But before you jump to claim the FEIE, there are a few things you should know:

• If used properly, the FEIE can save you thousands of dollars on your United States taxes
• It’s not a blanket foreign income exclusion — there are stipulations on what you can exclude and what you can’t
• You don’t automatically get the FEIE — you need to meet specific qualifications and then file the proper paperwork (Form 2555)
• The FEIE isn’t your only tax relief option — you should ask your Tax Advisor what options are available to you based on your specific situation.

U.S. taxes for expats aren’t easy. Let our experienced Expat Tax Advisors help prepare your tax return this year to ensure the foreign earned income tax exclusion is elected when it is most beneficial to you. Ready to claim the FEIE? We’ve got a tax solution for you — whether you want to DIY your expat taxes or leave it to one of our experienced Tax Advisors. Head on over to our Ways to File page to choose your journey and get started.

What foreign income can you exclude with the FEIE?

The Foreign Earned Income Exclusion can help reduce or eliminate U.S. taxes on foreign income earned while working abroad, but it doesn’t apply to all sources of income.

This exclusion is only available for earned income and doesn’t apply to passive or investment income such as interest and dividends. Foreign earned income includes:

• Salary
• Wages
• Bonuses
• Commissions
• Self-employment income

All income must have been earned in a foreign country to count as foreign earned income.

Note: You might qualify for the foreign earned income exclusion even if the country in which you’re working doesn’t assess income tax on compensation, like the UAE.

Who qualifies for the Foreign Earned Income Exclusion?

The foreign income tax exclusion applies to those who have lived abroad for a certain period of time within the tax year. However, partial-year exclusions are available if you’ve recently moved to a foreign country or returned to the U.S. mid-year.

The FEIE is available to expats who either:

• Work outside the U.S. as employees, whether for a U.S. or non-U.S. employer
• Work outside the U.S in a self-employed or partner capacity
• Pass either the Bona Fide Residence Test or the Physical Presence Test

Employees of the U.S. government can’t claim the foreign income exclusion. However, an employee of a private company under contract with the U.S. government might still be eligible.

Passing the Bona Fide Residence Test

To qualify as a Bona Fide Resident and pass the test, you must prove that you have more ties to a foreign country than the U.S. You also must be a resident of that country for an uninterrupted period that includes an entire tax year. When and if you go back to the U.S., you must have the intention of returning to your current foreign country of residence. In addition, you must:

• Be a U.S. citizen or be a resident alien of a foreign country with which the U.S. has an income tax treaty.
• Earn active income. Unearned, or inactive, income like pension payouts, interest, and dividends cannot be included.
• Be overseas for work for a period longer than a year.
• Have a permanent place of work in a foreign country.

It is possible to be a Bona Fide Resident for part of the year if you spent at least a full tax year outside the U.S. in a prior year. As a result, you can claim the FEIE for part of the year.

Passing the Physical Presence Test

To qualify under the Physical Presence Test, you must have been living outside the U.S. for 330 full days out of the year. Be careful when you track your time, because a “full day” counts as 24 hours starting at midnight, and you need to be in-country for every minute of those 24 hours.

For example, if you lived in Windsor, Canada and popped over the border to Detroit for Friday night and came back Saturday evening, you wouldn’t be able to count that time towards your 330 full days.

How much foreign income can I exclude?

If you’re an expat and you qualify for a Foreign Earned Income Exclusion from your U.S. taxes, you can exclude up to $112,000 or even more if you incurred housing costs in 2022. (Exclusion is adjusted annually for inflation). For your 2023 tax filing, the maximum exclusion is $120,000 of foreign earned income. If you’re married and both of you meet either the bona fide residency test or the physical presence test, you can each claim the FEIE.

Foreign Tax Credit vs. Foreign Earned Income Exclusion

It’s important to choose between the foreign income exclusion vs. foreign tax credit wisely. If you claim the exclusion and then change back to the foreign tax credit, you can’t claim the exclusion again for five years. The only way to claim the exclusion again involves a costly process with the Internal Revenue Service (IRS). Get tax help from an expat tax advisor to help you understand your options.

Claiming the foreign tax credit and filing Form 1116 might be the better option if any of these apply:

• You’re paying foreign tax at a higher rate than your U.S. tax rate
• You wish to participate in an individual retirement arrangement (IRA)
• You qualify for certain family-related credits based on non-excluded income
• You wish to exclude or reduce taxes on passive or investment income

Foreign Earned Income Exclusion extensions

Even if you haven’t been out of the country long enough to claim the exclusion by your expat filing deadline, you can request an extension to file until you’ve met these time requirements.

You generally must claim the exclusion either:

• Within one year of the due date of your tax return
• By amending a timely filed return

However, you may claim the exclusion if:

• The IRS hasn’t discovered your failure to file your return claiming the exclusion, or
• You owe no tax after taking the exclusion into account

If you haven’t filed returns in prior years, you still might be able to exclude your foreign earned income from U.S. tax. This could have the effect of eliminating your tax liability and any penalties and interest that would be assessed.

Foreign Housing Exclusion and Foreign Housing Deduction

If you’re an expat and you incur foreign housing expenses, you might be able to exclude or deduct them. The Foreign Housing Exclusion is available for expats working as employees with housing expenses like rent and utilities.

The foreign housing deduction is available for self-employed expats paying foreign housing expenses. The amount of your housing exclusion or deduction is based on the difference between the following:

• Your actual foreign housing expenses
• A base amount for your foreign country of residence

You can use the Foreign Housing Exclusion if your housing costs total more than 16% of that year’s FEIE.

To calculate the maximum amount you can exclude, you’d multiply that year’s maximum income exclusion by 0.3 to get 30% of the full exclusion amount. So, for 2023, you’d take $120,000 x 0.3 = $36,000. Something to know is that most large metro areas have higher limits, so it’s important to have a Tax Advisor who knows the ins and outs of taxes in your specific area.

Common problems U.S. expats have with the foreign income exclusion and Form 2555

U.S. expats have a lot of the same questions and issues when they file their FEIE, but these are the most common problems associated with the FEIE:

• You didn’t file Form 2555 – Many expats assume that if they qualify for the FEIE it will be automatically added to their tax filing. To claim the FEIE you must file Form 2555.
• You’re a government employee — Unfortunately, U.S. government employees cannot claim this foreign income exclusion.
• You failed to calculate the FEIE correctly – If you calculate your FEIE incorrectly you won’t get the correct amount excluded.
• You claimed the FEIE when you should have claimed the FTC – For example, if you’re retired abroad and you only have investment and passive income, you may have been better off claiming the FTC.
• You didn’t track your time properly – You must be vigilant about tracking your time if you want to pass the Bona Fide Residency or Physical Presence tests. Even being off by a few hours can mess up your qualifications.
• You had no active income for that year – If you’re living abroad off investment or passive income, you don’t qualify for the FEIE.
• You didn’t pay your U.S. self-employment taxes – You still have to pay self-employment taxes when you’re claiming the FEIE.

These are only a few of the most common issues and problems we come across. If you’re having difficulties or are a new American expat, it’s smart to leave your expat taxes to a specialist.

File your Foreign Earned Income Exclusion with H&R Block

Filing taxes while living and working abroad can be overwhelming and stressful. As an expat, your tax situation is very different and requires specialized expertise. Get started with H&R Block’s Expat Tax Services today.

