Former President Donald Trump pledged to eliminate filing U.S. taxes for Americans living abroad as part of his 2024 campaign tax reform platform. The proposal aims to end what is often referred to as “double taxation” for expatriates, a move that could simplify tax obligations for over 4 million U.S. citizens overseas.
Currently, Americans living abroad must file income, estate and gift tax returns with the IRS, even if they pay taxes in another country. While some expatriates benefit from credits and exclusions, many still face complex and sometimes costly tax filings.
Trump’s proposal, which would require congressional approval, has sparked debate, with critics arguing it could encourage tax avoidance by wealthier individuals relocating to low-tax countries.
Supporters believe it would reduce unnecessary paperwork and make life easier for ordinary Americans living overseas. A notable aspect of the current system is while it adds a lot of paperwork, it doesn’t necessarily add any additional financial burden. Expats currently get U.S. tax credits for taxes that they pay to foreign governments, and any income over $126,000 is exempt.
This promise is part of a broader series of tax cuts Trump is proposing, which also includes eliminating taxes on tipped wages, overtime, and Social Security benefits. Experts estimate the combined tax cuts could cost over $10 trillion over the next decade.
