u.s. expat tax guide – singapore
What is the Streamlined Amnesty Program, and how can it help US expats in Singapore?
If you’re a US citizen living in Singapore and haven’t filed US tax returns for years—don’t panic. Many expats are in the same situation, often because they didn’t know they had to file.
The good news?
The IRS offers a special program to help people catch up without facing big penalties.
It’s called the Streamlined Foreign Offshore Filing Procedures, and it’s designed for expats who missed tax filings by mistake (not on purpose).
Instead of filing every tax return you’ve ever missed, you only need to:
- File the last three years of tax returns
- Report your foreign bank accounts for the last six years (if required)
- Submit a simple explanation of why you didn’t file before
The best part? The IRS won’t charge penalties for late filing, which can otherwise be thousands of dollars per missing form.
However, if you owed taxes in those years, you’ll still need to pay them—with a little interest added.
Another big benefit—you may still be able to claim missing stimulus payments (also called Recovery Rebate Credits) from 2022.
That’s US$1,400 per person, including dependents, but you must file by April 18, 2025 to get it. Some families have received over US$12,000 in credits just by catching up!
The Streamlined Amnesty Program is a great way to fix your tax situation and move forward without stress.
Get back into IRS compliance penalty-free with the Streamlined Amnesty Program. Get started today.
How can US expats claim missed stimulus payments?
- File Any Outstanding Tax Returns
- If you haven’t filed a US return for one or more years, the IRS can’t confirm your eligibility or where to send the stimulus money. Filing those returns—often done using the IRS Streamlined Procedure—lets you establish your US taxpayer record and correct any past mistakes.
- Use the Recovery Rebate Credit (only until April 2025)
- On the tax return for the year the stimulus payment was issued, you can claim the Recovery Rebate Credit if you were entitled to a payment but never received it (or got less than expected). For example, if you missed the first two stimulus payments, you’d claim them on your 2020 return. Later payments were sometimes included on the 2021 return.
- Check IRS Tools for Payment Status
- The Get My Payment tool on the IRS website can help you see if a payment was issued. If it was mailed to an old address or sent to a closed bank account, you might need to update your details with the IRS or claim the payment as a credit when you file.
- Amend Past Returns If Needed
- If you filed a return but forgot to claim the Recovery Rebate Credit, you can submit Form 1040X (Amended Return) to correct it. This step can also help if your personal or dependent information was incomplete when you originally filed.
Getting your US filing history up to date is the most important step. Once the IRS has the right data—like your valid Social Security Number (SSN), current address, and updated bank information—they can process your claim for any stimulus money you’re owed.
What are the common challenges for US expats claiming stimulus payments?
Many Americans in Singapore weren’t aware they needed to file US taxes annually. Here are a few common obstacles they face when trying to secure their missed stimulus payments:
- Late or Missing Tax Returns
- If you haven’t filed yearly returns, the IRS has no record of your income or address, so they don’t know where to send your payment.
- No US Bank Account
- Some expats rely on foreign bank accounts and never provided the IRS with direct-deposit information. Checks sent to a foreign address can take much longer or get lost in transit.
- Non-Resident Alien Spouse
- If you’re married to someone who is not a US citizen or green card holder, your filing choices (e.g., Married Filing Separately) can limit certain credits, including parts of the stimulus.
- Dependents Without SSNs
- Stimulus payments included extra amounts for qualifying children, but those dependents usually need valid Social Security Numbers. If your child only had an ITIN (Individual Taxpayer Identification Number) or no US ID at all, you might have missed out.
- Dual-Status or Complex Filings
- If you moved partway through the year, or if your foreign income was excluded using the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC), you might have overlooked the additional steps needed to claim the full stimulus.
- Fear of Penalties
- Some expats put off filing because they’re worried about penalties for being late. However, the Streamlined Offshore Filing Procedures can often remove or reduce these penalties for people who didn’t file simply because they didn’t know they had to.
Working with a tax professional who has experience with expat tax issues can smooth out these challenges. They can guide you on which forms to file, how to fix past returns, and how to secure any stimulus money still due.
Who is eligible for stimulus payments?
Eligibility depends on multiple factors, but generally, you need:
- US Citizenship or Residency
- Most rounds of stimulus payments required you to be a US citizen, permanent resident (“green card” holder), or a “qualifying resident alien” meeting specific residency rules.
- Valid Social Security Number
- You must have a valid SSN, and if you’re filing jointly, your spouse usually needs one too (unless one of you is in the military). If you have dependents, they must have SSNs for you to get the additional child portion of the payment.
- Income Below Certain Thresholds
- Each stimulus had its own Adjusted Gross Income (AGI) cutoffs, phasing out at higher incomes. For example, single filers over a certain AGI lost some or all of the payment, and joint filers had a higher combined cutoff.
- No One Else Claims You as a Dependent
- You can’t receive a stimulus check if someone else listed you as their dependent on their US tax return.
