We’re Expat US Tax.

Frequently Asked Questions

• What is a Foreign Bank Account Report (FBAR)?

  Foreign Bank Account Reporting (FBAR) is simply a reporting obligation for US expats whose balance (individually or combined) hits US$10,000 or more at any point during the year. US expats will need to report details like the bank’s name and address, account number, the highest balance during the year, and the names on the account.

  Read more about FBAR.

• What is the Foreign Earned Income Exclusion (FEIE)?

  You can check the Foreign Earned Income Exclusion (FEIE) and Foreign Housing Exclusions help to balance some of that income. For 2025, the FEIE is US$130,000 and the housing exclusion is based on where you live. The limits are different for each region;

  • Dubai limit is US$57,174 subject to a threshold amount of US$16,128
  • Abu Dhabi limit is US$49,687 subject to a threshold amount of US$16,128

  The FEIE and housing exclusions are prorated based on the number of days actually outside the US.

• What are Foreign Tax Credits?

  Generally, the following four tests must be met for any foreign tax to qualify for the credit:

  1. The tax must be imposed on you
  2. You must have paid or accrued the tax
  3. The tax must be the legal and actual foreign tax liability
  4. The tax must be an income tax (or a tax in lieu of an income tax)

  Tax must be imposed on you
  You can claim a credit only for foreign taxes that are imposed on you by a foreign country or US possession. For example, a tax that is deducted from your wages is considered to be imposed on you.

  Read more about the foreign tax credit.

• Do you have a list of state taxation for expatriates?

  We have a list of all the States with their particular taxation of expatriates.

  View the list here

• Taxable Income - What does the IRS consider taxable?

  The IRS considers almost all your income as taxable, here is a standard list of compensation items…

  • Basic salary
  • Call back, standby and overtime income
  • Airfare allowances and home leave
  • Administration allowances
  • Transportation and internet allowances
  • Education assistance
  • Settling-in allowance
  • All other cash or benefits received in-kind

  Examples of income that generally aren’t taxed…

  • Reimbursement of business expenses
  • Moving expenses as long as they are dollar for dollar. A lumpsum that you don’t have to account for can be considered taxable income.
  • Living away from home expenses
• What are the penalties for filing late?

  Depending on the specific circumstances. Here’s an overview of the general penalties:

  • Failure-to-File Penalty
  • Failure-to-Pay Penalty
  • Interest on Unpaid Taxes
  • FBAR Penalties
  • FATCA Penalties (Failure to File Form 8938)