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Taking the Stress Out of Small Business

Accounting Tax and Preparation


Tax and Accounting Services for all types of Americans Abroad; Artists, Athletes, Business Owners

Wing to Wing LLC assists Americans, US citizens, and US green card holders who are working abroad. Since taxes for American’s abroad are complicated, to say the least, please be advised on some key points:

Americans can exclude from US taxation (not foreign taxation) $108,700 when filing their 2022 taxes.  In 2023 the exclusion increases to $120,000. You may also exclude from income an amount equivalent to your housing expenses if you earn more than the annual exclusion itself. There are various exceptions, but in general, if your employer pays your rent and utilities and it is included in your income, you may have the ability to exclude the full amount of housing costs you received.

Athletes abroad are most often treated like an "employee" .    What is  important to know is their Clubs must provide them with signed contracts, pay slips and proof of filing a foreign tax return.   This will ensure you have proof of foreign wages and taxes paid, as this is important to ensure your US return is accurate


All Americans abroad must file a US tax return every year. Failure to do so can result in penalties and interest being assessed.

Even though an individual can’t be double-taxed on the same income by two different countries, you could lose the ability to claim them if you don’t file a return in the US and claim your exclusions and tax credits. This will potentially put you at risk for significant interest and penalties on the unpaid tax.

If you make more than the excluded amount and you didn’t pay taxes in the country you are living in, you will owe taxes in the US. If you did pay taxes in the foreign country, then you would file a form that would allow you to offset your US tax liability with the foreign tax liability.

Worldwide passive income, such as interest, dividends, and capital gains are taxable. However, tax credits for foreign taxes paid can be used to offset US taxes so long as the return is timely filed.

There are state tax issues that can arise. The length of time you are out of the state determines your filing requirements.

There is an automatic extension until June 15 to file your returns. If you need more time, you must file Form 4868, which will extend you until October 15.

Also, all United States persons are required to file a Foreign Bank Account Report (FBAR) if:

  • The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States.
  • The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.

Don’t put yourself at risk with the IRS by not filing or incorrectly filing your US returns while outside of the country.

We hope you found the abovementioned information useful. For inquiries and assistance, please call us at 203-249-2798 or email us at anytime.

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