Tax Season Guide for Americans Living in Netherlands
This is not tax advice. Consult a qualified tax professional for your specific situation.
Tax season as an American in the Netherlands means filing two returns. One for the US (because the IRS taxes you on worldwide income no matter where you live) and one for the Netherlands (because you live and earn here).
The first year we did this, it felt overwhelming. Two countries, different deadlines, different systems, forms we'd never heard of. Now it's routine. Here's the month-by-month guide we wish we'd had.
The Two Returns You'll File
US Federal Tax Return (Form 1040): Due April 15, with automatic extension to June 15 for Americans abroad. Can extend further to October 15.
Dutch Tax Return (Aangifte inkomstenbelasting): Due May 1, with extension available to September 1.
Plus, depending on your situation:
- FBAR (FinCEN 114): Due April 15, automatic extension to October 15
- Form 8938 (if assets exceed thresholds)
- State taxes (if you haven't properly severed state residency)
For a deep dive on your US obligations, see our complete US taxes guide for Americans in the Netherlands.
January: Gather Documents
This is when you collect everything from the previous year. Don't wait until March.
From your Dutch business:
- Annual profit and loss statement
- Balance sheet
- Business expense receipts
- Bank statements (all accounts)
- Hours log (for zelfstandigenaftrek)
From the US:
- W-2s or 1099s (if any US income)
- Investment account statements (1099-DIV, 1099-INT)
- Previous year's tax returns (both countries)
From Dutch institutions:
- Jaaroverzicht (annual statement) from your Dutch bank
- Health insurance premium statements
- Mortgage statements (if applicable)
Pro Tip: Create a shared folder at the start of each year. Drop documents in as they arrive. By filing time, everything is in one place. We use a simple Google Drive folder organized by tax year.
February: Review and Organize
This is the month to get organized and make decisions.
Key decisions:
- FEIE or Foreign Tax Credit? (Most DAFT entrepreneurs use FEIE)
- Filing yourself or using an accountant?
- Any changes from last year? (New accounts, income sources, life events)
Calculate key numbers:
- Total business income (EUR and USD)
- Total business expenses
- Business hours worked
- Maximum balances of all foreign accounts (for FBAR)
If you're unsure whether you need professional help, read our guide on finding an expat tax accountant.
March: Start Filing (Dutch Return)
The Belastingdienst opens online filing around March 1 each year.
Filing the Dutch return:
- Log in to Belastingdienst.nl with your DigiD
- Review pre-filled information (bank balances, employer income)
- Add your business income and expenses
- Claim deductions (zelfstandigenaftrek, startersaftrek, MKB)
- Review and submit
Time required: 3-4 hours the first year, about 1 hour after that.
The online system is mostly in Dutch. Google Translate works in a pinch, but an English-language guide from your accountant is better.
What We Wish We Knew: The Dutch return needs to be filed before the US return, ideally. The US return may need your Dutch tax figures (for the Foreign Tax Credit). File the Netherlands first.
April: US Return and FBAR
April 15: US tax return due (with automatic extension to June 15 for expats)
Even with the automatic extension, we recommend filing in April if you can. It's better to get it done than to let it hang over you.
Your US return will likely include:
- Form 1040 (standard return)
- Form 2555 (Foreign Earned Income Exclusion)
- Schedule C (self-employment income)
- Schedule SE (self-employment tax)
- Form 1116 (Foreign Tax Credit, if using instead of FEIE)
FBAR is due April 15 with automatic extension to October 15. File through the BSA E-Filing System, not with your tax return.
For step-by-step FBAR instructions, see our FBAR filing guide for DAFT entrepreneurs.
May: Dutch Deadline
May 1: Dutch tax return deadline.
If you haven't filed yet, either submit your return or request an extension (uitstel). Extensions are granted to September 1.
How to request an extension:
- Through your Mijn Belastingdienst account
- Or have your tax advisor request one on your behalf
Missing this deadline without an extension means potential fines.
June-September: Extensions and Catch-Up
June 15: Automatic US extension deadline for Americans abroad. If you need more time, file Form 4868 for an extension to October 15.
September 1: Dutch extended filing deadline.
This is also a good time to:
- Review your estimated tax payments for the current year
- Adjust your voorlopige aanslag (provisional assessment) if your income has changed
- Organize mid-year documents
October: Final US Deadline
October 15: Extended US tax return deadline and FBAR deadline.
If you're still not filed by now, you need to get it done. Further extensions are rare and require special circumstances.
Reality Check: We filed late our first year. Not intentionally, just overwhelmed. The penalty for late filing is 5% of unpaid taxes per month, up to 25%. If you owe nothing (common with FEIE), the penalty is zero. But don't make a habit of it.
Go at Your Own Pace
Our complete guide gives you everything we learned—step-by-step instructions, templates, timelines, and answers to the questions that kept us up at night.
Get the GuideTalk Through Your Situation
Have specific questions? Unusual circumstances? Or just want to hear from someone who did this? Let's get on a call.
Book a CallNovember-December: Year-End Planning
Tax season isn't just about filing. The end of the year is when you can still make moves that affect your current year's taxes.
Consider:
- Making business purchases before December 31 (to claim deductions this year)
- Reviewing your business structure
- Checking that your hours log meets the 1,225-hour threshold
- Estimating next year's taxes and adjusting provisional assessments
Exchange Rate Considerations
You earn in euros but file your US return in dollars. The exchange rate matters.
For the US return: Use the yearly average exchange rate from the IRS. Don't use the rate from a specific day.
For FBAR: Use the Treasury exchange rate for December 31.
For business income: Convert each transaction using the rate on the date of the transaction, or use the average annual rate. Be consistent.
Pro Tip: Keep a record of which exchange rate method you use and stick with it year to year. Switching methods can raise red flags.
Common Mistakes to Avoid
Filing US taxes only and skipping Dutch taxes. You must file in both countries if you live and work in the Netherlands.
Using the wrong exchange rate. The IRS average rate and the Treasury FBAR rate are different numbers.
Forgetting FBAR. It's separate from your tax return, filed on a different website, and the penalties for missing it are severe.
Not claiming FEIE. You have to actively elect FEIE on Form 2555. It's not automatic.
Missing Dutch deductions. The zelfstandigenaftrek and startersaftrek can save you thousands. Don't skip them.
What It Costs Us
Dutch tax advisor: EUR 400/year US expat tax accountant: $800/year Total professional fees: ~$1,250/year
Worth it. They catch things we'd miss, save us time, and give us peace of mind.
If you want to file yourself, it's absolutely doable after the first year. But the first year with professional help teaches you the system.
Quick Reference Calendar
| Date | Action |
|---|---|
| January | Gather documents |
| March 1 | Dutch filing opens |
| April 15 | US return due / FBAR due (auto-extends) |
| May 1 | Dutch return due |
| June 15 | US auto-extension (expats) |
| September 1 | Dutch extended deadline |
| October 15 | US extended deadline / FBAR extended deadline |
The Bottom Line
Filing taxes in two countries sounds daunting, and the first year is genuinely hard. But it becomes routine. Start gathering documents in January, file the Netherlands first, then the US, and you'll be done by April most years.
The key is not to procrastinate. Give yourself time, get help the first year, and build a system you can repeat.
Digital Guide — $99
We're not immigration lawyers or tax advisors--just Americans who did this. Requirements change, so verify with official sources.