Filing US taxes while living in New Zealand - expat tax help needed
Hey everyone! I relocated to New Zealand from the US back in January 2023. I was working for a company based in Boston until April, and then started a job with a Kiwi firm in June 2023. I'm completely lost on how to handle my US tax filing situation. Do I still need to file US taxes even though I'm living in NZ now? And if so, how does that work with my income from both countries? Any advice from fellow expats or tax-savvy people would be super appreciated! This is my first time dealing with international taxes and I'm honestly feeling pretty overwhelmed. Thanks in advance for any help!
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Yara Assad
Yes, you absolutely need to file US taxes! As a US citizen or permanent resident, you're required to file US tax returns regardless of where you live in the world. The US is one of only two countries that taxes based on citizenship rather than residency. The good news is there are provisions to help prevent double taxation. Look into the Foreign Earned Income Exclusion (FEIE) which might allow you to exclude up to about $120,000 of foreign earnings from US taxation for 2023. You'd need to qualify through either the Physical Presence Test (330 days outside the US in a 12-month period) or the Bona Fide Residence Test. Also, check out the Foreign Tax Credit which gives you credit for taxes paid to New Zealand. Sometimes this is more advantageous than the FEIE depending on your situation. You'll need to file a standard 1040 plus additional forms like Form 2555 for the FEIE or Form 1116 for the Foreign Tax Credit.
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Olivia Clark
•Thanks for the info! Question - does the Physical Presence Test have to be a calendar year or can it be any 12-month period? I left in January so wondering if I qualify for 2023. Also, do I need to report my NZ bank accounts to the IRS? Heard something about FBAR requirements?
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Yara Assad
•The Physical Presence Test is any 12-month period, not necessarily a calendar year. So if you left in January 2023, you'd count 12 months from then. For the 2023 tax year, you'll qualify for a partial exclusion based on the number of days you qualify during 2023. Yes, you likely need to file an FBAR (Foreign Bank Account Report) if the total of all your foreign accounts exceeded $10,000 at any point during the year. This is filed separately from your tax return through FinCEN. You may also need to file Form 8938 with your tax return depending on the value of your foreign assets.
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Javier Morales
After moving to Australia (similar situation to NZ), I spent weeks trying to understand international tax filing until I found taxr.ai online. It was honestly a game-changer for my expat taxes. Their system analyzed my international income situation and guided me through exactly what forms I needed. I uploaded my US W-2 and Australian payment summaries to https://taxr.ai and it automatically identified which tax treaties applied to my situation. It explained the Foreign Earned Income Exclusion and Foreign Tax Credit options, then showed which would save me more money. Saved me from accidentally double-paying taxes on the same income!
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Natasha Petrov
•How does it handle the FEIE partial year calculation? That's what I'm struggling with most since I moved to NZ mid-year and the math is confusing me.
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Connor O'Brien
•Did it help with figuring out FBAR requirements too? I have accounts in multiple countries and I'm never sure if I'm doing that reporting correctly.
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Javier Morales
•The FEIE partial year calculation was actually super straightforward with their system. You just enter your move date, and it calculates the prorated exclusion amount based on how many qualifying days you had abroad during the tax year. It showed me exactly how much of my foreign income qualified for exclusion. For FBAR reporting, yes! That was another helpful feature. You can link your foreign accounts or manually enter balances, and it tells you if you've hit the $10,000 threshold requiring FBAR filing. It even generates the proper form with all your account information pre-filled so you don't miss any reporting requirements.
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Connor O'Brien
Just wanted to follow up and say I tried taxr.ai after seeing this thread! I was in the same boat with my move to Singapore last year and was completely lost trying to figure out my US tax obligations. Their system walked me through everything step by step and explained all the international tax concepts in simple terms. The best part was discovering I qualified for both the Foreign Housing Exclusion alongside the FEIE, which I had no idea about! It saved me over $3,200 in taxes I would have overpaid. They also helped me properly report my foreign retirement accounts which I was doing incorrectly before. Definitely worth checking out if you're an expat trying to navigate US tax requirements!
