Taxation

  • Big Bad Budget impacts on Americans Abroad

    Trump’s big bad budget bill is cruel and destructive. It guts the social safety net to pay for billionaire tax breaks and deportation prisons while exploding the deficit by $3.4 trillion over 10 years. It is a truly awful bill.

    Important – the Senate will announce their version of the bill this week. YOU have the power to influence whether these provisions become law or not. Call your Senators now – especially if they are Republicans, to let them know why you oppose this bill.

    So, what specifically does it mean for Americans abroad? We see three main areas of harm.

    1)    Child Tax Credit (CTC) -- Currently, parents of U.S. citizen children are eligible for the Child Tax Credit, up to $2,000 per child. Under section 110004 of the House bill, the CTC will only be available for children if both parents have valid Social Security Numbers – meaning both are U.S. citizens. ITINs will no longer be adequate. Most U.S. citizens living abroad are married to a non-U.S. citizen spouse - these couples would lose out.

    2)    Remittance Tax – “Remittances” refer to money sent from the USA to abroad. This includes U.S.-based retirement and 401k plans, which are often the primary source of income for many retirees abroad, or remote workers receiving salary payments into their U.S. bank accounts. Currently, these transfers are not taxed, however under section 112105, two things could happen:

    1.   Entities which administer these remittance transfers, be they banks or online payment processors (Wise, Revolut, etc), will be required to verify that the person (transferring or receiving) the funds is a U.S. citizen.
    2.   If they are not, a 3.5% tax on the transferred funds is applied. U.S. citizens abroad could be falsely identified as non-citizens, and the only way to correct the error is to file for a tax credit on your next federal tax return.
    3. There could be further complications if financial intermediaries choose not to have U.S. citizens as clients, limiting transfer options for U.S. citizens abroad.

    3)    “Revenge” Tax – This is the Trump retaliation tax aimed at other countries for imposing “unfair” taxes against US corporations. It would levy an additional tax on all foreign investments into the USA. Americans abroad could be considered foreign investors and therefore be subject to the tax. This could significantly decrease all retirement accounts, savings, and investments for Americans abroad. As ~60% of all investments worldwide are currently funneled into the USA, this would greatly impact the global economy. It is expected to significantly deter investment into the USA and cause the dollar to lose value relative to other currencies.

     

    ALL of these proposals are subject to change by the Senate RIGHT NOW. Your calls this week can make a difference, so make sure that your Senators understand this bill’s potential impact on you.

    You could also make a video to share your story via your own social media channels. If you do this, make sure to tag your Senators in the post(s). 

    Posted by
    June 11, 2025

    Global Comms Director

  • IRS Responds to Democrats Abroad Form 8621 Recommendations

    On March 1, 2025, the IRS published it's response to comments submitted for Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund) form renewal. The full response to all submissions can be viewed here: https://omb.report/icr/202502-1545-002/doc/152295400

    As a result of Democrat Abroad's formal comment the IRS:

    • For 2024, has added mention of Form 8621 to Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad (viewed as the IRS' quintessential guide to how to file a tax return with the IRS from abroad).
    • For 2025, will update Publication 54 to add that a foreign mutual fund or ETF may be a PFIC.
    • Will update the annual estimated number of people who have to file Form 8621.

    See below for the detailed formal response from the IRS.

     

    Posted by
    March 17, 2025

    Chair Taxation Task Force, DAUK DPCA Rep

  • How to Invest as a US Citizen Living in the EU

  • 2025 Tax Webinar Series

    The Democrats Abroad Taxation Task Force is proud to announce the 2025 Tax Webinar Series every Wednesday starting on January 10!

    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 Invest For Americans Abroad & 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, February 19, 2025 at 02:00 PM Eastern Time (US & Canada) 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, March 19th from 3:00-4:00am EST (view your time zone)

    Get your tickets now

    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: Tuesday, April 15th from 1:00-2:00pm EDT (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, May 21st at 1:00 EDT( view your time zone)

    Get your tickets now

    Feel free to email [email protected] if you have any questions about the tax webinar series.

    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

    Posted by
    February 05, 2025

    Chair Taxation Task Force, DAUK DPCA Rep

  • Canada's Capital Region holds its 2025 AGM on March 11

    Please join us online for our chapter's Annual General Meeting, during which we will elect our officers for the next two years: 2 co-chairs, secretary, treasurer, member/volunteer coordinator, and three members at large. All members will receive the list of candidates and a ballot by email in advance of the meeting.

    Our guest speaker will be Rebecca Lammers (London, UK), who leads Democrats Abroad's tax advocacy work as Chair of the Taxation Task Force, and who will update us on the latest news of the team's efforts to reform tax requirements for Americans living outside the U.S.

    We will also devote some time to discussing what actions we can take in the face of what is going on south of our border.

    Your attendance is greatly appreciated, to help ensure that we meet quorum!

    RSVP to join us. The Zoom link will be contained in your rsvp confirmation.

    Posted by
    February 05, 2025

    Co-Vice Chair & DPCA Voting Rep | Co-Chair, Canada's Capital Region Chapter | Blue Vote Cafe podcast co-host

  • New Residency Based Tax Bill Introduced in the House of Representatives

    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.




    Posted by
    December 18, 2024

    DA News Editor

  • Residence-Based Taxation Bill Explainer

  • 2024 Tax Webinar Series

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

    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

    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

    Want to know more about Democrats Abroad tax advocacy work and what you can do to help? Join this event to get an update on what's going on with fixing the tax problems for American abroad and what steps are required to pass Residency Based Taxation. Presented by Rebecca Lammers, Chair of the Democrats Abroad Taxation Task Force.

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

    RSVP for free now

    Not sure which webinars would be best to attend?
    Here are some pointers!

    Beginner
    If you just moved abroad, just started working as an American abroad, or if you just found out that you're supposed to file a US tax return and need to get caught up.

    Intermediate/Advanced
    You have been filing a US tax return and/or lived abroad for a while, or feel like you have at least a basic understanding of taxes for Americans abroad and want to learn more.

    If you are unable to attend the live webinar, there is an option to get a recording only, which will be emailed to everyone after the event.

    Feel free to email [email protected] if you have any questions about the tax webinar series.

    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

    Posted by
    February 02, 2024

    Chair Taxation Task Force, DAUK DPCA Rep

  • 2024 Tax Webinar Series (Part 2)

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

    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

    Not sure which webinars would be best to attend?
    Here are some pointers!

    Beginner
    If you just moved abroad, just started working as an American abroad, or if you just found out that you're supposed to file a US tax return and need to get caught up.

    Intermediate/Advanced
    You have been filing a US tax return and/or lived abroad for a while, or feel like you have at least a basic understanding of taxes for Americans abroad and want to learn more.

    If you are unable to attend the live webinar, there is an option to get a recording only, which will be emailed to everyone after the event.

    Feel free to email [email protected] if you have any questions about the tax webinar series.

    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

    Posted by
    January 31, 2024

    Chair Taxation Task Force, DAUK DPCA Rep

  • DA Switzerland Online Pensions Talk 2026