Filing US Taxes for Expats Living in the Philippines

The Philippines is a beautiful country with never-ending warm weather and welcoming Filipino people. You could be soaking up the beautiful landscapes like Palawan or Banaue Rice Terraces. Perhaps you’re indulging in some of the festivals like Sinulog or Ati-Atihan. Whether you are learning a new language, enjoying the cuisine or embracing slower pace lifestyle, you cannot must remember your US tax responsibility. Let’s walk you through all the basics for filing US expat taxes while living in the Philippines as an expat.

Quick Navigation:

1. Who Needs to File US Taxes?
2. Filing US Expat Taxes in the Philippines
3. Visa Information for the Philippines
4. US and Philippines Tax Deadlines
5. US Tax Benefits for Expats
6. Family Tax Benefits
7. Self-Employment Tax Information
8. Investing and Retiring in the Philippines
9. Getting Catch Up
10. File today!

Who Needs to File US Taxes?

You may not know this, but US citizens are not the only people who are required to file US taxes from abroad. If you’re a Green Card Holder, you are considered a citizen for tax purposes, meaning you must file US expat taxes even if you live in the Philippines. You will not have the same obligation if you do not meet the filing threshold.

Filing Status	Threshold Amount
Single	$13,850
Married Filing Separately	$5
Married Filing Jointly	$27,700
Head of Household	$20,800
Qualifying Widower	$27,700
Self-Employed	$400

Filing US Expat Taxes in the Philippines

Like many countries, the Philippines will tax you based on whether or not you are considered a resident. To be a resident in the Philippines, you will have to stay longer than 180 days in a calendar year. As a resident, your worldwide income will be subject to taxation; if you’re a non-resident, you only need to worry about Philippine-sourced income.

For tax residents, the Philippines has a progressive income tax system, with rates ranging from 0% to 35%, depending on your income bracket.

• For those earning 250,000 PHP or less, your tax rate will be 0%.
• For those earning between 250,000 PHP – 2,000,000 PHP, your tax rate will be between 20%-32%.
• For those earning 2,000,000 PHP or more will result in a tax rate between 30%-35%

As for non-resident with a Philippine-sourced income, you will have a fixed rate of 25%.

Visa Information for US Expats in the Philippines

There are many visa options for people looking to immigrate to the Philippines, but not all of them allow you to work. For instance, if you arrive with a tourist visa, you can stay in the country for 59 days, but you cannot work.

Other options are the 13A Non-Quota Immigrant Visa or the 9(g) Pre-Arranged Employment Visa. The 13A Non-Quota Immigration Visa is available to people who have married a Filipino citizen, and the 9(g) Pre-Arranged Employment Visa is for those who work in the Philippines.

These are just a few of the visa options; there are several to choose from on the Philippines Government website. Review the visas and apply for the one that is before your lifestyle.

US and Philippines Tax Deadlines for US Expats

Both US and Philippine tax deadlines are so critical for staying tax complaint and avoiding penalties. As a US expat, you have four deadlines to remember, while the Philippines only has one standard deadline to remember.

US Tax Deadline

If any tax deadline lands on a holiday or weekend, it will be changed to the next business day.

Philippines Tax Deadline

Not only is April 15th a tax deadline for the US, but it’s also the deadline for the Philippines. Unlike the US, the Philippines does not offer an extension option, so please make sure to file by April 15th.

US Tax Benefits for Expats

Unfortunately, living abroad does not allow you to skip out on your US tax responsibilities. However, this does not mean you’ll be double-taxed just because you are a US citizen living abroad; your taxes have a few beneficial programs to reduce your tax burden.

The first is the Foreign Earned Income Exclusion (FEIE), which allows you to exclude Default String of foreign earned income from your US tax liability. To qualify, you must meet the criteria for the Bona Fide Residence Test or the Physical Presence Test. These tests prove you are a US expat living abroad.

The second benefit is known as the Foreign Tax Credit (FTC). This credit allows taxpayers to offset income taxes paid to foreign governments against their US tax liability.

In addition to these benefits, the US-Philippines Tax Treaty helps clarify rules and reduce confusion. To claim this, you must attach form 8833 to your tax return.

Family Tax Benefits

Filing taxes abroad can come with some additional cash, especially if you have a family. Even if your family lives in the Philippines, you could still be eligible for the Child Tax Credit (CTC). This credit allows any qualifying child under 17 with a Social Security Number (SSN) to claim up to $2,000. If you do not owe any taxes, Default String is refundable.

You must attach Form 8812 to your standard 1040 form to claim this benefit on your tax return. If you want to make your life easier, you can file using the MyExpatTaxes software, which does not require memorizing many tax forms. Customers usually finish filing in under 30 minutes with all the benefits for which they qualify!

Self-Employment Tax Information

Being self-employed is hard work, but it’s worth it to be your own boss, especially in a country like the Philippines. As a self-employed person, you will still have US self-employment taxes. The flat rate for US self-employment taxes is 15.3%, divided between Social Security and Medicare. You will need to file self-employment taxes as long as you earn over $400 annually.

TIP: Self-employment taxes can get complicated quickly, so consider consulting a Tax Professional if unsure about any filing step. Avoid the penalties by asking a MyExpatTaxes Tax Professional through our chat function!

Investing and Retiring in the Philippines

The Philippines is an excellent retirement place for US expats due to its affordable cost of living, warm climate, and stunning scenery. If you are considering the Philippines as your home for retirement, it’s understandable.

If you’re looking to retire as a US expat in the Philippines, you need to be aware of the Special Resident Retiree’s Visa. This visa allows you to be an indefinite resident in the Philippines!

With your indefinite residency, you can also continue to benefit from your IRAs, or if you are not ready to retire yet, you can continue to contribute. Keep in mind that there are restrictions that are based on your earned income and tax filing status.

Didn’t Know You Needed to File?

US expat taxes are definitely not the first thing you’re thinking about when you move to the Philippines, so it’s understandable if you didn’t file because you didn’t know. Now that you have been informed about your tax duty as a US citizen, you will need to catch up. You can do this by using the Streamlined Procedure, which allows you to file up to three past tax returns and six Foreign Bank Account Reports (FBARs) without fear of penalties.

Be warned that if you are contacted by the IRS before using this procedure, you will not be eligible and you will likely be subject to penalties!

File Your Taxes with MyExpatTaxes Today!

Feeling a bit lost with where to start with your US taxes? The team at MyExpatTaxes can help answer your tax questions and guide you through your 2023 tax return. If you haven’t filed US expat taxes after moving to the Philippines, consider asking about the Streamlined Procedure. Overall, eliminate this unnecessary stress and start by getting signed up with MyExpatTaxes so you can file today!