U.S. TAX GUIDE IN IRELAND
Do you need to file US taxes while living in Ireland?
Yes, if you’re a US citizen or green card holder in Ireland, you’re still required to file a US tax return each year if your income is above the IRS’s minimum threshold.
This is mandatory regardless of your residency status in Ireland.
Table of Contents
How can you avoid paying taxes twice?
To prevent double taxation, the US and Ireland have a tax treaty. You can use the Foreign Tax Credit (FTC) or the Foreign Earned Income Exclusion (FEIE) to reduce or eliminate your US tax on income already taxed in Ireland.
Does this apply if you’ve never lived in the US?
Yes, even if you’ve never lived in the US, as a citizen, you still need to file a tax return.
The US taxes its citizens on their global income, no matter where they reside.
How does Ireland determine tax residency?
You’re considered a tax resident in Ireland if you spend at least 183 days in the country in a single year, or 280 days over two consecutive years.
Being a tax resident means you’ll need to pay Irish taxes on your worldwide income.
Why is knowing your tax residency important?
In the US, citizens are taxed on their global income no matter where they live.
In Ireland, however, your tax residency status means you’re taxed based on where you live and earn your income.
What are the differences in tax rates between the US and Ireland?
In the US, your tax rate depends on your filing status (e.g., single, married, etc.), while Ireland uses two main rates: 20% for lower income levels and 40% for higher incomes.
How should you prepare to file your US taxes while in Ireland?
Gather all relevant financial documents, including details about income earned, taxes paid in Ireland, and investment earnings.
Completing your Irish tax return first can help you with your US filing, and consulting a tax expert who understands both systems is recommended.
When are US tax returns due if you live abroad?
If you’re living in Ireland, you automatically get a filing extension until June 15 for your US tax return. However, any taxes you owe are still due by April 15. If you need more time, you can request an extension until October 15 by filing Form 4868.to compliance with the IRS.
What happens with social security contributions in Ireland?
Ireland’s PRSI system offers social security benefits similar to those in the US.
There’s also a Totalization Agreement between the US and Ireland that prevents you from paying social security taxes in both countries and ensures your contributions count toward benefits in either country.