{"id":5046,"date":"2021-12-30T16:13:42","date_gmt":"2021-12-30T08:13:42","guid":{"rendered":"https:\/\/expattax.com\/?p=5046"},"modified":"2022-01-10T14:33:19","modified_gmt":"2022-01-10T06:33:19","slug":"u-s-expat-taxes-for-2022-2021-tax-year","status":"publish","type":"post","link":"https:\/\/expattax.com\/u-s-expat-taxes-for-2022-2021-tax-year\/","title":{"rendered":"U.S Expat Taxes for 2022 (2021 tax year)"},"content":{"rendered":"\n

Americans living overseas cannot afford to lose sight when tracking changes or updates to proposed tax changes for the 2021 year (due 2022). Even if you do not owe any money to the IRS, remember that you will likely still be required to file. The U.S. taxes every one of its citizens, no matter where in the world they choose to live. The various tax changes and updates for expats can leave you at best, confused  \u2014 and at worst, unaware.<\/p>\n\n\n\n

Under Biden\u2019s Build Back Better (BBB) framework, the top marginal capital gains tax rate could be raised to 31.8 percent by the application of a new surcharge of eight percentage points to modified adjusted gross income (MAGI) above $25 million, including on capital gains income, and this is the highest hike for fifty years, as reported by Forbes<\/a>.<\/p>\n\n\n\n

The upcoming festive season is a good opportunity to set aside some quiet time and think about getting your own house in order, when it comes to expat taxation.<\/p>\n\n\n\n

Making a list, checking it twice<\/p>\n\n\n\n

Current pandemic permitting, are you planning a move abroad this coming year?  Maybe you have already made the move to far-flung shores. You\u2019ll be required to plan logistically whether you\u2019re moving or already in situ, and that includes filing your taxes as a U.S. citizen.<\/p>\n\n\n\n

So, keep abreast of updates and upcoming changes, and ensure that you have your tax bases covered in order to avoid any penalties. Moving abroad is exciting, but, before you unpack those bags, allow us to unpack some of the proposed tax changes and jargon that goes with them, that may be likely to affect you as an American overseas in 2022.<\/p>\n\n\n\n

Unravel the acronyms to get to the forms<\/p>\n\n\n\n

You won\u2019t be alone in feeling slightly confused regarding all of the different acronyms and forms that go hand-in-hand with taxation. U.S. tax for expats can be a riddle, but is one that requires solving, so let\u2019s look at the different taxations, which ones are applicable to you and your situation, and any upcoming updates and proposed tax changes together.<\/p>\n\n\n\n

What\u2019s the FEIE?<\/p>\n\n\n\n

Head across to  IRS form 2555<\/a> for the Foreign Earned Income Exclusion (FEIE) which has been raised this year (for 2022). With the FEIE, U.S. expats may also be able to exclude other items such as housing, meals and lodging provided by your employer for their convenience, so check those fringe benefits out <\/a>too.<\/p>\n\n\n\n

Last year the limit for Foreign Earned Income Exclusion was $108,700, and for 2022 has jumped slightly to $112,000, as it has done for the past few years:<\/p>\n\n\n\n