Trump's 2025 Tax Law: What Expats Need to Know

Satan, Hitler, Mao, Stalin… No force of evil can match the IRS.

This thumb sounds threatening. Is it clickbait?

Something I think you missed, once you establish overseas residency, usually 183 or more in another country. These countries consider you a resident and also tax worldwide income. So do your research folks.

That’s it? I thought you said there were positives? Was I the only one who heard Trump rallying saying that expats should not pay taxes if living abroad?

Who else heard that promise and now feels deceived?

Expats are not driving on US streets, over US bridges, nor using ANY US infrastructure. Why shouldn't there be huge tax breaks for them?

I’m thinking about the money transfer change.
So you said ACH transfer is excluded. Is that like where we use an IBAN to make an electronic transfer? For example currencies direct or from an investment account?
What is an example of a transfer that is subject to the 1% now? Would it be if I carry cash across a land border?

As there are sooo many Foreigners living and working in The US sending $ back to their families The Gov. WANTS 'its cut' - of course!

I was hoping you are going to say that Trump got rid of FATCA!
It forces non-USA government to snitch on their citizens, bureaucracy that blocks normal financial activity that requires endless form-filling and re-filling whenever changes are made: kind of reminds me of children snitching on their parents to the Nazis/Communists.
Most non-communist countries - yes, USA has became communist because of the #ShittyLeft that infested all organizations - do not tax out-of-country income, nor require to report it. USA will tax a "US affiliated person" for salary on mining minerals on Orion...

This is why Crypto is the future.

The US is the only country I know that follows their citizens all over the world in order to bleed them dry for tax money.

U.S. states with no state income tax are: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming.

The IRS owes me so much in tax returns that they refuse to pay out. I'd be living free for a year.

The comments thread shows the incredible level of ignorance in the USA over this issue.

NO, this US exceptionalism of applying the full tax code to citizens abroad who have been gone many years (or may NEVER have been to the USA!) is not made all OK because of the Foreign Earned Income Exclusion (FEIE) because people who truly live elsewhere have and need financial lives that go far beyond the limited relief from US taxes on wages that the FEIE gives. Actual taxes paid to the USA are likely the least of the problems caused so relief from taxes is not much relief!

The need to invest for retirement alone has forced many thousands of US citizens abroad out of their US citizenship! Oh, and try taking part in business and competing when only you have the cost of US reporting and taxes, try getting a business partner or finance. Americans abroad are under what amounts to an effective ban on taking part in local tax deferred or taxed advantaged retirement planning or in taking part in business.

Hell, even a marriage to a "non-resident alien" abroad is effectively punished under US tax code and associated laws, senator Don Beyer when posted to Switzerland reported that he has seen marriages broken up over this, so have I.

Secondly, the reporting regime is INSANELY complex and expensive and as a cherry on the top, comes with far higher penalties for any error or omission than US based reporting does, and due to the complication (and ambiguity) it is far FAR easier to make those mistakes reporting and filing from abroad. FBAR is a doozy - why do Americans abroad have to report their bank accounts and balances to a US criminal investigation unit, FinCEN? Why is the penalty circa $160,000.00 if the failure to report is deemed wilful?

Let me make a brief and incomplete list of the joys of US citizenship abroad caused by this US exceptionalism of applying the full and enhanced US tax code and associated laws to citizens abroad, in no particular order. ......


1: US citizens abroad are criminalised by the US, FBAR is the clearest example but there are more. US tax code and laws see "foreign" as something suspicious, possible tax evasion and to be discouraged - then applies exactly the same harsh and punitive principles to those living abroad who must have foreign financial lives by necessity.

2: US citizens abroad are made second class residents of those nations, denied basic privacy and data protection rights due to US law (FATCA) and made financial pariahs due to the same, more on that later.

3: Reporting any sort of grown up financial life from abroad is more expensive than reporting in the US, sometimes dramatically so as A: The IRS are no damned help at all (see linked report below) and specialist help in nation of residence that fully understands both tax codes and how they interact under the treaty (if any) will generally start at around $600 an hour. I have seen one return which by IRS own form estimates came in at 226 hours!?

4: US citizens abroad are treated unconstitutionally and as second class Americans, the warrantless search under FBAR is again a good example but there are others, the insane penalties associated with FBAR and forms such as 3520 and 3520-A are clearly excessive under the excessive fines clause but the US gets around that by claiming they are not fines but compensation to the government. Forcing citizens abroad to renounce is unconstitutional and a human rights issue.

5: Actual taxes , when they occur are just plain nasty and in some cases deeply immoral, not only an attack on the individual (and entire family who may not even be Americans)) but an attack on the sovereignty of other nations. When other nations give their residents a break the USA should not be stepping in to fill the gap. Examples of deeply immoral taxation include but are not limited to punitive and confiscatory US taxation of foreign retirement vehicles, US taxation of social payments including unemployment, disability, maternity etc.

6: US tax code and associated laws cause serious issues for employers, denial of jobs and promotions, stunted careers are another joy of US citizenship abroad. The financial pariah issue which is a theme here.

7: Inability to take part in business, US reporting costs, taxes, inability to get a sane partner and banks that refuse to have you as a client are just the start, and speaking of banks. Again, financial pariah, unclean!

