Frequently asked questions

If you meet either the physical presence test (330 days abroad in 12 months) or bona fide residence test, you can exclude up to $130,000 (2025) of foreign earned income from US taxation.

You must establish genuine residency in a foreign country for an uninterrupted period that includes an entire tax year, demonstrated through factors like visa status, housing arrangements, and integration into local life.

Yes, the Foreign Tax Credit allows you to offset US tax liability dollar-for-dollar with foreign income taxes paid, though credits cannot be claimed on the same income you exclude under FEIE.

If you qualify for FEIE, you may also exclude or deduct qualifying housing expenses that exceed 16% of the FEIE limit, up to a location-specific cap.

Travel expenses are generally only deductible if you're self-employed and the travel is for business purposes, not personal or commuting.

Standard expat deductions include self-employment expenses, student loan interest, IRA contributions, and certain moving expenses for active-duty military, though many domestic deductions phase out at higher income levels.

US-source rental and investment income must be reported as taxable income on your return and cannot be excluded under FEIE, though you may be able to claim foreign tax credits if that income is also taxed abroad.

Yes, you must file FBAR if your foreign accounts exceed $10,000 at any point during the year, and Form 8938 (FATCA) if you meet higher thresholds based on your filing status and residence.

Strategic timing of income recognition, optimal mix of FEIE and FTC, foreign corporation structures for business owners, and retirement account positioning can significantly reduce your overall tax burden when properly implemented.

Non-willful means you didn't intentionally neglect your US filing and reporting obligations. Common non-willful scenarios include not knowing about the requirements or misunderstanding the rules. It's a legal determination that depends on your specific facts and circumstances.

It depends on various factors including your income sources, where you live, and what taxes you paid abroad. Many expats owe little or nothing if they claim the Foreign Earned Income Exclusion or Foreign Tax Credits. Others may owe significant amounts. We calculate your actual liability during the preparation process.

If you've already received IRS correspondence about unfiled returns, you may not be eligible for the Streamlined Procedures. Other options may exist, including the Delinquent FBAR Submission Procedures or reasonable cause arguments. We can help you assess your situation.

The Streamlined Procedures require three years of tax returns and six years of FBAR filings. The IRS can generally assess taxes for six years in cases of substantial underreporting.

W-2s, 1099s, foreign income statements, foreign tax documents, and foreign bank and brokerage statements showing maximum account balances for each year.

Most streamlined filings take 6-8 weeks from when we have all your documents to submission. IRS processing typically takes 4-6 months.

The IRS processes your returns and may request additional information. If you're owed refunds, they're issued, or if you owe tax, you'll receive a bill. We help you through any follow-up correspondence.

Technically yes, but it can be complicated. The Streamlined Procedures involve calculations, multiple years of filings, and specific certification requirements. It's particularly important to get the non-willful certification right.

It's normally possible to reconstruct missing documentation using bank statements, employer letters, tax documents from your residence country, or IRS transcripts.

No. We regularly help non-residents form and maintain US entities without visiting the United States. The entire process can be handled remotely.

It depends on your business type, operating location, and future plans. We analyze factors like annual fees, tax treatment, and compliance requirements to recommend the right state for your situation.

Tax treatment differs significantly. LLCs offer flexibility but may create treaty complications. C-Corps can reduce withholding taxes through treaties but may have double taxation on profits. We help you evaluate which structure works better for your specific circumstances.

At minimum: federal tax returns, state annual reports, and foreign owner disclosure forms. Specific requirements depend on your entity type, state of formation, and business activities.

Yes, non-US residents can be sole owners of US LLCs and corporations. Some entity types (like S-Corps) have ownership restrictions, but most structures are available to international owners.

It depends on your entity structure, the type of business activity (whether it's effectively connected to a US business or not), and how you take distributions. We help you understand withholding requirements, treaty benefits, and strategies to minimize taxes on distributions to foreign owners.

Several options exist depending on your entity structure: distributions, salaries, loans, or reinvestment. We help you develop a tax-efficient strategy for profit repatriation that considers both US and home country tax implications.

Yes. We offer bookkeeping services to maintain accurate records for your US entity, ensuring clean books for tax filings and giving you clear visibility into your business finances.

Yes, if you're engaged in a trade or business in the United States, own a US business entity like an LLC, earn US-source income, or have investments that generate US income, you typically need to file Form 1040-NR. Filing requirements depend on your specific situation and the type of income you receive.

Effectively Connected Income is business income tied to a US trade or business, taxed at graduated rates similar to US citizens. FDAP (Fixed, Determinable, Annual, or Periodical) income includes passive income like dividends, interest, and royalties, typically taxed at a flat 30% rate unless reduced by treaty.

Form 1040-NR is the US Nonresident Alien Income Tax Return. If you have wages or run a US business, you generally file by April 15. If you don't have a US office or receive wages subject to withholding, your deadline is typically June 15.