The post What U.S. Expats Need to Know About The Foreign Earned Income Exclusion (FEIE) appeared first on H&R Block®.

Keep reading to find out more about the U.S./U.K. tax treaty below. Not sure about filing requirements for your U.S. expat taxes in the U.K.? We’re here to help. Get started now.

Why the U.S./U.K. income tax treaty exists

Most countries around the world have some form of income tax that residents are obligated to pay. This can create a problem because American expats pay U.S. income taxes in addition to what they may pay abroad.

Why? Because the U.S. is one of the few countries in the world that taxes based on citizenship, not place of residency. This policy led to some expats paying taxes twice — once in the U.S. and once in their country of residence.

While certain tools like the Foreign Earned Income Exclusion and the Foreign Tax Credit helped alleviate this, there were still some sticky situations — U.S. citizens living in the United Kingdom, for example, ran into trouble when it came to pension taxation. To solve those situations, the U.S. entered into individual tax treaties. The main purpose of these tax treaties is to solve the double-taxation issue, and the United States’ treaty with the United Kingdom is no different.

The U.S./U.K. tax treaty—formally known as the “Convention between the Government of the United States of America and the Government of the United Kingdom of Great Britain and Northern Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital Gains”—also addresses tax evasion, income taxes, and capital gains taxes between the two countries.

What else should you know about the United States – United Kingdom tax treaty?

Now that you know the basics of the United States – United Kingdom tax treaty, we can get a bit more into specifics that affect U.S. expats. Within the tax treaty are specific provisions addressing individual tax concerns. While there are more than a dozen provisions, the ones that can affect Americans in the U.K. the most are the Saving Clause and Article 17 – U.S. taxation on U.K. pensions.

Saving Clause

Many U.S. tax treaties have what’s known as a Saving Clause. The Saving Clause essentially states that a country may tax its citizens as if the treaty never existed. As a result, it renders most provisions of the treaty ineffective for Americans living in the U.K., but leaves them open for U.K. citizens living in the U.S.

This is one reason you should get familiar with the Foreign Tax Credit (FTC) — so that if you need to, you can claim it against British taxes paid. The FTC is generally possible because of the exceptions to the Saving Clause. For most treaties, the paragraph immediately following the Saving Clause details the exceptions to the clause.

Article 17 — U.S. taxation on U.K. pensions

So, how do U.K. pensions work for U.S. expats? One treaty benefit is that, contributions to a pension in the U.K. can be tax-deferred, just like your U.S. 401k and other tax-deferred retirement vehicles.

Even though distributions are generally taxable, the double taxation article will help prevent you from paying taxes twice. Another perk of the tax treaty is that it allows your social security (U.K. state pension) to only be taxable in the country they are residing in.

How to claim U.S./U.K. tax treaty benefits

There are some situations you might run into where—despite all the exclusions and other treaty benefits—you may be double-taxed on income. For example, let’s say you’re employed by a British company and live and work in England. Your employer sends you to the U.S. for a business trip, and because income received for services performed in the U.S. is considered U.S. income, you’d owe U.S. taxes on the income you earned while stateside. Article 24 of the U.S./U.K. tax treaty, for example, would help alleviate this particular situation. To claim it, you’d file Form 8833 with your tax return and include your situation in the summary.

Before you run out and file this form, talk to a Tax Advisor. The majority of U.S./U.K. tax benefits you get from treaties don’t have to be claimed with Form 8833. You’d only have to file if provisions in the current tax treaty trump or change a provision of the Internal Revenue Code (IRC) in order to reduce taxes owed.

Need help claiming U.K. tax treaty benefits? Ready to file your U.S. taxes? Get help from the experts at H&R Block

Whether you’re an American who has recently relocated to London or are a full-on U.S./U.K. dual citizen, we’ve got the tax solutions for you. Your Tax Advisor will comb through your financial documents to find you the best solutions for your specific situation, so you can have the peace of mind your U.S. taxes are done right. Get started on your expat taxes today!

The post Understanding the U.S./U.K. Tax Treaty appeared first on H&R Block®.

Keep reading to find out more about the U.S./Canada tax treaty below, including why it exists, what all it covers, and how to make sure you’re getting the benefits you’re entitled to. Not sure about tax filing requirements for your U.S. expat taxes in Canada? We’re here to help. Get started on your expat taxes now.

Why the tax treaty between the U.S. and Canada exists

The U.S./Canada tax treaty, in summary, alleviates tax issues for U.S. citizens and residents living in Canada and Canadians living in the U.S.

Most countries around the globe, including Canada, have some form of income tax that residents are obligated to pay. This can create problems for U.S. expats because Americans file U.S. income taxes even if they aren’t living in the U.S. at the time.

The reason for this is that the U.S. is one of the few countries in the world that imposes taxes based on citizenship, not place of residence. In Canada, your Canadian tax obligation is based on residency status which is determined by the Canada Revenue Agency (CRA). The U.S. policy leaves some Americans responsible for taxes in two countries — once in the U.S. and once in their country of residence. One of the purposes of tax treaties is to solve this double taxation issue, and the United States treaty with Canada is no different.

The U.S. does have certain tools like the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC) that help alleviate the double taxation issue, but there were still some sticky situations — U.S. citizens with Canadian pensions and tax–free retirement accounts, for example, ran into trouble when it came to U.S. taxation of those accounts. The U.S./Canada tax treaty addresses those concerns and directs how those situations and individuals should be taxed.

Among other things, it also addresses cross-country expat financial reporting, to ensure transparency between Canadian financial institutions and the U.S.— so if you’re behind on U.S./Canada financial reporting like your FBAR and FATCA filing requirements, you should get caught up with Streamlined Filing as soon as you can.

Get started on Streamlined Expat Tax Filing now.

Saving Clause

Most U.S. tax treaties have what’s known as a saving clause. The saving clause essentially states that a country may tax its citizens as if the treaty never existed. As a result, it renders most provisions of the treaty ineffective for Americans living in Canada, but leaves them open for Canadian citizens living in the U.S.

This is one reason you should get familiar with the FTC — so that if you need to, you can claim it against Canadian taxes paid. The FTC can be claimed in some instances only because of the exceptions to the saving clause.

U.S. taxation on Canadian retirement plans

One question we hear on a regular basis from American citizens living in Canada is, “How are Canadian retirement plans taxed in the U.S.?”

If you’re a U.S. citizen and you receive benefits from a Canadian Pension Plan and the Old Age Security Plan, the Internal Revenue Service (IRS) will treat those benefits the same as U.S. social security payments for tax purposes.

Get started on your expat taxes now.

How to claim U.S./Canada income tax treaty benefits

The vast majority of tax benefits you get from the U.S./Canada tax treaty don’t have to be claimed. If you found yourself in one of those rare, complicated situations that a specific article alleviates, you’d file Form 8833 with your tax return and include your situation in the summary. Before you run out and file Form 8833, talk to an Expat Tax Advisor.

Get help with claiming Canada/U.S. tax treaty benefits or filing U.S. taxes from Canada

Whether you’re an American who has recently relocated to Vancouver or are a full–on U.S./Canada dual citizen who’s lived in Toronto for decades, we’ve got the tax solutions for you. Whether you file expat taxes yourself with our online DIY expat tax service designed specifically for U.S. citizens abroad or file with an advisor, H&R Block is here to help. Get started on your expat taxes now.

