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5 Common Tax Mistakes US Expats Make



How is May treating you all so far? Are you sorting out all the papers and receipts to file your annual US expat taxes? If you haven’t started yet, hurry up. This year’s US expat deadline to file your federal tax return is June 15th and it is just around the corner!

What Are The Most Common Tax Mistakes By Americans Overseas?

Wednesday is a day of our weekly tax infographic and today we want to share the top 5 tax mistakes by Americans living abroad. You might be surprised to learn what your fellow US expats don’t do or do wrong when it comes to fulfilling US tax obligations:

  1. Not filing US expat tax return (yes, you gotta send “a love letter” aka annual federal tax return to the IRS every year you earn more than $10,000 or $400 if you are self-employed);
  2. Failing to file FBAR (have you got $10,000 or more in those foreign bank accounts of yours? Report them on FinCEN Form 114);
  3. Misunderstanding nuances of self-employment tax (we have a great article here for self-employed and digital nomad Americans);
  4. Not reporting stock sales (what is a long-term capital gain anyway?);
  5. Claiming dependent who isn’t a dependent (for Child tax credit).

Have a question? Contact Olivier Wagner.

Your comments are always welcome!

Olivier Wagner

Olivier Wagner

Certified Public Accountant, U.S. immigrant, expat, and perpetual traveler Olivier Wagner preaches the philosophy of being a worldly American. He uses his expertise to show you how to use 100% legal strategies (beyond traditionally maligned “tax havens”) to keep your income and assets safe from the IRS. Before obtaining my U.S. citizenship and traveling all over the world, he was born and raised in France. His experience learning the intricacies of the U.S. immigration process combined with his desire to travel freely lead me to specialize in taxes for Americans living and working abroad. He helps Americans Abroad file their taxes and devise strategies that make sense for their lifestyle. These strategies encompass all aspects of registering an offshore business, opening a bank account abroad, and planning out new residencies and citizenships. He is operating the accounting firm 1040 Abroad. 1040 Abroad exists to help you make sense of an incredibly large world of possibilities. Find out more by visiting www.1040abroad.com