Agnes explains what U.S. citizens living abroad must still do on their taxes: file a federal return every year, claim the foreign earned income exclusion and foreign tax credit, and report foreign bank accounts and assets above set thresholds. Ryan and Agnes also cover foreign gifts, the cost-of-living appeal of retiring overseas, researching a destination before you move, local customs, and why ignoring filing duties can cause trouble with a passport.
Takeaways
- U.S. citizens living abroad still need to file a federal return each year, and the foreign earned income exclusion and foreign tax credit only help if you file.
- Foreign bank accounts and assets above certain thresholds must be reported, so keep account balances for the start and end of each year.
- Before moving abroad, research the culture, healthcare, medication access and embassy locations, and keep copies of key documents.
Chapters
- 0:00 Welcome and the topic: taxes while living abroad
- 3:14 How many Americans live abroad and why
- 8:02 What must be filed and paid from overseas
- 9:03 Foreign earned income exclusion and tax credit
- 12:09 Reporting foreign accounts and assets
- 13:13 Gifts from foreign relatives
- 15:50 Cost of living and retiring abroad
- 21:37 Researching a destination before you move
- 24:43 Paper trails, embassies and staying safe
- 27:48 Living part of the year abroad
- 30:26 Culture shock and local customs
- 40:20 Passport and border consequences of unpaid taxes
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