The post The U.S./Canada Tax Treaty Explained appeared first on H&R Block®.

What Americans living in Canada should know about U.S. taxes

For starters, Americans and U.S. green card holders living in Canada should continue to file a U.S. tax return each year. As a U.S. citizen, you have a tax obligation to the U.S. regardless where you hang your hat. That means you’re taxed on all your income, including income from your wages, dividends and interest, and rental properties.

Working as a U.S. citizen in Canada can affect your taxes even if you don’t stay long. For example, if you earn income while on a short-term assignment, you’ll need to report that income on your U.S. taxes. As you establish deeper financial roots in Canada, you’ll have more considerations for your American tax filing.

You may need to report your Canadian financial accounts and assets. Generally, U.S. taxpayers with more than $10,000 in foreign bank or financial accounts are subject to FBAR filing and reporting requirements. You may also be subject to FATCA reporting requirements if you have foreign assets valued at $200,000 and higher.

U.S. tax penalties are steep, and can result in fines, a revoked passport, or even jail time. If you’re tempted to skip filing your U.S. taxes or additional financial reporting, you’ll pay the price later. Canada is one country that complies with FATCA reporting—meaning Canada and the U.S. can exchange information about an individual’s financial accounts. Considering the hefty fines and penalties that come from not reporting your assets (upwards of $10,000 in fines per year), it’s worth it to have a U.S./Canada tax expert go through your documents to make sure you’re reporting the correct amount.

You can lower your U.S. bill and avoid dual taxation with certain tax strategies. If you were worried about double taxation between the U.S. and Canada, you can relax. U.S. citizens working in Canada may take advantage of one of two options, detailed below, to lower their taxes:

• The Foreign Earned Income Exclusion and Housing Exclusion – The FEIE and housing exclusion allow American expatriates living in Canada to exclude up to a certain amount of foreign earned income if they meet certain requirements.
• Foreign Tax Credit – The Foreign Tax Credit allows Americans to claim a dollar-for-dollar credit on Canadian taxes paid if they meet certain requirements.

I’m a U.S. citizen retiring in Canada. What do I need to know about U.S. taxes?

If retiring up north is your long-term goal, you should first understand how taxes work when retiring abroad. To start, you still may have to file a U.S. tax return even if you retire in Canada. You’ll also still have to report money in any foreign financial accounts on your FBAR if you meet the requirements

Canadian tax-free investments are not tax-free in the United States. If you own a Canadian Tax-Free Savings Account (TFSA), Registered Education Savings Plan (RESP), or Registered Disability Savings Plan (RDSP), your contributions can grow tax-free as far as your Canadian taxes are concerned. However, your earnings are subject to U.S. taxes, and you may need to report your account as a foreign grantor trust.

Your Canadian pension and retirement account earnings can be eligible for special treatment. Thanks to the U.S. – Canada tax treaty, any benefits paid from the Canada Pension Plans (CPP), Quebec Pension Plan (QPP) and Old Age Security (OAS) pension programs may not be subject to income tax.

Additionally, the U.S./Canada tax treaty allows you to defer U.S. tax on undistributed earnings from a Canadian Registered Retirement Savings Plan (RRSP) or Canadian Registered Retirement Income Fund (RRIF) in certain situations. However, while contributions to such accounts are also tax deferred, the RRSP and RRIF are still subject to FBAR and FATCA reporting.

You might need to report your Canadian retirement and pension on Form 1040. Your H&R Block tax advisor can help you determine if your earnings can be deferred and the appropriate reporting for your U.S. and Canadian taxes. Plus, if you choose to do both your Canadian and American taxes with Block, you’ll only need to provide your information once.

Taxes for U.S.-Canada commuters

Since Canada is America’s upstairs neighbor, there are situations in which you might find yourself popping over the border for work.

For example, let’s say you live in Detroit and work for a Canadian company in Windsor, or the opposite. You would still have to file a U.S. tax return, and you may also have to file a Canadian tax return. Because each situation is different, we recommend you file with an advisor and let them help determine whether you have to file both Canadian and U.S. taxes as a commuter.

Basics of Canada taxes for U.S. citizens

Do expats pay taxes in Canada? Will you pay taxes to the Internal Revenue Service (IRS) or the Canada Revenue Agency (CRA) or both after moving to Canada? As a U.S. citizen working and living in Canada, you may also have to file Canadian taxes:

• Canadian tax residents are taxed on all income, regardless of where it’s earned.
• Nonresidents are taxed on income from employment, business in Canada, investments in Canada and/or capital gains from the sale of a Canadian property.

Who qualifies as a Canada resident? We recommend you speak with a residency expert, but generally, you’re considered a Canadian resident if you maintain residential, social, and economic ties in Canada or if you stay in Canada more than 183 days.

Canada’s federal income tax rates range from 15% to 33%. Similar to taxes in the U.S., the percentage of tax that you pay increases as your income increases into different brackets. Depending on their tax bracket, some Americans would pay higher income tax rates locally than in the U.S.

It’s generally more favorable for Americans living in Canada to use the foreign tax credit vs. the FEIE—but there are exceptions. Your tax advisor can help you make the right decision.

2023-2024 Tax Rates

Provincial/Territorial tax rates top out from 11.5% to 25.75% Ontario has surtax of 20% and 56%

The tax filing season is similar to the U.S. tax year, but with a few differences. Canadian taxes follow a January to December tax year. Tax returns are due on April 30 for individuals and June 15 for self-employed taxpayers. In general, no extensions are allowed.

How to file U.S. taxes from Canada

It’s simple to file U.S. taxes from Canada with H&R Block’s Expat Tax Services. Here’s how to file your U.S. expat taxes online:

1. Head on over to our Ways to File page
2. Pick your journey—in the driver’s seat with our online DIY tool or letting a Tax Advisor take the wheel.
3. Once you’re through your chosen journey, you review your return and pay
4. We file your return with the IRS
5. You sit back knowing your taxes were done right

How H&R Block can help Americans living in Canada with taxes

Thousands of U.S. expats living in Canada have chosen H&R Block to handle their U.S. expat taxes for the peace of mind their taxes are done right. Not only can you trust our expertise and guidance to find your credits and tax-saving opportunities, you can get it all done from the comfort of wherever you call home. Get started on your U.S. taxes today!

The post U.S. Tax Guide for American Expats in Canada appeared first on H&R Block®.

Below, we’ll explain the basics of what the FBAR is, which Americans in Japan need to file an FBAR, and how to file an FBAR from Japan.

Ready to file? With H&R Block Expat Tax Services, you have two convenient, secure, online options to file your FBAR (FinCEN Form 114) from Japan: On your own with our DIY online expat tax service or with help from an advisor.

Who in Japan must file FinCEN Form 114 (the FBAR)?

FinCEN Form 114 (the FBAR) is formerly called the Report of Foreign Bank and Financial Accounts. It exists to help the U.S. government be sure Americans in Japan (and elsewhere in the world) are being honest about their worldwide income and assets. If you qualify, you submit it yearly.

