Democrats Abroad welcomes the introduction of the Residence-Based Taxation for Americans Abroad Act from Congressman Darin LaHood (R-IL-16). Years of commitment and dedication by Democrats Abroad has laid important groundwork to raise awareness of American abroad tax issues. This year, the advocacy work of Democrats Abroad, Tax Fairness for Americans Abroad, and other organizations has led to the introduction of this Residency Based Tax (RBT) bill.

U.S. policy to combat overseas tax evasion has inadvertently caught low and middle income Americans who live abroad in its dragnet. Americans abroad face a myriad of tax and financial access discrimination including complicated tax returns, having to pay a tax professional and file a tax return when no US tax is due, and inability to save and invest for the future. Some US citizens even consider renouncing their citizenship to escape the burden.

To reduce this burden on Americans abroad and prevent them from having to confront this choice, Members of the Democrats Abroad Taxation Task Force developed an elective RBT policy a year and a half ago, with feedback from Congressional offices.

“I’m extremely proud of the role Democrats Abroad has played in elevating the issue of the unfair tax burdens faced by ordinary Americans abroad and proposing ways to address them. I am encouraged to see a bill introduced that reflects policy outcomes to addressing those burdens. We are ramping up our bipartisan Congressional outreach and laser focused on getting relief for Americans abroad next year,” said Rebecca Lammers, Chair of the Democrats Abroad Taxation Task Force.

Martha McDevitt-Pugh, Chair of Democrats Abroad said, “Democrats Abroad made significant contributions to develop policy that will address the tax and financial access issues faced by Americans abroad. The bill has guardrails to ensure it will not create loopholes for tax cheats. While this bill will not be up for a vote in the 2023-24 Congress, which concludes its business this week, we are hopeful that its provisions will inform tax legislation in 2025. We have heard from Democrats Abroad members that they want Residency Based Taxation. With this bill they would have that choice.”

For more information:

• Read the Democrats Abroad Taxation Task Force’s bill explainer here.
• Read the bill’s FAQs here.
• Give you feedback on the bill, introduced by Rep LaHood (R, IL-16) here.
• Attend the webinar next Mon, Dec 23 at 1pm ET RSVP here
• Read the bill text here.
• Read more about the extensive work of Democrats Abroad’s Taxation Task Force here.
• Join the Democrats Abroad Taxation Task Force mailing list here.

The Democrats Abroad Taxation Task Force is proud to announce the 2024 Tax Webinar Series every Wednesday starting on January 10!

• Wednesday, January 10 - How To Survive Tax Day As An American Abroad (Americas/Europe Friendly Time)
  
• Wednesday, January 17 - Federal Student Loans For Americans Abroad FREE (Asia/Europe Friendly Time)
  
• Wednesday, January 24 - How To Invest For Americans Abroad & Dual Citizens (Americas/Europe Friendly Time)
• Wednesday, January 31 - How To Catch Up On Filing US Taxes From Abroad (Asia/Europe Friendly Time)
• Wednesday, February 7 - Retirement & Taxes For Americans Abroad (Americas/Europe Friendly Time)
  
• Wednesday, February 14 - How To File The FBAR For Americans Abroad (Asia/Europe Friendly Time)
  
• Wednesday, February 21 - How To File Your Own Taxes From Abroad (Americas/Europe Friendly Time)
• Wednesday, February 28 - FREE How To Help Pass Residency Based Taxation (Asia/Europe Friendly Time)

We are asking for a small donation to attend each event.

Tickets for each webinar in the series must be booked separately.

All proceeds go to Democrats Abroad.

All webinars will take place on an online Zoom webinar. Read on for more info on each webinar.

How To Survive Tax Day As An American Abroad

This is a consumer focused webinar to help you save money on your tax preparation costs and make you aware of US government resources available to Americans abroad to file their US tax return. The aim of this event is to help you feel more confident to file your US tax return, help you decide if you should file yourself, use tax prep software, or hire an accountant. Also to inform you of your rights when it comes to dealing with the IRS, and debunk myths on the who, what, where, when, and why of filing a US tax return as an American abroad.

When: Wednesday, January 10 at 1pm EST view your time zone

Get your tickets now

Federal Student Loans For Americans Abroad

Although this isn't a tax webinar, navigating paying off student loans as an American abroad is complicated especially with payments resuming last year. This webinar will clarify the options available to Americans abroad now that the payment freeze on federal student loans has ended and payments have resumed.

