Hello dear blog readers! My most popular blog posts are ones where I talk about my life abroad in France and how I transitioned to living in France as an American. My “Expat Life” blog posts are so popular, especially my previous one on healthcare and taxes, and so I thought I’d share a fresh post with you!
April has come and gone. And over the past few months, my mind has been intently preoccupied by one topic – taxes.
Specifically, how do I declare and file my taxes as an entrepreneur and online content creator living temporarily in France? How do I file my taxes in the US as an American in France?
In September of 2021, I decided to seriously commit my time, energy and passion into content creation. And while being a Youtuber hasn’t necessarily been “full-time,” I wanted to take the leap and commit myself fully to my dream of being able to earn a living doing what I love! Writing, filmmaking, blogging, recording, astrology, astrocartography, and creation of all kinds.
And thus, I formed an LLC.
And with that came a lot of complications. As a newbie, I didn’t know where to start and what I had to file and specifically, by when. So in this post, I want to share some tips I wish I knew about paying taxes as an American in France.
What I Wish I Knew about Paying Taxes as an American in France
One unfortunate truth about being an American is that you have to file your taxes every year, no matter where you are–even if you live abroad.
Yep. That’s right. Even if you don’t visit or live in the USA at any point in the year, you still have to file U.S. taxes. 🙃
…..It doesn’t make any sense.
So, for the past 4 years while living abroad, we’ve had to file our American taxes every year as well as French taxes.
Details on Paying Taxes as an American in France
Fortunately, there’s something called the foreign earned income exclusion FEIE (huzzah!).
This means that if you earn less than the total FEIE, then you don’t have to pay any US income taxes on it. Sadly US self-employment taxes still generally apply unless you live in a country with a Social Security Totalization Agreement.In 2021 it was $108,800, and in 2022 it will be $112,000 (adjusted for inflation).
To qualify, you also need to be living outside of the US for a minimum of 330 days out of the 365 days. If you were in the US for too many days and still wish to claim the FEIE, you have to prove that you’re a “bona fide” resident of your foreign host country, but the “physical presence test” is a lot easier to do.
However, if you earned money from US sources like revenue from selling stocks, or working for a US business online, you still have to report that income in your US filing.
If you worked as a contractor for a US business, you have to file something called a Schedule C, which is basically a form for when you’re being paid for working for yourself. Thus in reality, the US requires American citizens wherever they may live to report ALL of their global earnings from whatever source derived.
How We Used to File Our Taxes as Expats in France
As you might guess, this is just the tip of the iceberg. We used Turbo Tax in the beginning. Sure, the program asked us all the right questions. And depending on how one answers those questions, you usually end up with a simple filing at the end. But the process is all very impersonal, and it doesn’t leave a lot of room for asking questions and/or understanding the process itself.
When you have a complex situation (ahem: being a freelance writer /content creator/ happen to work for yourself or you know, live abroad in France), it can be extremely complicated!
TurboTax won’t be tailored to your situation. Last year, I found myself trying to file with one account, then after answering 30 minutes of questions, realized that I had to upgrade my account because the basic version didn’t cover my tax situation. 🤯 You can see how complicated this can get. And not to mention, it also takes a lot of time.
Get Honest about Your Zone of Genius
I’ve written and shared at length in the past about how time is our most important and valuable currency. Time is nonrenewal. And that makes it all the more precious.
One thing I realized and integrated over this last year is how much I would rather hire someone to do the tasks I do not excel at, in order to have more time so that I can do the things I enjoy.
Understanding taxes as an entrepreneur is not my zone of genius. And I would rather delegate that work to someone who has that zone of genius to make the process easier.
The Easiest (and Best) Way to File Taxes as an American in France
This year we decided to keep our eyes peeled for a professional CPA that uniquely specializes in helping Americans based in France file their taxes.
And as the universe would flow to us, as if by complete manifested magic (!!), I found Ted Nashland with Vista Expat Taxes.
Vista Expat Taxes
Ted is a Certified Public Accountant specializing in expat taxation, but like us, he is also an American living in France! It was such a relief to have a professional help us, one who knew what it was like to have the annoyingly complicated circumstances of having permanent residence in the US with a family member who could collect the important US mail, while also residing and working in France.
While he couldn’t consult us on French taxes (which are for us actually a lot easier to file than US taxes) he was able to answer all of our questions about filing US taxes (specifically as Americans based in France) which is what we actually needed help with.
The Process
After meeting on Zoom, accepting his rate and signing an online contract, we were able to make accounts using his easy-to-use secure online portal. With the portal, we were easily able to message him our questions and keep track of our progress with a task checklist. It also allowed us to fill out the necessary forms and upload the necessary documents. Instead of figuring it all out ourselves, Ted told us exactly what we needed to provide, showed us what we needed to fill out, and then he handled the rest.
It was incredibly easy, and the tax process was so much less stressful working with Vista Expat Taxes.
Near the end of the import process, my husband Alex actually made a small mistake, making the final tax owed amount double what it should have been! Basically, it was double-reported. When Alex checked over the calculations Ted had sent him, Alex realized how he had made a mistake with the form Alex had filled out, and when explaining it to Ted, he fixed the problem within 24 hours and the new tax owed amount was much lower–at the right amount! Seriously, this was such a relief. We were so appreciative to have someone working with us rather than us trying to figure all this out on our own.
I highly recommend Vista Expat Taxes, for Ted’s experience and professionalism, promptness and reliability, and just overall bringing such friendly energy to the experience!
If you’re an American living in France and wondering how to file and pay your taxes, I highly recommend choosing a stress-free experience and hiring a professional, like Ted Nashland. Vista Expat Taxes is the best, and we’ll definitely be working with Ted again next year!
This blog post “paying taxes as an American in France” is not sponsored. The services were gifted (and we’re so grateful because the experience was fantastic)! All thoughts and opinions are my own.
Free-spirit, author, astrocartographer and all around creative in love with documenting the simple joys of life. I am passionate about noticing light and truth around me and reflecting it back to others.
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