Taxes for Expats review: What long-term travelers should know before signing up

The dream of long-term travel is to trade your desk for a beach in Thailand, a café in Paris, or a co-working space in Medellín. But there’s one piece of home you can’t leave behind: your obligation to file US taxes. 

For American citizens, living abroad doesn’t mean you’re off the IRS’s radar. In fact, it often makes your tax situation more complicated.

The question for digital nomads, slow travelers, and expats isn’t if you should file, but how to do it without sacrificing your time and sanity. This is where specialized services like Taxes for Expats (TFX) come in. 

With a 25-year history of serving Americans in 193 countries, they’ve built a system designed for people on the move. But is a professional service worth the cost when you could be spending that money on another month in your dream destination? Let’s break down what TFX offers and who it’s really for.

Why travelers can’t ignore US taxes

Most travelers are surprised to learn that the US taxes its citizens based on citizenship, not residency. This means that even if you haven’t lived in the US for years, you still have to file an annual return. Here are the key tax issues that affect Americans living and working abroad:

• Foreign Earned Income Exclusion (FEIE): This allows you to exclude a significant portion of your foreign-earned income from US tax—up to $126,500 for the 2024 tax year and $130,000 for 2025.
• Foreign Tax Credit (FTC): This gives you a credit for income taxes you’ve already paid to a foreign country, which helps avoid double taxation.
• FBAR (Foreign Bank Account Report): If you have a total of $10,000 or more in foreign financial accounts at any time during the year, you must file a separate report with the Financial Crimes Enforcement Network (FinCEN).
• Self-Employment Tax: If you’re a freelancer or digital nomad, you’ll likely owe the 15.3% self-employment tax on your net earnings over $400. The FEIE does not reduce this tax.

Juggling these requirements can be a full-time job in itself. A missed deadline or an incorrect form can lead to steep penalties.

What Does a Specialized Service Like TFX Cost?

TFX uses a flat-fee structure, so you know the price before you commit. Here’s what you can expect to pay:

For a typical digital nomad who is self-employed and has foreign bank accounts, the total cost would be around $710. While that’s more than DIY software, it’s often less than a traditional CPA who may not even be familiar with expat tax rules.

How the TFX process works for travelers

TFX’s entire process is designed for people who live and work online. You never have to mail a physical document or visit an office. Here’s a look at their 6-step process:

1. Get a free quote: You can upload a previous tax return to get an accurate price upfront.
2. Fill out an online questionnaire: This is where you’ll provide details about your income, expenses, and foreign accounts.
3. Get matched with a CPA: You’ll be assigned to a CPA with at least 10 years of experience in expat taxes.
4. Upload your documents: You’ll upload your documents to a secure online portal.
5. Review your return: Your CPA prepares your return, which is then reviewed by a second CPA for accuracy.
6. Approve and file: You review the final return and give your approval for e-filing.

The entire process takes about 15 business days, and you can communicate with your CPA through the secure portal at any time.

What other travelers are saying

With a 4.9 out of 5 rating on Trustpilot from over 2,500 reviews, TFX has a strong reputation in the expat community. Here are some of the common themes from other travelers:

What works well

• Peace of mind: Many travelers say that the biggest benefit is knowing their taxes are being handled correctly, so they can focus on their travels.
• Time savings: The service saves travelers dozens of hours they would otherwise spend researching tax laws and filling out forms.
• Expert knowledge: Clients appreciate that TFX’s CPAs understand the unique situations of digital nomads and long-term travelers.

Potential downsides

• Cost: For a budget traveler, the cost can be a significant expense.
• Digital-only: If you’re someone who prefers in-person meetings, this service might not be the right fit.
• Add-on fees: If you have a more complex situation (like a foreign corporation), the fees can add up.

Is a professional service worth it for you?

Deciding whether to hire a service like TFX comes down to a simple trade-off: time and peace of mind versus cost.

The final word for American travelers

The freedom of long-term travel comes with the responsibility of staying compliant with US tax laws. While it’s tempting to save money by filing on your own, the complexity of expat taxes means that a single mistake can cost you far more than the price of professional help.

For most American travelers living abroad, a service like Taxes for Expats is a worthwhile investment. It frees up your time, gives you peace of mind, and ensures you’re on the right side of the IRS—so you can get back to what you love: exploring the world.

Ready to get your taxes sorted? You can get a free, personalized quote from Taxes for Expats on their website to see exactly what it would cost to have a professional handle your return.

*This article has been contributed to Owl Over The World.

Photo by Jordan Opel on Unsplash