Americans Abroad: H&R Block Expat Tax Survey

An global view of U.S. expats

As a U.S. citizen or Green Card holder working in Japan, taking care of your finances and taxes can feel like a complicated task – but you’re not alone on this.

In early 2021, H&R Block Expat Tax Services  ran an online survey aimed at U.S. expats living around the world about their finances, lifestyle, and tax situations. The survey was completed by 503 United States expatriates (75% of them living in the United Kingdom, Mexico, or Japan). Together, they represent a snapshot of the benefits and challenges as an American abroad, and how that life can affect a U.S. tax return and financial well-being.

Expat lifestyle perks and challenges

Living in another country certainly has its perks, but it also can have its complications. While expats say they experience a high quality of life, managing U.S. finances and tax responsibilities can hinder the carefree, adventurous lifestyle they left the States to pursue.

COVID-19 impact

Many expats had their travel plans disrupted over the last year due to Coronavirus. US residents abroad who ended up being mostly resident in the US again, can in some cases  get an exemption for this and file as if they had been normally resident abroad.

Expat taxes and finance

One of the biggest challenges for U.S. expats is staying compliant with the IRS and the U.S. government. 

Filing U.S. taxes while living in Japan.

Navigating the alphabet soup of tax forms can be difficult enough for Americans living stateside and throwing in international tax forms makes it a bit more convoluted. Despite what many think, Americans and U.S. Green Card holders living in Japan should continue to file a U.S. tax return each year.

Working as an American in Japan can affect your taxes even if you don’t stay for very long. For example, if you earn income while on a short-term assignment, you’ll need to report that income on your U.S. taxes. As you establish deeper financial roots in Japan, you’ll have more considerations for your American tax filing.

For more information, H&R Block has an Expat Tax Resource Hub  dedicated to helping U.S. expats in Japan understand their filing options.


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