As a U.S. citizen, you are obligated to file an annual tax return to the IRS regardless of your country of residence. The child tax refund is included in your annual tax return. The IRS grants refunds up to $1,400 for each child under the age of 17, determined by parental income. This credit can be claimed retroactively for up to 3 years.
Non-resident aliens are required to provide a U.S. identification number (ITIN) for withholding purposes on their financial investments in the U.S. You may be subject to a reduced rate of withholding depending on your country of residence. For a fill-in form, please click here. U.S. citizens should not complete the W-8BEN. They should file a Form W-9 as they are not subject to withholding.
In most cases, you will be required to file a tax return. However, due to the foreign earned income exclusion, you may have no tax liability.
I am a U.S. citizen living overseas, married (with 2 children) to a non-U.S. citizen. How do I file my U.S. tax return?
You have 3 options:
1. Married filing jointly
2. Married filing separately
3. Head of Household
The benefits of each specific filing status vary according to your specific circumstances.
I am a U.S. citizen living in Israel and have opened an Israeli bank account. Must I report interest income earned in New Israeli Shekels on my U.S. tax return?
The IRS requires U.S. citizens to report their worldwide income in U.S. dollars. If the Israeli government assessed any tax, you are entitled to take a tax credit against any U.S. income tax on this income.
I worked for several years in the U.S. and have recently moved to Israel. I paid a great deal of money into the American Social Security system. Will I be eligible for Social Security pension upon my retirement?
You are entitled to Social Security even after leaving the U.S. if you meet one basic condition: you must have paid in 40 quarters of Social Security payments. If you have not achieved the full 40 quarters, we can help you obtain them even while living in Israel. Once eligible, you will receive the payments which are not subject to either U.S. or Israeli tax. For the amount of benefits you are entitled to click here. To check the number of quarters you have, click here (scrool to the bottom of page and click-‘request a social security statement’).
The 2022 average x-rate (used for tax returns) is 3.36 NIS/USD
The 2022 year-end x-rate (for FBARs) is 3.52 NIS/USD
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