Expat returns are for US Citizens working in foreign countries. If you have foreign income from work you are performing outside the US and you are a US Citizen, then you are required to complete a US Tax Return. But don’t worry, if your return is completed accurately you should owe little or no US Income Tax.
As a US Citizen working abroad, you can elect the Foreign Earned Income Exclusion if you pass the Bona Fide Residence test or the Physical Presence test. You may also qualify for the Foreign Housing Exclusion. In addition to these exclusions, if you file and pay tax in the foreign country you are residing in, you may also receive a Foreign Tax Credit. With these exclusions and credits, your US tax liability will be greatly reduced if not eliminated. These exclusions and credits are not automatic, you must file a US Tax Return to get them.
Some employers provide Tax Equalization when they send you to work abroad. Tax equalization is accomplished through a Hypo Tax calculation and puts you in the same position as if you were working here in the US.
If you are an Expat, or your Company has expats and you would like assistance with your (or your employees) US Tax Return, you can have a Virtual Tax Appointment. Being in a foreign country makes it difficult to meet with us in person, so we have a Skype account ITA1040, where we can chat for as long as we want for free. We also provide a Web Portal, where documents can be scanned in and transferred between both parties completely secure. All US tax returns are filed electronically, no need for costly mail or overnight service.