U.S. taxes don’t stop when you move abroad
The United States taxes its citizens on their income wherever they live. Green card holders are treated the same way. If you are an American living in Istanbul or Izmir, a dual citizen working for a Turkish company, or a green card holder who moved back to Turkey, you are usually still expected to file a U.S. return every year. Many people abroad skip it because they already pay tax locally, then find out years later that they missed filings and benefits they were entitled to.
Our expat tax services cover the U.S. side of your life abroad. We prepare your federal return, apply the exclusions and credits that prevent double taxation, and make sure it reaches the IRS on time. We work from our office in Rochelle Park, New Jersey, and online with clients in Turkey and elsewhere, in English or Turkish. This service is part of our U.S. tax services.
Do U.S. citizens living abroad pay taxes?
According to the IRS page U.S. citizens and resident aliens abroad, U.S. citizens and resident aliens living abroad are taxed on their worldwide income and generally follow the same filing rules as people in the United States. The difference is that people abroad can claim special benefits, but only by filing a return. In practice, many expats owe little or no U.S. tax once those benefits are applied.
What our US expat tax service includes
Foreign earned income exclusion (Form 2555)
The foreign earned income exclusion lets you exclude foreign wages and self-employment income from U.S. tax, up to a limit adjusted yearly for inflation ($130,000 for 2025 and $132,900 for 2026). To qualify, your tax home must be abroad and you must pass one of two tests:
- Bona fide residence test: you are a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year.
- Physical presence test: you are physically present in a foreign country for at least 330 full days during any 12 consecutive months.
Certain foreign housing costs can also be excluded or deducted. We check which test you meet and prepare Form 2555.
Foreign tax credit (Form 1116)
If you pay income tax in Turkey or another country, the foreign tax credit can reduce your U.S. tax by that amount. It is claimed on Form 1116. You cannot take a credit for tax on income you have excluded, so the choice between the exclusion and the credit matters. For people in higher-tax countries, the credit often works better. We compare both before filing.
U.S.-source income and family
Many expats still have U.S. rental property, investment accounts or a U.S. business. We report that income correctly next to your foreign income. If your spouse is not a U.S. citizen and you want to include them on a joint return, they need an SSN or an ITIN. As an IRS-authorized Certifying Acceptance Agent (CAA), we can prepare that ITIN application with your return.
FBAR, available on request
If you are a U.S. person and the combined value of your foreign bank and financial accounts exceeded $10,000 at any time during the year, you must file FinCEN Form 114, the FBAR. It goes to FinCEN electronically, separately from your tax return, and is due April 15 with an automatic extension to October 15. We can prepare it alongside your return on request.
Expat tax deadlines
- April 15: regular due date, and the date by which any tax owed should be paid.
- June 15: automatic two-month extension to file if you live outside the U.S. on April 15. A statement explaining why you qualify is attached to the return.
- October 15: further extension with Form 4868, filed before June 15.
Interest is charged on tax not paid by April 15, even with an extension.
Behind on U.S. returns?
If you have been abroad for a few years and did not know you had to file, you are not alone. For people whose failure was non-willful, the IRS offers the Streamlined Foreign Offshore Procedures, which generally require the last three years of tax returns and the last six years of FBARs. Whether they fit depends on your facts, so we review that first. For recent missed years and IRS letters, see our back taxes and IRS notices service.
If you move back to the U.S., your return becomes a regular resident return again: see our individual tax preparation service and our page on tax help for individuals and freelancers.
File your U.S. return from abroad
Send us last year’s return, if you have one, your income documents from Turkey and the U.S., and the dates you spent in each country. We will tell you what you need to file and what it costs before any work starts. Book a free expat tax call.