Do You Still Pay US Taxes After Moving to Amsterdam?
Three weeks before we moved to the Netherlands, a friend asked: "So you won't have to deal with US taxes anymore, right?"
Wrong. Very wrong.
The United States taxes its citizens on worldwide income, no matter where you live. Moving doesn't change your tax obligations—it just makes them more complicated.
Yes, You Still File US Taxes
The US taxes based on citizenship, not residence. You're one of only two countries that does this.
This means:
- File US returns every year, wherever you live
- Report worldwide income to the IRS
- This continues until you renounce citizenship
We met an American who thought moving abroad exempted him. Hadn't filed in four years. The IRS found him (they have agreements with foreign banks). Don't be that guy.
For the complete guide, see US taxes living in Netherlands.
But You Probably Won't Pay Double Taxes
Here's the good news. Three benefits help:
1. Foreign Earned Income Exclusion (FEIE)
- Exclude up to $126,500 (2024) of foreign earned income
- If you earn $80,000 in Amsterdam and claim FEIE, your US taxable income is $0
2. Foreign Tax Credit (FTC)
- Dollar-for-dollar credit for taxes paid to the Netherlands
- Use this for income over FEIE threshold or passive income
3. Foreign Housing Exclusion
- Additional exclusion for housing costs above base amount
We use FEIE. It's straightforward and covers our income. Learn more in our FEIE explained guide.
What You Still Pay
Even with FEIE, you're not completely off the hook:
Self-employment tax: If running a DAFT business, you owe 15.3% (Social Security + Medicare) on net profit. FEIE doesn't cover this.
Income over threshold: Excess above $126,500 is taxable (use Foreign Tax Credit).
Passive income: Investment income, rental income—these don't qualify for FEIE.
Forms Required
Form 1040 - Standard return, due April 15 (June 15 for expats)
Form 2555 - Claims FEIE
FBAR - Foreign bank account report, filed separately, due April 15 (auto-extension to October 15). Required if foreign accounts exceed $10,000. See our FBAR requirements guide.
If self-employed: Schedule C and Schedule SE.
The Physical Presence Test
To qualify for FEIE, be in a foreign country for 330 days during any 12-month period.
The math: You can spend 35 days in the US per year.
We track every day. Family visits are planned to stay under 35 days.
Need Help With Expat Taxes?
Go at Your Own Pace
Templates, checklists, and a step-by-step timeline for your entire DAFT move—the practical toolkit we built from our own experience.
- Complete tax filing guide
- FEIE vs FTC comparison
- Or book a consultation for guidance
Talk Through Your Situation
Have specific questions? Unusual circumstances? Or just want to hear from someone who did this? Let's get on a call.
- Complete tax filing guide
- FEIE vs FTC comparison
- Or book a consultation for guidance
Our Real Situation
Income: $75,000 (DAFT business)
US taxes:
- Income tax: $0 (FEIE)
- Self-employment tax: ~$11,000
Dutch taxes: ~€22,000
Total burden: ~47% effective rate
High, but we're not paying double taxes on the same income.
Common Mistakes
- Not filing because you don't owe - Filing is required even if you owe $0
- Missing FBAR - Penalties are severe ($10,000+ per violation)
- Miscounting days - One day over and you fail Physical Presence Test
- Assuming you're exempt - Only renouncing citizenship exempts you
The Bottom Line
Yes, you file US taxes. Probably won't pay much US income tax if you use FEIE.
What's required:
- File US return every year (even if you owe $0)
- File FBAR if foreign accounts exceed $10,000
- Track days for Physical Presence Test
The first year is hardest. Hire an accountant—read when you need an expat tax accountant to decide.
Digital Guide — $199
We're not tax professionals—just Americans who figured this out. Consult a CPA for your specific situation.