Settel
Settel
Choose FEIE or foreign tax credit, file FBAR/FATCA on time, and avoid state residency surprises while abroad.
File confidentlyFEIE 2026
$126,500
FBAR trigger
$10,000
Deadline
Jun 15
Report all income annually. Automatic expat deadline June 15 (extendable to Oct 15).
Required if foreign account balances exceed $10k aggregate at any point. Filed separately from tax return.
Report specified foreign financial assets when above $200k/$400k (single) or $400k/$600k (MFJ) abroad.
CA/VA/NM/SC can still tax you. Cut ties (voter reg, property, driver’s license) to avoid state filing exposure.
Best for low-tax countries. Excludes earned income; requires 330-day physical presence or bona fide residence test.
Best for high-tax countries or investment income. Credits foreign tax; can carry back 1 year and forward 10.
FEIE can reduce retirement contribution room; FTC preserves it. You cannot use both on the same income stream.
Verify 330-day physical presence or bona fide residence for FEIE.
Gather W-2/1099, foreign payslips, dividends, and tax payment proofs.
Model both; pick FEIE for low-tax, FTC for high-tax or passive income.
Aggregate all foreign accounts; file FBAR and add Form 8938 if over thresholds.
Submit Form 1040 + schedules; extend to Oct 15 if needed.
Track days, employer withholding, and account balances to stay under triggers.
Yes. US taxes are citizenship-based. You must file Form 1040 each year reporting worldwide income.
If foreign accounts exceed $10,000 aggregate at any point in the year, you must file FBAR electronically with FinCEN.
Choose FEIE for low-tax countries and earned income; choose FTC when foreign tax rates are similar/higher or for investment income.
Settel models FEIE vs FTC, keeps FBAR/FATCA thresholds in view, and files on time so you avoid penalties.
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