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At Solvable, we care about your financial well-being and are here to help. Our research, articles and ratings, and assessments are based strict editorial integrity. Our company gets compensated by partners who appear on our website. Here is how we get compensated.
At Solvable, we care about your financial well-being and are here to help. Our research, articles and ratings, and assessments are based strict editorial integrity. Our company gets compensated by partners who appear on our website. Here is
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Americans who live abroad are required to pay taxes but have an extension to file them until mid-June. Most expatriates can claim a foreign tax credit, which offsets U.S. tax liability.
The foreign earned income exclusion prevents you from being taxed on your income by both the U.S. and your country of residency.
It’s important to consider the tax implications of retiring abroad.
If you’re an American living in another country, tax time can be challenging. Whether you’re new to living abroad or have been an expatriate for several years, here’s what you need to know about staying in good graces with the IRS when you don’t reside in the U.S.
Paying Income Tax as an Expat
As a U.S. citizen, you must pay income tax no matter where you live. This means if you earn money in another country, you have to file an income tax return and pay the outstanding balance just as you would otherwise. Your tax return must be filed with calculations in dollars even if you are paid in foreign currency.
However, you do receive a two-month extension on the filing deadline. This means your income taxes are due in mid-June rather than in mid-April. Although you can e-file, you must also mail a copy of your tax return to Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215.
You will need to file a tax return in your country of residence as well as in the U.S. Depending on your new location, you may be taxed on your income twice. Some countries have a reciprocal agreement with the U.S. that prevents this situation, however.
It’s best to consult with an expert when filing taxes overseas. American Citizens Abroad maintains a database of tax return preparers who specialize in working with expatriates.
You can deduct income earned in another country on your U.S. tax return after the amount is converted to U.S. dollars. This deduction is allowed for individual taxpayers who have earned foreign income during the current tax year. Although you will not receive a refund if the foreign tax credit exceeds your tax liability, the surplus can be applied to either any future tax year for 10 years or the prior year’s taxes.
Exceptions to this credit include income earned from Cuba, Iraq, North Korea, or other countries that the Department of State has designated as terrorism supporters. You must file Form 1116 with your tax return to claim the Foreign Tax Credit (FTC).
The Foreign Earned Income Exclusion (FEIE)
You can avoid double taxation on your income in both the U.S. and your foreign location by claiming the Foreign Earned Income Exclusion (FEIE). Up to $102,100 in foreign income can be excluded from your taxable income if you have foreign earned income, ongoing employment for at least 12 months, and can pass one of two residency tests.
The physical presence test requires that you have resided in the country for at least 330 of the last 365 days. You cannot pass this test if you have retained a U.S. address. You must plan your travel time carefully to meet this requirement. Missing the cutoff by just a day or two can be costly when it comes to your taxes.
The bona fide residency test requires you to live in the foreign country for the entire tax year and have the intention to remain there indefinitely.
Tax Implications for Retiring Abroad
If you’re planning to move to another country when you retire, you should simplify your finances as soon as possible before taking the leap. Make sure to set up online access to all your banking and investment accounts. Although the cost of living in your new locale might be much lower than in the U.S., you should still have several thousand dollars set aside for getting set up overseas. You may need it for a rental deposit, moving expenses, and other one-time costs.
If your only income in retirement comes from investment accounts and pensions, you are not eligible for the FEIE or the FTC. You may be able to claim them if you work part-time, however.
You may also be charged an extra fee to open an overseas bank account because the bank must comply with the Foreign Account Tax Compliance Act (FATCA). This law requires the bank to report the existence of your account to the U.S. government. You must report your holdings in foreign accounts if they exceed a certain threshold.
When opening a new bank account, you will need to provide proof of the source of the money. For example, if you try to deposit the proceeds of selling your home in a foreign bank account, come prepared with a copy of the closing documents from the sale.
Financial experts recommend keeping your retirement accounts in the United States to avoid reporting requirements under FATCA. Doing so also increases your investment choices and protects you from changes in world currency.
Although you can receive Social Security payments when you live abroad, you will not be able to receive Medicare.
When You Can’t Afford To Pay Taxes
Even if you are not living in the United States, past-due taxes will still accrue taxes and penalties. If you haven’t filed, you should do so immediately. The monthly penalty for not filing your taxes is 10 times greater than the monthly penalty for not paying your taxes. If you haven’t filed taxes in a few years, you can take advantage of Streamlined Offshore Filing Procedures. This provision allows you to file the past three years of tax returns without penalty.
Some individuals renounce U.S. citizenship to avoid paying taxes. If you go this route, you will have to prove that you have filed and paid all outstanding taxes for the past five years.
If you owe taxes you can’t pay, consult a CPA who is experienced working with expats so you can amend your returns to claim the credits above if you haven’t already. You can also contact Solvable to be matched with well-reviewed companies that provide solutions for those facing tax, student loan, and credit card debt.
