Maximize Your Deductions Before December 31: Year-End Tax Tips for Expats

As the end of the tax year approaches, U.S. expats still have time to make smart financial moves to reduce their 2025 tax liability. Planning in October gives you a head start and keeps you from scrambling in December.

Top deductions expats should review:

• Foreign Housing Exclusion: If you live in a high-cost city, you may qualify for additional deductions beyond the Foreign Earned Income Exclusion (FEIE).
• Self-employed? You can deduct home office expenses, business travel, and qualified retirement contributions.
• Charitable Donations: Make tax-deductible contributions to qualified U.S.-based nonprofits before year-end.
• Medical Expenses: If you’ve had significant out-of-pocket costs while living abroad, these may be deductible if they exceed 7.5% of your AGI.

Proactive planning pays off
Keeping receipts and documentation throughout the year makes deductions easier to track. October is the time to do a quick audit of your spending and plan your final moves.

Working with a professional like Expatriate Tax Returns ensures nothing gets missed and all opportunities are maximized.