Avery Sinclair
Ingrid moved to Lisbon in March and is still working for the same US employer. She assumed she had stopped being a US filer.
4 waiting
Daniel Reyes
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September 22
September 23
Daniel Reyes
She has not. US citizens file on worldwide income wherever they live — that is unusual internationally and it catches people every year.
The good news is she will very likely owe little or nothing. Between the foreign earned income exclusion and the foreign tax credit, income taxed in Portugal is not taxed again here. The filing is the obligation; the tax usually is not.
Avery Sinclair
Anything with a deadline?
September 24
Daniel Reyes
Two, and the second is the one with teeth.
She gets an automatic extension to 15 June as an overseas filer. And if her Portuguese accounts exceeded $10,000 combined at any point, an FBAR is due — that is a separate filing from the return and the penalties for missing it are out of all proportion to the tax involved.
Ask her for the account high balances.