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If you’re a US citizen or green card holder living abroad, you still file a US return every year, but that doesn’t mean you owe US tax. The two main tools, the Foreign Earned Income Exclusion (Form 2555) and the Foreign Tax Credit (Form 1116), can each reduce your bill to zero. Picking the wrong one, though, can cost you real money and switching later locks you out of the exclusion for five years.

The right answer depends on where you live. High-tax countries like Japan and Portugal usually favor the credit. Lower-tax situations in Mexico often favor the exclusion. Self-employed? There’s a 15.3% trap waiting that neither one fixes, and whether you can escape it depends entirely on your country.

This planner runs your numbers in about two minutes. You’ll see an estimated side-by-side comparison, country-specific flags for Japan, Portugal, and Mexico, and a checklist of the forms you likely need — including FBAR and FATCA reporting that most expats don’t find out about until the penalty letter arrives.

No email required to see your results.

US Expat Tax Planner | Lathrop & Associates, CPAs
Lathrop & Associates, CPAs · Expat Tax Services

US Expat Tax Planner

For US citizens and green card holders living abroad. Answer a few questions and see how the Foreign Earned Income Exclusion compares with the Foreign Tax Credit — plus the forms you likely need to file.

Where do you live?

Your country of residence and time abroad determine which tests and treaty rules apply.

330+ full days in any 12-month period satisfies the physical presence test.
Please choose a country, enter your days abroad, and answer the state question.

Your income

Estimates in USD for the tax year. Round numbers are fine — this is a planning tool, not a return.

Income tax only — not social insurance or VAT.
Used for the foreign housing exclusion or deduction. Enter 0 if you own your home outright.
Please choose an employer type and enter your income (foreign tax and housing can be 0).

Foreign accounts

Account reporting is separate from income tax — and the penalties for missing it are some of the steepest in the code.

Count all accounts together, including accounts you only have signature authority over.
Please answer the account question.

Your planning summary

Country notes

Watch-outs

Your likely filing checklist

    This is an estimate, not tax advice. Figures use simplified assumptions (standard deduction, no dependents or other credits, all income foreign-sourced, current-year limits) and do not account for treaty elections, state tax, currency timing, or your full facts. The FEIE vs. FTC decision has multi-year consequences — revoking the exclusion locks you out for five years without IRS consent. Confirm your situation with a CPA before filing.

    Get a personalized expat tax review

    Lathrop & Associates, CPAs works with Americans abroad in Japan, Portugal, Mexico, and beyond — returns, planning, and catch-up filings under the streamlined procedures.

    Opens an email to parker@lathrop.cpa with your summary attached. We never share your information.
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