U.S. expats might get lower tax bills

U.S. expats with six-figure salaries could benefit from potential U.S. tax reform. American lawmakers are “seriously” considering a measure that would tax U.S. expats on only income earned in the U.S., reports the Financial Times (article has paywall). For the 2016 tax year, U.S. expats can exclude up to US$101,300 from their worldwide income for […]

By Staff | October 25, 2017 | Last updated on September 15, 2023

1 min read

U.S. expats with six-figure salaries could benefit from potential U.S. tax reform.

American lawmakers are “seriously” considering a measure that would tax U.S. expats on only income earned in the U.S., reports the Financial Times (article has paywall).

For the 2016 tax year, U.S. expats can exclude up to US$101,300 from their worldwide income for U.S. tax purposes. Foreign earnings above that are subject to U.S. tax — above and beyond the tax that U.S. expats pay to their host countries.

Read: Clients may risk steep penalties if they don’t file U.S. tax forms

Several organizations and professionals are cited by FT as supportive of the potential measure.

Read the full article (has paywall).

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