Solvable is a for-profit company that connects consumers with third-party providers across a wide range of financial and home service categories, including tax resolution, personal loans, credit cards, student loan refinancing, home insurance, and home services. Our platform is free for consumers to use, and we may receive compensation from partners when users engage with their products or services.
We publish a mix of editorial content and partner-supported features. Some articles may include sponsored offers or affiliate links, which are clearly labeled. While compensation may influence which products are featured or where they appear, it does not affect our editorial opinions or reviews. We do not accept payment in exchange for favorable ratings or endorsements. Reviews and assessments reflect our own independent views and may not cover every option available.
How We Make Money
Solvable is compensated by some of the companies featured on our website. Most often, we receive fees when a user clicks on a link, fills out a form, applies for, or obtains a product or service from one of our partners. These may include providers of financial services (like loans and credit cards), tax assistance, home insurance, and home services.
We may also earn fees for:
Capturing consumer inquiries and stories
Writing articles that are relevant to a partner’s audience or offerings
Displaying advertisements
Sponsoring specific content, tools, or sections of our website
This compensation may affect where and how certain products or services appear on our site, including:
Article pages
Comparison tables
Matching results
The order or prominence of listings
Solvable has not reviewed or written about every product or service available in the marketplace. We do our best to provide helpful information, but our recommendations are based on available data and editorial judgment—not comprehensive analysis.
In addition, we may be compensated in the following ways:
Referrals to consumers who use online forms or tools that may connect them with experts;
Marketing services related to tax resolution, tax preparation, tax audit help, and general tax assistance;.
Referrals to providers in categories such as financial services, tax support, home insurance, and home services.
We encourage you to shop around, compare services and costs, and perform your own due diligence before making a decision—especially since individual experiences with providers can vary over time.
How We Share Information
When you submit a form or request on Solvable, the information you provide may be shared with one or more of our advertising partners. These partners may contact you directly with offers related to the product or service you inquired about, and they may also use your information for their own marketing, outreach, or business purposes.
In many cases, the partners you are matched with may retain ownership of the information you provide and may use it in accordance with their own privacy policies and practices. Once your information is shared, Solvable does not control how it is used.
We strongly encourage you to review the privacy policies, terms of service, and marketing practices of any provider you engage with to understand how your data may be used or stored.
For more information about how Solvable collects and handles your information, please refer to our Privacy Policy.
Free Solvable Services
The offers you’re matched with through Solvable are from companies, attorneys, or service providers with whom we may have a paid relationship. Based on our initial screening, we believe these providers may be a good fit for consumers, but we do not make guarantees about their services or results. We do not recommend providers solely because they pay us. However, we may prioritize or display offers from partners with whom we have an existing business relationship.
We encourage all users to:
Shop around and compare costs, services, and reviews
Conduct independent research before making a decision
Ask questions directly to the provider before signing any agreements
Solvable is not a law firm and does not provide legal advice. If you’re working with an attorney or financial professional, we encourage you to speak with them about your specific situation, as they will be most familiar with your needs and the laws in your state.
Our goal is to make it easier for you to explore your options, but the decision is ultimately yours.
Personal Loans Advertiser Disclosure
The personal loan offers you see on Solvable are from companies or affiliates that may compensate us. This compensation may impact where offers appear on the site, including their order, prominence, or whether a lender is featured. Solvable does not include every personal loan provider or all available offers in the marketplace.
Loan approval and terms are determined solely by the lender. You should carefully review each provider’s terms and conditions to find the option that best fits your financial situation. We make reasonable efforts to keep information up to date, but rates, fees, and terms are not guaranteed and may change at the discretion of each provider. There is no guarantee you will be approved for credit or that you will qualify for the advertised rates or terms.
Be sure to:
Review actual loan terms directly with the lender
Ask about origination fees, which can typically be around 1%
Understand all costs, repayment terms, and requirements
Know that some lenders may require an existing account or specific credit profile for approval
Loan amounts typically range from $1,000 to $35,000, but the amount you qualify for, and the terms offered, will depend on your state, credit history, financial situation, and the lender’s underwriting criteria.
Credit Card Advertiser Disclosure
Some of the credit card offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may influence how and where products appear on our site, including their order or whether they’re labeled as “featured.” Solvable does not include all credit card companies or offers available in the marketplace.
Credit card approval is determined by the individual issuer. We recommend reviewing each provider’s terms and conditions to ensure the card fits your financial needs.
We strive to provide accurate information, but rates, fees, and terms are not guaranteed and may change at any time at the discretion of the issuer. Approval is not guaranteed, and advertised rates or rewards may not be available to all applicants.
Please keep in mind:
Information is provided by the card issuer and may not reflect real-time updates
Any opinions, reviews, or recommendations are those of the author and/or Solvable
They have not been reviewed or endorsed by any credit card issuer
You should always verify the final terms and disclosures on the issuer’s official site before applying
When you click “Apply Now,” you’ll be taken to the credit card provider’s website where you can review the full terms and submit your application.
