How do US taxes work if I leave the country but still have US citizenship?

Wait, so does this FEIE thing mean I don't pay any US taxes on the first $126k I earn abroad? And what if my job is remote but for a US company that just lets me work from anywhere? Does that still count as "foreign earned income"?

The FEIE allows you to exclude up to $126,500 of foreign earned income from US taxation, but you must meet either the bona fide residence test (living in a foreign country for an uninterrupted period including an entire tax year) or the physical presence test (physically present in a foreign country for 330 full days during a period of 12 consecutive months). For remote work, what matters is your physical location, not the company's location. If you're physically working in Spain, even for a US employer, that income generally qualifies as foreign earned income for the FEIE. However, there can be complications if you're considered an independent contractor versus an employee, so consulting with an expat tax specialist is recommended.

Does it handle FBAR reporting too? Those foreign bank account reports are what I'm most worried about since I heard the penalties are insane if you mess those up.

I'm kinda skeptical... does it really understand all the tax treaties between different countries? Like US-Spain has different rules than US-Germany, right? How accurate is this for more complex situations?

Yes, it absolutely handles FBAR reporting! It reminded me about the FBAR requirement (FinCEN Form 114) and guided me through reporting my foreign accounts that exceeded $10,000 total. You're right to be concerned - penalties for non-compliance can be steep. Regarding tax treaties, the system is specifically designed to handle the various tax treaties. It identified the specific articles of the US-Germany tax treaty that applied to my situation, and it covers most major countries including Spain. It asks specific questions about your income sources and foreign tax situation to apply the correct treaty provisions. For really complex situations (like if you have investments in multiple countries or own foreign businesses), you might want to consult with the tax professionals they can connect you with, but for most expat situations, it's remarkably comprehensive.

Wait, how does that even work? How can they hold your place in line? Sounds kinda like those ticket scalper bots or something.

This sounds like BS honestly. The IRS doesn't even answer their phones half the time, and you're telling me this service somehow gets priority access? I tried calling the international line for 3 weeks straight and got nowhere.

It's actually pretty straightforward - they use an automated system that waits on hold for you, then when an actual IRS agent picks up, they transfer the call to you. It's not getting "priority access" - you're still in the same queue as everyone else, but their system is persistent and can stay on hold indefinitely, unlike most of us who give up after an hour or two. Look, I was super skeptical too - I thought it sounded like a scam at first. The difference is they have dedicated systems that can stay on hold 24/7. After trying unsuccessfully for weeks, I was able to get through and speak to someone who actually helped resolve my foreign income exclusion question. Nothing magic about it - just technology solving the problem of ridiculous hold times. Sometimes the simplest solutions are the most effective.

This is so true! I moved from California to Germany and California kept trying to tax me for 2 years after I left. Does anyone know if keeping a US mailing address (like at my parents' house) will cause problems with establishing that I've really left?

Keeping a US mailing address can definitely complicate your non-residency claim, especially with aggressive states like California. It's often seen as maintaining ties to the state. If possible, switch to a mail scanning service with an address in a no-income-tax state like Florida or Texas, or use a virtual mailbox service specifically for expats. The key factors states look at are "domicile" indicators: where you have a driver's license, where you're registered to vote, where you bank, where your vehicles are registered, and where you have professional licenses. Make sure you've changed as many of these as possible before leaving. For the strictest states like California, they've been known to check social media to see if you're still spending significant time in-state, so be aware of that too.

What counts as "financial accounts"? Like if I have a Spanish bank account and investment account, do I combine those? What about my Spanish girlfriend and I have a joint account?

Yes, you combine all your foreign accounts to determine if you hit the $10,000 threshold. So your Spanish bank account balance plus your investment account balance - if the total ever exceeds $10,000 during the year, you need to file the FBAR. For joint accounts, you report the entire balance even if it's shared. So if you and your girlfriend have a joint account with €15,000, you'd report the full amount on your FBAR, not just your "half." The other account holder (your girlfriend) would also need to report it if she's a US person, but since she's Spanish, only you would have the US reporting requirement. The FBAR is due by April 15th but has an automatic extension to October 15th. Just don't forget about it - the penalties really are brutal compared to other tax violations.