Whether U.S. expatriates are living overseas for personal or professional reasons, the IRS requires these American citizens to file and pay taxes. With the biggest overhaul in 30 years to the tax code, the process and obligations for expats has undergone several important changes.
Unfortunately, the issues that have caused decades of frustration for US Expats have mostly remained the same. Below are the modifications and new enactments.
New Tax Brackets
The tax brackets are now larger, though tax rates have decreased slightly. Together, these changes mean that depending on the specific situation, Americans living overseas might fit into lower tax brackets than in years past and could potentially face lower taxes than in recent years.
New Corporate Tax Structure
One of the biggest changes is the new corporate tax structure. The U.S. is moving away from a worldwide system of taxation to a territorial tax system for corporations.
About Dave McKeegan
David McKeegan, MBA, EA, is Co-Founder of Greenback Expat Tax Services, which specializes in providing expert Expat tax preparation and services for Americans living around the world. An experienced finance professional and entrepreneur, for over 9 years, McKeegan has led a team of CPAs and IRS enrolled agents serving clients living in over 200 countries. His company's annual US Expat Opinion Survey has become a leading indicator on Expat trends and data including sentiments toward US government representation, citizenship renunciations and more. David McKeegan can be reached at [email protected] and Twitter @GreenbackTax.