Business Loans Advertiser Disclosure
Some of the business loan offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may influence how and where products appear on our site, including their order or whether a lender is featured. Solvable does not include all business loan providers or offers available in the marketplace.
Business loans are intended strictly for commercial purposes. Any funds or assets obtained through these loans must be used for business-related activities—not for personal, family, or household use.
Most business funding partners in our network do not require collateral, but depending on your needs and the lender’s underwriting criteria, you may be offered other financial products. Traditional bank and SBA loans often require collateral and have more extensive approval processes.
It’s important to understand:
There is no one-size-fits-all business loan solution
Offers and terms will vary depending on your business’s financial profile
Underwriting criteria, approval, and terms are determined solely by each lender
Rates, fees, and availability are subject to change and are not guaranteed
Not all products are available in all states or for all types of businesses
We encourage you to review each provider’s terms and consult with a financial advisor or tax professional before accepting any loan offer.
Student Loan Refinancing Advertiser Disclosure
Student loan refinancing offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may impact where and how offers appear on our site, including the order in which they appear or whether a lender is featured. Solvable does not include all student loan companies or all available refinancing options in the marketplace.
Pursuant to agreements with our partners and affiliates, Solvable may receive updates about the status of your application, including—when available—loan amounts, application status, or final decisions. Each partner’s use of your information is governed by their own privacy policy, which we encourage you to review directly.
Refinancing may help reduce your monthly payments or interest rate, but potential savings will vary depending on the interest rate, balance, and remaining repayment term of your existing loans. In some cases, refinancing may result in a longer repayment term and higher total repayment over the life of the loan—even if monthly payments are lower.
Please keep in mind:
Variable rates may fluctuate over time based on market indices like SOFR, Prime, or another benchmark rate, and may vary based on borrower qualifications and whether a co-signer is used.
Fixed interest rates may also depend on term length, credit profile, or presence of a co-signer.
All terms, rates, and product availability are subject to change at the lender’s discretion and may not be available in all states or for all types of loans.
Due to federal lending regulations, lenders are required to provide potential borrowers with certain disclosures, including an Application Disclosure and an Approval Disclosure, during the application process. Solvable is not a lender or creditor and does not originate or fund loans, nor can we alter or offer credit terms. Only the lender you apply with can provide specific loan details and required disclosures.
Please Note:
Certain federal and private loans may not be eligible for consolidation or refinancing.
Some refinancing options may eliminate borrower benefits (e.g., grace periods, income-driven repayment plans, or federal loan forgiveness eligibility).
Loans in default typically cannot be refinanced until you complete a qualifying repayment program.
Be wary of providers requesting upfront fees for student loan services.
Other financial options—like personal loans, debt relief, or consolidation—may also be worth exploring. Consult with a licensed financial or tax professional to determine what’s best for your situation.
Home Insurance Advertiser Disclosure
Home insurance offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may impact how and where offers appear on our site, including whether a company is featured or the order in which it is listed. Solvable does not include all home insurance providers or all offers available in the marketplace.
Each provider sets its own underwriting criteria, and coverage availability may vary based on the age, condition, location, and value of the home. Policy terms, limits, exclusions, and pricing are determined by the insurer and may change at any time.
Solvable is not a licensed insurance agency and does not issue policies or offer insurance advice. We recommend that users:
Compare quotes from multiple home insurance providers
Review coverage options, exclusions, and deductibles carefully
Confirm all terms directly with the insurer
Speak with a licensed insurance agent if you have questions about your specific needs
Home Services Advertiser Disclosure
Home service offers featured on Solvable are from companies or affiliates that may compensate us. This compensation may affect how and where offers appear on our site, including their placement, order, or whether a provider is featured. Solvable does not include all home service companies or all available options in the marketplace.
Services may include HVAC repair, plumbing, electrical work, home cleaning, appliance maintenance, and other residential needs. Providers set their own pricing, availability, and service standards.
Solvable does not provide home services directly and does not guarantee the quality or reliability of any third-party service. We recommend that consumers:
Compare multiple providers and read recent customer reviews
Ask about service guarantees, pricing structures, and insurance or licensing where applicable
Confirm all details directly with the provider before scheduling any service
Important Notice About Solvable’s Role
Solvable is an online lead generation platform that allows consumers to compare rates, terms, and offers from a network of lenders and service providers. We do not offer, extend, or fund any loans. Instead, we connect users with lenders who may be able to help based on the information submitted through our forms.
Submitting an inquiry on Solvable is not a loan application. To move forward, you must speak directly with the lender, review their terms, and complete any application materials they require. Lenders in our network may not offer the lowest available rates, so we encourage you to compare quotes from multiple sources—including banks, credit unions, and other financial institutions—to ensure you’re getting the best deal.
Solvable does not guarantee loan approval, interest rates, or potential savings. Any estimated savings or quotes are for informational purposes only and may not reflect your actual terms. Final rates, loan amounts, and eligibility are determined solely by the lender based on their underwriting criteria, which Solvable does not control or have access to.
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