When you see the IRS “W-9” tax form, it may seem like a corporate document only big companies use, but that assumption is far from the truth. The W-9 form is critical in ensuring accurate tax reporting for any freelancer, contractor, or just earning income from sources in the US.  The W-9 form, formally known as the Request for Taxpayer Identification Number and Certification, is a critical document in the United States tax system. Individuals and entities use it to provide their Taxpayer Identification Number (TIN) to the person required to file an information return with the Internal Re ..read more

As a US expat living abroad – filing your taxes was probably not something on your mind frequently. Although, in spite of you living your best life in the country of your dreams (hopefully!); taxes still remain a part of your responsibilities as a US citizen. However, no stress because here lies an overview of some of the essentials you should know as a US expat. Do Expats File from Abroad? You would think that if a majority of countries would only have people filing taxes in the country they’re residing in. Although, that’s not the case for the US. The US is one of two countries that has taxe ..read more

Are you an American living abroad? You might have heard about the stimulus checks handed out during Covid-19. These checks acted as a financial relief to many American families. In March 2020, the first round of payouts started, followed by two more in January and March 2021. How is this relevant now? Even though it’s 2024, you still have a chance to secure these benefits if you meet all the requirements from previous years. This guide will explain this, helping you to understand how to get these Covid-19 relief checks and what the criteria you must meet. Stimulus Checks The Covid-19 pandemic ..read more

Welcome to amazing Portugal! From stunning palaces and lively cities to beautiful beaches and vineyards, life here is a mix of history, culture, and delicious food. If you’re a US expat soaking in the Portuguese lifestyle and living your best life, it’s important to understand your tax responsibilities in Portugal and the US. This guide is here to answer some of your questions. So, while you explore Lisbon’s charm, UNESCO Heritage Sites, and Algarve’s beaches, let’s simplify your tax journey. Making your stay in Portugal more enjoyable and relaxing! US Expat Tax Benefits If you’re a US expat ..read more

Every foreign bank account you open as an American abroad means you have a connection to the FATCA law, otherwise known as the Foreign Account Tax Compliance Act. This law allows the US Department of Treasury to access your bank account to ensure no illegal activity. If you have over $10,000 in total from all of your foreign bank accounts at any one time during the year, you’ll also need to fill out an FBAR. Your Foreign Bank Account and FATCA FATCA stands for the Foreign Account Tax Compliance Act. This federal law requires foreign financial institutions, like banks, to report back the data o ..read more

It’s that time of year. The 2024 tax filing requirements for expats have been released on the IRS’ website. Now it’s time to check whether your gross income from worldwide sources reached the tax filing requirement! Gross income from worldwide sources is income you received in the world that came in the form of money, property, goods, and services that are not exempt from tax.  Due to inflation, the IRS changes the tax filing thresholds every year, and it rises every year. This means you may or may not need to file US taxes – it all depends on whether you reach the filing threshold. 2024 ..read more

As a US expat living or working abroad, you might be familiar with the Foreign Earned Income Exclusion, commonly referred to as Form 2555 or the FEIE. It’s a valuable benefit to leverage if you meet the criteria, providing significant savings and reducing your tax liability to the IRS in the United States. What is Form 2555 – Foreign Earned Income Exclusion You may have stumbled upon the FEIE or heard about it amongst your expat friends. The Foreign Earned Income Exclusion is a tax benefit that allows US expats to exclude up to $120,000, for the tax year 2023, of their income from foreign-sou ..read more

If you’re a US American abroad, then you probably know of the little-known fact that you have to file and/or pay taxes once a year to the IRS. Yes, folks, IRS expat taxes are a real thing. Knowing this your second question could be, which tax software is the best for US expats? Let us tell you about your options. Perhaps you send your tax forms to professionals to take care of it, or manually fill them out yourself. But chances are, you are or will be transitioning to the “new age” of doing taxes for expats via online software. Especially in this day and age with information overload and fak ..read more

Have you heard about the Bona Fide Residence Test for expats? It’s an eligibility factor that helps expats save even more money off their US tax returns every year. The Bona Fide Residence Test goes hand in hand with another test called the Physical Presence Test, too.  Here is everything you need to know about this vital test for expats: What is the Bona Fide Residence Test? According to the IRS, expats can use the Bona Fide Residence Test to be eligible for tax exclusions and benefits like: The Foreign Earned Income Exclusion The Foreign Housing Exclusion and/or The Foreign Housing De ..read more

Welcome to the vibrant tapestry of Mexico, where the aroma of Enchiladas fills the air, and the birthplace of the colored TV adds innovation to the landscape. Nestled in warmth, Mexico is a haven for American expats, offering dual citizenship, seamless relocation, an unrestrained property market, and enticing tax benefits through the Mexico-US tax treaty. Ideal for retirees, Mexico provides a retiree-friendly atmosphere with a lower cost of living, a favorable climate, and rich cultural experiences, creating the perfect destination to savor the golden years. Whether it’s tranquil beaches, hi ..read more