US Expat Living in Sweden: How to File Taxes

For US expatriates living in Sweden, it is vital to understand how to file your taxes. Failure to file your taxes or a serious error on your taxes could mean that you will be stuck with a large tax bill or possibly other tax penalties. However, you could seek accounting assistance to help you resolve these matters before they become a problem. If you are a US expat residing in Sweden, you should consult with an experienced CPA for US tax preparation for expats in Sweden in order to ensure your taxes are timely filed. At US Tax Help, we recognize the stress associated with managing taxes as a US expatriate, and we would be pleased to help you satisfy your tax liability. Ted Kleinman, CPA, is here to explain how to file taxes as a US expatriate living in Sweden.

When Must a US Expat Living in Sweden File Taxes?

In this day and age, it is extremely common for United States citizens and green card holders to possess a foreign bank account. However, what many owners of foreign bank accounts do not understand is that their foreign earnings will be subject to United States global taxation laws. Some taxpayers discover this detail too late and become responsible for tax penalties and other repercussions of late filing for US expats.

One of the reasons that the United States levies taxes on foreign income is because foreign institutions often lack the scrutiny that American institutions provide. As a result, there is a higher chance that serious errors or other financial irregularities may occur at a foreign financial institution. This is why you should consider working with an experienced international tax accountant that could handle streamlined tax disclosure for expats.

Under the Bank Secrecy Act, U.S. expats are required to file a Report of Foreign Bank and Financial Accounts (FBAR). An FBAR must be filed by a US expat in Sweden under the following circumstances:

  • The U.S. expat has control or a financial interest in one or more foreign financial accounts, such as bank accounts, brokerage accounts, mutual funds, or other similar types of foreign accounts
  • The total value of the foreign financial accounts exceeded $10,000 at any point during the calendar year

You should also be aware that you may have a foreign bank account located in a territory or similar lands that you did not expect to be considered foreign. For example, if you possess a financial account in Puerto Rico or the District of Columbia, this would be considered a foreign financial account. US Tax Help could help you determine if you unknowingly opened an account that is subject to foreign reporting requirements.

To learn more about when you must report income from a foreign financial account, you should continue reading and consult with an experienced international tax accountant as soon as possible.

Requirements for US Expats in Sweden Reporting Their Foreign Income

While you could use physical forms, it may be more efficient to file an FBAR for your foreign financial account online. The forms that you require will be on the IRS website for use by taxpayers.

When preparing to file your FBAR, you should be aware that the deadline for the FBAR is April 15 of the following calendar year. In some cases, US expats living in Sweden may be provided with an automatic two-month extension to file their taxes. Note, however, that US expats that file after the April 15 deadline will have to pay interest that accumulated for their taxes. As a result, it may be prudent to file as early as possible if you can.

When filing an FBAR, you could choose to file separately or jointly with others. For example, if two or more people own an interest in a foreign account, they each must report their interest in the account. However, there are some exceptions for reporting when it comes to spouses.

Spouses that file FBARs are not required to file separately if they file Form 114a (Record of Authorization to Electronically File FBARs), and the following conditions are met:

  • The reportable financial accounts of the non-filing spouse are jointly owned with the filing spouse
  • The spouse timely files the FBAR and highlights all accounts that are jointly owned with the non-filing spouse

If the above conditions are not met, the spouses are required to file separate FBARs where they are required to report the total amount of all jointly-owned foreign accounts. You should also recognize that opening a foreign financial account in your child’s name will require you to report this account to the IRS.

If delinquent US expat taxes are continuously ignored by a taxpayer, this could lead to a number of legal trouble for an expat. They could be subject to heavy tax penalties as well as criminal charges. US Tax Help is here to help you remain compliant with your taxes.

Consult with Our Committed CPA for Filing Taxes for US Expats Living in Sweden

If you are living as a US expat in Sweden and you need help with handling your tax liability, you should contact an experienced accountant for US tax preparation for expats living abroad. Ted Kleinman, CPA, has a broad range of experience filing taxes for US expatriates, and he is here to offer you the tax services that you deserve. To schedule a consultation to discuss how to file taxes as a US expat in Sweden, you should call US Tax Help at (541) 362-9127. You could also use our online submission form to schedule your appointment online.