Hi and welcome to Expatriation Only, the newsletter devoted entirely to tax problems faced by people who give up their U.S. citizenship or green cards. You watched “escape” movies, right? This is all about the tax hurdles you face when escaping the U.S. tax system.
This episode was written in response to an email I received from reader D.O. Thanks for the questions. (Hint: you, too, can email me and I will answer your questions.)
Let’s talk about estate tax. This is a tax imposed on what you own when you die. The tax rate caps out at 40%.... continue reading
This discussion is for Americans working abroad who want to claim the foreign earned income exclusion, but they are late in filing the tax return to do so.
Americans living and working abroad can make up to $101,3001 of earned income tax-free. Earned income is what you get paid for working — wages or self-employment income.
This is the foreign earned income exclusion.2 It is great.
What’s not to like?
You get this tax benefit by attaching Form 2555 to your income tax return.3
People (not you!) have been known to misunderstand the foreign earned income exclusion.... continue reading
Hello and welcome to Expatriation Only.
Noncovered expatriates are people who – when they exit the U.S. tax system can answer “Yes” to all three of these questions:
If you answer “no” to any one of those questions, you are a “covered” expatriate.4
This discussion is only marginally accurate for covered expatriates – they face an additional bolus of tax rules designed to punish those who have sinned in the eyes of our Dear Leaders.... continue reading
Americans living abroad have a hard time keeping U.S. bank accounts open. As soon as the bank (or investment firm *cough* Merrill Lynch *cough*) finds out you are living abroad, you are apt to get your account closed.
Subterfuge is a common solution. (Subterfuge is an $11 word that means “tell the bank a lie”.) You simply report that you have a home address in the United States. That address happens to be the home of a friendly friend, parent, or sibling.
... continue reading
For Americans living abroad, opening and maintaining a US bank account has been a BIG problem.
Just a heads-up (and shameless promotion) for this upcoming event.
I am giving a presentation at the New York State Society of Certified Public Accountants’ International Tax Conference on January 26, 2017.
The topic is expatriation.
And many thanks to the Committee (and especially Susan Brown Otto) for inviting me.
I will be in New York for a few extra days, in the name of fun, etc. My wife is coming with me on this trip. 🙂 She lived in Manhattan for 15 years before moving to California (where I met her) so she takes every opportunity she can to return to NYC.... continue reading