How To Maintain A U.S. Address While Living Abroad | DakotaPost (2024)

Overseas Mail Forwarding Services

Many people who are considering moving abroad wonder how they will keep their U.S. residency and what the tax implications will be. It is critical to fully understand your requirements so that there are no surprises come tax season. If you want to keep your U.S. home while living abroad, here are a few U.S. ex-pat tax return facts to consider.

The most convenient way to maintain a functional U.S. address while living abroad is to use a virtual mailbox service that you can activate online. This service scans, holds, and offers mail forwarding services for a few dollars per month. Other services, such as UPS (United Parcel Service) or USPS (United States Postal Service), will require your physical presence to activate a mailbox service.

Life continues in the United States, and requiring mail to be shipped is another reason to have an address. Fortunately, keeping a U.S. address while living abroad is relatively simple. This article will help you know more about tax filings, tax guides, and how to receive mail as a digital nomad.

Why Not Enlist The Assistance Of Your Family?

Some expats choose to use the address of a friend or relative in the United States. However, if that address is in a state with an income tax, which is the majority of states, the tax authority may contact you about tax filing a tax return – even if you've never lived in that state. Resolving the issue by demonstrating your non-residence in the state can be a time-consuming and frustrating process.

Maintaining A US Address While Living Abroad

There are a few considerations if you're in the process of moving and aren't sure how your U.S. expat tax return will be affected by maintaining a U.S. address while living abroad. Having proper tax guides is a crucial step for moving abroad. As you'll see below, simply maintaining your U.S. home is not the same as renting it out.

There are eight significant steps that green card holders can take to minimize complications upon re-entering the border to show immigration officers that they expect to maintain their permanent residence:

  • Keep and use U.S. savings and checking accounts. Simply having a bank account is not enough; it must be used regularly, so that bank statements show activity.
  • Maintain a U.S. mailing address. Ideally, owning a residence in the United States demonstrates that a permanent resident intends to make the United States their permanent home. If you do not personally own a home, it is perfectly acceptable to stay at a friend's or relative's home.
  • Ensure all mail, including documents from USCIS (United States Citizenship and Immigration Services), is delivered to this address.
  • Have a valid driver's license in the United States. The address on this license should match the address on all official documents, such as those obtained from the (USCIS) United States Citizenship and Immigration Services.
  • Obtain a credit card from a United States (U.S.) financial institution. Use this credit card regularly so that credit card statements reflect some activity on the account.
  • File your income tax returns in the United States. Even if you receive income from outside the United States, you must file a tax return each year. These tax returns must be submitted as a "resident." Filing as a non-resident is frowned upon because the permanent resident is claiming personally that they are not a resident.
  • Keep in touch with a spouse, relatives, and friends in the United States. This can be demonstrated by emails, letters, or even phone call records to friends and family in the United States.
  • Demonstrate family ties to the United States. Having a child, spouse, parent, or other close relative residing in the United States indicates that you intend to make the United States (U.S.) your permanent home.
  • Maintain social and professional affiliations. Active social or professional memberships, such as boat club or golf memberships, demonstrate that the permanent resident was only in the United States temporarily and intended to stay for the long term. Active membership can be shown by timely payment of dues, receipt of journals, attendance at annual meetings, etc.

A permanent resident who will be traveling outside the United States for a period of six months to one year should take these steps. A re-entry permit is required if you leave the country for more than a year.

Taking these steps does not guarantee that the permanent resident will have an easy time re-entering the United States, but it increases the likelihood. This list is not exhaustive, so any additional documents demonstrating a permanent resident's intent to settle in the United States will be helpful.

Renting Your U.S. Home And Filing Your U.S. Taxes

Renting out your U.S. home can be a nice way to recoup the costs of maintaining a home while you're away. However, it comes with its own hurdles when it's time to file a U.S. expat tax return. Renting is also influenced by the number of days your home is used during the year.

