{"id":278,"date":"2022-10-26T16:36:46","date_gmt":"2022-10-26T16:36:46","guid":{"rendered":"https:\/\/www.hrblock.com\/expat-tax-preparation\/resource-center\/?p=278"},"modified":"2024-02-06T14:51:43","modified_gmt":"2024-02-06T18:51:43","slug":"guide-to-u-s-expat-taxes-in-australia","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/expat-tax-preparation\/resource-center\/country\/australia\/guide-to-u-s-expat-taxes-in-australia\/","title":{"rendered":"Guide to U.S. Expat Taxes in Australia"},"content":{"rendered":"\n

As an American or green card holder living down under, you\u2019ve got to juggle two different tax seasons. Taking care of your U.S. expat taxes in Australia can feel like a complicated task, and that\u2019s before you throw in your local Australian taxes. Understanding local and U.S. tax rules<\/a> is a lot to stay on top of for expats in Australia, which is why H&R Block is here to help.<\/p>\n\n\n\n

Our expat Tax Advisors understand the ins and outs of taxes for expats in Australia, and you can rest easy knowing you\u2019ve found the right expertise for your U.S. tax return. We make it simple to get your U.S. expat taxes done online<\/a> so you can get back to living your best life abroad.<\/p>\n\n\n\n

File on my own<\/a><\/div>
File with an advisor<\/a><\/div><\/div>\n\n\n\n

Yes, U.S. expats in Australia file taxes\u2014both American and Australian<\/h2>\n\n\n\n

For starters, Americans and U.S. green card holders living in Australia should continue to file a U.S. tax return each year. However, filing taxes while overseas<\/a> comes with new considerations and questions. \u201cDo I have additional information to report to the IRS? How do my Australian financial accounts affect my filing? Do I report using the U.S. or Australian tax year? What options do I have to reduce my tax bill? Do U.S. expats pay Australian taxes?\u201d<\/p>\n\n\n\n

As a general rule of thumb, if you\u2019re an American working or living in Australia you should assume you have a tax obligation in both the U.S. and Australia.<\/strong> But, don\u2019t worry\u2014there are a number of perks and tools you can use to ensure you\u2019re not paying more than your fair share of taxes. These include exclusions and tax credits\u2014like the Foreign Earned Income Exclusion and Foreign Tax Credit\u2014as well as built-in rules outlined by the U.S.\/Australia tax treaty.<\/p>\n\n\n\n

We\u2019ve outlined a few considerations Americans living in Australia should keep in mind when filing taxes, so you know what affects the tax you pay, and which forms you need to file. Of course, tax rules for U.S. expats go beyond what we\u2019ve listed below.<\/p>\n\n\n\n

Ready to file your U.S.\/Australia taxes? Whether you file your expat taxes yourself<\/a> with our online DIY expat tax service designed specifically for U.S. citizens abroad or file with an advisor<\/a>, H&R Block is here to help you get it done.<\/p>\n\n\n\n

How U.S. taxes work for American expats in Australia<\/h2>\n\n\n\n

Working in Australia can affect your taxes even if you don\u2019t live there for very long. For example, if you earn income while on a short-term assignment, you\u2019ll need to report that income on your U.S. taxes. As you establish deeper financial roots in Australia, you\u2019ll have more considerations for your American tax filing.<\/p>\n\n\n\n

You may need to report your foreign financial accounts and assets.<\/strong> Generally, U.S. taxpayers in Australia with more than $10,000 in foreign bank or financial accounts (including superannuation accounts) are subject to FBAR filing<\/a> and reporting requirements. You may also be subject to FATCA<\/a> reporting requirements if you have assets valued at $200,000 and higher.<\/p>\n\n\n\n

You can lower your U.S. bill and avoid dual taxation with certain tax strategies. <\/strong>Expats may take advantage of one of two options, detailed below, to lower their taxes.<\/p>\n\n\n\n

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  1. The Foreign Earned Income Exclusion<\/a> allows you to exclude your wages from your U.S. taxes. This option is available to those who meet certain time-based residency requirements.<\/li>\n\n\n\n
  2. The Foreign Tax Credit<\/a> lets you claim a credit for income taxes paid to a foreign government.<\/li>\n<\/ol>\n\n\n\n

    Due to the higher Australian tax rates, it\u2019s generally more favorable for Americans living in Australia to use the foreign tax credit. However, your H&R block tax advisor can confirm the best path for you.<\/p>\n\n\n\n

    I\u2019m retiring to Australia. What do I need to know about U.S. taxes?<\/h3>\n\n\n\n

    If retiring abroad in the countryside is your long-term goal, you should first understand how taxes work when retiring abroad<\/a>:<\/p>\n\n\n\n