What are the 5 common tax mistakes US expats do?

May 3, 2018

What are the most common tax mistakes by Americans overseas?

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! Let’s check the common mistakes 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).

Read further to learn more about these mistakes and contact us now if you want a help with filing your US expat tax return or catching up with late taxes from prior years.

If you have any topics you want us to cover on our blog, leave it in the comments below! Thank you for continually trusting and choosing 1040 Abroad as your US expat tax resource. We appreciate it and look forward to the opportunity to work with you in 2018.


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