When: Wednesday, January 17 at 3am EST view your time zone

Get your tickets now

How To Invest For Americans Abroad And Dual Citizens

Although this isn't a tax event per se, we received high demand to host a webinar on investing. It is really difficult for Americans abroad and dual citizens (particularly in Europe) to find ways to invest their money in the country they live in as well as in the United States. We often feel like we're stuck in a rock and a hard place, unable to open an investment account in some cases and save for our futures. In this webinar, we'll go over investing basics and the options available. Please note, this session will focus on European Union regulations but will cover basic investing principles applicable anywhere.

When: Wednesday, January 24 at 1pm EST view your time zone

Get your tickets now

How To Catch Up On Filing US Taxes from Abroad (Streamlined Filing)

Did you forget to file a US tax return since you moved abroad, or have you been living outside the US for a long time (decades even!) but you've not been filing a US tax return? Join us to go over the IRS Streamlined Filing Procedure - the process to get caught up on your US tax filings. The good news is that you don't have to file for all the years that you missed, you potentially won't owe any US tax, and you might even be eligible for some money from the IRS depending on your circumstances.

When: Wednesday, January 31 at 3am EST view your time zone

Get your tickets now

Disclaimer: Democrats Abroad cannot provide individual tax advice. We are not tax lawyers, accountants or advisers. Please consult a professional tax adviser/accountant/return preparer when addressing your personal tax matters.

We recommend the IRS Tax Return Preparer Directory to find a service provider who meets your needs and budget, though buyers need always beware. Democrats Abroad suggests Americans abroad in need of tax advice consult the IRS Tax Return Preparer Directory to find an advisor or tax return preparer near you or providing online services: https://irs.treasury.gov/rpo/rpo.jsf

The Democrats Abroad Taxation Task Force is proud to announce part 2 of the 2024 Tax Webinar Series every Wednesday in February!

• Wednesday, February 7 - Retirement & Taxes For Americans Abroad (Americas/Europe Friendly Time)
  
• Wednesday, February 14 - How To File The FBAR For Americans Abroad (Asia/Europe Friendly Time)
  
• Wednesday, February 21 - How To File Your Own Taxes From Abroad (Americas/Europe Friendly Time)
• Wednesday, February 28 - FREE How To Help Pass Residency Based Taxation (Asia/Europe Friendly Time)

We are asking for a small donation to attend each event.

Tickets for each webinar in the series must be booked separately.

All proceeds go to Democrats Abroad.

All webinars will take place on an online Zoom webinar. Read on for more info on each webinar.

Retirement & Taxes For American Abroad

Are you starting to plan for your retirement, you're about to retire, or you're already retired? Ever wondered how taxes on your non-US pension works? Join us to go over common retirement tax issues like taxes on Social Security and how taxes on your US retirement plan works if you plan to retire abroad.

When: Wednesday, February 7 at 1pm EST view your time zone

Get your tickets now

How To File The FBAR For Americans Abroad

Tired of paying someone else to file the FBAR for you every year but not sure how to do it yourself? In this webinar, an expert will walk you through the process of filing the FBAR, which is free when you do it yourself. They'll show you the form, what information you need to provide, how to submit the FBAR online, and the filing deadline.

When: Wednesday, February 15 at 3am EST view your time zone

Get your tickets now

How To File Your Own Taxes From Abroad (2 Hour Workshop)

Want to save money on an accountant and learn how to file your own US taxes as an American abroad? Join us for this online workshop on the basics of filling in the forms for your US tax return. Limited to 50 participants, the aim of this event is to explain how to file your own US taxes by reviewing the forms required for a basic tax return filing for an American abroad. The session will go line-by-line over the 1040, 2555, and Schedules 1 and 3. Additional forms may be covered if there's enough demand in the pre-submitted questions (note that Form 1116 will be mentioned, but it is recommended to use tax prep software for this form due to its complexity).

When: Wednesday, February 21 at 1pm EST view your time zone

Get your tickets now (Limited to 50 live participants)

(FREE) How To Help Pass Residency Based Taxation

Did you forget to file a US tax return since you moved abroad, or have you been living outside the US for a long time (decades even!) but you've not been filing a US tax return? Join us to go over the IRS Streamlined Filing Procedure - the process to get caught up on your US tax filings. The good news is that you don't have to file for all the years that you missed, you potentially won't owe any US tax, and you might even be eligible for some money from the IRS depending on your circumstances.

When: Wednesday, February 28 at 3am EST view your time zone

RSVP for free now

Disclaimer: Democrats Abroad cannot provide individual tax advice. We are not tax lawyers, accountants or advisers. Please consult a professional tax adviser/accountant/return preparer when addressing your personal tax matters.

