How To File Taxes Internationally

Date Published: August 8, 2020

The systems of taxation used by different governments will vary significantly. If you have been working abroad for a number of years then you need to pay income tax to your country even if you do not receive any income in that country. The IRS usually gives tax deductions to people who live and work abroad. This is done to ensure that they do not pay double tax. For instance, you may qualify for the foreign earned income exclusion. This will reduce your taxable income considerably.

1. Visit the IRS Website

If you want to file international taxes, the first step would be to visit the IRS website. You should download the forms 1040 and 2555 together with their instructions. These forms are the ones used when filing international taxes.

2. Determine What Deductions You Qualify For

The second thing is to determine the kind of deductions which you qualify for. For instance, find out if you qualify for the foreign earned income exclusion. For you to qualify for this deductible, you must have been physically present at the foreign country for at least 330 days. This is known as the physical presence test. However, in case you do not meet this test, you can check whether you meet the bona fide residence test. This one requires you to be a residence of the foreign country for a specified duration. You can get more information on these tests on the IRS website.

3. Calculate Your Foreign Housing Deduction

It is also important to calculate your foreign housing deduction when filing international taxes. If your employer is giving you any housing, you need to deduct this value together with any related expenses from your taxable income. You might not be able to benefit from both deductions because of some limitations put in place by the IRS. You need to get the two deductions right because this is the value you are going to subtract from your taxable income. You will then get your total tax from the remaining value.



There are different methods you can use to calculate your international taxes. You need to choose the method that will give you a lower value. As soon as you fill the forms, you can submit them to the IRS treasury. There are cases whereby you might need to fill a simplified form like the form 2555-EZ in case you do not receive any housing from your employer. You can also file a tax return to help you determine whether you owe any taxes.