Crossing the border is complicated

Expat Tax Services

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Expatriate taxation involves a myriad of complexities, encompassing various factors such as residency, income sources, and international treaties. We demystify the intricate web of rules and regulations that govern the taxation of individuals living and working outside their native country. We aim to provide clarity on the key aspects of expat taxation, empowering you to navigate this intricate landscape with confidence. Whether you are coming to the U.S. to live and work, or are a U.S. citizen leaving the U.S. for opportunities abroad, we can help.

We provide comprehensive U.S. tax planning and compliance services including:

  • Federal and state income tax preparation and electronic filing-We handle all U.S. filings, optimizing your tax exposure across all jurisdictions.

  • Compliance with International Information Reporting related to foreign investments- Significant exposure can arise from failing to disclose foreign investments. Penalties can be as much as $10,000, or in some case, 35% of the unreported asset value.

  • Tax and financial planning for foreign nationals planning on relocating to the U.S.- We can help you avoid expensive U.S. reporting obligations with strategic planning before you relocate to the U.S.

  • Tax and financial planning for U.S. persons planning on relocating out of the U.S.- Careful planning can avoid costly mistakes. We help you navigate financial opportunities abroad.

At SDC CPA, we understand that living abroad can be an adventure — but when your taxes are concerned, it can quickly seem like a nightmare. We help you plan and manage your U.S. obligations, freeing up your time and giving you peace of mind.

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Key Components of Expat Taxation


Most countries tax individuals deemed to be residents. Countries can have different parameters for how residency is established.

Worldwide Income

Most countries tax the worldwide income of their residents.

Sourcing of Income

Each country establishes its domestic tax laws and regulations, which dictate how income is sourced and taxed within its borders. If you have income sourced to a country different than your resident country, this may result in double taxation on that income.

Double Taxation

Double taxation refers to a situation in which an individual or business is required to pay taxes on the same income or asset in more than one tax jurisdiction.

The U.S. Dilemma

The U.S. is one of two countries in the world that taxes based on citizenship in addition to residency. This means that all U.S. citizens will continue to have U.S. tax reporting and filing obligations even once they have established residency in another country.

Tax Treaties

Tax treaties play a key role in mitigating double taxation between countries, determining residency with tie-breaker rules, and in some cases limiting the amount of tax that can be assessed on certain types of income.

Tax Credits and Exclusions

Tax credits are also a means of mitigating double taxation. For U.S. citizens and long-term residents, the Foreign Earned Income Exclusion is another potential tool to avoid double taxation on earned income.

Compliance and Reporting Obligations

There are a myriad of compliance requirements for U.S. citizens and residents related to foreign assets. Failure to comply with the reporting requirements can result in significant penalties, from $10,000 to up to 35% of the unreported assets value.

It's Complicated.

We can help. Contact us today.