We recommend the IRS Tax Return Preparer Directory to find a service provider who meets your needs and budget, though buyers need always beware. Democrats Abroad suggests Americans abroad in need of tax advice consult the IRS Tax Return Preparer Directory to find an advisor or tax return preparer near you or providing online services: https://irs.treasury.gov/rpo/rpo.jsf

A guest post originally published here.

Earlier this month, the IRS announced the 2024 tax filing season will open on January 29, I’ve already received emails from people asking about how to file their US tax return for this year. For Americans abroad, this can be a very anxiety provoking and stressful process because it is well documented that filing taxes is more difficult for Americans outside the US than inside the US. According to American Citizens Abroad, it is estimated that return preparation fees for Americans abroad is between $2,000 and $3,000 and significantly higher for small business owners, while the average fee in 2021 was $323 for a return with itemized deductions and $220 for a return without itemized deductions.

Since Americans abroad are liable for filing and paying tax both in the country they live in as well as in the US, it is difficult for them to understand why they are subject to tax in two countries since their immigrant counterparts don’t face the same tax filing or liability from their home countries. The United States is unique in that its citizens are liable for US tax on non-US sourced income. The US tax code is completely unique and out of step with the tax system experienced in the rest of the world, which makes it difficult for Americans abroad to remain in compliance with their US tax filing obligations, but not impossible.

On top of this, the IRS makes it difficult for Americans abroad to remain compliant with their tax filing obligation for many reasons, but one of them is that online tax preparation software options aren’t American abroad friendly, hence why remaining in compliance with the IRS is so challenging for many. This article attempts to review the online US tax preparation software options for Americans abroad in 2024. I will try to clarify online tax prep software in the market with an emphasis on free, but I have also reviewed a few low cost and paid options since everyone isn’t always able to use the free options, as this is largely dependent on personal circumstances.

The Democrats Abroad Taxation Task Force is proud to announce part 1 of the 2024 Tax Webinar Series every Wednesday starting on January 10!

• Wednesday, January 10 - How To Survive Tax Day As An American Abroad (Americas/Europe Friendly Time)
  
• Wednesday, January 17 - Federal Student Loans For Americans Abroad FREE (Asia/Europe Friendly Time)
  
• Wednesday, January 24 - How To Invest For Americans Abroad & Dual Citizens (Americas/Europe Friendly Time)
• Wednesday, January 31 - How To Catch Up On Filing US Taxes From Abroad (Asia/Europe Friendly Time)

We are asking for a small donation to attend each event.

Tickets for each webinar in the series must be booked separately.

All proceeds go to Democrats Abroad.

All webinars will take place on an online Zoom webinar. Read on for more info on each webinar.

How To Survive Tax Day As An American Abroad

This is a consumer focused webinar to help you save money on your tax preparation costs and make you aware of US government resources available to Americans abroad to file their US tax return. The aim of this event is to help you feel more confident to file your US tax return, help you decide if you should file yourself, use tax prep software, or hire an accountant. Also to inform you of your rights when it comes to dealing with the IRS, and debunk myths on the who, what, where, when, and why of filing a US tax return as an American abroad.

When: Wednesday, January 10 at 1pm EST view your time zone

Get your tickets now

Federal Student Loans For Americans Abroad

Although this isn't a tax webinar, navigating paying off student loans as an American abroad is complicated especially with payments resuming last year. This webinar will clarify the options available to Americans abroad now that the payment freeze on federal student loans has ended and payments have resumed.

When: Wednesday, January 17 at 3am EST view your time zone

Get your tickets now

How To Invest For Americans Abroad And Dual Citizens

Although this isn't a tax event per se, we received high demand to host a webinar on investing. It is really difficult for Americans abroad and dual citizens (particularly in Europe) to find ways to invest their money in the country they live in as well as in the United States. We often feel like we're stuck in a rock and a hard place, unable to open an investment account in some cases and save for our futures. In this webinar, we'll go over investing basics and the options available. Please note, this session will focus on European Union regulations but will cover basic investing principles applicable anywhere.

When: Wednesday, January 24 at 1pm EST view your time zone

Get your tickets now

How To Catch Up On Filing US Taxes from Abroad (Streamlined Filing)

Did you forget to file a US tax return since you moved abroad, or have you been living outside the US for a long time (decades even!) but you've not been filing a US tax return? Join us to go over the IRS Streamlined Filing Procedure - the process to get caught up on your US tax filings. The good news is that you don't have to file for all the years that you missed, you potentially won't owe any US tax, and you might even be eligible for some money from the IRS depending on your circumstances.

