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US Tax Reform: 5 Things Americans Overseas Need To Know



Olivier Wagner, Vancouver, Canada, Tax Traveler, Tax Blog, TaxConnections

What Are The Important Updates One Needs To Know About U.S. Tax Reform?

The New Tax Bill “Tax Cuts and Jobs Act” presents the first major overhaul of the United States federal income tax system in more than three decades. The major benefits will be mostly felt by the large and small businesses. But what’s about tax reform’s impact on Americans overseas?

What Has NOT Changed For Americans Overseas?

  1. You can still use Foreign Earned Income Exclusion or Foreign Tax Credit to lower your tax bill. In 2018 a U.S. expat can exclude up to $104,100 of foreign earned income.
  2. The reporting requirements for FBAR stay in place: you need to file FinCEN Form 114 if you have an aggregate value of over $10,000 in any foreign financial accounts you own or have a signature over.
  3. FATCA and Form 8938 also didn’t have any changes (unfortunately).

What Has Changed For U.S. Expats With The Passing Of The Tax Cuts And Jobs Act?

There are few main changes that Americans overseas need to be aware of and we gathered 5 main ones in the info-graphic below. It shortly describes main matters that you need to pay attention to. If you want to learn more about U.S. newest tax reform and its impact on U.S. expats.

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

One thought on “US Tax Reform: 5 Things Americans Overseas Need To Know

  1. Nononymous says:

    You completely failed to mention the proposed “transition tax” or “repatriation tax” on retained earnings within corporations, which is potentially disastrous for small businesses and professional corporations owned by US persons outside the country. See, for example:

    https://www.taxconnections.com/taxblog/unintended-consequences-of-tax-jobs-and-cuts-act-on-canadian-citizens-and-others-abroad/

    Yet another example of why dual citizens without US financial ties, who are protected from collection in their countries of residence, should think long and hard about the wisdom of entering the US tax system. Non-compliance is often a better option.

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