Who in Japan must file FinCEN Form 114? You must submit FinCEN Form 114 if you’re a U.S. citizen or Green Card holder and you’ve held a combined $10,000 or more in non-U.S. accounts at any one time in the tax year.

So, if you’re a U.S. citizen and have $9,000 in a Tokyo savings account and another $9,000 in a Japanese pension, you’d still have to file an FBAR even though each account held under $10,000.

One question we hear from our clients in Japan is “Can I file an FBAR myself?” The answer is yes, even if you’re currently living in Japan you can still file an FBAR yourself online.

You can do this by using either FinCEN’s BSA e-filing system (no help available if needed) or by simply adding on an FBAR to your expat tax package with H&R Block.

How to file an FBAR and expat taxes together while in Japan

If you need to file both your U.S. taxes and your FBAR from Japan, then choose to file your FBAR and expat taxes together. These are the FBAR instructions to file with your taxes:

1. Head over to our Ways to File page, choose to file taxes yourself or with an advisor, register online and complete your tax organizer.
   H&R Block makes it simple to file your expat taxes and FBAR together from Japan After you choose to either file yourself or file with an advisor, you’ll be able to register an account. From there, you’ll complete your personal Tax Interview. This is where you provide information about your tax and financial situation, including information regarding your FBAR. After you have recorded all your information, you’ll get a personalized checklist of documents to upload according to your specific situation.
2. We’ll assign you the right advisor for your situation (if you choose to file with an advisor)
   If you choose to file with an advisor, we will match you with one well-versed in U.S./Japan expat taxes. Your advisor will review your documents and FBAR and begin your return and Japanese FBAR submission.
3. We prepare your U.S. tax return and FBAR
   Even though you’re currently living in Japan, you can trust H&R Block Expat Tax Services for all the following:
   • Federal tax preparation and filing
   • State tax return preparation and filing
   • FBAR filing (Report of Foreign Bank and Financial Accounts)
   • Past-due FBAR and tax returns from prior years, including Streamlined Compliance filings
   • Free extension filing
   • H&R Block’s 100% Accuracy Guarantee
4. Pay for and review the FBAR and return.
   When your FBAR and tax return are completed, you’ll see your FBAR filing cost and be asked for payment via your client portal. Know that protecting your information is important to us — we maintain the physical, electronic and procedural safeguards to protect the information you submit to us.
   After you pay, your H&R Block Expat Tax Advisor can walk you through your FBAR and return, answer your questions and offer relevant tax savings tips for next year.
5. We file your return with the IRS and FBAR with FinCEN.
   Finally, we’ll file your completed return with the IRS and FBAR with FinCEN. After filing, your tax return and FBAR will be stored in your secure online account, where it will be safe and easy to access, whenever you need.

Ready to get started? Head on over to our Expat Tax page to begin.

FBAR (FinCEN 114) filing requirements and due date

Regardless if you live in Japan, your FBAR due date for the calendar year you’re reporting is the same as your U.S. tax filing deadline, but you can always see up-to-date deadlines on our expat tax deadline page. If you’re required to file an FBAR, you must file one every year.

FBAR requirements are pretty detailed, so have these documents and information handy for a smooth submission process:

• Legal name on the foreign account(s)
• Type of account
• The name and address of the institution or other person with whom the account is maintained
• The maximum value (converted to USD using the end of year exchange rate) in each account during the FBAR reporting period
• The number and/or other designation of the account

FBAR filing cost

Filing your FBAR with H&R Block Expat Tax Services will help save you time and won’t break the bank. Starting at $49, you can file an FBAR as an add-on to your DIY tax preparation.

When you add FinCEN Form 114 to your assisted tax return, FBAR filing costs $99 and includes the same attention to detail and 100% Accuracy Guarantee as our Expat Tax Prep Services.

What if I live in Japan and I’ve never filed an FBAR before?

Yikes! If you live in Japan and it turns out you’ve accidentally skipped filing your FBAR in years past, don’t panic. Submitting a Foreign Bank Account Report isn’t exactly an everyday occurrence, and it’s easy to overlook if you weren’t aware of compliance laws.

If you’ve been living and working in Japan and were honestly unaware of your FBAR filing requirement, the time to act is now. The IRS and FinCEN have a few disclosure programs that offer amnesty to Americans who have made an honest mistake in overlooking their filing obligations, including Streamlined Filing Compliance Procedures.

Streamlined compliance procedures allow Americans in Japan (and elsewhere in the world) get caught up on back taxes and delinquent FBARs with amnesty in order to avoid the large penalties that come from willfully not filing — penalties that can range anywhere from a few hundred dollars to a few hundred thousand dollars for serious offenders. All in all, it makes financial sense to be sure you’re up to date on all your reporting requirements.

If this all seems overwhelming, don’t stress — we’ve got your back. When catching up on multiple years of FBAR filings, choose to file your taxes and FBAR with an advisor, and our international tax advisors can help you decide on the best course of action for your unique situation.

Unsure how to file an FBAR from Japan or if you need to? H&R Block’s Expat Tax Services has your back.

Need help filing your FBAR or expat taxes from Japan? Don’t stress — taxes for expats in Japan are complicated, but H&R Block Expat Tax Services has your back. Get started and file your U.S. taxes and FBAR together.

You may be interested in:

• Filing an FBAR from the UK
• Filing an FBAR from Canada
• Filing an FBAR from Australia
• Filing an FBAR from France
• Filing an FBAR from Germany

The post Guide to Filing an FBAR from Japan appeared first on H&R Block®.

Below, we’ll explain the basics of what the FBAR is, which Americans in Germany need to file an FBAR, and how to file an FBAR from Germany. Ready to file? With H&R Block Expat Tax Services, you have two convenient, secure, online options to file your FBAR (FinCEN Form 114) from Germany: On your own with our DIY online expat tax service or with help from an advisor.

Who in Germany must file FinCEN Form 114 (the FBAR)?

FinCEN Form 114 (the FBAR) is formerly called the Report of Foreign Bank and Financial Accounts. It exists to help the U.S. government be sure Americans in Germany (and elsewhere in the world) are being honest about their worldwide income and assets.

Who in Germany must file FinCEN Form 114? You must submit FinCEN Form 114 if you’re a U.S. citizen or Green Card holder and you’ve held a combined $10,000 or more in non-U.S. accounts at any one time in the tax year.If you qualify, you submit it yearly.

For example, if you’re a U.S. citizen and have $5,000 in a German checking account and another $9,000 in a German pension you’d still have to file an FBAR even though each account held under $10,000.

One question we hear from our clients in Germany is “Can I file an FBAR myself?” The answer is yes; Even if you’re currently living in Germany, you can still file an FBAR yourself online. Simply add on an FBAR to your expat tax package and get it all done in one go.

