Which US CPA should an American living abroad use when they own a business, property or foreign accounts?
US citizens file a US return on worldwide income no matter where they live, and the return gets harder, not easier, when you own a US S-Corp, rent out property or hold foreign accounts, companies or pensions. Fluency Tax handles the US side for Americans abroad who have something to plan around: the foreign earned income exclusion or foreign tax credit choice, self-employment tax abroad, S-Corp and rental reporting from overseas, FBAR and Form 8938, and catch-up filing under the streamlined procedures.
Ethan Zieja, CPA, is licensed in Georgia and practices federal tax nationally. Clients are served fully remotely, in any time zone, through a secure portal.
Who this is for
US citizens and green card holders living abroad who run a US business, including an S-Corp, or work for themselves.
Americans abroad who own rental property in the US or in their country of residence.
Americans with foreign bank accounts, a foreign company, foreign mutual funds or a foreign pension.
Americans who have not filed for several years and want to get compliant.
Digital nomads with no fixed country.
Americans working abroad on a salary from a US or foreign employer.
Who it isn't for
Non-US citizens with no US filing requirement.
Anyone who wants a local accountant in their country of residence. We handle the US side and coordinate with your local accountant.
What we actually do
FEIE or the foreign tax credit
The foreign earned income exclusion (Form 2555) excludes up to $132,900 of foreign earned income for 2026 if you meet the bona fide residence or physical presence test. The foreign tax credit (Form 1116) credits foreign income tax paid, but not tax on income you've excluded. The right choice depends on your country's tax rate, your income type and whether you have children, because claiming the exclusion blocks the refundable part of the child tax credit. Revoking the exclusion locks you out for five years without IRS consent, so it is a decision, not a default. More in FEIE or the foreign tax credit for the self-employed.
Self-employment tax abroad
The exclusion removes income tax, not self-employment tax. Self-employed Americans abroad owe US self-employment tax (15.3%, with the 12.4% Social Security part applying to the first $184,500 of 2026 earnings) unless a totalization agreement with their country of residence assigns them to that country's system, documented with a certificate of coverage from that country's social security agency. We check the agreement before the first return. See self-employment tax abroad.
Your US S-Corp from overseas
US citizens can keep an S-Corp while living abroad. W-2 wages for work performed abroad can qualify as foreign earned income; distributions can't. The S-Corp still files Form 1120-S, still runs payroll, still needs reasonable compensation, and still files in its home state. We keep all of it running and coordinate the salary with the exclusion. More in keeping your S-Corp when you move overseas.
Rental property on both sides
A US rental stays on Schedule E. A rental in your country of residence also goes on Schedule E, depreciated over 30 years under the alternative depreciation system (40 years if placed in service before 2018) with no bonus depreciation, and the foreign tax paid on the rent claimed as a credit on Form 1116.
Foreign accounts, companies and funds
FBAR (FinCEN Form 114) when the combined value of your foreign accounts exceeds $10,000 at any point in the year. Form 8938 at higher thresholds for taxpayers living abroad ($200,000 at year-end or $300,000 at any time for single filers; double for joint). Form 5471 when you acquire or hold 10% or more of a foreign corporation, every year if the company is US-controlled. Form 8621 for foreign mutual funds and ETFs, which are usually passive foreign investment companies taxed under default rules that add an interest charge. Form 3520 for foreign trusts and large foreign gifts. Penalties for a missed Form 8938 or Form 5471 start at $10,000 per form, so the review of what you own is the first thing we do. See FBAR vs Form 8938.
State residency
Moving abroad does not automatically end your state residency. Georgia taxes residents on worldwide income, and its rules keep a resident a resident until they become a permanent resident of another state, so moving abroad alone may not end it. Domicile is a facts question: your driver's license, voter registration, property, and where you intend to return. We document the break, or the continuing filing requirement, before the first return. See state tax after moving abroad.
Catch-up filing
Americans abroad who have not filed can use the Streamlined Foreign Offshore Procedures: the last three years of returns, the last six years of FBARs, and a non-willful certification on Form 14653, with no penalties for eligible filers (the tax and interest are still due). This is the most common first engagement for this niche and the one with the most at stake, so it is done carefully. See how the streamlined procedures work.
How it works
It starts with a free 20-minute intro call in your time zone, where we go over what you own and where and agree a fixed fee for the US return, the information forms, any state return and, when needed, the streamlined package. Deadlines are built in: Americans abroad get an automatic extension to June 15, an extension to October 15 with Form 4868, and can request December 15 by letter. FBAR is due April 15 with an automatic extension to October 15.
What it costs
Fixed fee, set on the intro call based on what you own and where. You get the number before you sign.
Common questions
- Do I have to file a US tax return if I live abroad and pay tax there?
Yes. US citizens are taxed on worldwide income wherever they live. The foreign earned income exclusion or the foreign tax credit usually removes the double tax, but not the filing requirement.
- Should I use the foreign earned income exclusion or the foreign tax credit?
It depends on your country's tax rate, your income type and whether you have children. The exclusion blocks the refundable part of the child tax credit. Unused foreign tax credits carry forward 10 years. See FEIE or the foreign tax credit.
- Do I owe self-employment tax if I live abroad?
Yes, unless a totalization agreement between the US and your country of residence assigns you to that country's social security system and you have a certificate of coverage from that country's agency. See self-employment tax abroad.
- Can I keep my S-Corp if I move overseas?
Yes, as a US citizen. Wages for work performed abroad can qualify for the exclusion; distributions can't. The 1120-S, payroll and the state filing all continue. See keeping your S-Corp abroad.
- Do I still owe Georgia tax after moving abroad?
Possibly. A Georgia resident stays a resident until becoming a permanent resident of another state, so it turns on your domicile. Georgia starts from federal adjusted gross income, so income you exclude federally stays excluded, but Georgia gives no credit for tax paid to a foreign country. Document the break before your first return abroad. See state tax after moving abroad.
- What is the difference between FBAR and Form 8938?
They go to different agencies (FinCEN and the IRS), use different thresholds, and many Americans abroad need both. See FBAR vs Form 8938.
- I haven't filed in years. What happens now?
Most Americans abroad who stopped filing can use the Streamlined Foreign Offshore Procedures: three years of returns, six years of FBARs and a non-willful certification, with no penalty if you're eligible. See the streamlined procedures.
- What are the filing deadlines for Americans abroad?
Your return is automatically extended to June 15, can be extended to October 15 with Form 4868, and a further extension to December 15 can be requested by letter. Interest on unpaid tax still runs from April 15. FBAR is due April 15 with an automatic extension to October 15.
Articles
Foreign earned income exclusion or foreign tax credit: which should a self-employed American abroad use?
It depends mostly on how much foreign income tax you pay, and neither choice removes US self-employment tax. For 2026 the foreign earned income exclusion removes up to $132,900 of earned income from income tax, which usually wins in a low or no-tax country. In a high-tax country the foreign tax credit often gets US income tax to zero anyway, carries unused credit forward, and avoids the exclusion's costs.
Do I still owe Georgia (or my state) income tax after moving abroad?
Possibly. Georgia treats a resident as a resident until they show they have become a legal resident or domiciliary of another state, so moving abroad does not end Georgia residency by itself. A Georgia domiciliary living abroad in 2026 is taxed on worldwide income at Georgia's 4.99% rate. Income excluded federally under the $132,900 foreign earned income exclusion stays out, but Georgia gives no credit for foreign income tax.
General information for educational purposes, not advice for your situation. Tax rules change; talk with a CPA before acting.