  • If you spend no time in your home during the tax year and it is wholly considered a rental property, you must report 100 percent of the rental income on your U.S. expat tax return, and all expenses and repairs are deductible.
  • You can make more on your U.S. rental home by calling it a vacation home with IRS (Internal Revenue Service) approval. If you only spend 14 or fewer days there per year, the IRS will classify it as a second home and not give you any tax breaks. Your indirect expenses (mortgage interest, property taxes, depreciation, and so on) will be pro-rated based on the number of days you rented out the home. Direct management expenses, management fees, advertising, and the like will be fully deductible against rental income.
  • The property is considered a vacation home if you stay in your U.S. home for more than fourteen days and rent it out for more than fifteen days in a year. In this case, you must report the rental income and then deduct expenses based on the days the property is rented out.
  • You don't have to report any received rental income if you live in your U.S. home for more than fifteen days but rent it out for less than fifteen days. For instance, if you rent out your home for one week per year, you will most likely not need to report that income on your U.S. expat tax return.

The Consequences Of A Vacant Home

Perhaps you want to keep your home in the United States but don't want the added responsibility of renting it out. In general, you will have no additional tax liability in this scenario. However, it is dependent on how you intend to qualify for the Foreign Earned Income Exclusion (FEIE). The Physical Presence Test will almost certainly not affect your U.S. tax return.

However, if you use the Bona Fide Residence Test, you may be required to provide a reason for keeping your U.S. property if you are living full-time in a foreign country with no hope of returning to the U.S.

This is because the IRS only considers you a bona fide resident if you do not intend to return to the United States – and maintaining a residence may be interpreted as an expectation of returning at some point.

Which Address Do Expats Use On Tax Forms?

The question of what address to enter on their tax return arises for many Americans who live abroad. At first glance, the answer appears obvious - use your current address. The address on your tax return should be one where you can easily and quickly receive any correspondence from the IRS.

But what if the mail system in your country of residence is slow or unreliable? What if you plan to relocate before filing your next expat tax return? Many U.S. financial institutions require you to provide an actual U.S. address (not a P.O. Box) to keep your account open.

Advantages Of A Virtual Mailbox For Living Abroad

By using a virtual mailbox, you will have instant, dependable access to your U.S. mail and will be able to keep your U.S. bank accounts without fear of triggering state tax inquiries. As a result, for many expats, the minor cost is worth the significant time savings during tax season—and throughout the year.

Permanent residents must clearly show that they intend to make the United States their permanent home. The steps outlined above will assist you in demonstrating that you consider the United States your home and intend to relocate permanently to the United States.

What Is The Process Of Using A Virtual Mailbox?

Rather than relying on friends and family to forward your mail, a virtual mailbox service is a better option. But what exactly is a virtual mailbox, and how does it work? You can get a personal, non-PO Box mailing address for a monthly fee. It is preferable to have an address in a state without an income tax, such as Florida or Texas.

You will receive an email notification when mail is delivered to your virtual mailbox address. The mail is scanned or forwarded to you at your request. Some services will scan the first page and email it to you, allowing you to decide whether or not to "open" the rest of it.

What If Your U.S. Mail Can Already Be Received?

Here are some of the likely reasons why using your parents, friends, or cousins who live in the United States to forward your mail is probably a bad idea:

  • Your parents or friends may reside in a state that imposes a state tax. If you include that address on your federal tax return to the IRS, there is a (very high) chance that the local state authority will require you to file a State Return. You might have a chance to fight them, but it will be expensive and time-consuming.
  • You are in a slightly better position if you file a non-resident state tax return to report income from U.S. sources (rental income, partnership income). Your current expat situation would be revealed by the non-resident return (living abroad, filing as a non-resident).
  • If a non-resident state return is not required, but the federal tax return shows a U.S. state address, the state assumes you are still a U.S. resident who failed to file a state tax return. You still bear the burden of proof. When it comes time to do taxes, there is no presumption of innocence.
  • You cannot expect people who are doing you a favour to scan every piece of mail you receive and email it to you within hours of receiving it (or they may not even know how to do it in the first place). They might forget or misplace some mail. In the end, you're likely to receive some of your mail months after it was sent.
  • At the end of the day, if your parents don't mind forwarding you every piece of mail, it may just get annoying for them, and you wouldn't want to nag them, especially during tax season, to check and handle every single piece of mail that you receive.

