May 2025 webinar recap: Ask a CPA anything about US expat taxes with Andrew Coleman
In May 2025, Taxes for Expats (TFX) hosted a live "Ask a CPA Anything" webinar, providing US expatriates with the opportunity to have their pressing tax questions addressed by experienced Certified Public Accountants (CPAs).
This time our host speaker was Andrew Coleman – an accomplished Certified Public Accountant (CPA) with a Master's degree in Accounting and a member of the TFX team.
The session covered a broad range of topics pertinent to Americans living abroad, including tax obligations, retirement planning, and compliance requirements.
Key webinar insights
1. US tax obligations for expats
US citizens and green card holders are required to file US tax returns regardless of their country of residence. This includes reporting worldwide income, even if no income is sourced from the US.
2. Retirement accounts and international taxation
Questions regarding the taxation of US pensions and Roth IRAs while residing in countries like Spain were addressed.
It's crucial to understand both US tax implications and how foreign jurisdictions may tax these retirement accounts.
3. Green card surrender and tax implications
Attendees inquired about the process of surrendering a green card and the associated tax responsibilities. Filing a final dual-status tax return and understanding the implications of Form I-407 were discussed.
4. Filing requirements based on residency and income
Clarifications were provided on filing requirements for individuals with ITINs, those with no US income, and the impact of residency status on tax obligations.
5. Foreign bank accounts and reporting
The necessity of reporting foreign bank accounts, understanding FBAR requirements, and the implications of the 6013(g) election for non-US spouses were explored.
Live Q&A highlights
1. US citizen living in Spain — tax obligations
Q: If I'm a US-born citizen living and working in Spain, never had US income or ties, do I still have to pay US taxes?
A: Yes, you still must file a US tax return. All worldwide income must be reported. Whether you owe taxes depends on income type and eligibility for exclusions or credits like the Foreign Earned Income Exclusion or Foreign Tax Credit.
2. French bank account and taxation
Q: As a US citizen in the US, can I open a French bank account? Will I owe French taxes on the savings?
A: Yes, you can open one. Once you move to France, interest income must be declared on your US return. Local tax rules may apply – consult a French tax advisor.
3. Retiring in France – pension taxation
Q: If I retire in France with US pensions and investment income, how are these taxed?
A: Worldwide income must be reported to the US. Tax treatment depends on treaties and how France classifies each income type. Coordination helps avoid double taxation.
4. Employer-paid housing and bona fide residence
Q: If my employer pays rent, does it disqualify me from bona fide residence status under Form 2555?
A: Not necessarily. It's facts-and-circumstances-based. If paid by a US employer, it may already be in your Form W-2.
5. Filing jointly with non-US spouse
Q: What are the pros and cons of filing jointly with a non-US spouse?
A: Pros: higher standard deduction, tax benefits.
Cons: global income of the spouse becomes reportable – more complex forms and potential foreign asset reporting.
6. Accidental Americans and renouncing citizenship
Q: What are the tax implications of renouncing US citizenship?
A: You must file 5 years of US tax returns and Form 8854. PFICs need special reporting. Use Streamlined Filing if you haven’t filed before.
7. Netherlands: RMD taxation
Q: Are RMDs taxed in the US or Netherlands if I live there?
A: RMDs from US accounts are US-source and must be reported in the US. Treaty benefits may affect taxation.
8. Dual-status taxpayer in 2025
Q: I worked in Japan till March 25, then got a green card on April 1. What do I report?
A: File a dual-status return. Income before April 1 isn’t US-reportable unless it’s US-source.
9. ITIN with no US income
Q: I have an ITIN but no US income – do I need to file?
A: No. An ITIN alone doesn’t trigger filing unless you have US source income or other obligations.
10. Form 8833 and renouncing citizenship
Q: Does filing Form 8833 mean I renounced citizenship?
A: No. It only claims a tax treaty position; it doesn't affect your citizenship.
11. US pensions in Spain
Q: If I get US pensions in Spain, who taxes them?
A: If you're a US citizen or green card holder – both may tax. US relieves double tax. Spain alone may tax private pensions if you're not a US person.
12. Roth IRA in Spain
Q: Is it smart to have a Roth IRA while living in Spain?
A: Potentially, yes – but confirm eligibility in the US and that Spain won’t tax it punitively.
13. Green card holder moving to France
Q: I moved to France, plan to file Form I-407. What else do I need to file?
A: File a final dual-status Form 1040, mark “final return,” report income up to your green card surrender date.
14. Rental income: US and Germany
Q: How is rental income taxed between the US and Germany?
A: Both may tax it. The country where the rental isn’t located usually relieves double tax.
15. Social Security taxed twice?
Q: My dad receives US Social Security. Will Spain tax it too?
A: Depends on Spain’s rules. If it’s his only income, he may not need to file in the US.
16. IRAs in the UK
Q: What are tax implications of moving IRAs to the UK?
A: US taxes still apply. HMRC may treat lump sums as income. Best to take small distributions and consult both a US and UK advisor.
17. October extension filing
Q: How do I qualify for the October 15 extension?
A: File Form 4868 by June 16 if abroad. If in the US, the deadline was April 15.
18. FBAR & 6013(g)
Q: Does a 6013(g) election require my foreign spouse to file FBAR?
A: No. The election doesn’t trigger FBAR for the non-US spouse.
Bottom line
The "Ask a CPA Anything" webinar provided invaluable insights for US expatriates navigating the complexities of international taxation.
TFX remains committed to assisting expats with personalized tax advice and compliance services.
