{"id":306,"date":"2022-10-26T17:32:04","date_gmt":"2022-10-26T17:32:04","guid":{"rendered":"https:\/\/www.hrblock.com\/expat-tax-preparation\/resource-center\/?p=306"},"modified":"2023-02-16T14:35:32","modified_gmt":"2023-02-16T18:35:32","slug":"u-s-expat-taxes-in-china","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/expat-tax-preparation\/resource-center\/country\/china\/u-s-expat-taxes-in-china\/","title":{"rendered":"U.S. Expat Taxes in China"},"content":{"rendered":"\n

As an American or Green Card holder living in China, taking care of your U.S. taxes can feel like a complicated task. Knowing which tax rules affect you and understanding your options is a lot to stay on top of.<\/p>\n\n\n\n

With H&R Block, you can rest easy knowing you\u2019ve found the right expertise for U.S. expat taxes in China. Whether you need expat tax guidance on filing from abroad or information on FATCA and FBAR<\/a> rules, we\u2019re here to help.<\/p>\n\n\n\n

Ready to file your expat taxes? We\u2019ve got a tax solution for you\u2014whether you want to DIY your expat taxes<\/a> or leave it to one of our experienced Tax Advisors<\/a>. Head on over to our Ways to File<\/a> page to choose your journey and get started.<\/strong><\/p>\n\n\n\n

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

What U.S. citizens working in China should know about U.S. taxes<\/h2>\n\n\n\n

Filing U.S. taxes while living and working in China comes with new considerations and questions: \u201cDo I have additional information to report to the IRS? How do my Chinese financial accounts affect my filing? What options do I have to reduce my tax bill?”<\/p>\n\n\n\n

For starters, Americans and U.S. Green Card holders living in China should continue to file a U.S. tax return each year.<\/p>\n\n\n\n

Working as a U.S. citizen in China can affect your taxes even if you don\u2019t stay 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 China, you\u2019ll have more considerations for your American tax filing.<\/p>\n\n\n\n

You may need to report your Chinese financial accounts and assets. <\/strong>Generally, U.S. taxpayers with more than $10,000 in foreign bank or financial accounts are subject to FBAR filing<\/a> and reporting requirements. You may also be subject to FATCA<\/a> reporting requirements if you have foreign 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 higher tax rates in China, it\u2019s generally more favorable for U.S. expats in China to use the foreign tax credit to offset any taxes due in China. Your H&R Block tax advisor can confirm the best path for you.<\/p>\n\n\n\n

    Chinese tax filing considerations for American expats<\/h2>\n\n\n\n

    As an American working in China, you may have to pay Chinese taxes. Here at H&R Block, we dedicate our expertise to U.S. taxes. If you have questions specific to your Chinese tax return, it\u2019s best to speak to an expert on local Chinese taxes.<\/strong> Your Chinese taxes are based on your residency status. <\/strong>As an expat in China, you\u2019re considered to be a if you have a home (domicile) there or you are in China for 183 or more days in a year.<\/p>\n\n\n\n