Talk To A Postal Service Expert

Moving to a new country that's not your home can be incredibly challenging. But with the right information in hand, you'll be able to prepare for any potential difficulties. This article discusses some of the challenges you might face, plus how to overcome them.

If you are planning on moving abroad, set up your mail service so that you can read your mail from wherever you go. Speak to a local postal service expert to help you with this process.

How To Maintain A U.S. Address While Living Abroad | DakotaPost (2024)

FAQs

How To Maintain A U.S. Address While Living Abroad | DakotaPost? ›

Having a US address as an expat ensures you stay connected and receive essential mail and packages. Here's how it helps: Important documents: Receive time-sensitive documents like bank statements, insurance policies, & legal correspondence.

Should I keep a US address while living abroad? ›

Having a US address as an expat ensures you stay connected and receive essential mail and packages. Here's how it helps: Important documents: Receive time-sensitive documents like bank statements, insurance policies, & legal correspondence.

What do you do with US mail when moving overseas? ›

Whether you're temporarily or permanently relocating, you'll need to forward your mail. Otherwise, the postal service will have no idea of where to ship your mailing items. Fill out the USPS 1583 Form (PDF). It authorizes the virtual mailbox provider to collect your mail.

How do I change my address when I move abroad? ›

If you are moving to an International address outside of the United States, you will need to fill out the same Change of Address (COA) form PS Form 3575 that is filed for a domestic move at your Local Post Office™.

Can I keep my US bank account while living abroad? ›

Bottom line: Yes, you can keep your bank account if you move abroad. But, you need to check first with your bank to make sure that you aren't blindsided by account restrictions or unexpected fees when you do. That said, relying on your home bank account may not be the best option when living abroad.

Can you live in the US without a permanent address? ›

Unfortunately for people like us, the legal system is organized around its peons having a fixed location, a permanent address to call home. You need a legal address to do all sorts of required and not-required things, such as: Get driver's licenses, passports, and other identification.

How do you write a US address internationally? ›

The US address format includes the name of the recipient in the first line when shipping to the US. This is followed by the street (house number and street name). After this, you'll write the city, along with the two-letter abbreviation for the state and the appropriate zip code. The last part is the country name.

Can US mail be forwarded internationally? ›

Unfortunately, the USPS does not perform its mail forwarding service internationally. Therefore, any sort of mail you continue to receive would either need to be mailed to another country directly by the sender or you would need to use a proxy postal address.

Who do I need to notify when moving abroad? ›

Friends and family. The first people you should notify that you are moving overseas are your friends and family! It's best to let them know as soon as you've decided to move and inform them yourself instead of allowing them to hear through the grapevine.

Can US mail be forwarded overseas? ›

The United States Postal Service will forward mail overseas for a fee. You can sign up for the USPS abroad mail forwarding service for around $21.10 in person or about $19.35 if you sign up online. For each week of service, there is an additional charge of around $21.10. The monthly fee for the service is about $84.40.

Do expats have to return to us? ›

While virtually all expats are required to file a US tax return, most Americans do not owe US expat taxes. The US has put several necessary deductions, exclusions, and credits in place to ensure Americans living abroad aren't taxed twice on the same income.

Do you change when you live abroad? ›

When you move and live abroad you face new challenges, you get to know parts of you you didn't know existed, you're amazed at yourself and at the world. You learn, you broaden your horizons. You unlearn, and after coming down and embracing a few lessons, you start growing in humility. You evolve.

