Today’s post is about saving up to (or sometimes over) $5,000 on your expat taxes by doing just this one thing.
How can I save $5,000 on my expat taxes?
Simple. When it’s time to file your U.S. expat taxes, the IRS allows you to choose different foreign exchange periods. What this means is around tax time, if you earn money in a foreign currency, you obviously have to convert it into U.S. dollars. Well, when you convert, you can use a daily, monthly, or annual exchange rate.
Sure, you have to do a little math, but finding the best exchange rate can save you money on your tax return which ultimately means more money in your pocket. In some cases, it could save you thousands.
The Expat Tax Blog Team