A plain-English guide to the four rules that matter most for Americans earning or living abroad, and how BizBud’s digital nomad tax service keeps you compliant with all of them.
These four rules overlap, get confused for one another, and carry some of the steepest penalties in the entire tax code. Here’s where people usually go wrong:
FBAR and FATCA both involve reporting foreign accounts, but they’re separate filings with different forms, thresholds, and even different government agencies. Missing one because you filed the other is one of the most common mistakes we see.
Tax treaties between the US and dozens of other countries can reduce or eliminate double taxation, but only if you know they exist and claim them correctly. Most generalist accountants never look.
The Foreign Earned Income Exclusion has specific qualification tests and an election that, once missed, can be difficult to revoke or reclaim in later years.
The Four Rules That Matter Most for Americans Abroad
FBAR (FinCEN Form 114) is required if the combined value of your foreign bank, investment, or other financial accounts exceeded $10,000 at any point during the year, even if you never lived abroad. It’s filed separately from your tax return, and penalties for missing it can be steep even when no tax is owed. BizBud reviews your foreign accounts each year and files your FBAR alongside your return.
FATCA (the Foreign Account Tax Compliance Act) requires many foreign financial institutions to report US account holders directly to the IRS, and requires you to report certain foreign assets on Form 8938 if you’re above the filing threshold. It’s easy to assume FBAR covers you here, but the two filings have different thresholds and neither substitutes for the other. BizBud checks both so nothing slips through.
The US has tax treaties with dozens of countries that can reduce withholding rates, clarify which country gets to tax what, and provide tie-breaker rules if you’re considered a tax resident of two places at once. Treaty benefits usually have to be actively claimed. BizBud reviews what your country’s treaty actually offers and applies it to your return.
The Foreign Earned Income Exclusion lets qualifying Americans abroad exclude a portion of their foreign earned income from US tax, using either the bona fide residence test or the physical presence test. Once you elect it, undoing that choice in a later year has its own rules. BizBud models whether FEIE or the Foreign Tax Credit gets you the better outcome before you file.
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I’m just like the creators I work with —
I understand the mix of freedom and chaos that comes with a global lifestyle. My goal is to make bookkeeping and taxes simple, clear, and stress-free so you can focus on what you do best.
– Cameron Botes, Founder & Tax Advisor
See why Americans abroad trust us to get FBAR, FATCA, treaties, and FEIE right
Don’t lose your hard-earned cash to missed deductions or tax penalties. Schedule a call with the BizBud to see how we can help lower your next tax bill.
Still have questions about FBAR, FATCA, treaties, or FEIE? Here’s what we get asked the most. Ready to get this handled for you? See our Digital Nomad Tax Services.
Yes. US citizens are required to file federal tax returns regardless of where they live, and most also have to report foreign bank accounts and financial assets. BizBud walks through every filing requirement so nothing gets missed.
FBAR (FinCEN Form 114) and FATCA (Form 8938) both involve reporting foreign financial accounts, but they’re separate filings, sent to different agencies, with different thresholds and forms. Many people assume filing one covers the other, and that assumption is one of the most common expat filing mistakes. BizBud reviews your accounts against both sets of thresholds every year.
The FEIE lets qualifying US citizens living abroad exclude a portion of foreign earned income from US tax. BizBud handles FEIE planning as part of its digital nomad tax service, including whether you qualify and how to apply it correctly.
The US has tax treaties with dozens of countries that can reduce withholding rates, resolve dual tax residency with tie-breaker rules, and clarify which country taxes which income. These benefits generally have to be claimed, not just assumed. BizBud reviews your specific country’s treaty and applies whatever benefits actually apply to your situation.
Nomad specific deductions go well beyond what a generalist accountant looks for. Co-working spaces, business travel, equipment, and home office equivalents are common ones BizBud applies and documents for clients.
Yes. BizBud handles personal and business filings, bookkeeping, and ongoing compliance for digital nomads, including US individual and business returns (1040, 1065, 1120S, 1120) and tax efficient pay setup like salary, draws, and dividends.
It matters a lot. Most accountants are built for W-2 employees with a fixed address. BizBud works exclusively with remote earners and global clients, so multi-currency income, platform payouts, and foreign bank accounts are already familiar territory.
Yes, no matter where you're based. BizBud works with US citizens and non-US citizens living and working abroad, regardless of country, to help you save the most in taxes based on your goals. If you're a foreign owner of a US business, check out our international tax services for the details on that.