What is my permanent address? ›

Permanent Address: Your permanent address is the location where you reside. This is usually an apartment, house, or any address that describes where you live. Mailing Address: Your mailing address is the place where you would like to receive your mail.

Can I have a US bank account without a US address? ›

Preparation. You must be living in the U.S. to open your account. You'll need to provide both a foreign and U.S. address, as well as two forms of ID and a tax identification number.

Do I have to tell my bank if I move abroad? ›

Yes, one of the most important things you need to do before going abroad is informing your bank. You want to make sure you'll be able to access your funds and use your debit or credit card while you're on vacation.

Can I have a UK bank account if I live in the USA? ›

Yes. You can open a UK account as a foreigner or non-resident. However, non-UK residents will find it harder to open an account with a traditional bank, and may find it easier to get set up with a specialist online provider.

How long can you live outside the US without losing residency? ›

International Travel

U.S. immigration law assumes that a person admitted to the United States as an immigrant will live in the United States permanently. Remaining outside the United States for more than one year may result in a loss of Lawful Permanent Resident status.

How can I live without a residential address? ›

  1. Rent a P.O. Box. Head down to your local post office and rent a post office box. ...
  2. Use your work address. If you have a day job with an office, talk to your employer about using the office address. ...
  3. Ask a friend with a business. ...
  4. Head to a UPS Store. ...
  5. Try your co-working space.

What happens if you have no fixed address? ›

A person with no fixed address may have mail addressed to a Poste restante service. Such persons may also have problems receiving government social services and registering to vote, and may be deprived of many common services.

What is a valid US address line? ›

The recipient's first and last name. Street number and name (address line 1) Apartment or unit and its number (address line 2) City, state and zip code (include all of this on one line with a comma between city and state, but not zip code)

What is a sample of USA address? ›

Delivery Address

Some examples of US street addresses are: 106 DOYERS ST. 8 ARLINGTON DR. 599 NW BAY BLVD.

What is the international standard for addresses? ›

The S42 (registered as ISO 19160) international addressing standard comprises a generic list of address elements and country-specific templates that tell users how to transform address elements into an accurately formatted address. S42 XML templates can be incorporated into software programs to manage addresses.

How long can you temporarily forward US mail? ›

If you're only relocating for a short time to visit your second home or do an extended stay with relatives, submit a temporary change-of-address request so you can receive your mail while you're away for 15 days up to 1 year.

What mail Cannot be forwarded by USPS? ›

2nd Class Mail — after 60 days, 2nd class mail will no longer be forwarded to your new location. Magazines — again, after 60 days, these will no longer be forwarded to your new location. Non-First Class Mail — this includes items such as presorted standard mail, bulk mail, and non-profit mail.

What countries can I not send mail to from the US? ›

Countries not accepting packages from USPS:
  • Afghanistan.
  • Belarus.
  • Bhutan.
  • Brunei Darussalam.
  • Lao People's Democratic Republic.
  • Myanmar.
  • Russian Federation (due to conflict in the region)
  • South Sudan.

How do you prove you are moving? ›

Mail from a financial institution or a bank statement. An internet, cable, phone, or other public utility (like gas or water) bill or service communication. This should show the date that your new utilities or services started.

How can I live overseas for a year? ›

Ways to live abroad while making money
  1. Live in another country on a student visa to be able to work at the same time. ...
  2. Volunteer work through HelpStay. ...
  3. Do a work exchange abroad during your summer holidays in university. ...
  4. Apply for a Working Holiday Visa. ...
  5. Find a job that will sponsor your work visa.

What to cancel when moving overseas? ›

Services to Cancel Before You Move Overseas
  1. Internet/TV. Many internet and cable providers require 30 days' notice of cancellation, so keep this in mind, so you are not charged for internet and cable you don't even use. ...
  2. Car/Home Insurance. ...
  3. Gas/Electric. ...
  4. Subscriptions. ...
  5. Mobile Phone. ...
  6. Banking.

