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US expat tax (Americans abroad)

US federal returns for citizens and green-card holders living in the Gulf, Pakistan or the UK: Form 1040, foreign earned income exclusion, foreign tax credit, FBAR and FATCA.

Overview

If you hold a US passport or green card, the IRS expects a return every year wherever you live. Living in a no-income-tax country like the UAE or Saudi Arabia usually means little or no US tax is due — but only if you file and claim the right exclusions. An accountant in our network who knows both systems prepares your return and foreign account reports.

What’s included

  • Form 1040 with the foreign earned income exclusion (Form 2555) or foreign tax credit (Form 1116)
  • FBAR (FinCEN 114) and Form 8938
  • Foreign housing exclusion and self-employment tax review
  • Catch-up filing for missed years where eligible
  • Reporting of foreign companies, pensions and rental property

The exact scope is set in the written proposal from the accountant who takes your engagement. Services are provided by independent professionals in our network, not by Ask Muhasib.

Who it’s for

  • Americans working in the Gulf
  • Dual nationals in Pakistan or the UK
  • Green-card holders who moved abroad

How it works

  1. 1

    Send your enquiry

    Choose this service and your country and describe what you need. It takes about two minutes and is free.

  2. 2

    We match you

    We review your request and introduce it to a suitable independent accountant in our network for that country.

  3. 3

    Share documents and agree the quote

    The accountant confirms the scope, lists the documents needed (see the checklist below) and sends a written fee proposal.

  4. 4

    Delivery

    Once you accept, the work is done to the agreed timeline and you receive the deliverables and filing confirmations.

Documents and information needed

  • Salary certificates or payslips
  • Entry/exit dates (for the physical presence test)
  • Year-end and highest balances of foreign accounts
  • Prior US returns
Never send passwords or full card numbers by email. Your accountant will tell you how they accept documents securely.

Country-by-country notes

Key rules as we understand them in November 2026, from each country’s tax authority. Where a detail varies we say so — confirm your position with your accountant.

United StatesInternal Revenue Service (IRS)
Personal income tax
Residents and citizens file Form 1040; non-residents with US income file Form 1040-NR. Rates run from 10% to 37%. Nine states have no tax on wages; the rest use flat or graduated rates.
Record keeping
The IRS generally recommends keeping records for at least 3 years after filing, longer in some cases (for example 6 years if income was substantially under-reported, and 4 years for employment tax records).
Country overview

Common mistakes to avoid

Assuming no US tax means no US filing
Forgetting the FBAR — it is separate from the return
Claiming the exclusion but failing the 330-day test
Holding foreign mutual funds without PFIC reporting

Penalty amounts depend on the country and the facts, so we do not quote figures here. Your accountant can tell you what applies.

Typical timelines

  • 15 April: return and FBAR due date
  • 15 June: automatic extension for taxpayers abroad (interest runs from 15 April)
  • 15 October: extended return and FBAR

Indicative only. Your proposal sets the actual timetable. See dated tax deadlines

Pricing

Quoted per engagement

You receive a written, fixed quote before any work starts. What affects the price:

  • Number of countries and accounts
  • Self-employment or foreign company ownership
  • Missed prior years
Get my quote

Frequently asked questions

I live in the UAE with no income tax. Do I owe US tax?

Possibly not on salary up to the $132,900 exclusion for 2026 if you qualify, but you still need to file. Income above the exclusion, investment income and self-employment tax can still be due.

What is the FBAR threshold?

More than $10,000 across all your foreign financial accounts combined at any point in the year.

I have not filed for years. What now?

The IRS has streamlined procedures for non-wilful cases. An accountant can check whether you qualify before you file anything.

Get help with us expat tax (americans abroad)

Free to ask. No obligation until you accept a written quote.

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US expat tax (Americans abroad) | Ask Muhasib