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Tax Introduction for U.S. Citizens and Resident Aliens Abroad

2023-09-11
If you are a U.S. citizen or resident alien, the rules for filing income tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad.

Your income, filing status, and age generally determine whether you must file an income tax return. Generally, you must file a return for 2019 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table.

Filing Status

Amount

Single under age 65

$12,200

Single age 65 or older

$13,850

Married filing jointly, both spouses under 65

$24,400

Married filing jointly, one spouse age 65 or older

$25,700

Married filing jointly, both spouses 65 or older

$27,000

Married filing separately, any age

$5.00

Head of household under age 65

$18,350

Head of household age 65 or older

$20,000

Qualifying widow(er) under age 65

$24,400

Qualifying widow(er) age 65 or older

$25,700


There are several exemptions may apply when file your US tax return:

  1. The Foreign Earned Income Exclusion

    If your tax home is in a foreign country and you meet the bona fide residence test or the physical presence test, you can choose to exclude from your income a limited amount of your foreign earned income.

    You may be able to exclude up to $105,900 of your foreign earned income in 2019. Foreign earned income includes salaries and wages, commissions, bonuses, professional fees, and tips. You cannot exclude more than the smaller of:

    (1) $105,900, or
    (2) Your foreign earned income for the tax year minus your foreign housing exclusion.

  2. Foreign Housing Deduction and Exclusion

    The foreign housing exclusion applies only to amounts considered paid for with employer-provided amounts, which includes any amounts paid to you or paid or incurred on your behalf by your employer that are taxable foreign earned income to you for the year (without regard to the foreign earned income exclusion).

    The housing deduction applies only to amounts paid for with self-employment earnings. Your foreign housing deduction cannot be more than your foreign earned income less the total of:

    (1) your foreign earned income exclusion, plus
    (2) your housing exclusion, if any.

    You would not have both a foreign housing deduction and a foreign housing exclusion unless during the tax year you were both self-employed and an employee.

Disclaimer

All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.

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