 2555 and applies only to earned income — wages, salaries, and self-employment income. It does not cover investment income, pensions, or Social Security benefits.
Check your eligibility and the effect on your remaining taxable income before choosing the exclusion. IRS tax-year limits and calculation rules.
Foreign Tax Credit (FTC)
The foreign tax credit may reduce US tax for qualifying foreign taxes paid or accrued, subject to the applicable credit limit and income category. You cannot claim a credit for taxes on income excluded under the FEIE. Form 1116 is generally required unless a filing exception applies. Eligible unused foreign taxes generally carry back one year and then forward ten years, but exceptions apply, including no carryovers for section 951A category income under the 2025 instructions. IRS foreign tax credit rules and Form 1116 instructions.
Compare qualifying foreign taxes with your applicable US credit limit; unused credit may be subject to carryback and carryover rules.
Foreign Housing Exclusion
Qualifying taxpayers with a foreign tax home may claim a foreign housing exclusion for employer-provided amounts or a housing deduction for self-employment earnings. Eligible expenses are reduced by a base amount and subject to location-specific limits and the qualifying period. These benefits do not reduce self-employment tax. IRS guidance on tax benefits.
FEIE vs. FTC: Which Should You Use?
Compare the foreign earned income exclusion and foreign tax credit using your income, foreign taxes and eligibility. The exclusion requires a foreign tax home and a qualifying residence or physical-presence test; it does not reduce self-employment tax. The credit is limited by the qualifying foreign tax and the applicable US tax limit, so living in a high-tax country does not by itself establish that no US tax is due. IRS guidance on tax benefits.
Required Forms for US Expats
Income-tax returns and foreign-account reports have separate requirements. The forms below are a starting point for reviewing your income, accounts and filing circumstances; this is not an exhaustive list.
| Form | Purpose | Who Needs It |
|---|---|---|
| Form 1040 | US individual income tax return | All US citizens and green card holders above filing thresholds |
| Form 2555 | Foreign Earned Income Exclusion and Housing Exclusion | Individuals claiming the exclusion who have eligible foreign earned income, a foreign tax home and a qualifying residence or physical-presence period |
| Form 1116 | Foreign Tax Credit calculation | Taxpayers claiming a foreign tax credit who do not qualify for an exception to filing Form 1116 |
| FinCEN 114 (FBAR) | Report of Foreign Bank and Financial Accounts | US persons with a financial interest in or signature authority over reportable foreign accounts exceeding $10,000 in aggregate during the calendar year; exceptions apply |
| Form 8938 (FATCA) | Statement of Specified Foreign Financial Assets | Specified individuals with a foreign tax home who meet the IRS presence-abroad test: assets over $200,000 at year-end or $300,000 during the year; for joint returns, over $400,000 or $600,000. Lower thresholds apply without those qualifications. If no income-tax return is required, Form 8938 is not required. IRS reporting thresholds. |
| Form 8833 | Treaty-Based Return Position Disclosure | Taxpayers taking treaty-based return positions that require disclosure; exceptions apply |
| Form 3520 / 3520-A | Foreign Trust Reporting | Certain US persons with foreign trust transactions or ownership; qualifying Canadian retirement plans are exempt |
For the Form 8938 thresholds above, presence abroad means either a US citizen’s bona fide foreign residence including an entire tax year, or a US citizen or resident’s presence abroad for at least 330 full days in a consecutive 12-month period ending in the reported tax year. IRS Form 8938 eligibility and exceptions.
Penalty warning: FBAR and Form 8938 have separate penalty rules. FBAR civil penalties vary with the circumstances and are adjusted for inflation; criminal penalties may also apply. Check the IRS reporting comparison before relying on a penalty amount.
Expat Tax Services for US-Canada Cross-Border Clients
US-Canada filing requires coordinated treatment of income, retirement plans and foreign accounts. Foreign tax credits may relieve double taxation, subject to credit limits and treaty rules; they do not automatically eliminate every US tax liability. Review the rules for each income type and account. IRS guidance on tax benefits.
RRSP Reporting and Treaty Benefits
Qualifying Canadian retirement plans, including RRSPs and RRIFs, are exempt from Forms 3520 and 3520-A reporting under Revenue Procedure 2014-55. Eligible individuals receive automatic US tax deferral on undistributed plan income under that procedure; Form 8891 is obsolete. FBAR and Form 8938 reporting may still apply when their separate requirements are met.
Sources: IRS Form 3520 exceptions, IRS Form 3520-A exceptions, and IRS guidance on Canadian retirement plans.
For help coordinating Canadian accounts and US filings, explore our US-Canada cross-border tax services.
TFSA Accounts and Underlying Investments
Review the TFSA agreement, ownership, income and underlying investments separately for US reporting. The CRA advises checking foreign-country obligations rather than assuming Canadian treatment applies abroad. For a holding in a foreign corporation, assess the PFIC income and asset tests and any relevant elections or filing exceptions before deciding whether Form 8621 is required. CRA cross-border TFSA guidance and IRS Form 8621 instructions.
Canadian Pension Benefits
Canada Pension Plan (CPP), Quebec Pension Plan (QPP) and Old Age Security (OAS) benefits receive treaty treatment based on residence. For a US resident, they are taxable only in the United States and are treated as US Social Security benefits. For a US citizen or green card holder resident in Canada, they are taxable only in Canada. Confirm treaty residence before deciding where to report the benefits. IRS guidance on Canadian benefits.
Why Choose a Specialist Expat Tax Firm
Expat filing can involve separate income-tax and foreign-account reporting requirements. Form 8938 and the FBAR have different thresholds and filing procedures; filing one does not replace the other. A review of your accounts, income and filing history helps identify which requirements apply.
Enrolled agents have unlimited practice rights before the IRS, as do attorneys and CPAs. They must meet IRS ethical and continuing-education requirements. When choosing help for an expat return, discuss the foreign accounts, income and forms your situation involves. IRS enrolled agent requirements.
The listed price covers the forms and services described in each pricing tier. If your situation needs additional forms or services, we will discuss the cost before proceeding. Compare the current packages and book a free consultation to identify the appropriate scope for your return. View current expat tax pricing.
Cross-Border Business & International Tax
For a business consultation, bring your entity structure, ownership details and the countries where you operate. Use the topics below to explain the work you need; confirm which services are included in a written engagement.
Foreign Businesses with US Presence
- US subsidiary formation and tax planning
- State sales tax nexus and compliance
- US payroll and employment tax obligations
- Transfer pricing and inter-company transactions
International Tax Treaty Benefits
- Reduced withholding rates on dividends, interest & royalties
- Permanent establishment analysis
- Treaty-based return positions
- Cross-border retirement & pension planning
Tax Residency Analysis
Bring your citizenship, immigration status and residence dates to discuss which residency rules need review.
Explore Tax Residency ServicesForeign Entity Reporting
Discuss foreign-entity ownership and identify reporting requirements for your situation.
View Foreign Entity ComplianceTreaty Planning
Review the applicable treaty provisions and eligibility before claiming a benefit.
Discover Treaty Planning BenefitsCountry-Specific Expat Tax Guides
Detailed tax guidance for Americans living in popular expat destinations. Learn about tax treaties, filing requirements, and country-specific considerations.
Not Sure About Your Expat Tax Obligations?
Bring your filing history and questions to an introductory consultation. Confirm which returns and forms are included, who handles any foreign-country filings, and the fees before starting paid work.