Filing Taxes as a US Citizen Living in the Netherlands
How Do US Expats File Tax Returns in the US and the Netherlands?
Living in and moving to The Netherlands presents numerous challenges. US expats in the Netherlands face a significant extra challenge with the obligation to file taxes in both the US and the Netherlands. Even after relocating, US expats must file US tax returns according to US tax laws. We, as Americans abroad, created Expats Overseas to make it easier by streamlining tax filing for US expats and assisting to prevent double taxation and stay compliant.
How Does Filing in Two Countries Work?
The US has a citizen-based taxation system, obligating all US citizens to file tax returns regardless of their country of residence or workplace. This means that you must file a local tax return in the Netherlands and a tax return in the US. Each country has unique forms and regulations.
How Do You Avoid Double Taxation?
Filing US taxes from abroad involves complex differences from domestic filing. US expats can avoid double taxation through mechanisms like the Foreign Earned Income Exclusion, Foreign Tax Credit, and specific deductions, in line with US-country tax treaties. Often, taxes paid in the country of residence offset most US tax liabilities. It’s advisable to consult an experienced tax consultant to apply the rules correctly.
How Does the Filing Process Work?
At Expats Overseas we offer free information and a free intake to give you information and peace of mind. Good to know: there is no obligation if you don’t continue with us.
Our second step simplifies the process by offering an easy to use tax organizer, enabling the collection of all necessary information for both tax returns at once. This step also includes the Foreign Bank Account Report (FBAR) in your preparation, ensuring all foreign bank accounts are reported annually to the IRS.
The last step is approving the tax return(s) and then they will be electronically filed.
Our team is available for questions every working day by phone and email. We are easy to reach and respond swiftly to questions you might have.
Forgot to File Previous US Tax Returns Years?
If you're behind on your US tax obligations or weren't aware of your filing requirements while living in the Netherlands, the IRS's Streamlined Procedure allows you to update your filings without penalties. This involves submitting the last three years of tax returns and six years of FBARs. Expat Overseas can help you become compliant again.
How to Choose the Right (US) Tax Preparer
When selecting an expat tax advisor, consider these tips:
- Look for someone with expertise in international US taxation – it's essential they're well-versed in the rules of filing US expat taxes from overseas. For example, knowledge of the application of the 30% ruling for Expats in the Netherlands.
- Check if they're listed in the IRS's Directory; this verifies they're a qualified CPA (Certified Public Advisor) or EA (Enrolled Agent).
- Ensure they're committed to personally signing your tax return using their PTIN. This adds a level of responsibility.
- Choose an advisor who communicates clearly and provides efficient tools for sharing information.
Experts in US Expat Taxation
Our company Expat Overseas, founded by American Expats in the Netherlands, has a clear understanding of how to streamline the process and accurately apply the tax treaty and tax credits.
We offer an easy-to-use online tax organizer for submitting your information in one go, competitive pricing, and a fast turnaround time of just four weeks after receiving all needed information and documents.
We highly value personal service and respond quickly to any questions. We have assisted more than 18,000 individuals with their tax needs and proudly maintain a 4.8-star rating on Trustpilot with 1000+ reviews. Contact us free of charge and without any obligation.