What are the important updates one needs to know about U.S. tax reform?
The New Tax Bill “Tax Cuts and Jobs Act” presents the first major overhaul of the United States federal income tax system in more than three decades. The major benefits will be mostly felt by the large and small businesses. But what’s about tax reform’s impact on Americans overseas?
What has NOT changed for Americans overseas?
- Even after tax reform, you can still use Foreign Earned Income Exclusion or Foreign Tax Credit to lower your tax bill. In 2018 a U.S. expat can exclude up to $104,100 of foreign earned income.
- The reporting requirements for FBAR stay in place: you need to file FinCEN Form 114 if you have an aggregate value of over $10,000 in any foreign financial accounts you own or have a signature over.
- FATCA and Form 8938 also didn’t have any changes (unfortunately).
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What has changed for U.S. expats with the passing of the Tax Cuts and Jobs Act?
There are few main changes that Americans overseas need to be aware of and we gathered 5 main ones in the infographic below. It shortly describes main matters that you need to pay attention to. If you want to learn more about U.S. newest tax reform and its impact on U.S. expats, download our free and complete guide on new Tax Bill.