How to file an FBAR and expat taxes together while in Germany

If you need to file both your U.S. taxes and your FBAR from Germany, then choose to file your FBAR and expat taxes together. These are the FBAR instructions to file with your taxes:

1. Head over to our Ways to File page, choose to file taxes yourself or with an advisor, register online and complete your tax organizer.
   H&R Block makes it simple to file your expat taxes and FBAR together from Germany After you choose to either file yourself or file with an advisor, you’ll be able to register an account. From there, you’ll complete your personal Tax Interview. This is where you provide information about your tax and financial situation, including information regarding your FBAR. After you have recorded all your information, you’ll get a personalized checklist of documents to upload according to your specific situation.
2. We’ll assign you the right advisor for your situation (if you choose to file with an advisor)
   If you choose to file with an advisor, we will match you with one well-versed in U.S./Germany expat taxes. Your advisor will review your documents and FBAR and begin your return and FBAR submission.
3. We prepare your U.S. tax return and FBAR
   Even though you’re currently living in Germany, you can trust H&R Block Expat Tax Services for all the following:
   • Federal tax preparation and filing
   • State tax return preparation and filing
   • FBAR filing (Report of Foreign Bank and Financial Accounts)
   • Past-due FBAR and tax returns from prior years, including Streamlined Compliance filings
   • Free extension filing
   • H&R Block’s 100% Accuracy Guarantee
4. Pay for and review the FBAR and return.
   When your FBAR and tax return are completed, you’ll see your FBAR filing cost and be asked for payment via your client portal. Know that protecting your information is important to us — we maintain the physical, electronic and procedural safeguards to protect the information you submit to us.
   After you pay, your H&R Block Expat Tax Advisor can walk you through your FBAR and return, answer your questions and offer relevant tax savings tips for next year.
5. We file your return with the IRS and FBAR with FinCEN.
   Finally, we’ll file your completed return with the IRS and FBAR with FinCEN. After filing, your tax return and FBAR will be stored in your secure online account, where it will be safe and easy to access, whenever you need.

Ready to get started? Head on over to our Expat Tax page to begin.

FBAR (FinCEN 114) filing requirements and due date

Regardless where you live in Germany, your FBAR due date for the calendar year you’re reporting is the same as your U.S. tax filing deadline. You can always see up-to-date deadlines on our expat tax deadline page. If you’re required to file an FBAR, you must file one every year.

FBAR requirements are pretty detailed, so have these documents and information handy for a smooth submission process:

• Legal name on the foreign account(s)
• Type of account
• The name and address of the institution or other person with whom the account is maintained
• The maximum value (converted to USD using the end of year exchange rate) in each account during the FBAR reporting period
• The number and/or other designation of the account

FBAR filing cost

Filing your FBAR with H&R Block Expat Tax Services will help save you time and won’t break the bank. Starting at $49, you can file an FBAR as an add-on to your DIY tax preparation.

When you add FinCEN Form 114 to your assisted tax return, FBAR filing costs $99 and includes the same attention to detail and 100% Accuracy Guarantee as our Expat Tax Prep Services.

What if I live in Germany and I’ve never filed an FBAR before?

Yikes! If you live in Germany and it turns out you’ve accidentally skipped filing your FBAR in years past, don’t panic. Submitting a Foreign Bank Account Report isn’t exactly an everyday occurrence, and it’s easy to overlook if you weren’t aware of compliance laws.

If you live in Germany and were honestly unaware of your FBAR filing requirement, the time to act is now. The IRS and FinCEN have a few disclosure programs that offer amnesty to Americans who have made an honest mistake in overlooking their filing obligations, including Streamlined Filing Compliance Procedures.

Streamlined compliance procedures allow Americans in Germany (and elsewhere in the world) get caught up on back taxes and delinquent FBARs with amnesty in order to avoid the large penalties that come from willfully not filing — penalties that can range anywhere from a few hundred dollars to a few hundred thousand dollars for serious offenders. All in all, it makes financial sense to be sure you’re up to date on all your reporting requirements.

If this all seems overwhelming, don’t stress — we’ve got your back. When catching up on multiple years of FBAR filings, choose to file your taxes and FBAR with an advisor, and our international tax advisors can help you decide on the best course of action for your unique situation.

Unsure how to file an FBAR from Germany or if you need to? H&R Block’s Expat Tax Services has your back.

Need help filing your FBAR or expat taxes from Germany? Don’t stress — taxes for expats in Germany are complicated, but H&R Block Expat Tax Services has your back. Get started and file your U.S. taxes and FBAR together.

You may be interested in:

• Filing an FBAR from the UK
• Filing an FBAR from Canada
• Filing an FBAR from Australia
• Filing an FBAR from France
• Filing an FBAR from Japan

The post Guide to Filing an FBAR from Germany appeared first on H&R Block®.

Below, we’ll explain the basics of what the FBAR is, which Americans in the U.K. need to file an FBAR, and how to file an FBAR from the U.K.

Ready to file? With H&R Block Expat Tax Services it’s simple to file your FBAR (FinCEN Form 114) from wherever you are in the U.K. Get started and File your expat taxes and FBAR together using H&R Block’s online expat tax services, designed for U.S. expats abroad.

Who in the U.K. must file FinCEN Form 114 (the FBAR)?

FinCEN Form 114 (the FBAR) is formerly called the Report of Foreign Bank and Financial Accounts. It exists to help the U.S. government be sure Americans in the U.K. (and elsewhere in the world) are being honest about their worldwide income and assets. If you qualify, you submit it yearly.

Who in the U.K. must file FinCEN Form 114? You must submit FinCEN Form 114 if you’re a U.S. citizen or Green Card holder and you’ve held a combined $10,000 or more in non-U.S. accounts at any one time in the tax year. This includes Accidental Americans and U.S./U.K. dual citizens.

So, if you’re a U.S. citizen and have $9,000 in a London savings account and another $9,000 in a British pension account, you’d file an FBAR even though each account held under $10,000.

One question we hear from our clients in the U.K. is “Can I file an FBAR myself?” The answer is yes, even if you live in the U.K. you can still file an FBAR yourself online.

You can simply add on an FBAR to your expat tax package and get it all done in one go.

How to file an FBAR and expat taxes together while in the U.K.

If you need to file both your U.S. taxes and your FBAR from the U.K., then choose to file your FBAR and expat taxes together. These are the FBAR instructions to file with your taxes:

1. Head over to our Ways to File page, choose to file taxes yourself or with an advisor, register online and complete your tax organizer.
   H&R Block makes it simple to file your expat taxes and FBAR together from the U.K. After you choose to either file yourself or file with an advisor, you’ll be able to register an account. From there, you’ll complete your personal Tax Interview. This is where you provide information about your tax and financial situation, including information regarding your FBAR. After you have recorded all your information, you’ll get a personalized checklist of documents to upload according to your specific situation.
2. We’ll assign you the right advisor for your situation (if you choose to file with an advisor)
   If you choose to file with an advisor, we will match you with one well-versed in U.S./U.K. expat taxes. Your advisor will review your documents and FBAR and begin your return and U.K. FBAR submission.
3. We prepare your U.S. tax return and FBAR
   Even though you’re currently living in the U.K., you can trust H&R Block Expat Tax Services for all the following:
   • Federal tax preparation and filing
   • State tax return preparation and filing
   • FBAR filing (Report of Foreign Bank and Financial Accounts)
   • Past-due FBAR and tax returns from prior years, including Streamlined Compliance filings
   • Free extension filing
   • H&R Block’s 100% Accuracy Guarantee
4. Pay for and review the FBAR and return.
   When your FBAR and tax return are completed, you’ll see your FBAR filing cost and be asked for payment via your client portal. Know that protecting your information is important to us — we maintain the physical, electronic and procedural safeguards to protect the information you submit to us.
   After you pay, your H&R Block Expat Tax Advisor can walk you through your FBAR and return, answer your questions and offer relevant tax savings tips for next year.
5. We file your return with the IRS and FBAR with FinCEN.
   Finally, we’ll file your completed return with the IRS and FBAR with FinCEN. After filing, your tax return and FBAR will be stored in your secure online account, where it will be safe and easy to access, whenever you need.

