u.s. expat tax guide – ireland
Do US citizens in Ireland need to file tax returns with the IRS?
Yes, as a US citizen or green card holder living in Ireland, you’re still required to file a US tax return every year if your income exceeds the IRS’s minimum filing threshold.
This obligation persists regardless of your residency status in Ireland.
How does the US prevent double taxation for Americans in Ireland?
The US has a tax treaty with Ireland that can help prevent double taxation.
This treaty allows you to apply for the Foreign Tax Credit (FTC) or use the Foreign Earned Income Exclusion (FEIE) to reduce the amount of US tax you owe on income that has already been taxed in Ireland.
Do you need to file US taxes if you’ve never lived in America?
Yes, you must file a US tax return even if you’ve never lived in the US.
US citizenship comes with the requirement to report your worldwide income to the IRS, regardless of where you have lived.
What makes someone a tax resident in Ireland?
In Ireland, you are considered a tax resident if you spend at least 183 days in the country in one calendar year or if you spend 280 days over two consecutive years.
This residency status determines whether you need to pay Irish taxes on your global income.
Why does this matter? How does the tax system in Ireland differ from the US?
The US taxes citizens based on their global income, no matter where they live. In contrast, Ireland taxes you based on your residency, meaning you pay taxes primarily on the income you earn while living in Ireland.
What are the filing statuses and tax rates in the US and Ireland?
In the US, you will be placed in one of several filing statuses, depending on your income, that affect your tax rates and standard deductions.
Ireland, however, has a simpler system with two main tax rates: 20% for lower income and 40% for higher income.
What should you do to prepare when filing your US tax return from Ireland?
To file your US tax return while living in Ireland, first gather all financial documents, such as income earned, taxes paid in Ireland, and investment statements.
It’s also helpful to have your Irish tax return completed first.
Consider consulting a US tax professional who specializes in working with Americans abroad to ensure your tax return is accurate.
What are the tax filing deadlines for Americans living in Ireland?
If you live outside the US, you automatically receive a filing extension until June 15 to submit your US tax return.
However, any taxes owed are still due by April 15. If you need more time, you can request an additional extension until October 15 by submitting Form 4868 to the IRS.
How does Ireland handle social security and retirement for US expats?
Ireland’s PRSI (Pay Related Social Insurance) system provides social security benefits similar to those in the US.
The US and Ireland have a Totalization Agreement, which helps you avoid paying social security taxes in both countries and ensures your contributions are counted towards benefits in either country.