Yes, but only certain deductions apply to non-resident aliens. You can claim deductions related to your Effectively Connected Income, such as business expenses. However, you cannot claim the standard deduction and have limited access to tax credits available to US residents.

Tax treaties are agreements between the US and other countries designed to prevent double taxation and reduce withholding rates on certain types of income. If your home country has a treaty with the US, you may qualify for reduced tax rates or exemptions on specific income types.

Yes, if you're a non-resident alien who owns a single-member LLC (or own it through a foreign entity), you must file Form 5472 along with a pro forma Form 1120 annually, even if your LLC has no US-source income. Failure to file can result in significant penalties.

FIRPTA (Foreign Investment in Real Property Tax Act) requires buyers to withhold 15% of the sales price when purchasing US real estate from foreign sellers. This withholding serves as an advance payment toward your actual tax liability, which you report on Form 1040-NR.

You may reduce or eliminate FIRPTA withholding by applying for a withholding certificate from the IRS before closing, demonstrating that your actual tax liability is less than the withholding amount. Certain exemptions also apply for lower-priced residential properties.

Dividends from US stocks are generally subject to 30% withholding tax for non-resident aliens. However, if your country has a tax treaty with the US, you may qualify for a reduced rate, often 15% or lower.

Generally, non-resident aliens are not required to file FBAR or FATCA reports for foreign accounts. However, if you become a US tax resident or have other US filing obligations, these requirements may apply.

If you're physically present in the US for 183 days or more in a year and meet certain conditions, you may be subject to a 30% tax on US-source capital gains. You may also trigger substantial presence test issues that could change your tax residency status.

Dual-status occurs when you're a non-resident alien for part of the year and a resident alien for another part, typically when moving to or from the US mid-year. This requires filing both Form 1040 and Form 1040-NR with specific statements attached.

Yes, strategic entity structuring can help minimize your US tax burden. Depending on your business activities and income sources, choosing between an LLC, C-Corporation, or other structures can significantly impact your tax obligations. Proper structuring should consider both US and home country tax implications.

If you have unfiled US tax returns, we can help you come into compliance. Depending on your situation, you may need to file several years of back returns. The approach depends on whether you had filing requirements and the type of income involved.

If you need to file a US tax return or own a US business entity, you'll need either a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). We can help you apply for an ITIN as part of the tax filing process.

Rental income from US real estate can be treated two ways: as FDAP income subject to 30% gross withholding, or you can elect to treat it as Effectively Connected Income, allowing you to deduct expenses and pay tax on net income at graduated rates.

Generally, if you're engaged in a trade or business in the US, you have a filing requirement. This includes operating a business, providing services, or maintaining an office. However, simply owning investment property or having a passive LLC may not create the same obligations.

Yes, if withholding on your US income exceeds your actual tax liability, you can file Form 1040-NR to claim a refund. This commonly occurs with FIRPTA withholding on real estate sales or excess withholding on investment income.

Keep documentation of all US-source income, business expenses, treaty claims, withholding statements (Forms 1042-S, 1099), real estate transactions, and any correspondence with the IRS. Good records are essential for accurate filing and potential audits.

The IRS typically takes longer to process Form 1040-NR returns than regular Form 1040 returns, often 6 months or more, especially if claiming treaty benefits or requesting refunds. E-filing when available can help speed up processing.

It refers to the requirement for US citizens to disclose certain foreign financial accounts, assets, and investments to the IRS and other regulatory authorities.

Common forms include the FBAR (FinCEN Form 114) for foreign bank accounts and Form 8938 (FATCA) for specified foreign assets, depending on your account balances and asset types.

US citizens, resident aliens, and certain entities with financial interest in or signature authority over foreign accounts must comply if their combined account balances or asset values meet the minimum reporting thresholds.

Bank accounts, brokerage accounts, mutual funds, retirement accounts, and other financial accounts held outside the US must be reported if they exceed the reporting thresholds.

Penalties can be severe, including fines, interest on unpaid taxes, and potential criminal liability in cases of willful non-compliance.

Yes. We review your foreign accounts and assets to identify if reporting thresholds are met and ensure all necessary filings are accurate and timely.

FBARs are filed annually by April 15 (with an automatic extension to October 15), while Form 8938 is typically filed with your annual US tax return.

Absolutely. We offer continuous guidance, account monitoring, and updated reporting advice to help US expats remain compliant year-round.

Tax planning is a forward-looking approach to managing US taxes while abroad, optimizing income, investments, and business structures to reduce liability and maximize financial efficiency.

Choosing the right entity type, location, and ownership structure can minimize US and foreign taxes, simplify reporting, and improve long-term operational and financial flexibility.

