The US CPA for Americans Abroad Who Actually Knows Expat Tax

Yes. The US taxes citizens and permanent residents on worldwide income regardless of where they live. If you meet the minimum income threshold — $15,750 for single filers in 2025 — you must file a federal tax return every year, even if you owe nothing after applying the Foreign Earned Income Exclusion or Foreign Tax Credit. Green card holders have the same obligation until they formally abandon their status.

The FEIE allows qualifying US expats to exclude up to $130,000 of foreign-earned income from US federal income tax for the 2025 tax year (rising to $132,900 for 2026). To qualify, you must meet either the Physical Presence Test (330 full days abroad in any consecutive 12-month period) or the Bona Fide Residence Test (residing in a foreign country for a full calendar year). We help you determine which test applies and whether FEIE or the Foreign Tax Credit produces a better outcome — because choosing incorrectly can cost thousands.

The FBAR (FinCEN Form 114) is due April 15, with an automatic extension to October 15. It is required if the combined balance of your foreign financial accounts exceeded $10,000 at any point during the year — even for a single day. The penalty for non-willful failure to file starts at $10,000 per violation; willful non-disclosure penalties can reach $136,272 or 50% of the account balance, whichever is greater. The FBAR is not filed with your tax return — it's submitted separately through the BSA e-filing system.

You may qualify for the IRS Streamlined Foreign Offshore Procedures — a formal amnesty program that allows non-willful delinquent expats to file three years of back tax returns and six years of FBARs with all failure-to-file, failure-to-pay, and FBAR penalties waived. "Non-willful" means you didn't know you had to file — which describes the vast majority of expats we work with. We guide many clients through this process every year. It is far less stressful than it sounds when handled by someone who specializes in it.

Yes. Capital gains from foreign stocks and real estate are fully taxable for US citizens regardless of where you live — and the Foreign Earned Income Exclusion does NOT apply to capital gains. Only earned income qualifies for the FEIE. Foreign stock sales require Form 8949 reporting and also carry a currency gain component that must be calculated separately. If you hold foreign mutual funds or ETFs, those may be classified as PFICs (passive foreign investment companies) and face an even more punitive tax regime.

FATCA (Foreign Account Tax Compliance Act) requires US citizens with significant foreign financial assets to report them to the IRS using Form 8938. Thresholds start at $200,000 for single filers living abroad at year-end ($400,000 for married filing jointly). Unlike FBAR, FATCA is filed with your tax return. Importantly, many foreign banks also report US account holders directly to the IRS under FATCA — meaning the IRS may already know about your accounts whether or not you reported them.

Technically yes — practically it's high-risk. Neither platform handles FBAR filing at all. Both frequently misapply FEIE elections and cannot advise on whether FEIE or the Foreign Tax Credit produces a better outcome for your situation. A misapplied FEIE election can cost thousands to reverse through IRS procedures most expats don't know exist. Software also cannot handle Form 5471, Form 5472, PFIC reporting, the Streamlined Filing Procedure, or state domicile analysis — all common expat needs.

Yes — and the penalties for missing them are severe. If you own 10% or more of a foreign corporation, Form 5471 is required annually. Missing this form triggers an automatic $10,000 penalty per form, per year — and the statute of limitations on your entire tax return stays open indefinitely until it's filed. If you have a foreign person who owns a US LLC, Form 5472 is required instead — carrying a $25,000 automatic penalty. Both forms are frequently missed because most CPAs have never encountered them.

This is a real problem many expats face — and it's solvable. Options include international wire transfer directly to the US Treasury, Wise (formerly TransferWise) for USD transfers without a US bank account, PayPal, or using a foreign address for IRS direct deposit of refunds. We guide every client through the payment and refund process as part of our service — including situations where clients cannot open a new US bank account due to lack of a current US residential address.