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When expats file from overseas, they must convert their income earned abroad into US dollars.
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Such people are often referred to as Accidental Americans. 1 – Who exactly has to file in 2022?Īll American citizens, as well as green card holders, who earned over $12,550 in 2021 (in total, globally, in any currencies), or just $400 of self-employment income, or just $5 of any income if they are married to a foreigner but file separately are required to file a US federal tax return reporting their worldwide income.Įven folks living abroad who have never lived in the US or had an American passport but could, due to perhaps having been born in the US while their parents were there temporarily, or due to having an American parent or grandparent, are required to file US taxes. In this article, we present a complete guide to US filing requirements for expats in 12 steps, shining a light into the very depths of the US expat tax maze. They may also have to report any foreign registered businesses, bank and investment accounts, and assets that they may have. The US on the other hand taxes all of its citizens on their worldwide income, wherever in the world they may live.įiling from abro ad is more complex than filing in the US though, as expats also have to claim exemptions or credits to reduce or in many cases eliminate their US tax bill. Almost every other country either taxes based on residence (so only people living in that country have to file taxes there), or taxes based on income arising in that country, regardless of residence (known as a territorial based tax system). The US tax system is unusual, as it taxes based on citizenship. Many Americans living abroad in 2022 are unaware or confused about their US tax filing obligations. US Taxes for Expats in 2022 – A 12 Step Guide to Success