What are you not allowed to mail overseas? ›

Explosives. Gasoline. Hemp-based products (including cannabidiol [CBD]) Marijuana (medical or otherwise)

Can mail be forwarded permanently? ›

While you won't be able to forward mail forever, you will be able to forward it for a substantial amount of time. USPS can forward mail that includes First-Class Mail, First-Class Package Service-Commercial, Priority Mail, Priority Mail Express, USPS Retail Ground, Library Mail and Media Mail for up to 12 months.

Where does mail go if not forwarded? ›

If you fail to submit a USPS mail forwarding request when you move, the post office collects and stores your mail for a maximum of 10 days. After the 10-day period, the mail is returned to the sender where possible. If the USPS can't return the mail, they will discard it.

How long can a US citizen live abroad? ›

Absences of more than 365 consecutive days

You must apply for a re-entry permit (Form I-131) before you leave the United States, or your permanent residence status will be considered abandoned. A re-entry permit enables you to be abroad for up to two years. Apply for a re-entry permit.

What happens if you don't pay U.S. taxes as an expat? ›

The only option to avoid submitting a US tax return and paying US taxes abroad under current US tax legislation is to renounce your US citizenship. If US citizens fail to file US taxes while living abroad, they may incur fines, interest charges, or possibly legal repercussions.

Do US citizens have to pay taxes if they live abroad? ›

In general, yes — Americans must pay U.S. taxes on foreign income. The U.S. is one of only two countries in the world where taxes are based on citizenship, not place of residency. If you're considered a U.S. citizen or U.S. permanent resident, you pay income tax regardless where the income was earned.

What are the disadvantages of living abroad? ›

In this article on disadvantages of living abroad
  • The language barrier.
  • Culture shock.
  • Homesickness.
  • Making friends and building a community.
  • Bureaucracy and paperwork.
  • The cost of moving and living abroad.
  • Difficulty finding work.
  • Discrimination.
Jan 9, 2023

What changes when you move abroad? ›

Living abroad will open your eyes to a whole new world and give you a better insight into the lives of others. This will give you a better understanding about how people from another walk of life communicate, what their motives are, and how they think.

What counts as living in another country? ›

Living abroad means having a tax home in a foreign country and being a bona fide resident of foreign country/countries for entire year or at least 330 full days during any 12 consecutive months ending in that tax year.

Can your mailing address be different than your permanent address? ›

If you receive postal mail at your home, your residential address is a physical address and a mailing address. However, some people or businesses maintain a physical address separate from a mailing address. While a physical address can be a mailing address, that's not always the case.

What is proof of a permanent local address? ›

A utility bill, credit card statement, lease agreement or mortgage statement will all work to prove residency. If you've gone paperless, print a billing statement from your online account.

How do I get a permanent address in USA? ›

There are two ways to get a physical mailing address without needing to rent expensive office space or a PO Box. The first is renting a UPS mailbox and the second is to rent a virtual mailbox with a CMRA. Both options will give you a real street address, so what's the difference?

Can I open Bank of America account without proof of address? ›

Is it possible to open a US bank account without a physical address there? Unfortunately, most major US banks will require proof of a US address as part of the application process for a checking account¹. This is along with proof of ID, such as a driver's license, Social Security Card, passport or birth certificate.

Can I keep my US bank account when I move abroad? ›

Bottom line: Yes, you can keep your bank account if you move abroad. But, you need to check first with your bank to make sure that you aren't blindsided by account restrictions or unexpected fees when you do. That said, relying on your home bank account may not be the best option when living abroad.

How long can a retired US citizen stay out of the country? ›

If you leave the U.S., we will stop your benefits the month after the sixth calendar month in a row that you are outside the country. You can make visits to the United States for specific periods of time, depending on how long you've been outside, to continue receiving your benefits.

