INTERNATIONAL TAX GUIDANCE

Frequently Asked Questions

Clear starting points for common questions about U.S. filing, foreign assets and moving across borders.

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A USEFUL STARTING POINT

International tax questions rarely have one-size-fits-all answers.

Citizenship, residency, income, account ownership and timing can all change the result. The answers below explain the general rules behind the questions Newbery International hears most often.

Important: This page provides general information, not tax or legal advice. Obtain advice based on your own facts before acting.

01 · LIVING ABROAD

Filing and double taxation

Core questions for U.S. citizens and resident aliens living outside the United States.

U.S. citizens and resident aliens abroad generally follow the same federal filing rules as people living in the United States and report worldwide income. Whether you must file depends on factors such as income, filing status, age and self-employment.

Start with a careful review before submitting returns. Some taxpayers whose noncompliance was non-willful may qualify for Streamlined Filing Compliance Procedures, but eligibility is fact-specific and the procedure is not an automatic amnesty.

Foreign tax credits, the foreign earned income exclusion and applicable treaties may reduce double taxation. The result depends on the countries, income type and your circumstances—and relief generally does not remove the obligation to file.

The exclusion is not automatic. A qualifying taxpayer generally claims it by filing a U.S. return and Form 2555, and income that may later be excluded is still considered when determining whether a filing requirement exists.

There is no single expatriate threshold. The general thresholds depend on filing status, age, gross income and other circumstances, with separate rules for situations such as self-employment. Current-year rules should be checked before deciding not to file.

02 · ASSETS & MOBILITY

Foreign assets and international moves

Reporting questions for people arriving in the United States or holding assets in another country.

A U.S. person generally must file an FBAR when the aggregate value of reportable foreign financial accounts exceeds $10,000 at any time during the calendar year. The test applies to the combined value—not each account separately—and can include accounts over which you have signature authority.

U.S. tax residents generally report worldwide income. Depending on the asset type, ownership and value, separate disclosures such as an FBAR, Form 8938 or other international information returns may also apply.

Your U.S. tax residency date is critical. People who meet the green card or substantial presence test may become subject to U.S. tax on worldwide income, while treaty and dual-status rules can change the analysis. Planning before the move is usually most effective.

Foreign rental income and a later sale may affect a U.S. return. Directly held real estate is different from property owned through a foreign company, partnership or trust, which can create additional information-reporting obligations.

Matthew Newbery grew up outside the United States and later discovered that he had been a dual citizen from birth. His own experience resolving cross-border filing issues, together with a career lived and worked across jurisdictions, shaped the firm’s practical focus.

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