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Expat tax stack

US citizens and green-card holders are taxed on worldwide income regardless of where they live. This calculator compares the two main expat tax strategies (FEIE vs FTC) and surfaces FBAR / FATCA reporting requirements.

FEIE path (Form 2555)
$1,814
US federal tax after FEIE
Excluded: $132,900 of $$132,900 2026 cap
Remaining US-taxable: $17,100
Plus foreign tax: $45,000
Total tax: $46,814
FTC path (Form 1116)
$0
US federal tax after Foreign Tax Credit
US tax (no exclusion): $28,847
Foreign tax credit used: $28,847 (limit: $28,847)
Plus foreign tax paid: $45,000
Total tax: $45,000
Recommended path based on foreign rate
FTC (high foreign tax)

High-foreign-tax countries → FTC wins (full credit). Low-foreign-tax → FEIE wins (excludes income up to $133k cap).

FBAR (FinCEN 114)
REQUIRED

Foreign account balance $50,000 ≥ $10,000 threshold

FATCA Form 8938 (single living abroad)
Not required

Foreign assets $50,000 < $200,000 year-end threshold

Educational estimate. Real expat tax depends on tax-treaty + totalization-agreement specifics, PFIC exposure, state-residency tax claims, and many other factors. Consult an expat tax CPA before filing.

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FAQ

FEIE vs FTC — which is better?
Rough rule: if your effective foreign tax rate is HIGHER than your US rate, FTC wins (you get full credit, no double tax). If your foreign rate is LOWER, FEIE usually wins (excludes income from US tax entirely up to ~$133k). High-tax countries (Germany, UK, Australia, France) → FTC. Low-tax countries (UAE, Bahamas, Puerto Rico) → FEIE.
What's FBAR?
FinCEN Form 114. Required if your AGGREGATE foreign account balances exceed $10,000 at any point during the year. Filed separately from your tax return (NOT with your 1040), due April 15 with auto-extension to October 15. Penalties: $14k+ per non-willful violation, $100k+ for willful.
What's FATCA Form 8938?
Filed WITH your tax return. Living abroad: $200k single / $400k MFJ year-end (or $300k / $600k any time during year). Living in US: $50k / $100k year-end. Reports specified foreign financial assets — broader than FBAR.
Renouncing US citizenship?
Major tax decision. "Covered expatriate" exit tax applies if ANY of: (1) net worth ≥ $2M, (2) average annual federal income tax for prior 5 years > ~$201k, (3) failure to certify 5 years of tax compliance. File Form 8854.

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Educational guidance only. Not legal, tax, or individualized investment advice. We do not recommend individual securities or guarantee outcomes.