Accountancy Saint-Paul

For US citizens living abroad, tax residency is the key determinant of where income is taxed, not the income's source or the payer's location. While Americans are always subject to US tax regulations on their worldwide income, their country of residence also has the right to tax that same income. For those residing in high-tax European Union jurisdictions, US tax liabilities are often effectively eliminated through foreign tax credits and exemptions.

The Streamlined Foreign Offshore Procedure offers a limited-time opportunity to resolve past non-compliance for U.S. taxpayers living abroad. By filing three years of tax returns and six years of FBARs, qualified individuals can avoid substantial failure-to-file penalties which can easily reach five figures or more.

W-9 is the form banks use to collect US citizen client's social security numbers to satisfy their FATCA reporting requirement. If you are current on your US tax and FATCA obligations and want to keep your account open, there is no reason not to return the completed w-9. Form W-8BEN should never be completed by US citizens.

American Citizens or Permanent Residents who declare earned income and have American Citizen children under 17 with social security numbers are eligible to receive child tax credits with a maximum value of $2000 per qualifying child in 2025. The refundable part of the credit (ACTC) is worth up to $1,700 for each qualifying child.

The account values reported on the FBAR are not taxable income. The United States does not have a wealth tax. Only the interest, dividend or investment income from foreign accounts is taxable, and generally escapes US tax by the application of a credit for the foreign taxes paid on the same income.

It can actually be helpful to have a so-called 'Non-Resident Alien' Spouse. The primary advantage is that the spouse's income is neither reported nor taxable in the United States.