Annual Tax Planner
Annual Tax Planner for Expats
Track income across countries, manage foreign earned income exclusion, and stay organized for both US and local tax obligations.
In Depth
Filing from Abroad - US Tax Obligations for Expats
The United States is one of the few countries that taxes citizens on worldwide income regardless of where they live. For Americans abroad, this means filing a US tax return every year even if all income is earned in another country. The Foreign Earned Income Exclusion allows qualifying expats to exclude a significant amount of earned income from US taxes, but the exclusion has limits and does not cover investment income, rental income, or self-employment tax.
Foreign bank account reporting adds a compliance layer that many expats discover only after they have been living abroad for some time. FBAR filing is required when the aggregate value of all foreign financial accounts exceeds $10,000 at any point during the year. FATCA adds additional reporting requirements through Form 8938 for higher asset thresholds. The penalties for non-compliance with these reporting obligations can be severe, making organized tracking of foreign account balances throughout the year especially important.
The interaction between foreign tax credits and the Foreign Earned Income Exclusion creates a planning decision that affects many expats. Taxes paid to a foreign government can offset US tax liability through the foreign tax credit, but this credit cannot be applied to income already excluded under the FEIE. Some expats in high-tax countries find the foreign tax credit more beneficial than the exclusion, while those in low-tax countries tend to benefit more from the FEIE. Having clear records of both income and foreign taxes paid makes this comparison possible.
The Challenge
Why Expats Need Dedicated Tax Planning
US citizens and residents owe taxes on worldwide income regardless of where they live. Filing from abroad adds exclusions, credits, and reporting requirements that domestic filers never encounter.
Worldwide income is taxable
Unlike most countries, the US taxes citizens on global income. Salary earned abroad, foreign investments, and local bank interest are all reportable - even if taxed locally.
Foreign earned income exclusion has requirements
The FEIE can exclude over $120K of foreign earnings, but qualifying requires meeting either the bona fide residence or physical presence test. Tracking days outside the US matters.
Foreign tax credits prevent double taxation
Taxes paid to foreign governments can offset US tax liability. But the credit has limitations and requires organized documentation of foreign taxes paid.
FBAR and FATCA reporting carry penalties
Foreign bank accounts exceeding thresholds require separate reporting. Penalties for non-filing are severe. Tracking account balances throughout the year prevents missed filings.
Ready to take control of your expat finances?
What You Get
Tax Planning Features for Expat Filing
Multi-currency income tracker
Track income in local currency and converted to USD. See total worldwide income for US reporting.
Foreign earned income exclusion tracker
Track qualifying days for the physical presence test. Monitor income eligible for the FEIE.
Foreign tax credit log
Record taxes paid to foreign governments. Organize by type and country for Form 1116.
Foreign account tracker
Monitor balances of foreign accounts for FBAR and FATCA thresholds. Know when reporting obligations are triggered.
Estimated payment tracker
Calculate and track any estimated payments owed. Factor in exclusions and credits.
Year-end filing summary
Consolidated view of worldwide income, exclusions, credits, and reporting obligations. Reference for preparing your return.
See It In Action
What the template looks like
Browse through the template to see how it handles income tracking, deductions, quarterly payments, and tax projections.
- Tax overview dashboard
- Income source tracking
- Deduction organization
- Quarterly payment planning
- Tax projection estimates
Annual tax overview with key figures
Detailed tax breakdown and projections
Track all income sources for tax purposes
Organize and track tax deductions
Plan and track quarterly estimated tax payments
Getting Started
Start Your Expat Tax Planning Process
Set up income sources by country
Enter each income source with its country and currency. The template converts to USD for US reporting.
Track your days outside the US
The physical presence test requires 330 days outside the US in a 12-month period. Track your travel to verify qualification.
Record foreign taxes paid
Enter each foreign tax payment with the type, amount, and country. This data supports your foreign tax credit claim.
Monitor foreign account balances
Record peak balances of foreign accounts throughout the year. Know whether FBAR and FATCA thresholds are met.
Compile for filing
The summary organizes all the data needed for your US return, including supporting forms for exclusions and credits.
Common Questions
Tax Planner for Expats - FAQ
Do I still need to file US taxes if I live abroad?
US citizens and permanent residents must file regardless of where they live. The filing requirement is based on citizenship, not residence.
Can I use both the FEIE and foreign tax credit?
You can use both, but not on the same income. The FEIE excludes qualifying earned income. Foreign tax credits apply to income not excluded by the FEIE.
What is the FBAR threshold?
If the aggregate value of all foreign financial accounts exceeds $10,000 at any point during the year, FBAR filing is required. Track peak balances to know.
Does this handle local tax obligations?
The template focuses on US tax planning for expats. You can add sections for local tax tracking, but the primary structure addresses US filing requirements.
What about foreign investment income?
Interest, dividends, and capital gains from foreign investments are reportable on your US return. Track them in the income section with appropriate categorization.
Is the filing deadline different for expats?
Expats get an automatic 2-month extension to June 15, with the option to extend further to October 15. However, any tax owed is still due by April 15.
Can't find the answer you're looking for? Contact our team
Start tax planning as a expat
One-time purchase. No subscription. Your financial data stays in your Google Drive.