GoKawiilExpat Tax Guide: US Citizens Abroad Still Owe IRS on Worldwide Income
A tax expert writing for Entrepreneur outlines that Americans living abroad remain subject to U.S. taxation on worldwide income, including side-hustle earnings like freelance work or e-commerce, even when paid into foreign accounts. The piece notes such income triggers a 15.3% self-employment tax that popular breaks like the Foreign Earned Income Exclusion and Foreign Tax Credit cannot offset.
GoKawiil's interpretation of the reporting above, not reported fact.
The guidance suggests many expats underestimate their U.S. filing obligations, particularly around foreign account reporting and small side businesses, which could expose them to penalties rather than double taxation itself. This indicates that as more Americans work remotely or freelance internationally, awareness of overlapping tax and reporting rules becomes increasingly important.
- U.S. citizens abroad must report worldwide income regardless of residence.
- Side-hustle income is taxable and subject to a 15.3% self-employment tax not covered by FEIE or Foreign Tax Credit.
- Keeping detailed records from the start helps avoid costly filing errors and missed reporting requirements.
Source: entrepreneur.com — Nathalie Goldstein, 2026-09-29
Published there as: “The IRS Doesn’t Care Where You Live. A U.S. Tax Guide for Americans Abroad”
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