Just Moved Abroad? Your First Expat Tax Filing Checklist
Moving abroad is exciting, but your first U.S. tax return as an expat can feel overwhelming. New forms, reporting requirements, and eligibility rules often catch first-time expats by surprise. Having a clear checklist helps you avoid mistakes and start your expat journey on solid footing.
Confirm Your U.S. Filing Requirement
If you are a U.S. citizen or green card holder, you must file a U.S. tax return even after moving abroad. This applies regardless of where your income is earned or whether you pay foreign taxes.
Track Worldwide Income from Day One
From the moment you move, track all income sources. This includes foreign wages, freelance income, rental property, interest, and investments. Keep records in both local currency and U.S. dollars to simplify reporting.
Understand Expat Tax Benefits
Many first-time expats qualify for the Foreign Earned Income Exclusion or the Foreign Tax Credit, but eligibility depends on residency tests and timing. Your first year abroad often involves partial-year calculations that must be handled carefully.
Review Foreign Account Reporting
Opening foreign bank accounts is common after moving abroad. These accounts may trigger FBAR or FATCA filing requirements. Many new expats overlook these forms, leading to penalties later.
Evaluate State Residency
Leaving the U.S. does not automatically end state tax obligations. Some states require additional steps to establish non-residency. Review your ties to your former state early to avoid ongoing filing requirements.
Understand Currency Conversion Rules
All foreign income must be converted to U.S. dollars using IRS-approved exchange rates. This applies even if you are paid in local currency.
Take Advantage of Expat Filing Extensions
Expats receive an automatic filing extension to June 15, but interest still accrues on unpaid taxes after April. Planning early helps avoid unexpected balances.
Why Professional Guidance Matters
Your first expat tax return sets the tone for future filings. Errors in year one often create problems that carry forward. Working with an experienced expat tax professional helps ensure accuracy, compliance, and peace of mind.
