Webinar: Ask a CPA anything about expat taxes – recording, highlights, and Q&A
This article is for informational purposes only and does not constitute legal advice.
Always consult with a tax professional for your specific circumstances.
On January 29, Taxes for Expats (TFX) hosted a webinar, "Ask a CPA anything about expat taxes," featuring a live Q&A session with Wendy Christiansen, a CPA with over 15 years of experience and a Tax Supervisor at TFX.
Topics covered in the webinar:
- US tax filing requirements for expats
- filing statuses and considerations for married taxpayers
- double taxation and how to avoid it
- business filings and social security taxes
- tax deadlines and extensions
- foreign tax credits and how they work
- Passive Foreign Investment Companies (PFICs)
The webinar recording is now available on our YouTube channel:
Webinar highlights
US tax filing requirements for expats
- US citizens and Green Card holders must file a tax return regardless of where they live.
- Unlike most other countries, the US taxes its citizens on worldwide income, no matter where they reside.
The Streamlined Procedure allows those unaware of their filing obligations to file just three years of back tax returns to become compliant.
Filing statuses and considerations for married taxpayers
- If you’re married to a US citizen or green card holder, filing jointly is usually more beneficial.
- If you’re married to a non-US citizen, you can file separately or elect to file jointly, but this is a one-time, lifetime election requiring continuous joint filings.
Double taxation and how to avoid it
Tax treaties between countries determine which country has the first right to tax different types of income. Foreign tax credit can offset US taxes if taxes were already paid to a foreign country.
Business filings and social security taxes
Self-employed US citizens abroad must often pay US self-employment tax (Social Security & Medicare). Totalization agreements with some countries determine where Social Security contributions must be paid.
Passive Foreign Investment Companies (PFICs)
- Includes non-US mutual funds, ETFs, and unit trusts.
- Special reporting required, with potential tax complications.
- You can sometimes use foreign tax credits to offset additional taxes.
Tax deadlines & extensions
- March 15: deadline for US-based businesses
- April 15: deadline for US-based individual tax returns; first estimated tax payment due for those paying quarterly taxes
- June 16: filing deadline for US expats living abroad
- October 15: if an extension is requested, the final deadline to file
Full list: Expat tax due dates and deadlines [update for 2025]
Despite the automatic extension to June 16 for US expats (in 2025), any taxes owed must still be paid by April 15 to avoid interest charges.
Q&A session
Q: Can I apply unused foreign tax credits from past years to my current return?
A: No, you must amend past tax returns to claim any missed foreign tax credits. Once amended, any unused credits can then be carried forward to future years. Since there are different ways to apply the credit, consult a tax professional to determine the best approach for your situation.
Q: For a US citizen working in Spain, how does tax crediting work?
A: Since you earn income in Spain, Spain has the first right to tax it. The foreign tax credit (FTC) allows you to offset US taxes with the amount paid to Spain, preventing double taxation. For US-sourced income (e.g., interest from a US bank), tax treaty determines which country taxes it first.
Q: How does tax filing work for a dual US-Italy citizen living in Italy and working for a US company?
A: If you work as a contractor (freelancer), your US employer will likely issue a 1099, which you must report on both your US and Italian tax returns. Since you are also an Italian citizen, you likely only need to pay Social Security tax in Italy. However, your final tax obligations depend on treaty provisions.
Q: Does it matter where my salary is deposited (US or foreign bank account)?
A: No, taxation depends on where the income is earned, not where it is received.
Q: A US citizen living in Brazil, married to a Brazilian – how should they file?
A: As a US citizen, you must file a US tax return regardless of where you live. Since your spouse is not a US citizen, you generally have two options:
- Married filing separately: This is common when the non-US spouse does not want to be included in US tax filings.
- Elect to file jointly: This is a one-time, lifetime election that treats your spouse as a US taxpayer, which may be beneficial in some cases but requires continued joint filings.
If you want to claim stepchildren as dependents, you must prove you provide more than half of their financial support, and they typically need an ITIN (Individual Taxpayer Identification Number) if they are not US citizens.