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Each year the IRS provides updated information related to the new tax year. Use this guide as a quick reference to the most common dates and tax provisions for American expats.
As a reminder, every American who meets the following worldwide income thresholds MUST file a US tax return:
Single: $12,950
Head of Household: $19,400
Married Filing Jointly: $25,900
Married Filing Separately: $5
Self-Employed: $400
You must file a Foreign Bank Account Report (FinCEN Report 114) if you hold the equivalent of $10,000 at any time, across foreign accounts.
2022 FILING DEADLINS FOR TAX YEAR 2021:
April 18th
US Tax Return deadline for US tax residents
FBAR Deadline – automatic extension available
June 15th
US Tax Return deadline for Americans abroad
October 17th
US Tax Return – extended deadline
FBAR – extended deadline
December 15th
Additional Expat extension
FOREIGN EARNED INCOME EXCLUSION (FEIE)
A tax benefit allowing expats to exclude some or all of their foreign income:
2021: $108,700
2022: $112,000
FOREIGN HOUSING EXCLUSION
Combined with the FEIE (above) and is based on your foreign location:
2021: See Section 3 for housing limitations
2022: Updated housing costs expected to be released around March 2022
FOREIGN TAX CREDIT
A nonrefundable tax credit for income taxes paid to a foreign government. You can optimize between using the Foreign Earned Income Exclusion and/or the Foreign Tax Credit to help reduce your US tax liability.
ESTATE & GIFTING
Annual Gift Tax Exclusion:
2021: $15,000 per person
2022: $16,000 per person
Annual Gift Tax Exclusion for gift to non-US citizen spouses:
2021: $159,000
2022: $164,000
*Gifts made between US citizen spouses are not taxable in any amount
Estate Tax Thresholds:
2021: $11,700,000
2022: $12,060,000
RETIREMENT CONTRIBUTIONS
Standard Deduction:
Married filing jointly
2021: $25,100
2022: $25,900
Single OR Married filing separately
2021: $12,550
2022: $12,950
Head of Household
2021: $18,800
2022: $19,400
Marginal Tax Rates:
2022: Tax brackets have remained the same since 2018, the brackets are indexed annually to adjust for inflation. The top US bracket remains 37%.
GENERAL UPDATES
Contribution limit for employees who participate in 401(k), 403(b), and most 457 plans:
2021: $19,500 (or $26,500 if you are over 50)
2022: $20,500 (or $27,000 if you are over 50)
Traditional IRA, deductions available for employees/spouses who do not have access to a qualified US plan, regardless of income:
2021*: $6,000 (or $7,000 if you are over 50)
2022: $6,000 (or $7,000 if you are over age 50)
*2021 contributions can be made through April 15, 2022
Use this guide as a quick source for US figure changes, but please speak with your tax advisor and/or financial planner to discuss planning around your unique situation. Some of my favorite planning opportunities for Americans in Switzerland include:
Deductible Traditional IRA contribution – available regardless of income, when your employer does not offer a US qualified retirement plan
Spousal gifting from a US citizen to a non-US citizen spouse
Head of Household filing status for US citizens who are married to a non-US citizen spouse and have a qualifying dependent child
Swiss treaty recognition of US qualified retirement accounts
Pillar 2 withdrawal when departing Switzerland
If you have any questions on tax changes for 2022 or some of the planning opportunities mentioned above, please do not hesitate to connect with me, Arielle Tucker CFP® & IRS Enrolled Agent. I work at White Lighthouse Investment Management, a fee-only Financial Planning firm that specializes in working with Americans living in Switzerland.