Life in Singapore - How to File US Taxes as an Expat

Living in Singapore as an expat is typically a comfortable and enjoyable experience. American expats living in Singapore are required to file US taxes though, as well as Singaporean taxes (if they spend at least 183 days in Singapore in a year).

This is because the US taxes based on citizenship rather than on residence, so US citizens - and green card holders - are required to file US taxes wherever in the world they live.

Rules and deadlines

US expats in Singapore are required to report their global income, converted into US dollars if earned in other currencies, on IRS Form 1040 every year.

Expats have an automatic two month filing extension up until June 15^th. As Singaporean tax day is April 15^th, this gives expats plenty of time to file Singaporean taxes first. If expats need further time for any reason however, they can request an additional US filing extension until October 15^th.

Exemptions and Credits

There are several ways that American expats living in Singapore can reduce their US tax bill. The primary two are by claiming the IRS Foreign Tax Credit, or the Foreign Earned Income Exclusion.

Both have limitations, and which is more beneficial depends on each expat’s circumstances, and in particular their income level.

The Foreign Tax Credit allows expats to claim US tax credits up to the value of Singaporean income taxes that they’ve paid. If they are paying a lower rate of tax in Singapore though, they will still owe some US tax.

The Foreign Earned Income Exclusion allows expats to simply exclude $105,900 (in 2019) of their earned income from US taxation.

So if an expat living in Singapore earns less than $105,900, the Foreign Earned Income Exclusion will often be preferable, as it will allow them to pay no US tax. To claim the Foreign Earned Income Exclusion, expats have to file IRS Form 2555 and demonstrate that they were either a permanent resident in Singapore, or spent 330 days outside the US, in the relevant tax year.

Expats who earned over $105,900 can claim the Foreign Earned Income Exclusion to exclude this amount, and may be able to exclude more if they are renting their home in Singapore by claiming the Foreign Housing Exclusion, also on Form 2555. Any further income they can claim US tax credits for.

Other reporting requirements

Americans living in Singapore also have to report any Singaporean registered bank and investment accounts if the value of all their foreign registered financial account balances combined exceeds $10,000 at any time during a year. They do this by filing what is known as an FBAR (Foreign Bank Account Report). Fines for not filing FBARs are high, and the IRS receives the same information from foreign banks, so it’s an important requirement not to neglect.

Expats also have to report any Singapore registered business interests they may have.

Amnesties and advice

Americans who have been living in Singapore for a while but haven’t been filing US taxes because they didn’t know they had to can catch up without paying fines under an IRS amnesty program called the Streamlined Procedure.

Filing US taxes from abroad is complex, so it’s always worth seeking assistance from a US expat tax specialist firm, which typically saves expats lots more money than they cost.