U.S. taxes for people with one foot abroad
Foreign investors with Florida property, visitors with U.S. income, and Americans living overseas all have U.S. filing rules. Jerome works with clients in other countries every season, fully remote.
Non-resident aliens with U.S. income file Form 1040-NR. U.S. citizens and green card holders living abroad still file a regular U.S. return and may qualify for the foreign earned income exclusion or the foreign tax credit. Anyone with foreign accounts totaling more than $10,000 at any time in the year generally files an FBAR.
Non-residents and foreign investors
- Form 1040-NR for U.S. income such as rents, wages or business income
- Residency status: substantial presence test and treaty positions
- FIRPTA withholding when a foreign owner sells U.S. real estate, and filing to recover any over-withholding
- Rental income from Florida property, with the right elections
- Coordination with your home-country preparer
Americans living abroad
- Form 1040 with the foreign earned income exclusion (Form 2555) or foreign tax credit (Form 1116)
- FBAR (FinCEN 114) and Form 8938 when required
- An automatic two-month extension to June 15 when you live abroad
- Catching up on missed years
ITINs
If you need a U.S. taxpayer identification number but do not qualify for a Social Security number, an ITIN application (Form W-7) is usually filed with your first return. Jerome can prepare it with your return and explain the document requirements.
Common questions
Do I have to file a U.S. return if I live abroad?
If you are a U.S. citizen or green card holder and your income is above the filing threshold, yes. Living abroad does not end the filing requirement, though exclusions and credits often reduce or eliminate the tax.
What is an FBAR?
The Report of Foreign Bank and Financial Accounts (FinCEN Form 114). U.S. persons file it when the combined value of their foreign accounts exceeds $10,000 at any time during the year. It is filed separately from your tax return.
I am selling my Florida condo and I am not a U.S. resident. What happens?
The buyer generally must withhold a percentage of the sale price under FIRPTA and send it to the IRS. You then file a U.S. return to report the actual gain, which often results in a refund of part of the withholding.
It's always tax time. Let's get ahead of it.
Tell me what is going on with your taxes or your business. A short call is usually enough to know the next step.