American citizens living abroad find that they can enjoy the best of both worlds wherever they may be.
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People looking forward to gain American citizenship get to experience all the joys and
adventures that come from living and working as an expat in foreign or even exotic lands
while also enjoying the benefits of being an American citizen in these countries (most of which
will roll out the red carpet for American citizens!). However, there is only one thing that spoils
the fun-and that is taxes! America is one of the few countries in the world where citizens are
taxed even if they are not residents of the country. This means that no matter what your
income is in the foreign country, you would have to pay taxes in America as well as the taxes
of the country you are staying in. This can really erode your savings. However, there is a way
that expats can save their money to the maximum. That is by taking the help of online tax
How do online tax filing services help American citizens save money as expats?
These tax return services are managed by experienced CPAs and professional tax attorneys
who know the IRS and its laws and codes and updates inside out. There are many tax
exclusions and exemptions that you may be eligible for as an expat, which you are not aware
of. Not knowing this result in paying more taxes than you actually have to. This is where tax
return services help you save money by making you aware of all the tax exemptions that
you are eligible for.
What kind of exemptions are expats eligible for?
Expat tax services will give you more up-to-date and in-depth information regarding the
exclusions and exemptions that you may be eligible for, but here are a few to start with:
--> Foreign earned income exclusion: As of 2015, this was for incomes up to $100,800. To
claim this, the expat should have lived outside of the United States for more than 330 days
over a period of 12 months, which are consecutive. What is important to remember is that to
claim this exclusion, you have to file a separate IRS form, called 1040, which expat tax
services will help you with. This exclusion cannot be claimed if the country where the expat is
living in doesn’t have a ruling government currently or if the expat lives on the high seas.
--> Foreign tax credit: This is for expats who have lived for more than six months in a foreign
country and is designed to help save your money by subtracting the lower tax from the higher
tax (between the U.S. and the country you are staying in) which will be then split between the
There are several other terms and conditions such as the ones quoted above, which you will
be able to get in more detail from professional CPAs or tax attorneys who work at expat tax
return services. Getting to know this helps save a significant amount of money over the long