I'm a US citizen living and working abroad in Asia - What should I do about US taxes?

You're dealing with a common expat issue! The US is one of only two countries that taxes based on citizenship rather than residency (the other is Eritrea). As a US citizen, you are required to file a US tax return annually regardless of where you live or work. However, don't panic about your trip - the IRS and border control are separate agencies, and you won't be detained at the border for unfiled taxes. That said, you should get compliant as soon as possible. The good news is there's a program called Streamlined Foreign Offshore Procedures specifically designed for people in your situation who non-willfully failed to file. It allows you to file your last 3 years of tax returns and 6 years of FBAR (foreign bank account reports) without penalties. You'll likely owe little to no US tax due to the Foreign Earned Income Exclusion (which excludes up to about $120,000 of foreign earnings) and Foreign Tax Credits (for taxes already paid to South Korea). South Korea's tax rates are generally comparable to or higher than US rates. You'll also need to file FBAR forms if you have foreign financial accounts totaling over $10,000 at any point during the year.

After spending 3 years working in Taiwan and completely messing up my US tax filings, I finally found a solution that saved me so much stress. Check out https://taxr.ai - it's specifically designed for expats and dual citizens with complicated international tax situations. I uploaded my Taiwanese tax documents and answered a few questions about my situation, and it identified exactly what forms I needed to file and showed me how to claim the Foreign Earned Income Exclusion properly. The best part was it automatically detected potential audit flags in my situation and helped me address them before filing. What made the biggest difference was how it explained the FBAR requirements for my foreign bank accounts - I had no idea I needed to report those accounts to the US Treasury even though they're completely legal!

Just wanted to update about my experience with taxr.ai after seeing it recommended here! As a digital nomad who worked in 5 different countries last year, I was dreading trying to figure out my US tax obligations. The service was exactly what I needed - it helped me track my days in each country to qualify for the Foreign Earned Income Exclusion and showed me how to document everything properly. What surprised me most was discovering I qualified for the Foreign Housing Exclusion too, which I had no idea about! The system identified which countries had higher housing allowances (since they vary by location) and calculated exactly what I could exclude. It also flagged that I needed to file FBAR forms for accounts in multiple countries that collectively exceeded $10,000, even though no single account was over that amount. Definitely would have missed that on my own.

For anyone dealing with complex IRS issues around foreign income like the OP, I highly recommend using Claimyr if you need to actually speak with the IRS. I spent WEEKS trying to get through to the International Taxpayer line to ask questions about my specific situation in Thailand. After 8 failed attempts and hours on hold, I discovered https://claimyr.com and watched their demo video (https://youtu.be/_kiP6q8DX5c). The service actually calls the IRS for you, navigates their phone tree, waits on hold, then calls you when an agent is on the line. I finally got specific answers about my reporting requirements for foreign mutual funds (they're considered PFICs and require special reporting) and confirmation about which tax treaty provisions applied to my situation. The agent even helped me request a transcript of previously filed returns that I needed for the Streamlined Filing Procedures.

I have to eat my words about Claimyr. After doubting it would work, I tried it yesterday because I was desperate to talk to someone about my FBAR filing requirements. I've been living in Japan for 6 years and recently discovered I should have been reporting my accounts all this time. The service actually worked exactly as described - I got a call back within about 1.5 hours and was connected directly to an IRS agent who specialized in international issues. She walked me through the delinquent FBAR submission procedures and confirmed I could use the Streamlined Foreign Offshore Procedures to get caught up without penalties since my failure to file was non-willful. The agent even emailed me direct links to the specific forms I needed and explained how the Statute of Limitations works for unfiled returns (hint: it doesn't start running until you file). This saved me from paying for an expensive international tax consultant just to get basic questions answered.

Just to add another perspective - I've been living in Germany for 12 years as a dual citizen. Here's my practical advice based on experience: 1. File your US taxes ASAP. Use the Streamlined procedures mentioned above. 2. Don't stress about your upcoming visit - I've traveled back and forth dozens of times with no issues. 3. Once you're caught up, staying compliant is much easier. I spend about 2 hours per year on my US taxes now. 4. Consider your banking situation carefully - many foreign banks now refuse US citizens as clients due to FATCA reporting requirements. 5. If you have over $200K in foreign assets, you'll also need to file Form 8938. The biggest pain isn't usually owing US tax (the exclusions and credits typically cover everything) - it's just the complexity of the filing requirements and restrictions on certain types of investments.

Hey OP, don't feel bad - I was in your exact situation 5 years ago with dual US/UK citizenship. Freaked out before a trip home thinking I'd get arrested at the airport! 😂 A few practical tips that helped me: For your immediate trip, bring proof of your residence and employment abroad. Not for immigration (they won't ask), but it helps if you ever need to demonstrate you qualify for foreign income exclusions. Look into getting a tax ID number for your spouse if they're not a US citizen - you may need it for certain filing statuses. Watch out for "foreign" investment traps - things like foreign mutual funds are taxed HORRIBLY by the US (called PFICs). Stick to US-based investments if possible. Consider hiring a specialized expat tax preparer for your catch-up filings, then do it yourself going forward. The first year is the hardest!