The Ultimate Tax Guide for Australian Expats in the US in 2024

Yes! You need a Social Security Number (SSN) to file your US tax return electronically. If you don’t have an SSN you can apply for an Individual Taxpayer Identification Number (ITIN).

If you’re an employee, you also need a Form W-2 to file your US tax return. Your US employer is required to send your W-2 by January 31. It shows your wage and salary details and the amount of taxes withheld from your paycheck for the calendar year. If you’re an independent contractor or self-employed, a Form 1099-MISC is used instead.

If you’re an E-3 visa holder, it’s a requirement that you’re employed with a salary or wage. So, for Australian expats with E-3 visas their employer income statement should only be in the form of a W-2 form.

If you receive income from other sources, such as interest, dividends, and capital gains, you’re issued Form 1099 income statements from financial institutions e.g., banks, stock brokerage accounts.

The specific IRS forms you need to file depend on your visa, your employment classification, and other factors.

Australian expats in the US are required to report foreign financial accounts through the Foreign Bank and Financial Accounts Report (FBAR). If you had a total of over US$10,000 aggregated across all your foreign accounts at any time during the tax year, you need to file an FBAR. Be aware, you must list all foreign accounts on your FBAR, even zero balance accounts. That’s because the overall total of your foreign accounts met the $10,000 threshold. And be sure to include all foreign accounts, not just bank accounts, such as stock portfolios, shares, and other assets. A common mistake expats make is to only list bank accounts or fail to list zero balance accounts. But it’s vitally important to prepare your FBAR correctly otherwise the IRS can impose severe penalties. Drop us a line if you need help preparing your FBAR.

You can file your US tax return yourself by downloading the IRS forms. Or you can file electronically using IRS software or commercial US tax preparation software such as Turbo Tax. There are also tax services such as a tax accountant or an Australian expat tax service to prepare and electronically file your US tax return.

Uptrend Advisory is an Australian expat tax service based in the US. Founder and Managing Director, Jason Stoch, CPA, CA is an Australian expat with an extensive knowledge of the US and Australian taxation systems. Jason and his team have helped hundreds of expats in the US for more than 10 years navigate through the complexities of the US and Australian taxation systems, efficiently and compliantly.

You can certainly prepare your US tax return yourself with information from the IRS if you’re familiar with US taxations requirements and the IRS tax return filing processes. However be aware, if you file an incorrect US tax return or you miss the US tax filing deadline, the IRS can impose punitive penalties and you might end up paying more tax in the US. Or even if your US tax return is compliant, you may even miss out on optimal outcomes for your circumstances.

At the Federal level, generally, No.

That’s because there’s a US-Australia Tax Treaty which means you’re able to leverage the tax paid to the ATO on your Federal return to offset what the IRS calculates. As Australia’s tax rates are typically higher than the IRS’s, this typically results in no additional US tax owing. But, you still need to declare Australian sources of income on your Australian tax return.

However, when it comes to State taxes, you might get taxed on Australian sourced income, depending on which US state you live in, including New York and California. That’s because at the state level, some US states don’t abide by the US-Australia Tax Treaty for assessing state taxes.

Drop us a line, if you’re an Australian expat who’s unsure of your US tax obligations around Australian sourced income. In the event you’re taxed on Australian sourced income, we can help identify if you’re eligible to claim foreign tax credits.

Yes, but under the US-Australia Tax Treaty, you’re exempt from paying tax twice. To claim the IRS Foreign Tax Credit you need to file Form 8833 and Form 1116.

No. That’s due to the US-Australia Tax Treaty which means you won’t be taxed twice.

But you need to claim the IRS Foreign Tax Credit by filing Form 8833 and Form 1116 when submitting your US tax return. And also, you need to file an Australian tax return and include your Australian sourced income so that you can leverage credits for your US tax return.

Plus keep in mind, when it comes to State taxes, you might get taxed on Australian sourced income, depending on which US state you live in, including New York and California. That’s because at the state level, some US states don’t abide by the US-Australia Tax Treaty for allowing tax credits.

If you’re unsure how to report Australian income sources, consult a US tax professional who’s knowledgeable in the US-Australia Tax Treaty.

Superannuation taxes for Australian expats is complicated because there’s no equivalent of superannuation in the US. The IRS doesn’t have clear superannuation tax guidelines for US tax returns. It's a grey area and there are often conflicting views about reporting super on US tax returns even amongst tax professionals.

But there are consequences for misreporting your US tax return. So it’s advisable to consult a US tax professional who is knowledgeable on how to report your superannuation for US tax filing requirements.

As Australian expat tax accountants, Uptrend Advisory can review your specific situation and advise you further. Drop us a line.

Generally, yes. If you’re an Australian resident for tax purposes or you’re earning Australian income you need to file an Australian tax return. But, be aware if you have a HECS/HELP debt, you still need to declare any worldwide income to the ATO, regardless of your tax residency status.

Drop us a line and let us know your situation. Even though Uptrend Advisory does not offer Australian tax preparation services, we can put you in touch with a knowledgeable Australian tax professional in our network.

This is definitely an area where you should consult a specialist such as an Australian tax lawyer. That’s because there are Australian tax rules around paying capital gains tax on investment properties that specifically impact Australian expat tax obligations. Also, the Australian tax legislation is constantly under review and varies by state. So it’s essential to get professional advice to understand the tax implications of selling property as an Australian expat.

Yes! As a Green Card holder you have to pay tax in the US and file an annual US tax return with the IRS.

Great questions! Uptrend Advisory specializes in Green Card tax services for Australian expats in the US. Learn more about US tax filing requirements and how to do US taxes as a Green Card holder.

If you’re earning income in the US through freelance work, you’re required to file a US tax return. Firstly though it’s critical you’re correctly classified according to IRS worker classifications to determine if you’re providing service as an employee or an independent contractor. Your classification affects which IRS forms you need to file. But if you’re not sure, drop us a line.

If you’re a Green Card holder performing freelance work, learn more about US taxation requirements as a Green Card holder.