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What’s an FBAR and Do I Need to File?

FBAR (Report of Foreign Bank and Financial Accounts)

FBAR (Report of Foreign Bank and Financial Accounts) refers to FinCEN Form 114 filed with the Financial Crimes and Enforcement Network (FinCEN), a bureau of the US Treasury Department.  

A US person has an f-bar filing requirement if the aggregate value of their foreign financial accounts exceeds $10,000 at any time during the calendar year.  The f-bar requires US persons to disclose financial institution and account …

Revocation of Foreign Earned Income Exclusion

foreign earned income exclusion

For expats that have filed Form 2555, thereby taking advantage of the foreign earned income exclusion, care must be taken to not inadvertently revoke the election in subsequent filing years.

By filing Form 2555 and electing to exclude one’s foreign earned income under section 911 of the IRC, an individual makes the election for the year in which they file and all subsequent taxable years unless the election is revoked. A …

Tax Information U.S. Expats Living In Israel Need To Know

Israel U.S. Tax Treaty

If you are one of the more than 350,000 U.S. expats living in Israel and paying tax to the Israeli government, you are still required to file a U.S. tax return every year, report your worldwide income and pay any tax imposed by U.S. law. 

Even though Israel and the United States have a long-standing tax agreement that can help expats avoid paying double taxation, the tax …

Claiming the Child Tax Credit Abroad

Child tax credit abroad

Claiming refundable US credits while living abroad
As a US expat, you may be eligible for a tax refund, without paying anything to Uncle Sam.  The Additional Child Tax Credit and American Opportunity Credit are both refundable US income tax credits eligible to be claimed by US citizens living abroad.
Child Tax Credit-Additional Child Tax Credit
The child tax credit is a tax credit received of up to $1,000 …

Top 5 Characteristics of a Successful Expat

There are many reasons people choose to relocate to another country. Perhaps you need to move because of a new job opportunity. Maybe you met a special someone from abroad and you are ready to start a new life with them in their corner of the world. Maybe you are retiring and want to settle in warmer climes, or maybe you just crave a new experience among fascinating peoples in …

Aliyah and Finances: A Brief Overview

Welcome to Israel

You have just taken what is probably the most important step you will take in your life. You have made Aliyah. Welcome home!

Although you may feel instantly spiritually uplifted, the more down-to-earth, practical aspects of settling into your new life in Israel might prove somewhat more challenging. The Israeli bureaucracy has a reputation for, well, driving people just a little mad. That, combined with the  difference in language and culture, …

It is June 16th, You Missed the Tax Filing Deadline: Now What?

Missed Tax Filing Deadline

Say you are an expat living off the grid in Africa, or smack in the middle of the Amazon or on a mountaintop monastery in Tibet and you have no access to radio, or to TV or (horror of horrors!) to the internet. If this is the case, it would be understandable if you missed all the notices and numerous mentions in the media reminding people of the June 15th …

When you Marry a Foreigner in a Foreign Land: US Tax Filing And Wedded Bliss

marriage and taxes

You are an American expat and you just got married to your exotic, foreign love. Congratulations! We wish you a life full of happiness, health and uncomplicated tax filings.

As newlyweds, you probably have a million more important things on your minds than filing US tax returns. But, before you know it, mid-April will be here and you need to be well-informed of your choices before you make the …

DEADLINE OF APRIL 18 FOR U.S. EXPATS TO FILE THEIR FOREIGN BANK ACCOUNT REPORT (FBAR) WITH THE U.S. DEPARTMENT OF TREASURY

FBAR Foreign Banking

While most U.S. expats annually file their general 1040 tax returns to the Internal Revenue Service (IRS), many forget they are also required to file a Foreign Bank Account Report (FBAR) with the U.S. Department of Treasury, which was due April 18.

This is one of the many common problems U.S. expats experience in dealing with the IRS and Department of Treasury, says Pesach Woznica, President of Expat Tax CPA’s. “If …

Many U.S. Expats Required to Pay Taxes to Federal and State Government

Many U.S. citizens and green card holders living in foreign countries (expats) are aware they must file a federal tax return with the Internal Revenue Service (IRS).

However, very few know the states of California, South Carolina, Virginia and New Mexico also require them to file a state income tax return, says Pesach …