When: Wednesday, January 31 at 3am EST view your time zone

Get your tickets now

Disclaimer: Democrats Abroad cannot provide individual tax advice. We are not tax lawyers, accountants or advisers. Please consult a professional tax adviser/accountant/return preparer when addressing your personal tax matters.

We recommend the IRS Tax Return Preparer Directory to find a service provider who meets your needs and budget, though buyers need always beware. Democrats Abroad suggests Americans abroad in need of tax advice consult the IRS Tax Return Preparer Directory to find an advisor or tax return preparer near you or providing online services: https://irs.treasury.gov/rpo/rpo.jsf

The US State Department is hosting an open comment period to reduce the renunciation fee from $2,350 to $450. This is a great opportunity for your voice to be heard about the tax problems forcing Americans abroad to renounce their citizenship in the first place (aka the tax compliance nightmare suffered by Americans abroad).

Here’s all you need to do: 

1. Go to the relevant State Department page at this link.
2. Click the big green button on the right side that says “SUBMIT A FORMAL COMMENT.”
3. Leave a comment! We’ll include a template below - but the more personal your comment is the better!

Comments close November 1, so be sure to submit before the deadline.

Template Messaging (But the more personal the better!)

Asking Americans to pay $450 to renounce their citizenship is still exorbitant (as compared to other consular fees that are substantially lower), but at least it’s an improvement. 

But the real tragedy is that so many Americans feel like they have to cut ties in the first place. The fact that more Americans renounce their citizenship than any other nationality is deeply embarrassing - instead of penalizing them on their way out the door, the State Department should be asking why they’re leaving in the first place. 

The obvious answer is the uniquely unfair tax system to which the US subjects its citizens living abroad. The State Department’s mission includes “shape[ing] an international environment in which all Americans can thrive.” Surely that involves helping guide the government toward policies that don’t massively complicate life for Americans abroad. 

Instead of nickel-and-diming Americans forced to renounce their citizenship to escape double-taxation, the State Department should push Congress to bring the US into line with the entire rest of the world in the way it taxes its expats.

Thanks for your help!! 

DA Global Taxation Task Force
https://www.democratsabroad.org/taxation

Please share this with any friend or family member that might be interested in submitting a formal comment!

The webinar that was going to be tomorrow, Wednesday, September 27 at 12pm ET with Rep. Don Beyer to talk about the Tax Simplification for Americans Abroad bill is now cancelled.

We will come back to you once we are able to reschedule, but here's what you can do in the meantime:

1. Click here to donate to Democrats Abroad. We recommend $10 or $20, but any donation amount is welcome.
2. Click here to contact your House Representative *TODAY* and ask them to co-sponsor the bill. Because no one will be there to answer a call or check emails once the government shuts down on October 1. So act now!

Sincerely,
Rebecca Lammers
Chair, Democrats Abroad Taxation Task Force
democratsabroad.org/taxation

P.S. Don't forget to sign up for the latest tax advocacy new by joining the Taxation Task Force mailing list. Click here to join now.

We are excited to announce that H.R. 5432 Tax Simplification for Americans Abroad Act has been introduced in the U.S. House of Representatives. Join us for a webinar with the sponsor of the bill, Congressman Don Beyer (D VA-08) on Wednesday, September 27 at 12pm ET to find out more!

Click here to RSVP

The Tax Simplification for Americans Abroad Act will:

• Create a simplified tax return form to help make it easier for Americans filing from abroad who owe no U.S. tax
• Eliminate double taxation for pensions and retirement distributions (including Social Security benefits), scholarships, fellowship grants, disability benefits, childcare expenses, family medical leave, and unemployment benefits
• Consolidate the FBAR into FATCA, increase the filing threshold, and eliminate the requirement to report separately to FinCEN

Please call your House Representative today and ask them to co-sponsor the bill. Click here for how to call and what to say.

Need more info to make the call? Join us for the webinar where we will lay out clear instructions for how to call your House Representative!

Don't forget to RSVP to attend!

Thank you for taking the time to help us pass the bill!

Don't forget to sign up for the Taxation Task Force mailing list by clicking here for the latest on tax updates.

Below is a copy of the letter from Democrats Abroad submitted to the Senate Finance Committee in response to the report "Credit Suisse's Role In U.S. Tax Evasion Schemes" released on March 29, 2023.

Click here to download a pdf of DA's letter in full.