by Tracy Moede, AWC Hamburg
You are an overseas American now confronted with tax and banking issues in the United States. Overwhelmed? Frustrated? Confused? You are not alone. Recently, a reported 9 million US Americans live overseas, and the majority have some sort of tax and banking issues.
The first question is usually "Where Do I Start?" which is quite easy to answer. The organization American Citizens Abroad has put together an incredibly informative article, US Taxes Abroad for Dummies.
In this article you will find information on how living abroad mitigates your US tax, your Social Security Number and ITIN, passport revocation, The Affordable Care Act and Foreign Bank Accounts. This information is current and was last updated in March 2022.
After that there is a five-pronged approach to keeping yourself informed about your obligations:
JOIN an international organization whose primary mission focus is for American living overseas.
- American Citizens Abroad (ACA)
- Democrats Abroad
- Republicans Overseas
- Association of American Residents Overseas
- Another option is a closed Facebook group that deals solely with tax and banking issues: US Expat Tax Questions is one.
SUBSCRIBE to newsletters to keep up to date with the latest updates and changes concerning US taxes and Banking. Most organizations allow you to subscribe to their newsletters without becoming a member.
- FAWCO US Liaison Bulletin which includes tax & banking articles and information
- FAWCO's sponsor London & Capital publishes The Cable for international American families
- The American
- The American Expat Financial News Journal
- American Citizens Abroad (ACA)
- Democrats Abroad, Republicans Overseas and Association of American Residents Overseas have news directly on their website. Make a bookmark in your browser and check back regularly.
READ The internet is rife with articles on taxes, FBAR and FATCA. A simple google search will give you massive information. Choose one or two to get a good overview. Here are few examples, but there are many more.
- IRS Publication 54 provides full details on filing US taxes from abroad.
- What is FATCA?
- FBAR FAQ's.
STAY COMPLIANT Consider Online Tax Preparation help. You, of course, obliged to report your own income taxes as you normally would in the US. Be aware that there are many options to avail yourself of online tax preparers. Again, a google search will give you more suggestions.
My quick search found My Expat Taxes, Greenback Expat Tax Services, Turbo Tax for Expats plus there are countless more.
Non-compliance in reporting taxes can result in fines, and in cases of serious tax debt, you can even have your passport revoked. Failure to file FBAR or FATCA reports have equal, if not harsher, penalties.
ACT NOW Raise your voice. Write or call your senators and representatives in your state and in Congress. How to call and sample letters can be found online to gather your thoughts and help you state your case simply.
VOTE! And bring other people with you. Spread the news that voting is important for your finances as an American Overseas. Vote for members of Congress who support overseas Americans and the issues they face.
Relying solely on others to educate you on what is happening in this dynamic sector is not wise. Once armed with accurate information you become a formidable partner in your own financial future.
