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10 Things To Know About Taxes Before Moving Out of the United States

10 Things To Know About Taxes Before Moving Out of the United States

  1. You may still have to file a tax return if you live outside the United States
  2. The rules for determining if you need to file a tax return are the same as if you still lived in the United States.
  3. You must report all of your worldwide income on your tax return.
  4. You may be able to exclude some of your "foreign earned income" on your tax return. The income is still entered on the tax return and then it is backed out on another line.
  5. Even if you can exclude all your "foreign earned income" on your tax return, if you have self-employed income you may still have to pay the Self Employment Tax on that income.
  6. If you have over $10,000 in foreign bank or financial accounts at anytime during the year you may have to report them to the IRS.
  7. You may still have to file state income tax returns even if you no longer live in the U.S. depending on the state and your facts and circumstances.
  8. You may be able to take a dollar for dollar credit for foreign taxes paid.
  9. You cannot take both the Foreign Earned Income Exclusion and the Foreign Tax Credit or the deduction for taxes on schedule A.  No double dipping here.
  10. You may still be subject to the Obamacare penalty if you do not have health insurance. 
I lived to another country for six years and have firsthand experience with the issues associated with such a move. One of my specialties is preparing taxes for US citizens living all over the world.

Success often results from doing what others won't do and many times what you really don't want to do.  You can become more successful and more knowable about your business and gain freedom from frustration, saving time and money. Please feel free to contact me using my information below to discuss how we can work together to help you with your accounting, your income taxes and your business.

I am Jeff Haywood, your CPA Superhero.

Jeff Haywood, CPA 

My posts contain general information that does not fit every situation, they are not all inclusive, and as always for your tax situation everything "depends on facts and circumstances."  In addition, the information/IRS requirements are always subject to change.  So call me to talk about your specific facts and circumstances and what you want to accomplish.

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