US Expat Tax Services for Americans Living Abroad

Yes. US citizens and green card holders must file a federal return (Form 1040) every year regardless of where they live, as long as their income meets the filing threshold. The US is one of only two countries in the world that taxes based on citizenship rather than residency. Filing abroad also triggers additional reporting requirements — FBAR and FATCA — that don't exist for US-resident filers.

The FEIE (Foreign Earned Income Exclusion) allows qualifying US expats to exclude up to $130,000 of foreign-earned income from US federal tax in 2025. You claim it on Form 2555. To qualify, you must pass either the Physical Presence Test (330 full days outside the US in a 12-month period) or the Bona Fide Residence Test (residing in a foreign country for an entire tax year). The FEIE does not eliminate self-employment tax — that's a separate calculation. The FEIE also comes with a Foreign Housing Exclusion component that can exclude additional amounts for qualifying housing costs.

FBAR (FinCEN Form 114) is required if your aggregate foreign bank and financial account balances exceeded $10,000 at any point during the calendar year. It is filed separately from your tax return, through the FinCEN BSA E-Filing System. The deadline is April 15 with an automatic extension to October 15. Non-willful penalties start at $10,000 per violation per year. Willful violations can reach $100,000 or 50% of the account balance — per account, per year. The Streamlined Filing Procedure offers reduced penalties for non-willful missed FBARs.

The IRS Streamlined Filing Procedures were created specifically for expats in this situation. For non-willful non-compliance, the Streamlined Foreign Offshore Procedures require filing 3 years of delinquent returns and 6 years of FBARs, plus a 5% miscellaneous offshore penalty on the highest aggregate balance of unreported accounts. Compared to standard failure-to-file penalties (5% of tax due per month, up to 25%), streamlined filing is substantially more favorable. The key is acting before the IRS initiates contact — once that happens, the streamlined option is no longer available. Mark handles multi-year catch-up filings routinely.

Yes — they are separate requirements. FATCA (the Foreign Account Tax Compliance Act) requires filing Form 8938 with your annual tax return if you hold foreign financial assets above certain thresholds. For single filers living abroad, the threshold is $200,000 at year-end or $300,000 at any point during the year. FBAR covers a broader category of accounts and applies at the $10,000 aggregate threshold. Many expats are required to file both. The penalties for missing Form 8938 start at $10,000 and increase to $50,000 if the IRS notifies you and you still don't file.

You cannot apply the Foreign Tax Credit to income you've already excluded under the FEIE. However, if your foreign income exceeds the FEIE limit ($130,000 in 2025), or if you have passive income not covered by the exclusion, the Foreign Tax Credit (Form 1116) can offset additional US tax on those amounts. Choosing between the FEIE and FTC — or combining them — depends on your income level, country of residence, applicable tax treaties, and long-term tax planning goals. This analysis is included in every Mark Anderson CPA engagement.

It depends on your former state. California and New York are the two most aggressive states for pursuing expats — they use a "domicile" test rather than a physical presence test, meaning residency can persist even after you've left. Establishing non-domicile in California or New York before departing requires specific actions: closing bank accounts, surrendering your driver's license, selling or renting your home, and updating your voter registration, among others. Failing to sever ties properly can result in years of unexpected state tax liability. Mark reviews state domicile issues as part of every pre-departure and catch-up engagement. See the State Tax Residency guide for more detail.

Pricing starts at $325 for a standard expat return with W-2 income, FEIE, FBAR, and FATCA included. Self-employed returns with Schedule C start at $800. All pricing is flat-fee — no hourly billing. After the free consultation, you receive a firm quote. A 50% deposit starts the work; the balance is due before filing. Payment is accepted via wire transfer (US or international), Wise/TransferWise, PayPal, or US bank check. For the complete fee schedule, visit the Rates page.

US citizens living abroad receive an automatic 2-month extension to June 15. You can request a further extension to October 15 using Form 4868. FBAR has a separate April 15 deadline with an automatic extension to October 15 — no form needed. Important: an extension to file is not an extension to pay. If you owe tax, interest begins accruing from April 15, and failure-to-pay penalties also start then, even with a valid filing extension. If you're behind on multiple years, it's generally better to file as soon as possible rather than waiting — the IRS's first-in-time rule means earlier returns often receive less scrutiny.

After your free consultation, Mark sends a secure document checklist tailored to your situation. Typically this includes: W-2s or foreign employer income statements, bank account details for FBAR purposes, prior-year returns (if available), and any IRS notices received. You upload everything through an encrypted document portal. Mark prepares the return, reviews it with you on a video call or via email, and files only after you approve. The entire process is online — you never need to mail original documents or visit an office. Typical turnaround is 2–4 weeks for a complete return, depending on document availability.