Why Choose Optimise Accountants for Your US Tax Filing Needs?
We charge a simple fee of £129.95 per month, including VAT for simple 1040 and subforms. We have another offering of £199.95 per month for complex 1040 tax returns, including more detailed sub-forms.
The more complex service is for clients that have to file Form 5471, Form 8621, Form 3520 and/or Form 3520A.
Our price offering includes
– Preparation & Filing of US 1040 Federal Income Tax Returns
– Answers to your email tax questions within three days
– Online conference calls that you can book at your convenience
Navigating the complexities of US tax laws as an expat can be overwhelming, but you don’t have to do it alone. Optimise Accountants specializes in providing expert tax services tailored specifically for US citizens living abroad. Our team consists of Enrolled Agents (EAs) and UK-qualified tax specialists, making us uniquely positioned to handle the intricacies of both US and UK tax systems. Here’s why you should trust us to file your US tax returns with the IRS.
Tax filing season can be very stressful, especially when you have to consider two tax rules, the US and the other country you have moved to/from.
Expertise in US Tax Filing for Expats
Expats: moving to or from the US? You Must File US Taxes with the IRS.
As Enrolled Agents (EAs), we are federally authorized tax professionals specializing in US law. Our team is well-versed in IRS regulations and can help you navigate the filing process, from claiming the Foreign Earned Income Exclusion (FEIE) to securing the Foreign Tax Credit (FTC). With years of experience dealing with the specific needs of expats, we ensure that all tax deductions, exclusions, and credits are maximized—helping you minimize your tax liability while staying compliant with US tax laws.
Comprehensive Tax Planning and Guidance
We don’t just file your taxes—we provide a full-service, proactive approach to tax planning. We take the time to understand your financial situation in the US and abroad to create a customized tax strategy that maximizes savings and avoids common pitfalls. Whether you need advice on retirement savings, foreign income reporting, or tax-efficient investments, we offer comprehensive support to help you make informed decisions and achieve long-term financial success.
Stress-Free Filing, Every Time
Filing your US tax returns doesn’t have to be stressful. With Optimise Accountants by your side, you can rest easy knowing that all your paperwork is filed correctly and on time. We handle the complexities of US tax filings—ensuring that forms like Form 1040, Form 2555, and Form 1116 are submitted accurately—so you don’t have to worry about missing deadlines or facing penalties.
Whether you’re living in the UK, Europe, Asia, or anywhere else in the world, we make filing taxes a hassle-free experience.
Avoid Costly Mistakes and Penalties
The IRS has stringent rules regarding expat tax filings, and failing to meet compliance requirements can result in hefty penalties, interest, and audits. As experts in US tax laws and expat filings, we ensure that all necessary forms and declarations—like the FBAR (Foreign Bank Account Report)—are filed on time and in full. Our attention to detail helps you avoid costly mistakes so you can focus on enjoying life abroad without worrying about tax compliance issues.
The Basics: Who Needs to File with the IRS?
According to the IRS, US citizens and green card holders living abroad must file a tax return if they meet the minimum income thresholds for their filing status. In 2025, the income threshold for single filers was $15,000, and for married couples filing jointly, it was $30,000. If you earn income beyond these limits, you must file a tax return, even if you are paying taxes in your host country.
Worldwide Income Reporting: The IRS requires reporting all income, whether earned in the US or abroad.
Tax Rates: The same tax rates apply to Americans living overseas as those in the United States. However, special provisions like the Foreign Earned Income Exclusion (FEIE) allow expats to exclude foreign income from US taxation if certain requirements are met.
Foreign Tax Credit (FTC): Expats can claim a credit for taxes paid to a foreign government, preventing double taxation.
Streamlined Filing Compliance Procedures
The Streamlined Filing Compliance Procedures are designed to help U.S. taxpayers living abroad who have unintentionally failed to file their tax returns or report foreign bank accounts, allowing them to come into compliance with the IRS. This program offers a penalty-free path for individuals who can certify that their failure to file was non-willful, enabling them to catch up on missed filings for the last three years and avoid significant penalties.
Moving from California to London
Let’s take the example of Sarah, an expat who recently moved from California to London for work. As an American citizen, she must file a tax return for 2023, even though her income is earned in the UK.
Action Steps for Sarah:
Report Worldwide Income: Sarah must report her salary in London and any investment income (e.g., dividends, interest) to the IRS.
Foreign Earned Income Exclusion: Sarah qualifies under the Physical Presence Test and can exclude most of her income using the FEIE. To qualify for the exclusion, she must have been living and working outside the US for at least 330 full days over a 12-month period.
Foreign Tax Credit: Sarah pays taxes in the UK, which means she can claim the Foreign Tax Credit to reduce her US tax liability. The FTC will help prevent her from being taxed twice on the same income.
Filing Forms: Sarah will need to file Form 1040 along with Form 2555 (for the FEIE) and possibly Form 1116 (for the FTC) to report her income and tax benefits.
By following these steps, Sarah ensures she complies with both UK and US tax regulations without being double-taxed.
Moving from London to New York
Let’s look at John, a UK national moving to New York City. As a non-US citizen, John’s situation is different from Sarah’s. He must file taxes as a resident alien under US tax law.
Action Steps for John: John will need to obtain an Individual Tax Identification Number (ITN) from the IRS by completing Form W-7.
Determine Residency Status: Since John is moving to New York, he will likely qualify as a resident alien for tax purposes after meeting the substantial presence test. This means he must report his global income to the IRS.
US Tax Rates: According to the US tax rates, John must pay US taxes on all his income, both earned in the US and abroad. However, if he continues to earn income in the UK, he can claim the Foreign Tax Credit for any UK taxes paid.
Tax Forms: As a resident alien, John will file Form 1040 (the standard individual income tax return) and may need to submit additional forms to claim deductions or credits like the Foreign Tax Credit (Form 1116).
State Taxes: John must file state income taxes with New York State, which has rules for non-residents and residents.
5 Common Questions About US Taxes for Expats
Do expats have to file US taxes if they live abroad? If they meet the income threshold, US citizens and green card holders must file US taxes, regardless of where they live.
What is the Foreign Earned Income Exclusion (FEIE)? If conditions are met, the FEIE allows expats to exclude foreign-earned income from US taxation.
What forms do expats need to file? Expats typically need to file Form 1040 and may also need Form 2555 (FEIE) and Form 1116 (Foreign Tax Credit).
Can expats avoid double taxation? Yes, expats can use the Foreign Tax Credit (FTC) or the FEIE to avoid being taxed by both the US and their host country.
What happens if an expat misses the tax filing deadline? Expats can file for an extension, but any taxes owed must still be paid by April 15 to avoid penalties and interest.