Our mission is to help you file your tax return. We are located in Germany and our services are aimed mainly, but not only, at U.S. citizens and residents living abroad.
The most common question is “Do I have to file?”
If you are a U.S. citizen or green card holder even living abroad you are still required to file a tax return and report on your WORLDWIDE INCOME, unless your gross income is less than the limit defined by the filing requirements. Please see the information under “Filing requirements.”
Worldwide income includes:
– Earned income: salaries and wages, commissions, bonuses, professional fees, non-cash payments, allowances and reimbursements.
– Unearned Income: Dividends, capital gains, gambling winnings and alimony.
– Other Income: Business profits, pensions, annuities, rents and royalties.
Income must be reported even if it is earned or received in a foreign country, paid in foreign currency or subject to foreign tax.
The filing deadline for tax year 2023 if you live abroad is June 17. Further option is filing an extension that is valid until October 15, 2024. However, due taxes must be paid each year until April 15, especially if you owe more than $1,000.
Generally speaking the US tax regulations are the same whether you live in USA or outside. However, you may qualify to exclude from your foreign earned income a certain amount. ($120,000 for tax year 2023) and you can exclude or deduct certain foreign housing expenses. To take advantage of the exclusion your tax home must be a foreign country, you must have a foreign earned income and you must qualify for a bona fide residency or be physically present in a foreign country for at least 330 days during a 12 months consecutive period.
Please note that any other income that is not an earned income, the so called passive income, for example from interest, dividends, stocks, rental property etc. is taxable. However if the income comes from abroad and you have paid taxes in the country where you live, you can claim foreign tax credit and reduce or eliminate your tax obligation.