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US tax services for Americans in Israel

20+ years of experience in US expatriate tax services to simplify your expat experience in Israel
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US tax services for Americans in Israel
Our customers say

Are you facing any of these tax challenges for US expats in Israel?

  • Filing US taxes from Tel Aviv is confusing

    Filing US taxes from Tel Aviv is confusing

    I live in Tel Aviv and qualify for a 10-year exemption. What do I owe the IRS?
  • 10-year tax exemption and US reporting

    10-year tax exemption and US reporting

    I'm a new immigrant in Jerusalem – how does Israeli tax exemption affect my US return?
  • Foreign Tax Credit for Israeli taxes

    Foreign Tax Credit for Israeli taxes

    Can I claim credits for high Israeli taxes paid in Haifa?
  • FBAR for Israeli bank accounts

    FBAR for Israeli bank accounts

    I have Bank Leumi or Bank Hapoalim accounts in Be'er Sheva. Do I report them to the IRS?
  • Israeli pension funds and US taxes

    Israeli pension funds and US taxes

    My Bituach Leumi and Keren Hishtalmut in Netanya – how do I report them on my US tax return?
  • Shekel accounts and currency conversion

    Shekel accounts and currency conversion

    Managing shekel income in Herzliya - how do I report this to the IRS?
Need a US tax accountant in Israel? We're here to help.
Let’s talk and build a clear plan together.
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Our services for US expats in Israel

Tax return preparation

Tax return preparation for US expats

Get your US tax return filed accurately and on time. Serving Americans in Tel Aviv and throughout Israel with fully remote service.

Tax planning & consulting

Tax planning & consulting

Strategic US tax planning to optimize Israeli 10-year exemption and Foreign Tax Credits. We maximize your US tax position, considering Israel’s unique benefits.

IRS assistance

IRS assistance

Get help with IRS correspondence and letters. We handle all US tax communications seamlessly across time zones.

Tax projection

Tax projection

Forecast your US tax liabilities based on Israeli income and investments. Americans throughout Israel receive accurate IRS projections.

Expatriation

Expatriation

Considering renouncing US citizenship while in Israel? We provide expert guidance on IRS expatriation tax requirements.

Amended returns

Amended returns

Need to correct past US tax returns? We help fix IRS mistakes and ensure compliance with streamlined procedures.

Representation with the IRS

Representation with the IRS

Let us represent you in IRS audits or disputes. Americans anywhere in Israel receive professional IRS representation.

Free expat tax extension

Free expat tax extension

Push your US tax filing deadline to October 15 for free. Available throughout Israel and worldwide.

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Why Americans in Israel trust our US tax services

Verified
First class service

First class service. Concise, precise and very professional. Lots of advice provided and very quick turnaround. Have used this service for past five years and totally confident in service provided. Thorough recommend.

Michelle Buckland
UK
Verified
Highly recommended

I've used TFX for several months and have always found them to be absolutely knowledgeable and professional. Far superior to other expat services I've used. Recommended.

Giovanni Rizzo
Italy
Verified
Happy over many years!

I've been using Taxes for Expats for several years now and they have always been fast, effective and professional. Preparing tax returns in two different countries is usually a huge headache and they take all the complexity out of it. I highly recommend their services.

Anna Josephine Frandsen
Denmark
Verified
Loyal customer for 10 years

I have been using Taxes for Expats for over 10 years. They are professional, quick and clear. They keep adding additional services and improvements every year. Their fees are reasonable. They are my trusted go-to for US taxes.

B Koether
Germany Flag of Germany
Verified
4 yrs of positive experience with TFX

For the last 4 years I have been utilizing taxes for expats and I am very happy with their service. My CPA Wendy is awesome and very helpful, accommodating and knowledgeable. I am planning to keep having TFX prepare my taxes also in the future.

C. Kerner
Germany Flag of Germany
Verified
First class service

First class service. Concise, precise and very professional. Lots of advice provided and very quick turnaround. Have used this service for past five years and totally confident in service provided. Thorough recommend.

Michelle Buckland
UK
Verified
Highly recommended

I've used TFX for several months and have always found them to be absolutely knowledgeable and professional. Far superior to other expat services I've used. Recommended.

Giovanni Rizzo
Italy
Verified
Happy over many years!

I've been using Taxes for Expats for several years now and they have always been fast, effective and professional. Preparing tax returns in two different countries is usually a huge headache and they take all the complexity out of it. I highly recommend their services.

Anna Josephine Frandsen
Denmark
Verified
Loyal customer for 10 years

I have been using Taxes for Expats for over 10 years. They are professional, quick and clear. They keep adding additional services and improvements every year. Their fees are reasonable. They are my trusted go-to for US taxes.

B Koether
Germany Flag of Germany
Verified
4 yrs of positive experience with TFX

For the last 4 years I have been utilizing taxes for expats and I am very happy with their service. My CPA Wendy is awesome and very helpful, accommodating and knowledgeable. I am planning to keep having TFX prepare my taxes also in the future.