- Filing a Tax Return or Being on File
- The IRS uses your last return (or other info like Social Security benefit data) to send payments. If they don’t have current details, you may have missed out.
Even if you met all these requirements but never got your payment, you can still claim it.
Filing your return for the relevant tax year and using the Recovery Rebate Credit is the standard way to do it. If you missed multiple rounds, you can claim them all as separate credits on each year’s return (or file an amended return if you already filed without claiming them).
What foreign tax benefits and penalties should expats consider?
Foreign Earned Income Exclusion (FEIE)
If you qualify by meeting either the Physical Presence Test (330 days outside the US in a 12-month period) or the Bona Fide Residence Test (living overseas for at least one full calendar year), you can exclude part of your foreign salary or self-employment income from US tax.
Foreign Tax Credit (FTC)
If you pay income tax to your host country, you can often claim a dollar-for-dollar credit against your US taxes for the same income. This prevents you from getting taxed twice. Note that you can’t claim a credit on income you already excluded under the FEIE, so many people do some math to see which approach saves the most.
Tax Treaty Benefits
The US has tax treaties with various countries to clarify how different types of income—such as interest, dividends, or pensions—are taxed. However, Singapore and the US do not have a detailed personal income tax treaty. In places where a treaty does exist, it may reduce withholding taxes or offer other relief.
FBAR (Foreign Bank Account Report)
If your total balance in foreign accounts ever exceeds US$10,000 at any point in the year, you must file an FBAR (FinCEN Form 114) online. Missing the FBAR can trigger heavy fines, but if you can show that your mistake was unintentional, the IRS may reduce or waive penalties.
FATCA (Form 8938)
Certain taxpayers who hold significant foreign assets, such as bank accounts, investment accounts, or foreign trusts, must disclose these on Form 8938. Non-filing can lead to automatic penalties, and the IRS can keep adding extra fines until you comply.
Foreign Trust Reporting
If you have a foreign trust (or are involved with one as a grantor or beneficiary), you may have to file specialized forms. Missing these can result in large fines.
Net Investment Income Tax (NIIT)
If your income is high enough, you might owe a 3.8% tax on investment profits (like interest, dividends, and capital gains), even if you earn them outside the US.
Avoiding Penalties
If you realize you’ve never filed the needed forms or returns, there are ways to fix the issue with minimal penalties. One popular method is the Streamlined Filing Compliance Procedures, which involve filing three years of overdue tax returns and six years of FBARs. You may also qualify for the First Time Penalty Abatement Program if you’ve had a clean record in past years. Form 14653 is used within streamlined procedures to certify you didn’t knowingly ignore the rules.
How do stimulus payments affect tax compliance for US expats?
During the COVID-19 pandemic, the US government issued Economic Impact Payments (EIPs)—often called stimulus checks—to help individuals. Many overseas Americans missed out if they hadn’t kept their US tax filings up to date. Here’s why that matters:
Needing a Recent Return on File
To send you a payment, the IRS typically checks your most recent tax return or other records (like Social Security benefits). If you haven’t filed for a few years, the IRS may not know you exist in their system, meaning no stimulus check goes out.
Recovery Rebate Credit
If you missed a stimulus payment that you qualified for, you can claim it on your tax return as the Recovery Rebate Credit. For instance, if you didn’t get the first two rounds of checks, you’d claim them on your 2020 tax return. Any additional rounds were typically claimed on your 2021 return.
Back Taxes and Streamlined Procedures
If you’ve never filed your US returns while living abroad, you can use the Streamlined Filing Compliance Procedures to catch up. Once you do so, you can claim any missed stimulus payments as tax credits, potentially leading to a refund. Taking these steps also ensures you meet future filing requirements, reducing your risk of penalties for late or missed returns.
Income Thresholds
Stimulus eligibility often hinged on Adjusted Gross Income (AGI). If your combined AGI was above a certain cutoff, your stimulus amount was lowered or phased out entirely. That said, even if you believe you made too much, it’s often still worth filing to confirm your eligibility.
Social Security Numbers
For each stimulus round, recipients (and their dependents) generally needed valid Social Security Numbers (SSNs). If you or a dependent only had an ITIN (Individual Taxpayer Identification Number), you might have missed some or all of the payment, unless specific rules allowed partial eligibility.
Overall, staying on top of your US filing requirements not only ensures you avoid penalties but also helps you claim financial benefits like stimulus payments. By filing your returns regularly—and catching up via streamlined procedures if you’re behind—you show the IRS you’re compliant and guarantee you won’t miss out on future credits or relief programs.
Ankurita Lala, an IRS Enrolled Agent with 6 years of expat tax experience, specializes in helping individuals and entrepreneurs navigate the complexities of foreign business ownership. *Schedule a consultation with Ankurita today.
*30-minutes US$247.