8: US citizens are denied financial accounts all over the world, US laws (FATCA) made US citizens expensive and potentially dangerous clients that are best avoided. Last I looked, in the banking center of Europe, Switzerland, only one bank would accept US clients and that is with conditions and restrictions. Vanguard UK has NO US CITIZENS featuring highly on it's ISA website. Again, financial pariah.

9: US citizens abroad can find it impossible to save and invest efficiently for retirement in their nation of residence and no, saving in the USA is not an option for most as they are not US resident and it will not be treated well by their nation of residence. Some poor bastards are forced to save in local retirement planning which is punitively taxed by the USA.

10: Financial security is impossible, not only the ever present threat of a monstrous fine for a mistake with a form, but because of the US governments tendency to change the law with a complete disregard for the impact on Americans abroad. It has brought in ruinous changes time and time again, from back in the 60's when Americans abroad woke up to find they owed more in taxes than they earned, to 2017 when thousands of Americans abroad found their retirement savings wrecked going all the way back to 1986 (!) with Section 965 and GILTI.

I have to stop here but I could easily go to 20 and more.

Make no mistake, the US tax code and associated laws make property of people (you can find you own word for that) and those people are NOT welcome to lead full, law abiding family lives outside of the USA, and make no mistake, the acceptance of FATCA all over the world and the agreement to US tax treaties means other nations have accepted this property claim over people.

Land of the free, my ass.

https://www.taxpayeradvocate.irs.gov/wp-content/uploads/2024/01/ARC23_MSP_09_Compliance-Abroad.pdf

I thought the "Big Beautiful Bill" was tied up in Congress and hasn't gotten to Trump's desk for signature yet.

What changes will there be for fatca or FBAR?

...another thing ot changed is that xpats get no Medicare coverage, despite having to continue paying premiums - BLATENTLY UNFAIR!

I thought we were getting rid of the IRS?

It’s ridiculous we even have to file. Only the US and some country in Africa require expats to pay taxes.

You said use debit card but not say what country it needs to be in

Don't forget that if you are self-employed and live overseas, you pay 15.3% self employment tax with no exclusion for living permanently overseas. There is a benefit to this. The self employment tax goes into social security and medicare allowing benefits to be maximised upon retirement. If a foreign employer employs you, you might not pay into social security. That's what happened to me. I lived in a country with a totalisation agreement and for many years as an expat didn't pay into social security. In 2012, I realised my social security benefits would have been very low so at that point, I became self employed and paid the self-employment tax. By the time I claimed benefits at 70, I got the full amount.

Could you explaining how to get in compliace after many years of not filing?

I'm sick of the greed and I'm sick of america. I wish I could afford to get the hell out of here

Jesus Christ, there’s a lot of fluff/self promotion in this video. Get to it, already.

DT can not make tax law with Congress out of session.

Time is coming to push back and dismiss all of them.

Just to clarify with the 1% remittance tax you had mentioned, what if it's something like Paypal from the US to Japan (for my sister and friends stateside sending me gift money for holidays). Is the remittance tax needed in that situation, or is it excluded?

@SavvyNomad I don't know what's up with your page but you tend to attract a disproportionately large number of far right trolls, MAGA fanatics and more generally shockingly ignorant Americans. Why they are on here truly baffles me.

The problem for expats permanently living abroad isn't the amount of U.S. tax owed, which is probably zero, it's the cost and hassle of having to file every year.

Where can I find an American CPA in Cebu?

I’m retired and thinking of living abroad. Are there any rules or restrictions regarding on social security that apply to expats?

This is nothing more than a commercial for the scumbag to help you cheat on your taxes

If they taxed the rich, they would not have to tax the poor

Its taxing cooperations who use shell companies to avoid tax.

Ha ha ha WHAT TAXES!? WE ALL GETTING PAID CASH OVER HERE IN VIETNAM!
I have paid taxes for like 8 years! 🤣🤣🤣
You absolute CHUMPS!

Someone has to pay for trumps golf games and make up for what the rich dont have to do?

Don't put out videos without specifying that you are not talking about retirees. I wasted this time watching this.

This and shutdown - no taxation without representation

What Ex-Pats need to know is, there is nowhere a legal status of "Ex-Pat". "Ex-Pat" is a name such people give themselves to differentiate between themselves and the poorer immigrants who leave a country they didn't want to, but needed to to find a better life. We're talking about self-assumed privilege, lifting oneself from the great unwashed immigrants and refugees.
No host country has anything called "Ex-Pat" as a foreigner status, visa type, work permit etc. It's like a "normal" person tacking on the title of "Sir" or "Dame". It's not even something non-Anglo-Saxon people use as terminology. You'll never find that term in another language.
When I immigrated to Switzerland, I first came for 1 year as a student, I did not get an "Ex-Pat" status. I got a normal "A" student residency. Later, when I married a Swiss lady and decided to stay, I did not an "Ex-Pat" status, I got the normal "B" Aufenthaltsbewilligung. Later, after having ingested been 10 years in one Canton, I got my "C" Niederlassungsbewilligung", Still not "Ex-Pat". And now that I'm a Swiss citizen and renounced my US citizenship, I certainly am not an "Ex-Pat". Even the derogatory "Papierschweizer" terminology I seldom if ever hear, is not official - it's something OTHERS want to label me, that has nothing to do with legal status.