US Taxes in Israel
US Tax Filing in Israel - Coordinated with Licensed CPAs
Every US citizen and Green Card holder must file an annual tax return, even when living in Israel. We manage the process with licensed US CPAs - so you don't have to search, explain, or deal with the IRS in English.
1040 Filing Tiers
Choose the tier that matches your financial situation. Every filing includes full support through IRS acceptance.
Essential
Basic Form 1040 filing with a single income source
- ✓Form 1040 - full filing
- ✓Schedule A - itemized deductions
- ✓Schedule B - interest and dividends
- ✓Form 2555 - Foreign Earned Income Exclusion
- ✓Form 1116 - Foreign Tax Credit
- ✓Form 8812 - Child Tax Credit (if eligible)
- ✓FBAR (FinCEN 114) - up to 5 bank accounts
Advanced
Multiple income sources and self-employment
- ✓Everything in Essential
- ✓Schedule C - self-employment income
- ✓Schedule D - capital gains
- ✓Schedule E - rental income
- ✓Schedules 1, 2, 3 - additional income and taxes
- ✓Additional employment or 2 passive income sources
- ✓FBAR - up to 10 bank accounts
- ✓Form 8938 - foreign financial assets
Premium
Complex investments, multiple assets, special cases
- ✓Everything in Advanced
- ✓2 additional rental incomes
- ✓5 additional passive income sources
- ✓5 additional employment/self-employment sources
- ✓Up to 10 foreign financial assets
- ✓Form W7 - ITIN Application
Specialty Packages
Dedicated handling for complex situations - unfiled prior years, standalone FBAR, and citizenship renunciation with full tax compliance.
FBAR Only
FinCEN 114 filing without full tax return
- ✓FBAR - up to 10 accounts
- ✓For citizens not required to file 1040 this year
- ✓Handles late/missed FBAR filings
Streamlined Filing
Catch up 3-5 years of missed filings, penalty-free
- ✓3 years of 1040 returns + 6 years of FBARs
- ✓Form 14653 - non-willful certification
- ✓Full coverage of unfiled years, no penalties
- ✓Coordination with IRS until case is accepted
Renunciation Package
Form 8854 + Exit Tax + tax compliance review
- ✓Form 8854 - official expatriation statement
- ✓Exit Tax calculation (for those over $2M net worth or $206K taxable income threshold)
- ✓5-year tax compliance review + Streamlined if needed
- ✓Global asset balance sheet for 8854
- ✓Coordination with embassy renunciation process (DS-4079, DS-4080)
Frequently asked questions
Who needs to file a US tax return while living in Israel?
Every US citizen and Green Card holder must file Form 1040 with the IRS annually, even if all income is Israeli and no US tax is owed. Additionally, anyone holding foreign bank accounts totaling over $10,000 at any point during the year must file an FBAR.
What is the Foreign Earned Income Exclusion (FEIE)?
FEIE allows US citizens abroad to exclude a substantial portion of their foreign income from US taxation (2026 threshold: ~$130,000). You must meet one of two tests - the Physical Presence Test (330 days outside the US per year) or the Bona Fide Residence Test.
What's the risk if I haven't filed for years?
Unfiled FBARs carry penalties up to $10,000 per year (non-willful) or 50% of account balance (willful). Unfiled 1040s lead to penalties, interest, and in extreme cases criminal investigation. The Streamlined Filing program allows non-willful citizens to catch up without penalties, but requires a properly prepared case.
Can I get a US tax refund? How?
Yes - the Child Tax Credit (Form 8812) refunds up to $1,700 per child with an SSN by year-end. Even with no US tax owed, the refund is paid in cash. We ensure you claim every refund you're entitled to.
Does renouncing US citizenship end my tax obligations?
After renunciation (DS-4079/4080 at the embassy), you must still file Form 8854 and your final tax return for the renunciation year - failure brings $10,000/year penalties. Those over the Exit Tax threshold ($2M net worth or $206K taxable income in 2026) must calculate exit tax. Renunciation without professional tax guidance = significant financial risk.
How is your service different from working directly with a US CPA?
We coordinate the entire process for you with licensed US CPAs we partner with. You get Hebrew-language support, organized case management, initial forms preparation, all bundled into one price. We're the front-line for the professionals - saving you the search, repeated explanations, and managing it all in English.
When is the filing deadline?
Regular deadline is April 15. US citizens abroad automatically get an extension until June 15. A further extension is available until October 15 (Form 4868). Any tax owed must be paid by April 15 to avoid interest. FBAR is automatically extended to October.
Ready to file your taxes?
One contact and we take it from there. No stress, no bureaucracy.