Your US tax checklist for Americans working in Australia

Living in Australia as an American?

Your tax situation just got complicated.

Here's the thing: The US doesn't care where you live. If you're a citizen, you're filing a tax return. Period.

You'll be dealing with two governments. Two tax systems. Two currencies. And two completely different deadlines.

Most Americans moving to Australia don't realize how expat taxes work until it's too late.

But it doesn't have to be this way.

This guide walks you through everything you need to know. Step by step. No jargon. Just practical advice from someone who's helped hundreds of expats navigate this exact situation.

Step 1. Understand your tax residency in Australia

Before you do anything else?

You need to know where Australia thinks you live.

Your tax residency status determines whether Australia taxes your worldwide income or just your Australian earnings. Big difference.

The four tests Australia uses

Australia doesn't mess around. They have four different ways to decide if you're a resident:

Pass any one of these tests?

Congratulations. You're a tax resident. Australia now wants to know about every dollar you earn, anywhere in the world.

This is your starting point for everything else.

Step 2. Know which US forms you'll need

Even if you owe the IRS nothing, you probably still have to file.

Zero obligation doesn't equal zero paperwork.

The forms every expat should know

Miss the FBAR?

The penalties are brutal. We're talking thousands of dollars for what might seem like a simple oversight.

Step 3. Master your deadlines

Two countries. Two calendars.

And they don't line up.

When everything's due

Here's the annoying part:

You'll need income info from two different Australian tax years just to complete one US return.

Welcome to expat life.

Step 4. Get your documents together

Organization isn't optional here.

Being sloppy with your paperwork? That's how expats end up overpaying or facing audits.

What you need to collect

Income documents:

Pay stubs from Australian employers

Bank interest statements

Investment income records

Rental property documents (if applicable)

US tax forms (W-2s, 1099s)

Account records:

Quarterly bank statements for every local and foreign account

Year's maximum balances for each foreign account

Australian superannuation reports and contribution statements

Tax records:

Previous year's tax returns (invaluable for carryovers like unused foreign tax credits)

Self-employment or rental property expense receipts

Staying organized year-round will help streamline your tax prep and boost your compliance confidence.

Step 5. Don't pay taxes twice

The good news?

You probably won't have to pay full taxes to both countries.

Two main tools to prevent double taxation

Foreign Earned Income Exclusion (FEIE):

Excludes $130,000 (2025) or $132,900 (2026) per person

Only works if you pass the residency test

Like having a big chunk of income become invisible to the IRS

Foreign Tax Credit (FTC):

Dollar-for-dollar credit for taxes paid to Australia

Better for high earners

Claimed on Form 1116

Think of it like this: Australia taxes you first. Then the US looks at what's left and says, "Okay, we'll just take whatever Australia didn't."

Most expats in Australia end up owing little to nothing to the IRS. But you still have to file to prove it.

Step 6. Deal with superannuation

Australia's retirement system is called superannuation.

The IRS... doesn't quite know what to do with it.

Superannuation rates

From a US perspective, your super fund gets treated like a foreign trust. Which means? More reporting requirements.

Social security coordination

There's an agreement between the US and Australia so you don't pay into both systems:

Working for a US company, under 5 years: Pay into US Social Security

Longer than 5 years, or Australian employer: Pay into Australian system

Track everything. Save every statement. Future you will need these records.

Step 7. Comply with Foreign Account Reporting (FBAR & FATCA)

This is where expats get into trouble.

FBAR requirements (FinCEN Form 114)

Got more than $10,000 total across all foreign accounts at any point during the year?

File an FBAR.

This includes:

Your checking account

Savings accounts

That brokerage account

Even your superannuation

Joint accounts (even if you barely use them)

Deadline: April 15, but you get an automatic extension to October 15.

FATCA requirements (Form 8938)

These thresholds are higher:

This one goes with your tax return.

The penalties for missing these?

Let's just say the IRS takes this very seriously.

Step 8. Optimize deductions and credits for expats

Time to reduce that tax bill.

Foreign Earned Income Exclusion:

2025: $130,000

2026: $132,900

The single biggest tax break for expats

Foreign Housing Exclusion:

Covers rent, utilities, insurance

Especially valuable in Sydney or Melbourne

Can be thousands of dollars in savings

Foreign Tax Credit:

Perfect if you earn over the FEIE limit

Takes what you paid Australia and credits it against US taxes

Don't forget:

Child tax credits

Education credits

Business expenses (if self-employed)

Most Americans in Australia?

They eliminate their entire US tax bill by using these correctly.

Step 9. Get professional help

I'm going to be blunt here.

Trying to DIY this might cost you more in mistakes than a professional would charge.

A qualified CPA or tax agent versed in the US law can identify missed deductions, review your treaty benefits, manage multiple filings, and represent you in case of IRS audits.