Ready to get started? Head on over to our Expat Tax page to begin.

FBAR (FinCEN 114) filing requirements and due date

Regardless if you live in the U.K., your FBAR due date for the calendar year you’re reporting is the same as your U.S. tax filing deadline, but you can always see up-to-date deadlines on our expat tax deadline page. If you’re required to file an FBAR, you must file one every year.

FBAR requirements are pretty detailed, so have these documents and information handy for a smooth submission process:

• Legal name on the foreign account(s)
• Type of account
• The name and address of the institution or other person with whom the account is maintained
• The maximum value (converted to USD using the end of year exchange rate) in each account during the FBAR reporting period
• The number and/or other designation of the account

FBAR filing cost

Filing your FBAR with H&R Block Expat Tax Services will help save you time and won’t break the bank.  When you add FinCEN Form 114 to your assisted tax return, FBAR filing costs $99 and includes the same attention to detail and 100% Accuracy Guarantee as our Expat Tax Prep Services.

What if I live in the U.K. and I’ve never filed an FBAR before?

Yikes! If you live in the U.K. and it turns out you’ve accidentally skipped filing your FBAR in years past, don’t panic. Submitting a Foreign Bank Account Report isn’t exactly an everyday occurrence, and it’s easy to overlook if you weren’t aware of compliance laws.

If you live in the U.K. and were honestly unaware of your FBAR filing requirement, the time to act is now. The IRS and FinCEN have a few disclosure programs that offer amnesty to Americans who have made an honest mistake in overlooking their filing obligations, including Streamlined Filing Compliance Procedures.

Streamlined compliance procedures allow Americans in the U.K. (and elsewhere in the world) get caught up on back taxes and delinquent FBARs with amnesty in order to avoid the large penalties that come from willfully not filing — penalties that can range anywhere from a few hundred dollars to a few hundred thousand dollars for serious offenders. All in all, it makes financial sense to be sure you’re up to date on all your reporting requirements.

If this all seems overwhelming, don’t stress — we’ve got your back. When catching up on multiple years of FBAR filings, choose to file your taxes and FBAR with a Tax Advisor, and our international tax advisors can help you decide on the best course of action for your unique situation.

Unsure how to file an FBAR from the U.K. or if you need to? H&R Block’s Expat Tax Services has your back.

Need help filing your FBAR or expat taxes from the U.K.? Don’t stress — taxes for expats in the U.K. are complicated, but H&R Block Expat Tax Services has your back. Get started and file your U.S. taxes and FBAR together.

You may be interested in:

• Filing an FBAR from Canada
• Filing an FBAR from Australia
• Filing an FBAR from France
• Filing an FBAR from Germany
• Filing an FBAR from Japan

The post Guide to Filing an FBAR from the U.K. appeared first on H&R Block®.

Understanding each form is key to avoiding a problem with the IRS or the Financial Crimes Enforcement Network (FinCEN), so below we’ll dive into the FBAR and FATCA Form 8938 filing requirements for Americans abroad. If you’re still unsure which tax documents you need to file or if you haven’t filed taxes in a few years, it’s always best to trust these forms to an experienced advisor.

Need to file FinCEN Form 114 or FACTA Form 8938? Whether you want to file your expat taxes yourself with our online DIY expat tax service designed specifically for U.S. citizens abroad or file with an advisor, H&R Block is here to help.

FBAR vs. FATCA: Do you file FinCEN Form 114, Form 8938, or both? What’s the difference?

A common question Americans with assets in foreign bank accounts ask us is if they need to file an FBAR (the actual form you’d file is FinCEN Form 114) or FATCA Form 8938. The answer is: You could have to file one, none, or both. While they both exist to report financial assets to the government, they differ in a number of ways. For starters, they get sent to different places — you send your FBAR to the Financial Crimes Enforcement Network and send Form 8938 to the IRS.

We’ll dive more into the individual FBAR and FATCA filing requirements below, but here’s the quick who-what-where-when comparing the two:

FATCA filing requirements

The Foreign Account Tax Compliance Act (FATCA) is a part of the government’s efforts to combat offshore tax evasion. American expats of all income levels with foreign accounts and assets should know about it. FATCA requirements impact U.S taxpayers and overseas financial institutions:

• U.S. taxpayers with foreign accounts and assets may need to file Form 8938: Statement of Specified Foreign Financial Assets with their annual U.S. Income Tax Return
• FATCA reporting requirements for financial institutions overseas mandates them to disclose information about U.S. citizens who hold accounts overseas

Form 8938 is similar to the FBAR in many ways. However, it has higher reporting thresholds and requires you to disclose certain “non-account” assets such as:

• Business and trust ownership
• Certain contractual investments with foreign parties

FATCA reporting deadline

As Form 8938 is filed with your U.S. income tax return, due dates applicable to Form 1040 apply. Automatic extensions for expats living abroad or additional extensions to October 15 can provide more time to collect needed information from foreign financial institutions and determine your filing requirements.

You can always see up-to-date FATCA declaration deadlines on our expat tax deadlines page.

Who files? FATCA Form 8938 filing thresholds

Who is subject to FATCA reporting? The filing thresholds differ depending on where you lived during the tax year.

If you live within the U.S. the entire tax year, you must file Form 8938 if the value of your reportable foreign assets exceeds either of these levels:

• More than $50,000 (or $100,000 if married filing jointly) at the end of the year, or
• More than $75,000 (or $150,000 if married filing jointly) at any time in the year

Expats living abroad have an increased reporting threshold. You don’t need to complete this form unless your foreign assets exceed either:

• $200,000 (or $400,000 if married filing jointly) at the end of the year, or
• $300,000 (or $600,000 if married filing jointly) at any time during the year

FATCA financial institution reporting

Many foreign financial institutions must report their U.S. citizen and resident clients’ accounts and if you’re an expat who hasn’t been filing FATCA information, that could affect you as you might face penalties and interest.

Ready to file FACTA Form 8938? Whether you file your expat taxes yourself with our online DIY expat tax service designed specifically for U.S. citizens abroad or file with an advisor, H&R Block is here to help.

FBAR filing requirements

The Report of Foreign Bank and Financial Accounts, or “FBAR” serves many of the same purposes Form 8938 does, with a few differences. A main one is that the FBAR goes to the Financial Crimes and Enforcement Network of the U.S. Treasury Department instead of the IRS. The FBAR came into existence in the Bank Secrecy Act of 1970 (BSA). Its purpose was, and still is, to prevent U.S. citizens from hiding assets overseas with the intent to commit tax evasion and money laundering.

By law, you must file FinCEN Form 114 if both of the following are true:

• You’re a U.S. citizen, resident taxpayer or domestic business entity
• You own, control, or have signature authority over foreign bank and financial accounts with a combined value over $10,000

If you were thinking of writing it off or ignoring your reporting obligation, beware: The penalties for willfully not filing can be $100,000 or more.