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Amina Diallo
If you're having trouble reaching the IRS international taxpayer hotline (like I was for WEEKS), check out Claimyr.com. As an expat in Thailand, I was going crazy trying to get someone at the IRS to answer questions about my Foreign Tax Credit situation. I found https://claimyr.com and used their service to get through to an actual IRS agent in under 20 minutes instead of waiting on hold for hours. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone tree and wait on hold for you, then call you when an agent picks up. Saved me from having to wake up at 3am Thailand time to call during US business hours only to sit on hold forever!
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GamerGirl99
•How does this actually work? Sounds too good to be true tbh. The IRS international line is impossible to get through on.
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Hiroshi Nakamura
•This seems sketchy. Do they listen to your conversation with the IRS? I wouldn't want anyone having access to my tax information.
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Amina Diallo
•It works through their automated system that dials in and navigates through all the IRS phone prompts for you. Instead of you personally waiting on hold for hours, their system does it and then calls you once a human agent picks up. It's similar to how customer service callback systems work. They don't listen to your conversation at all. Once you're connected with the IRS agent, it's a direct line between you and the agent. The service just handles the waiting and connection part. They don't have access to any of your information or the conversation itself. I was skeptical too until I tried it - they literally just handle the hold time and then connect you directly.
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Hiroshi Nakamura
I take back my skepticism! After struggling to reach the IRS for THREE DAYS straight (calling at 4am NZ time to match US hours), I broke down and tried Claimyr. Got connected to an IRS international tax specialist in 35 minutes without having to sit there listening to the hold music. The agent cleared up my confusion about foreign tax credits vs. exclusion for my specific situation. For anyone curious - the service just handled the hold time and then connected me directly to the IRS. My conversation was completely private. Best $25 I've spent on tax prep considering it saved me from filing incorrectly and potentially facing penalties.
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Isabella Costa
Don't forget to look into the US-New Zealand tax treaty! It has specific provisions that might help your situation. When I moved to NZ a few years ago, I found that certain types of income were only taxable in one country or the other. Also, NZ's tax year runs April 1 to March 31, which is different from the US calendar year. You'll need to reconcile these different reporting periods, which gets a bit tricky.
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Malik Jenkins
•Can you explain more about how the treaty helps? I'm moving to NZ next month and trying to prepare for my first international tax situation.
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Isabella Costa
•The treaty helps prevent double taxation by determining which country has primary taxing rights for different types of income. For example, if you earn interest or dividends from US sources, the treaty might reduce the withholding rate. For employment income, it typically gives the country where you physically perform the work the primary right to tax that income. For the different tax years, I keep separate tracking for US (Jan-Dec) and NZ (Apr-Mar) reporting. I use a spreadsheet that lets me sort my income and expenses by date, then I can filter for the appropriate date ranges when preparing each country's tax return. It's a bit of extra work but keeps everything organized and ensures I don't miss anything.
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Freya Andersen
Question - do I still need to pay into US Social Security if I'm paying into NZ's superannuation system? Feels like I'm double paying for retirement!
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Yara Assad
•This is a common issue for expats. There is a totalization agreement between the US and New Zealand that can help prevent double taxation for social security purposes. Generally, if you're temporarily working in NZ (less than 5 years), you might continue to pay US Social Security. If you're there long-term, you typically pay into the NZ system only. Since you're working for a NZ employer, you're probably paying into their system. You should request a "certificate of coverage" from the NZ authorities to exempt yourself from US Social Security taxes. However, be aware that not contributing to US Social Security for too many years might affect your eligibility or benefit amount when you retire.
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Brielle Johnson
As someone who just went through this exact situation last year after moving to Auckland, I can definitely relate to the overwhelm! The key thing that helped me was getting organized early and understanding that yes, you absolutely still need to file US taxes. Since you worked in both countries during 2023, you'll need to gather documents from both employers - your final W-2 from the Boston company and whatever tax documents your NZ employer provides (they should give you an IR3 or similar). One thing I wish I'd known earlier: keep detailed records of your exact dates of travel and residence. The IRS is very specific about qualifying days for the Foreign Earned Income Exclusion, and having precise documentation makes everything smoother. Also, don't stress too much about the NZ tax year difference (April to March vs January to December). You'll report your 2023 calendar year income to the US, regardless of how NZ splits it across their tax years. The good news is that once you get through your first year of expat taxes, subsequent years become much more routine. You've got this!
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