top of page
Search

Tax Tip Tuesday: Living Abroad, Filing at Home: U.S. Expat Tax Essentials — Webinar Recap

  • Writer: May Sung
    May Sung
  • 3 days ago
  • 2 min read

Understanding U.S. tax rules while living abroad can feel overwhelming. Most expats receive incomplete or inaccurate information from coworkers, social media groups, or outdated articles. That confusion is exactly why I created the webinar Living Abroad, Filing at Home: U.S. Expat Tax Essentials—a clear, practical walkthrough of what the IRS expects from Americans overseas.


Below is the full webinar recording:


What This Webinar Covers


The session is designed to help expats understand both the big picture and the technical details behind their U.S. filing requirements—from who must file, to how to prevent double taxation, to reporting foreign assets or businesses. It’s a plain-English breakdown of rules that often feel far more complicated than they need to be.

Below is a simplified list of the major topics discussed inside the video.


1. Why Moving Abroad Doesn’t Remove You from the U.S. Tax System


The United States uses citizenship-based taxation, which means U.S. citizens, green-card holders, and U.S. tax residents must still file a tax return every year—even if they live overseas and even if they pay foreign tax.

The webinar explains:

  • Who still needs to file

  • Why most expats don’t owe U.S. tax

  • Common misconceptions that lead to non-filing


2. How Worldwide Income Works


Expats must report all income worldwide, including:

  • Foreign salary or wages

  • Freelance or remote work

  • Side gigs

  • Rental income

  • Investment income

  • Foreign pensions

  • Crypto

  • Capital gains from property abroad


Everything is converted to USD on the return.



3. Tools to Prevent Double Taxation


The IRS provides three mechanisms to avoid double taxation:


  • Foreign Earned Income Exclusion (FEIE)

  • Foreign Tax Credit (FTC)

  • Foreign Housing Exclusion



The webinar covers when each tool is appropriate and how eligibility works.


4. PFICs — Foreign Investments With Special Rules


Many foreign investment products are treated as PFICs, including:


  • Foreign mutual funds

  • ETFs

  • Robo-advisor portfolios

  • Investment-based savings plans


The webinar explains:


  • Why PFICs trigger Form 8621

  • How PFIC taxation works

  • Why U.S.-based investments are safer for expats


5. Foreign Business Ownership & U.S. Reporting


Owning or controlling a foreign company may require:


  • Form 5471

  • Form 8865

  • Form 8858


You’ll learn:


  • Ownership thresholds

  • Constructive ownership rules

  • Why you may owe U.S. tax even with no distributions

  • Penalties for non-filing


6. FBAR & FATCA Reporting


Most expats must file an FBAR, and many must file FATCA Form 8938.


The webinar covers:


  • Reporting thresholds

  • What types of accounts must be reported

  • How foreign banks already report to the IRS

  • Penalties for non-compliance


7. State Residency Issues for Expats


Some states—especially California, New York, and Virginia—don’t automatically release you from residency when you move abroad. The webinar explains:


  • Factors states use to determine residency

  • How to formally sever ties

  • Real examples from expat clients


8. How MKHS Tax Group Supports Expats


The session also highlights how MKHS Tax Group assists with:


  • FEIE/FTC planning

  • PFIC guidance and cleanup

  • Foreign business filings

  • FBAR/FATCA compliance

  • Multi-country income

  • Streamlined filing for taxpayers who are behind


If you’re living abroad or planning a move overseas, the U.S. tax rules don’t have to feel overwhelming. Whether you need help understanding your filing requirements, reporting foreign assets, navigating PFICs, or setting up a long-term compliance plan, MKHS Tax Group is here to guide you.


To get personalized support:


Comments

bottom of page