Although you are no longer a resident of the United States, as a US citizen you are required to report all sources of worldwide income to the IRS. This includes but is not limited to employee wages; interest and dividends (schedule B); self-employment income (Schedule C); capital gains and losses (Schedule D and Form 8949); rental real estate, royalties, partnership, S corporations, estates, trusts, REMICs and other supplemental income (Schedule E).

To answer this question, an examination of the US tax-treaty with your foreign country of residence is required. However, generally speaking, the country where the income is earned has first rights to taxation. In that case, you can either exclude your foreign earned income, or use your foreign taxes paid as a credit to offset your US tax liability.

Up to $107,600 is excludable for tax year 2020, and up to $108,700 for 2021. If filing a joint tax return with your spouse, then each spouse can exclude up to this amount.

Yes. To qualify for the exclusion, you must satisfy the bona fide residence test or the physical presence test. See income tax returns/foreign earned income exclusion

Yes. You can file jointly provided that your spouse receives an individual taxpayer identification number (ITIN) and a section 6013(g) election is timely made. See ITIN application process and election to treat non-resident alien spouse as a US resident.

Yes, once the election is made it remains in effect for all subsequent tax years except for years in which the election is suspended or terminated. If neither spouse is a US citizen or resident during any given tax year, the election is automatically suspended for that tax year. Termination of the election occurs when either spouse files a statement of revocation on or before the filing due date of that year’s tax return. The election is automatically terminated with the death of either spouse or legal separation under divorce or separate maintenance decree.

Yes. Provided your children are U.S. citizens during the tax year at hand and their social security numbers were issued before the filing deadline of the return. If you provide over half of your child’s support you can file as head of household, which may provide additional tax relief.

Yes, as long as your children are US citizens. See child tax credit.

Yes, unless the US signed a Totalization agreement with your country of residence, whereupon you are not required to pay social security tax on foreign earned self-employment income. Countries that have signed such agreements with the US are Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovak Republic, South Korea, Spain, Sweden, Switzerland and the United Kingdom

Yes, provided that it is an educational institution eligible to participate in the US Department of Education’s student aid program. A list of recognized foreign institutions can be found on the federal student aid website. See “Income tax returns” for more info.

Expats who live outside the United States and establish their main place of business outside the United States are entitled to an automatic two-month extension. Therefore, their tax returns are due on June 15th instead of April 15th. A statement stating that an individual meets the requirement for the automatic two-month extension should be included with the return. An additional four-month extension of time to file can be requested using Form 4868.

Yes. Up to $250,000 from the sale of your primary residence (if married filing jointly the exclusion is $500,000) can be excluded, provided you meet the ownership and use tests. However, gains in excess of the excludable amount are taxable in the United States and cannot be excluded with the foreign income exclusion. Foreign taxes paid on the sale of the asset can be used to offset US taxes via the foreign tax credit (form 1116). However, such gains may be subject to the 3.8% Net Investment Income Tax (form 8960) which cannot be offset by foreign tax credits.

If you own 10% or more of the total value of the corporation’s stock or the combined voting power of stock, you may need to file Form 5471, report of US person with interest in foreign corporations. There is a $10,000 penalty imposed for each annual accounting period whereupon the information is not provided on time. However, the IRS has certain programs/procedures that may be followed to absolve the taxpayer from penalties. See Streamlined Filing Procedures

Although you are no longer a resident of the United States, as a US citizen you are required to report all sources of worldwide income to the IRS. This includes but is not limited to employee wages; interest and dividends (schedule B); self-employment income (Schedule C); capital gains and losses (Schedule D and Form 8949); rental real estate, royalties, partnership, S corporations, estates, trusts, REMICs and other supplemental income (Schedule E).

This is an option but beware of the exit tax. Individuals with a net worth of over $2,000,000, an average net annual income tax liability of over $162,000 over the last five years or individuals that do not certify their tax compliance over the past five years, will be subject to the exit tax. The Tax Code (Under Section 877A) stipulates that all assets owned by an individual are deemed to be sold on the day the US citizen surrenders his citizenship. Any gain on the sale of the assets will be taxed as a US capital gain. The payment of tax can be deferred until the asset is actually sold. However, this deferment of tax will result in interest accrual.

Please refer to business entities, where we outline possible business structures to consider. We highly recommend consulting with an experienced professional to choose which business entity will be most tax advantageous and also give a level of liability protection. Tax treaties must be considered to determine the tax consequences in your specific foreign residence.

A tax return that is being filed to claim a tax refund, whether due to over-withheld taxes or tax credits, can be filed up to three years after the original due date of the tax return.