Living in another country certainly has its perks and for many expats, their quality of life has improved while living in a foreign country. But for many expats, they are unprepared when it comes to managing their finances abroad – which can hinder enjoying their new lifestyle.
A new study from H&R Block, an American tax preparation company, found that staying compliant with the IRS is a challenge abroad. At least 76% of those surveyed said they’ve been audited by the IRS for incorrectly filing their taxes while working overseas, and at least a third said they owed fines of more than $500.
Even more concerning? 63% of respondents feel it’s too difficult to file their taxes as an expat. Most expats also responded that they wish they had more access to information on financial documents needed while abroad, such as W-2 forms and foreign bank account statements.
How To Plan?
Navigating international tax forms can be difficult, but there are resources to help make life easier for you when abroad.
Americans Abroad offers a comprehensive worldwide guide to tax preparers. You can find out more information here.