US Expat Tax Preparation Services in Chicago, IL
Accurate US tax filing for Americans living abroad, and international tax help for Chicago residents with foreign income or accounts. We handle the exclusions, credits and foreign reporting so you stay compliant without paying tax twice.
We help if you are
- A US citizen or green card holder living abroad
- A Chicago resident with foreign income, property or bank accounts
- Moving abroad from Illinois, or moving back
- Newly arrived in the US with ties to another country
- Behind on US returns or FBARs while overseas
- Receiving a gift or inheritance from family abroad
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US citizens are taxed on worldwide income, wherever they live
The United States is one of only two countries that taxes its citizens on worldwide income regardless of where they live. US citizens and green card holders abroad still file a federal return every year if their income is above the filing threshold, and often owe extra foreign reporting forms even when no tax is due. Failing to file correctly can lead to steep penalties, IRS notices and compliance problems, even when no tax is owed.
The good news is that most expats owe little or no US tax once the Foreign Earned Income Exclusion or the Foreign Tax Credit is applied correctly. The work is in choosing the right one, filing the right forms and keeping each year consistent with the last.
Heard & Associates LLC prepares US expat returns for Americans abroad and international returns for Chicago residents with income, accounts or family overseas. Because we are a Chicago firm, we also handle the Illinois side when you are moving out of or back into the state, alongside our individual tax preparation and multistate tax services.
US expat and international tax services
Every filing an American abroad, or a Chicagoan with ties overseas, is likely to need.
US Expat Income Tax Returns
Form 1040 for Americans abroad, with foreign wages, self-employment income and currency conversion reported correctly and e-filed with the IRS.
Individual tax preparation →FEIE and Foreign Tax Credit
We model the Foreign Earned Income Exclusion (Form 2555) against the Foreign Tax Credit (Form 1116) and choose the one that leaves you better off now and in future years.
Tax planning →FBAR and FATCA Reporting
FinCEN Form 114 for foreign accounts over $10,000 combined and Form 8938 for foreign financial assets over the reporting thresholds, filed on time and consistent with your return.
Ask about foreign accounts →Catch-Up and Streamlined Filing
Behind on US returns or FBARs while abroad? The Streamlined Foreign Offshore Procedures can bring you current with three years of returns and six years of FBARs, usually without penalties.
Unfiled tax returns →Moving Abroad or Moving Back
Part-year and dual-status returns for the year you leave or arrive, including the Illinois part-year return and advice on keeping or ending Illinois residency.
Multistate tax →Foreign Gifts, Inheritances and Assets
Form 3520 for large gifts or inheritances from family abroad, foreign rental property on Schedule E, and foreign mutual funds that trigger PFIC reporting.
High-net-worth tax planning →Key numbers and deadlines for Americans abroad
For 2026 you can exclude up to $132,900 of foreign earned income if you qualify through the bona fide residence test or the physical presence test, which requires 330 full days outside the US in any 12-month period. Income above the exclusion, and investment income, can often be offset with the Foreign Tax Credit for tax you paid to another country.
Deadlines differ too. If you live abroad on April 15, you get an automatic two-month extension to June 15 to file, though interest still runs on any tax owed from April 15. A further extension to October 15 is available on request. The FBAR is due April 15 with an automatic extension to October 15.
The international tax forms you may need
Which ones apply depends on where you live, what you earn and what you own abroad.
Foreign Earned Income Exclusion vs Foreign Tax Credit
Both prevent double taxation, but the wrong choice can cost money for years. We run both before filing.
Best fit
What it covers
Leftover benefit
Retirement and refunds
Switching
International tax help for people living in Chicago
You do not have to live abroad to need international tax help. Many of our clients live in Chicago and have income, accounts or family overseas:
- Chicago residents with a bank account, pension or rental property in their home country
- Green card holders and new arrivals filing their first full US return
- Families receiving gifts or inheritances from relatives abroad
- Professionals sent overseas by a Chicago employer on assignment
- Retirees moving abroad who need to plan Illinois and federal residency
- Dual citizens who have never filed a US return
Leaving Illinois? Plan your residency first
Moving abroad does not automatically end Illinois residency. If you keep a home, a driver’s license or close ties here, the state may still treat you as a resident and tax you on income Illinois would not otherwise reach.
In the year you move, you file as a part-year Illinois resident. We help you document the move and file the federal, Illinois and, where needed, dual-status returns so the transition year is handled cleanly.
Plan my move abroad →How we prepare your expat return
Entirely online if you are abroad, or in person at our Hyde Park or Olympia Fields office if you are in Chicago.
Consultation
We review where you live, what you earn, what you own abroad and which years are open.
Gather documents
Foreign pay slips, tax returns, account balances and exchange rates, shared through a secure portal.
Model and prepare
We compare the exclusion and credit, prepare the return and every required foreign form.
File and plan ahead
Your return and FBAR are filed on time, with a plan for next year and any move you have coming.
Rated 5.0 by 100+ clients on Google
Clients describe a team that explains complicated rules in plain English, answers quickly and gets the return right.
US expat tax questions
Every international situation is different. If your question is not here, ask us during a consultation.
Book a consultation →Do I have to file US taxes if I live abroad?
Yes, if your worldwide income is above the normal filing threshold for your filing status. US citizens and green card holders file every year no matter where they live. Most expats owe little or no tax after the Foreign Earned Income Exclusion or Foreign Tax Credit, but the return still has to be filed to claim them.
When is the US tax deadline for expats?
If you live and work outside the US on April 15, you get an automatic two-month extension to June 15. You can request a further extension to October 15. Interest on any tax owed still runs from April 15, so paying an estimate by then is wise.
What is the Foreign Earned Income Exclusion for 2026?
Up to $132,900 of foreign earned income per person for 2026, claimed on Form 2555. You qualify by being a bona fide resident of a foreign country for a full tax year or by spending at least 330 full days outside the US in a 12-month period.
Should I use the exclusion or the Foreign Tax Credit?
It depends on the country. In higher-tax countries the credit usually wins, because the foreign tax already exceeds the US tax and extra credits carry forward. In lower-tax countries the exclusion is often simpler and cheaper. We model both before filing, because switching back and forth can have long-term limits.
What is an FBAR and do I need to file one?
The FBAR, FinCEN Form 114, reports foreign bank and financial accounts. You must file it if the combined highest balances of your foreign accounts exceeded $10,000 at any time during the year, even if the accounts earned nothing. It is filed separately from your tax return.
I have not filed US taxes for years while living abroad. What should I do?
If your failure to file was not willful, the IRS Streamlined Foreign Offshore Procedures usually let you catch up by filing the last three years of returns and six years of FBARs, generally without penalties. We prepare the full package, including the required certification.
Do Chicago residents with foreign bank accounts need to report them?
Yes. Living in the US does not remove the requirement. If your foreign accounts total more than $10,000 at any point, you file an FBAR, and larger balances may also require Form 8938 with your return. Foreign interest, dividends and rental income are taxable in the US and in Illinois.
Will I still owe Illinois tax after moving abroad?
Possibly. Illinois taxes residents on all their income, and keeping a home, license or strong ties here can keep you a resident. In the year you leave, you file as a part-year resident. We help document the move so your Illinois obligations end when they should.
Do I owe Social Security tax while working abroad?
Employees of foreign companies usually pay into the local system instead. Self-employed Americans abroad generally still owe US self-employment tax unless a totalization agreement between the US and their country of residence assigns coverage to that country.
File your US expat taxes with confidence
Book a consultation from anywhere in the world. We will review your situation, confirm what you need to file and make sure you are not taxed twice.