U.S. Citizens and Residents Abroad

If you are one of the millions of U.S. citizens or green card holders living abroad, either for the short-term or on a permanent basis, you are a prime target for IRS investigators. The international tax attorneys and accountants at Moskowitz, LLP can help you stay abreast of your tax obligations and minimize the tax consequences of your activities abroad.

Getting and staying in compliance

U.S. citizens and resident aliens are subject to U.S. income tax regardless of where they live. We assist people worldwide with the timely filing of their annual returns and foreign income and asset reporting. If you have been delinquent with any of your tax filings, we can help you get into compliance and ask that late filing and/or FBAR penalties be abated.

Deductions, credits, and exclusions

We can help you to take full advantage of all the deductions, credits, and exclusions to which you are entitled, including but not limited to the Foreign Tax Credit and the Foreign Earned Income Exclusion.

To avoid double taxation, the U.S. has signed a number of tax treaties with foreign countries that provide for reduced tax rates and tax exemptions for certain types of income. Few will account for double social security tax, however, and creative tax planning (particularly for self-employed individuals) is often warranted.

The Exit Tax

If you wish to terminate your U.S. citizenship or permanent resident status, you may be subject to an Expatriation (Exit) Tax if:

  • You have a net worth of $2 million or more ($4 million for a married couple),
  • Your annual net tax liability is over a specified amount ($162,000 in 2017), or
  • You have been non-compliant with some or all of your U.S. tax obligations during the past five years.

The exit tax is rather complicated and we know of a number of ways to avoid it. Contact our offices to learn more.

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