Who Must File a US Tax Return — Even While Living in Israel

A common surprise for Israeli-Americans: the US taxes by citizenship, not residence. Even someone who has spent their whole life in Israel and owes no US tax is still required to file once income passes a certain threshold.

Who must file

• US citizens — anywhere in the world
• Green Card holders
• In certain cases, those with US-sourced income

The filing threshold depends on status and age and updates annually ⁦(for a single filer under 65 it's around $15,000–$16,000 gross income)⁩. We confirm the exact figure for your year before filing.

What FBAR is

Beyond the return itself: anyone holding foreign financial accounts whose combined value exceeded $10,000 at any point in the year must file a separate FBAR ⁦(FinCEN 114)⁩. Many are unaware of it, and non-filing penalties are heavy.

The breaks you're owed

Most Israeli-Americans pay no actual US tax thanks to the Foreign Earned Income Exclusion ⁦(FEIE)⁩ and the Foreign Tax Credit. Filing is mandatory — but usually with no payment, and sometimes a refund ⁦(Child Tax Credit)⁩.

Haven't filed for years?

The Streamlined program lets citizens who didn't file out of non-awareness get compliant, sometimes penalty-free, provided the non-filing was non-willful. It requires a properly prepared, professional case.

How we help

We're not accountants — we coordinate the process with licensed US CPAs we work with, with Hebrew-language support and organized case management. You don't face the IRS in English alone.