FBAR filing deadline 2023

The FBAR is filed separately from your tax return and does not go to the IRS. The FBAR deadline is the same as your income tax deadline, with an automatic extension to October 15 available.

You can always see up-to-date FBAR reporting deadlines on our expat tax deadlines page.

Who files? FinCEN Form 114 filing thresholds

You may be required to file an FBAR if you’re A U.S. citizen or green card holder using personal or business foreign accounts for everyday activities

The reporting requirement covers many types of foreign accounts maintained outside of the United States, including:

• Bank accounts
• Securities accounts
• Certain foreign retirement arrangements

The FBAR filing requirement isn’t new, but expats often overlook it. Recent international enforcement efforts have raised awareness of the requirement. Don’t worry, though — your FBAR is only an informational document. No additional tax will be added. However, penalties can be levied if you don’t file or file late.

Need to file FinCEN Form 114 (FBAR)? H&R Block makes it simple to file your U.S. taxes and FBAR together.

Not sure if you should file FBAR vs. FATCA Form 8938? The experts at H&R Block are here to help.

Confused whether you should file an FBAR, FATCA declaration, or both? Don’t go it alone — your H&R Block tax advisor will know exactly what to do with your specific situation. Ready to file?

Get started with H&R Block’s Expat Tax Services today.

The post FBAR vs. FATCA: Filing Requirements for Americans Abroad appeared first on H&R Block®.

To help make things less confusing, we’ve addressed some common questions and concerns and distilled them into five things you should know about dual citizenship taxes for U.S. citizens living in Canada.

Not a dual citizen but an American citizen living in Canada? Learn more about U.S. expat taxes in Canada. Ready to file your U.S. tax return? Get started now.

1. Yes, U.S./Canada dual citizens file U.S. taxes

A common question we hear is, “do U.S. dual citizens in Canada have to file U.S. taxes?”

Yes, if you are a citizen or resident alien of the United States, you have a U.S. tax obligation, even if you’re a dual citizen of the U.S. and Canada.

The U.S. is one of two countries in the world that taxes based on citizenship, not place of residency. That means it doesn’t matter where you call home — if you’re a U.S. citizen, you have a tax obligation. This is true even if you earn no income in the U.S., or if you are a U.S./Canada commuter.

You should know the Canadian tax year is the same as the U.S. tax year, but the filing deadline is different. The U.S. tax year starts January 1 and ends December 31. Canadian taxes follow a January to December tax year. Canadian tax returns are due on April 30 for individuals and June 15 for self-employed taxpayers. In general, no extensions are allowed.

If you’re a dual citizen living in Canada, taxes go both ways — so you may end up having to file not only U.S. taxes but also Canadian taxes. Where you fall in Canada and U.S. tax brackets can influence decisions on how to file your U.S. taxes, so it’s important to understand the Canadian tax bands and taxation rates. To see up–to–date Canadian tax bands for 2022/2023* and the qualifications, head over to our tax guide for American citizens in Canada.

Start your U.S./Canada expat taxes now with an advisor or with our DIY online expat tax service.

2. Most dual citizens of the U.S. and Canada do not end up owing U.S. taxes because of the Foreign Earned Income Exclusion and the Foreign Tax Credit

Just because you have a U.S. tax obligation doesn’t mean you’ll end up owing anything at the end of the tax year — there are a few tools the U.S. provides to citizens abroad to ease its tax burden, including the Foreign Tax Credit and the Foreign Earned Income Exclusion.

The Foreign Earned Income Exclusion for U.S./Canada dual citizens

The Foreign Earned Income Exclusion (FEIE) is the most commonly used tool to lower U.S. taxes. It excludes your foreign earned income from U.S. income tax, therefore lowering (or eliminating) your U.S. tax liability. If you qualify, you’re able to exclude up to $120,000 of foreign earned income in 2023. You qualify if you live and work outside the U.S. and pass either the Bona Fide Residency test or the Physical Presence Test.

For example, say you’re a dual citizen who was born in the U.S., now lives and works in Toronto, and has a salary of $105,000. You would be able to exclude all that income from your U.S. taxes, lowing your U.S. tax obligation to $0.

The Foreign Tax Credit for U.S. citizens living in Canada

Another important tool for lowering your U.S. tax obligation is the Foreign Tax Credit (FTC). The FTC gives you a dollar-for-dollar reduction of your U.S. tax liability per Canadian taxes paid.

Get started on your U.S. taxes now.

3. Your Canadian pensions and tax-free investments may be treated differently in the U.S., even if you’re a U.S./Canada dual citizen

As it turns out, many of the tax-free investment accounts you own in Canada are probably not tax-free in the United States. For example, if you own a Registered Education Savings Plan (RESP), a Canadian Tax-Free Savings Account (TFSA), or a Registered Disability Savings Plan (RDSP), your earnings are subject to U.S. taxes, and you may need to report your account as a foreign grantor trust. In Canada, those investments are allowed to grow tax-free.

There is good news — thanks to the U.S./Canada tax treaty, your Canadian pensions and certain retirement accounts may qualify for special treatment.

The Canada/U.S. tax treaty, U.S. taxes, and your Canadian pensions explained

The U.S. has entered into tax treaties with more than 50 countries around the world. Among other things, they serve to clarify what income is taxable and therefore affect whether or not you can take a tax credit, tax exemption, or qualify for a reduced tax rate.

An important feature of the Canada/U.S. tax treaty is the specifications on how Canadian retirement plans and pensions are treated by the U.S.

Additionally, you’re almost always allowed to defer the U.S. tax on undistributed earnings from a Canadian Registered Retirement Savings Plan (RRSP) or Canadian Registered Retirement Income Fund (RRIF). However, while these kinds of contributions may also be tax deferred, the RRSP and RRIF are still subject to FBAR and FATCA reporting.

You also might need to report your Canadian retirement and pension on Form 1040, but when you file with an H&R Block Expat Tax Advisor, they’ll take care of all that for you.

Get started with an Expat Tax Advisor now.

4. U.S./Canada dual citizens (and Accidental Americans) can catch up on U.S. taxes with Offshore Streamlined Compliance Procedures

In some cases, Canadians will find out that they’re “Accidental Americans.” These dual citizens aren’t aware they have a U.S. tax obligation because they’ve lived and worked in Canada their entire lives. They may have been born in the U.S. while their Canadian parents were employed there, or they may have one U.S. parent. It’s important to understand if you were born in the U.S. or have a U.S. parent, you may be considered a dual citizen of Canada and the U.S.

If you are a dual citizen living in Canada and have never filed a U.S. tax return, there’s good news: You may be able to get caught up without being penalized. The IRS is pretty understanding when it comes to not filing because you honestly didn’t know you had to, and they have a program to help you get caught up — Streamlined Foreign Offshore Procedures — which the Expat Tax Advisors here at H&R Block can happily help you with.

Streamlined Foreign Offshore Procedures helps U.S. dual citizens in Canada (as well as elsewhere in the world) get compliant with prior year filings while helping reduce penalties. To qualify, you must:

1. Have lived in a foreign country for at least 330 days during one of the last three years and not maintained a U.S. abode.
2. Confirm that your failure to file U.S. tax returns and FBAR was not willful.

To catch up on past returns, get started with an Expat Tax Advisor now.