Can I keep my credit card if I move abroad? ›

Bottom Line. Even though you have moved abroad, your credit card debts continue to exist. Therefore, it is always in your best interest to pay your debts before leaving the country or be open with your credit card issuers about why you're moving abroad and when you'll be making your payment.

Which US banks are international? ›

In this article, we've rounded up some of the best international banks in the US that are great options for international travel.
  • Citibank. ...
  • HSBC. ...
  • Capital One. ...
  • Charles Schwab Bank. ...
  • First Republic Bank. ...
  • Bank of America. ...
  • Citibank. ...
  • HSBC.

Where can I open a bank account without residency? ›

Zenus Bank is a licensed and regulated American bank that provides all-remote US bank accounts in almost every country in the world without the requirement to be a US citizen or resident.

What happens if you don t close a bank account in another country? ›

Once a bank account is opened, it remains the property of the account holder, as long as it is active. The account holder can continue to deposit and/or withdraw money as before, as long as the bank's requirements for proper identity documents are satisfied.

Is a U.S. citizen living abroad a US tax resident? ›

I'm a U.S. citizen living and working outside of the United States for many years. Do I still need to file a U.S. tax return? Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live.

What happens if you don t file U.S. taxes while living abroad? ›

The only option to avoid submitting a US tax return and paying US taxes abroad under current US tax legislation is to renounce your US citizenship. If US citizens fail to file US taxes while living abroad, they may incur fines, interest charges, or possibly legal repercussions.

Can you have a different mailing address than where you live? ›

Is your current mailing address the same as your physical address? No. Your mailing address can be a second residence or residence you have permission of the owner to have mail addressed to, or a PO Box.

What happens if you don t pay american taxes while living abroad? ›

If you meet the requirements and willfully fail to file an FBAR you can be fined up to the greater of $124,588 or 50% of the total balance in all your overseas accounts. If you meet the requirements and fail to file FATCA Form 8938 you can be fined from $10,000 up to $50,000 if you don't act timely.

How long can a U.S. citizen live abroad? ›

You are correct. As a U.S. citizen, you can stay abroad for as long as you wish and always have the right to return. CBP officers must admit a U.S. citizen. That's true even if you were to visit a country where U.S. law restricts travel, such as North Korea or Cuba.

Do I need to file U.S. tax return if I live abroad? ›

If you are a U.S. citizen or Green Card holder living abroad, the tax filing process is similar to filing a return if you are in the U.S. Learn from the IRS about filing a U.S. tax return if you live abroad.

How does the IRS determine residency? ›

You are a resident of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year (January 1 – December 31). Certain rules exist for determining your residency starting and ending dates.

How long can I stay outside the U.S. to avoid tax? ›

You meet the physical presence test if you are physically present in a foreign country or countries 330 full days during any period of 12 consecutive months including some part of the year at issue. The 330 qualifying days do not have to be consecutive.

How long do you have to pay U.S. taxes if you live abroad? ›

Filing the 1040 is generally due each year on April 15th (April 18th in 2023) with an automatic extension to June 15th for Americans residing abroad, but if any taxes are due, interest is calculated starting April 15th up to payment date. You can request an additional extension by filing Form 4868.

Do US citizens living abroad pay double taxes? ›

As an American citizen, you're required to file a US tax return even if you're living abroad. And if you already owe income tax to a foreign government, you could end up paying twice on the same income. Here's what you need to know about US double taxation—and how to avoid it.

Can you have 2 permanent addresses? ›

Legally, you can have multiple residences in multiple states, but only one domicile. You must be physically in the same state as your domicile most of the year, and able to prove the domicile is your principal residence, “true home” or “place you return to.”

What is the difference between a permanent address and a current address? ›

The fact that you will have to move out of that place at some time makes it your current address. Your parents' home where you can return to at any time still remains your permanent home address. This is even if you've lived away from this address for the past four or five years.

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