American expats do pay U.S. taxes — despite what you may think

Unlike almost everywhere else in the world, American expats do still need to pay U.S. income taxes while living abroad. This is true even if you are a permanent resident, or citizen of a foreign country who receives U.S income. The fact is, if you remain a U.S. citizen or green card holder who works abroad, you are still required to file U.S. taxes and report your income every year.

However, this doesn’t mean that you’ll necessarily pay tax twice on the same income. That’s because certain rules and benefits are available to expats, such as the foreign earned income exclusion, which can help you avoid double taxation.

Do expats still pay state income tax?

As an American expat, you may also need to pay state income taxes. This depends on the state you lived in prior to moving abroad as the tax residency rules vary by each state. Many states will also allow the foreign earned income exclusion, which can affect your taxable income.

Not sure what applies in your situation? Our expat tax experts can help you determine if you are still required to file a state income tax return or not.

Do expats need to pay taxes for past years?

If you’re reading this article and just realized you should have been filing and paying U.S. taxes as an expat, you’re not alone. Don’t panic - we’ve helped thousands of expats in this situation. There are special rules, called Streamlined Foreign Offshore Procedures, that let expats catch up on back taxes.

File and pay your expat income taxes with H&R Block

Now that you know that expats do need to pay taxes abroad, it’s also important to understand that they can be more complicated than filing in the U.S. You can rest assured that your H&R Block expat tax advisor will help you file your taxes accurately. Plus, your advisor will be there every step of the way.

Find out more about H&R Block’s Expat Tax Services today.