C. Kerner
Germany Flag of Germany

Transparent pricing for tax preparation in Israel

US Personal Income Tax Return

$450
~1,348 ILS
Includes
  • US and non-US wages
  • Foreign tax credit (form 1116)
  • Qualified IRA or ROTH contributions
  • Health care coverage exemption
  • Alternative minimum tax calculations
  • Estimated payment vouchers
  • US retirement and social security income
  • Interest and dividends (10 transactions included)
  • Foreign earned income exclusion (form 2555)
  • Child & dependent credits & deductions
  • Over 35 tax forms included
Additional forms at extra cost, if needed

Streamlined procedure (SFOP)

Penalty-free program for expats with multiple years of non-compliance
$1,450
~4,344 ILS
Includes
  • 3 years tax returns (currently 2021-2023)
  • 6 years FBAR (currently 2018-2023)
  • One package $1,450
  • Special package: 25% discount on standard rates
  • Optional: Certification letter add-on
Additional forms at extra cost, if needed

Helpful resources for US expats in Israel

Explore our collection of articles and guides to understand the tax implications of living in Israel as a US citizen.
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See why Americans abroad choose our tax team

50,000+ clients, 193+ countries, 4,000+ reviews

Ready to file your US taxes from Israel? Get your free consultation.
Schedule a free call to discuss your case. We'll explain exactly what you need and what you don't – no strings attached.

Frequently asked questions

1. Do I need to file US taxes if I live in Israel?
Yes, all US citizens and green card holders must file US tax returns annually, regardless of where they live. Filing US taxes from Israel is mandatory even if you qualify for Israel's 10-year tax exemption or pay Israeli taxes. The US taxes based on citizenship, so your Israeli income must be reported to the IRS.
2. How does Israel's 10-year tax exemption affect my US taxes?
Israel's 10-year tax exemption (for new immigrants/returning residents) exempts foreign income from Israeli tax, but doesn't exempt you from US taxes. For US purposes, you still report worldwide income but can use the Foreign Earned Income Exclusion (FEIE) to exclude up to $130,000. Since you're not paying Israeli tax on this income, the Foreign Tax Credit isn't available for it.
3. Can I use the Foreign Tax Credit for my Israeli taxes?
Yes, with Israeli tax rates up to 50% (47% income tax plus 3% health tax), the Foreign Tax Credit (Form 1116) is valuable for Israeli-source income. For income covered by your 10-year exemption, use FEIE instead since there's no Israeli tax to credit. Most expats use a combination of both strategies.
4. Do I need to report my Israeli bank accounts to the IRS?
Yes, if your Israeli bank accounts (Bank Leumi, Bank Hapoalim, Discount Bank, Mizrahi Tefahot, etc.) exceed $10,000 USD at any time during the year, you must file FBAR (FinCEN Form 114) by April 15. You may also need FATCA Form 8938 if accounts exceed $200,000 for single filers. Currency fluctuations in shekels can affect this threshold.
5. What are my US tax filing deadlines from Israel?
US expats in Israel receive an automatic extension to June 15 for IRS filing. You can request a further extension to October 15. Any US taxes owed must be paid by April 15 to avoid IRS interest charges. Since Israel uses the calendar year like the US, income allocation is straightforward.
6. How do I report Israeli pension funds on my US tax return?
Israeli pension funds like Bituach Leumi (National Insurance), Keren Hishtalmut (Education/Savings Funds), and Kupat Gemel (Provident Funds) require reporting on your US tax return. Employer contributions may be taxable as US income. Some Israeli pension structures are treated as foreign trusts requiring Form 3520. Professional guidance is essential due to the complexity.
7. Should I use FEIE or Foreign Tax Credit in Israel?
It depends on your situation. If you qualify for Israel's 10-year exemption, use FEIE for foreign income (no Israeli tax means no FTC available). For Israeli-source income taxed at Israel's high rates, use FTC. Many Americans in Israel use both: FEIE for exempted foreign income and FTC for Israeli-source income. This requires careful planning.
8. What if I haven't filed US taxes in years while living in Israel?
You may qualify for IRS Streamlined Filing Compliance Procedures, allowing you to catch up on 3 years of US tax returns and 6 years of FBARs with reduced penalties, provided non-compliance was non-willful. Many Israeli expats, especially new immigrants focused on aliyah, didn't realize that US filing remained mandatory.
9. How do I handle shekel-dollar currency conversion for US taxes?
You must convert all shekel income and expenses to US dollars for your US tax return using IRS-approved exchange rates (typically annual average rate or daily rate on transaction date). Currency fluctuations can significantly affect your reported income. Keep detailed records of shekel amounts and exchange rates used.
10. Can I contribute to a US IRA while living in Israel?
Yes, if you have qualifying earned income. If using FEIE, excluded income cannot fund IRAs, limiting contributions. If using the Foreign Tax Credit strategy, you can maintain full IRA eligibility. Given Israel's 10-year exemption and complex tax situation, many expats carefully balance FEIE and FTC to preserve IRA contributions.
11. How does the US-Israel tax treaty affect my taxes?
The US-Israel tax treaty prevents double taxation and provides guidance on which country has primary taxing rights for different income types. It's particularly important for pensions, social security benefits, and determining residency tiebreakers. The treaty includes a saving clause provision, meaning the US still taxes its citizens on worldwide income but allows Foreign Tax Credits.
12. When should I hire a US tax accountant in Israel?
Consider hiring a personal tax consultant in Israel if you have Israeli bank accounts over $10,000, qualify for the 10-year tax exemption, earn over $100,000, have Israeli pension funds, deal with shekel currency conversion, need FEIE and FTC optimization, or haven't filed US taxes in years. Israel's unique 10-year exemption and dual-strategy approach requires specialized US expat tax expertise.
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