Staying Compliant
Being a dual citizen opens doors — but it also opens up tax obligations that can be confusing or costly if misunderstood. At Lily Tax, we work closely with U.S. citizens and green card holders who also maintain foreign ties — especially with China, Taiwan, and Hong Kong — to help them stay compliant, avoid penalties, and reduce unnecessary taxes.
Who Has to File U.S. Taxes?
If you’re a U.S. citizen or green card holder, you’re required to report worldwide income, regardless of where you live or earn that money.
That includes:
- Income from jobs abroad
- Foreign bank interest or investment gains
- Rental income from overseas properties
- Stock sales, pensions, or business income from another country
True story: A dual U.S.–China citizen we worked with had $40,000 in untaxed foreign income. They thought it didn’t need to be reported since it was earned in Beijing. We corrected their filings, avoided IRS penalties, and helped them claim legal exclusions to eliminate the U.S. tax bill.
Key Forms You Might Need
- Form 2555 – Excludes up to $120,000+ in foreign-earned income (if you meet the test)
- Form 1116 – Claims foreign tax credits to avoid double taxation
- FBAR (FinCEN 114) – Reports foreign bank accounts over $10,000
- Form 8938 – Additional reporting of foreign assets (required for high balances)
Why Our Multilingual Services Matter
These forms are hard enough in English. Our Mandarin-speaking tax professionals make them clear and approachable, whether you’re dealing with accounts in China or income from abroad.
We help you:
- Understand what needs to be reported
- Communicate with overseas financial advisors
- Ensure all filings match U.S. IRS expectations
- Avoid costly omissions or duplications
Final Word
Living a global life shouldn’t create legal tax risks. If you’re a dual citizen, expat, or international investor, our team at Lily Tax in San Diego can walk you through it — in English or 中文.
📞 Schedule a multilingual consultation today.