Yes, through strategies like utilizing foreign tax credits, exclusions, deductions, and entity planning, you can significantly lower taxes within IRS rules.

Careful allocation and timing of investments, including in international accounts, can minimize taxable gains, take advantage of favorable treatments, and align with your long-term goals.

Shifting income recognition, deferring gains, or accelerating deductible expenses can reduce current-year taxes and help manage cash flow efficiently across jurisdictions.

Yes, by structuring accounts and investments strategically, maintaining accurate records, and filing timely reports, you can stay compliant and avoid costly penalties.

Regular reviews (at least annually or after major business, investment, or residency changes) ensure strategies remain effective and compliant with evolving US and foreign regulations.

Reduced tax liability, improved cash flow, simplified reporting, risk mitigation, and strategic business and investment growth are all key advantages for Americans living overseas.

Simply owning cryptocurrency doesn't create a tax obligation. You report crypto transactions when you dispose of it (selling, trading, spending) or receive it as income. However, if you hold crypto on foreign exchanges with values exceeding $10,000, you may have FBAR reporting requirements even if you haven't sold anything.

This is a common situation we help expats address. The Streamlined Filing procedures may allow you to file amended returns for the past three years and come into compliance. The process requires certifying that your non-compliance was non-willful, calculating the tax and interest owed, and submitting the complete filing package. We help clients evaluate whether they qualify and prepare the necessary filings.

Transfers between your own wallets or exchanges aren't taxable events, but they complicate cost basis tracking. We trace your holdings through transfers to maintain accurate acquisition dates and costs. This becomes particularly important when you've acquired crypto across multiple years, exchanges, or countries, as the cost basis determines your capital gain or loss when you eventually sell.

Yes. Every disposal of cryptocurrency (selling, trading, spending) needs to be reported on Form 8949. This includes trading one crypto for another, which many people don't realize is a taxable event. If you have hundreds or thousands of transactions, we work with the transaction exports from your exchanges to report them properly.

Cryptocurrency received as payment for services is taxed as ordinary income at its fair market value when you receive it. You report this income on Schedule C if you're self-employed. Later, when you sell that crypto, you'll have a capital gain or loss based on how the value changed since you received it. This creates two separate reporting requirements.

Capital losses from crypto can offset capital gains from other sources. If your capital losses exceed your gains, you can deduct up to $3,000 against ordinary income per year, with the remaining losses carried forward to future years. This is the same treatment as losses from stocks or other capital assets.

The location of your exchange doesn't change your US reporting requirements. You still report all crypto transactions the same way regardless of where the exchange is based. However, holding crypto on foreign exchanges may trigger FBAR reporting if the aggregate value exceeds $10,000 at any point during the year.

The general statute of limitations is three years from when you filed your return. However, if you omitted more than 25% of your income, the IRS has six years. For unfiled returns, there's no statute of limitations. Through the Streamlined Filing procedures, expats typically file amended returns for the past three years plus the current year.

Staking rewards are generally treated as ordinary income at their fair market value when you receive them. This income is reported on Schedule 1 of your tax return. Later, when you sell or trade those staking rewards, you'll have a capital gain or loss based on how the value changed since you received them. This creates two separate tax events: income when received, and capital gains/losses when disposed of.

We provide full-service bookkeeping for both US and foreign entities, including transaction recording, account reconciliation, financial reporting, and compliance support for both US and foreign entities.

Yes. We specialize in multi-currency bookkeeping, ensuring accurate conversions, reconciliations, and reporting that comply with both US and general accounting standards.

Absolutely. We assist individual expats, freelancers, and small-to-medium businesses with bookkeeping and financial recordkeeping across jurisdictions.

We specialize in accounting services for expats and international entrepreneurs, maintaining records that align with US tax obligations and support accurate annual filings.

Yes. We work with QuickBooks, Xero, FreshBooks, and other major platforms, seamlessly syncing your data for efficient bookkeeping.

US entities follow GAAP, while foreign entities may use local accounting standards. We ensure consistency, accuracy, and compliance across both systems.

We offer flexible reporting schedules — monthly, quarterly, or annually — based on your needs and the complexity of your financial activities.

Yes. Our cloud-based systems and international expertise make it easy to manage your finances and access reports securely from anywhere in the world.

No. You do not need to pay anything to use Box.com with Online Taxman. You can create a free personal account. We send you an email with a link.

Make sure that you join Box.com using the link in the email. It includes a special invite to collaborate. Next, be sure that your documents are inside the folder with your name on it. As a general rule, if you can see the folder with your name on it and your documents at the same time, then they are outside your folder and we cannot see them. Drag and drop the documents into the folder with your name on it. See the “How to Use Box” videos.

If you’re not ready to submit, you can stop & save your Tax Questionnaire by scrolling down and clicking Save and Continue Later. See the video “How to Use the Tax Organizer”.