Stevenson Tax Services, Inc. | Bluefield, West Virginia
Living overseas can offer exciting opportunities, but U.S. tax responsibilities do not necessarily end when you move abroad. American citizens and many resident aliens must generally report worldwide income to the IRS, even when they earn that income in another country.
At Stevenson Tax Services, Inc., we help Americans abroad understand their federal tax obligations, respond to IRS notices, and address unresolved tax matters through convenient virtual consultations.
Reporting Income While Living Abroad
Foreign wages, self-employment earnings, pensions, investment income, and rental income may need to appear on a U.S. tax return. Having to report income, however, does not automatically mean paying tax twice.
Qualifying taxpayers may benefit from the Foreign Earned Income Exclusion, generally claimed on Form 2555, or the Foreign Tax Credit, commonly claimed on Form 1116. These provisions have different requirements, and the same income cannot receive overlapping benefits that the law prohibits. Choosing the appropriate approach requires reviewing your income, residence, and foreign taxes.
Foreign Accounts and Additional Reporting
Certain foreign financial accounts and assets trigger reporting requirements separate from regular income taxes.
The FBAR, or FinCEN Form 114, is generally required when the combined value of reportable foreign financial accounts exceeds $10,000 at any point during a calendar year. It is filed separately from the income tax return.
Form 8938, required under FATCA for certain taxpayers, covers specified foreign financial assets when applicable thresholds are exceeded. Some expatriates must file both forms, while others may not need either.
Behind on Your U.S. Tax Filings?
Americans who have lived abroad for years sometimes discover missing tax returns or foreign-account reports. Depending on their circumstances, they may qualify for IRS compliance procedures, including streamlined filing options for eligible taxpayers whose failures were non-willful.
Acting without first examining filing history, account balances, and eligibility can create avoidable complications. Professional guidance can help identify a sensible next step.
IRS Representation Without Traveling Home
John Stevenson is an Enrolled Agent authorized to represent taxpayers before the IRS. Stevenson Tax Services assists with IRS correspondence, tax debt, audits, payment arrangements, unfiled returns, and other federal tax matters. State tax obligations may also remain relevant after a move abroad, depending on domicile and state-specific rules.
We explain deadlines, available options, and the documents needed before taking further action.
Our firm is based in Bluefield, West Virginia, and serves Americans worldwide. Meetings take place virtually, allowing clients to discuss their concerns from wherever they live.
Read Our Free Expat Taxation Guide
Our digital flipbook, “Expat Taxation: U.S. Tax Responsibilities Beyond Borders,” explains common filing obligations, foreign-income provisions, FBAR and FATCA reporting, and ways to address IRS issues.
Read the Expat Taxation FlipbookIf you have questions about U.S. taxes while living overseas, schedule a free initial consultation with Stevenson Tax Services.
Call (404) 729-2984 or visit StevensonTaxServices.com.
General information only; individual filing and representation requirements vary.