Starting the Year Right: Key First Steps for Expats During Tax Season

Expats often earn income from more than one source or jurisdiction. Start by listing every income stream, including employment, consulting work, rental property, investments, or pensions.

Having a clear overview early allows time to request missing statements from foreign employers or institutions before deadlines tighten.

Foreign bank and investment accounts come with separate U.S. reporting obligations that exist outside the tax return itself. This is the best time to:

• Confirm which accounts were open during the year

• Review highest balances

• Ensure you can access year-end statements

Waiting until later can make this process rushed and error-prone.

Many expats default into filing without revisiting strategy. Early in the season is when you should reassess whether your current approach still fits your circumstances.

Questions worth addressing include:

• Does your residency status still support your chosen filing method?

• Are exclusions or credits being applied efficiently?

• Have changes in income or location altered your tax exposure?

Strategy adjustments are far easier before forms are prepared.

Leaving the U.S. does not automatically end state tax obligations. If you maintained ties to a particular state, this is the right time to confirm whether you still have filing or payment responsibilities at the state level.

Resolving this early helps avoid unexpected notices later.

Americans abroad benefit from extended filing deadlines, but those extensions can create a false sense of security. Taxes owed are still tied to earlier payment dates, and interest accrues even if paperwork is delayed.

Knowing your personal timeline upfront helps you plan realistically rather than react under pressure.

Early preparation gives expats flexibility. It allows time to correct records, evaluate options, and make informed decisions rather than default ones.

Late starts limit choices and increase the risk of mistakes, amendments, or missed opportunities.

At Mertz International Limited, we work with Americans worldwide to help them approach tax season with structure and confidence. Our focus is not just on filing accurately, but on ensuring each year supports the next through thoughtful planning and compliance.