5. Dual U.S. citizens living in Canada may have financial reporting obligations in addition to filing U.S. taxes

As a U.S. dual citizen in Canada, filing your U.S. taxes may not be the end of your paperwork — if you have a Canadian bank account, you may also have to file your Foreign Bank Account Report (FBAR) and FATCA Form 8938.

The U.S. enacted the Foreign Account Tax Compliance Act (FATCA) to increase transparency of U.S. citizens with foreign bank accounts, and your FBAR serves a similar purpose. One difference between the two is you submit Form 8938 to the IRS while you submit your FBAR with FinCEN, the U.S. Treasury Department’s Financial Crimes and Enforcement Network.

If you’re confused about your FBAR and FATCA filing requirements, it’s best to leave your U.S. expat taxes to seasoned pros who will dig into your specific tax situation to find all your filing requirements.

Have dual citizenship in the U.S. and Canada? H&R Block Expat Tax Services is here to help with your taxes.

Filing taxes in one country is enough to give anyone a headache, and it only gets more complicated for dual citizens of the U.S. and Canada. But no matter your situation, we’ve got a tax solution for you — whether you want to be in the driver’s seat with our DIY online expat tax service designed for U.S. citizens abroad or let one of our experienced Tax Advisors take the wheel. Head on over to our Ways to File page to choose your journey and get started.

The post U.S./Canada Dual Citizenship Taxes: 5 Things to Know appeared first on H&R Block®.

Below, we’ll explain the basics of what the FBAR is, which Americans in France need to file an FBAR, and how to file an FBAR from France. Ready to file? With H&R Block Expat Tax Services, you have two convenient, secure, online options to file your FBAR (FinCEN Form 114) from wherever you are in France: On your own with our DIY online expat tax service or with help from an advisor.

Who in France must file FinCEN Form 114 (the FBAR)?

FinCEN Form 114 (the FBAR) is formerly called the Report of Foreign Bank and Financial Accounts. It exists to help the U.S. government be sure Americans in France (and elsewhere in the world) are being honest about their worldwide income and assets. If you qualify, you submit it yearly.

Who in France must file FinCEN Form 114? You must submit FinCEN Form 114 if you’re a U.S. citizen or Green Card holder and you’ve held a combined $10,000 or more in non-U.S. accounts at any one time in the tax year. This is still true if you’re a retiree in France.

So, if you’re a U.S. citizen and have $9,000 in a Paris savings account and another $9,000 in a French pension, you’d file an FBAR even though each account held under $10,000.

One question we hear from our clients in France is “Can I file an FBAR myself?” The answer is yes; Even if you’re currently living in France, you can still file an FBAR yourself online. Simply add on an FBAR to your expat tax package and get it all done in one go.

How to file an FBAR and expat taxes together while in France

If you need to file both your U.S. taxes and your FBAR from France, then choose to file your FBAR and expat taxes together. These are the FBAR instructions to file with your taxes:

1. Head over to our Ways to File page, choose to file taxes yourself or with an advisor, register online and complete your tax organizer.
   H&R Block makes it simple to file your expat taxes and FBAR together from France. After you choose to either file yourself or file with an advisor, you’ll be able to register an account. From there, you’ll complete your personal Tax Interview. This is where you provide information about your tax and financial situation, including information regarding your FBAR. After you have recorded all your information, you’ll get a personalized checklist of documents to upload according to your specific situation.
2. We’ll assign you the right advisor for your situation (if you choose to file with an advisor)
   If you choose to file with an advisor, we will match you with one well-versed in U.S./France expat taxes. Your advisor will review your documents and FBAR and begin your return and French FBAR submission.
3. We prepare your U.S. tax return and FBAR
   Even though you’re currently living in France, you can trust H&R Block Expat Tax Services for all the following:
   • Federal tax preparation and filing
   • State tax return preparation and filing
   • FBAR filing (Report of Foreign Bank and Financial Accounts)
   • Past-due FBAR and tax returns from prior years, including Streamlined Compliance filings
   • Free extension filing
   • H&R Block’s 100% Accuracy Guarantee
4. Pay for and review the FBAR and return.
   When your FBAR and tax return are completed, you’ll see your FBAR filing cost and be asked for payment via your client portal. Know that protecting your information is important to us — we maintain the physical, electronic and procedural safeguards to protect the information you submit to us.
   After you pay, your H&R Block Expat Tax Advisor can walk you through your FBAR and return, answer your questions and offer relevant tax savings tips for next year.
5. We file your return with the IRS and FBAR with FinCEN.
   Finally, we’ll file your completed return with the IRS and FBAR with FinCEN. After filing, your tax return and FBAR will be stored in your secure online account, where it will be safe and easy to access, whenever you need.

Ready to get started? Head on over to our Expat Tax page to begin.

FBAR (FinCEN 114) filing requirements and due date

Regardless if you live in France, your FBAR due date for the calendar year you’re reporting is the same as your U.S. tax filing deadline, but you can always see up-to-date deadlines on our expat tax deadline page. If you’re required to file an FBAR, you must file one every year.

FBAR requirements are pretty detailed, so have these documents and information handy for a smooth submission process:

• Legal name on the foreign account(s)
• Type of account
• The name and address of the institution or other person with whom the account is maintained
• The maximum value (converted to USD using the end of year exchange rate) in each account during the FBAR reporting period
• The number and/or other designation of the account

FBAR filing cost for expats in France

Filing your FBAR with H&R Block Expat Tax Services will help save you time and won’t break the bank. When you add FinCEN Form 114 to your assisted tax return, FBAR filing costs $99 and includes the same attention to detail and 100% Accuracy Guarantee as our Expat Tax Prep Services.

What if I live in France and I’ve never filed an FBAR before?

Yikes! If you live in France and it turns out you’ve accidentally skipped filing your FBAR in years past, don’t panic. Submitting a Foreign Bank Account Report isn’t exactly an everyday occurrence, and it’s easy to overlook if you weren’t aware of compliance laws.

If you live in France and were honestly unaware of your FBAR filing requirement, the time to act is now. The IRS and FinCEN have a few disclosure programs that offer amnesty to Americans who have made an honest mistake in overlooking their filing obligations, including Streamlined Filing Compliance Procedures.

Streamlined compliance procedures allow Americans in France (and elsewhere in the world) get caught up on back taxes and delinquent FBARs with amnesty in order to avoid the large penalties that come from willfully not filing — penalties that can range anywhere from a few hundred dollars to a few hundred thousand dollars for serious offenders. All in all, it makes financial sense to be sure you’re up to date on all your reporting requirements.

If this all seems overwhelming, don’t stress — we’ve got your back. When catching up on multiple years of FBAR filings, choose to file your taxes and FBAR with an advisor, and our international tax advisors can help you decide on the best course of action for your unique situation.

Unsure how to file an FBAR from France or if you need to? H&R Block’s Expat Tax Services has your back.

Need help filing your FBAR or expat taxes from France? Don’t stress — taxes for expats in France are complicated, but H&R Block Expat Tax Services has your back. Get started and file your U.S. taxes and FBAR together.

You may be interested in:

• Filing an FBAR from the UK
• Filing an FBAR from Canada
• Filing an FBAR from Australia
• Filing an FBAR from Germany
• Filing an FBAR from Japan

The post Guide to Filing an FBAR from France appeared first on H&R Block®.