US Citizen abroad -- OK to change bank address to foreign address?
September 29, 2015 6:23 AM Subscribe
Is there any reason I would regret changing my US account addresses to my new foreign address?
Probably a silly question, but I'm a US Citizen living abroad. I file taxes as a US Citizen living abroad. Right now, I have all my bank/investment company address stuff going to my parents' house. I'd like to just change that stuff to my actual foreign address. Is there any reason why this might be a bad idea? (I.e., bank wouldn't do business with me, or something?) I can't really think of anything rational, but I'm not savvy at all when it comes to this stuff!
Also -- if anyone can suggest a good, clear book on money/taxes while living abroad for Americans, I'd be grateful!
Probably a silly question, but I'm a US Citizen living abroad. I file taxes as a US Citizen living abroad. Right now, I have all my bank/investment company address stuff going to my parents' house. I'd like to just change that stuff to my actual foreign address. Is there any reason why this might be a bad idea? (I.e., bank wouldn't do business with me, or something?) I can't really think of anything rational, but I'm not savvy at all when it comes to this stuff!
Also -- if anyone can suggest a good, clear book on money/taxes while living abroad for Americans, I'd be grateful!
For some things there are rules about residency, especially with investment stuff, as grouse noted. Technically, those rules apply whether or not you change your address with the bank, but if you don't, they just won't know.
My credit union had a hard time with my foreign address. Their system just was not set up to accept a person living somewhere with a 3 digit zip code. But they kind of worked it out.
I keep at least one authorized US address on my credit card accounts for the reasons grouse mentions as well. The number of places that require (either explicitly or through incompetence) US billing addresses is large.
posted by Nothing at 6:37 AM on September 29, 2015
My credit union had a hard time with my foreign address. Their system just was not set up to accept a person living somewhere with a 3 digit zip code. But they kind of worked it out.
I keep at least one authorized US address on my credit card accounts for the reasons grouse mentions as well. The number of places that require (either explicitly or through incompetence) US billing addresses is large.
posted by Nothing at 6:37 AM on September 29, 2015
I use EdwardJones for investment accounts, and my advisor also recommended using a U.S. address on those accounts.
posted by neushoorn at 6:42 AM on September 29, 2015
posted by neushoorn at 6:42 AM on September 29, 2015
If it would change your credit card billing address, then don't do it. It's enormously useful to have a credit card with a US billing address. I really regret changing my address when I moved back to Canada instead of getting a UPS store box and sending credit card bills there.
posted by If only I had a penguin... at 7:24 AM on September 29, 2015 [1 favorite]
posted by If only I had a penguin... at 7:24 AM on September 29, 2015 [1 favorite]
What Grouse said. I literally lost (as in mislaid) a very large amount of stock this way because my brokerage could no longer do business with me, notified me of this at a temporary address I no longer used, and then sent me my certificates to that same address. Years later, when I finally realized what was going on and freaked out, I had to track down the registrar of the shares to get it all sorted out. HUGE mess.
posted by Naberius at 9:04 AM on September 29, 2015
posted by Naberius at 9:04 AM on September 29, 2015
Keep a US address. I lived overseas for years and couldn't open US bank accounts with a foreign address, even as a US citizen. Even worse, these days many foreign banks won't open up bank accounts for US citizens either due to American laws requiring foreign banks to report account details back to US authorities, which many foreign banks simply won't do.
There are US-based services which will provide you a US address then forward your mail to a foreign address. Here are some .
posted by mono blanco at 9:14 AM on September 29, 2015 [2 favorites]
There are US-based services which will provide you a US address then forward your mail to a foreign address. Here are some .
posted by mono blanco at 9:14 AM on September 29, 2015 [2 favorites]
> Also -- if anyone can suggest a good, clear book on money/taxes while living abroad for Americans, I'd be grateful!
Not sure about a book but check out the forums at Expat Exchange. In brief, US citizens abroad are still subject to US federal income tax. You have to file a US tax return no matter what, but you may or may not owe US taxes because of the foreign tax credit . Google "foreign tax credit" to learn a bit about the (complicated) rules for how much of your foreign-sourced income is not taxable in the US.
posted by mono blanco at 9:26 AM on September 29, 2015 [1 favorite]
Not sure about a book but check out the forums at Expat Exchange. In brief, US citizens abroad are still subject to US federal income tax. You have to file a US tax return no matter what, but you may or may not owe US taxes because of the foreign tax credit . Google "foreign tax credit" to learn a bit about the (complicated) rules for how much of your foreign-sourced income is not taxable in the US.
posted by mono blanco at 9:26 AM on September 29, 2015 [1 favorite]
Books would become outdated super quick; the laws and practices around expat taxation are changing rapidly these days. I find the Serbinski Accounting forums helpful. (It is specific to US/Canada expat taxation, but 99% of the content is relevant to Americans living elsewhere, and people on the forums actually know what they are talking about.) When you get your taxes done, use a pro who is familiar with expat taxes and FILE ON TIME.
posted by phoenixy at 9:32 AM on September 29, 2015 [2 favorites]
posted by phoenixy at 9:32 AM on September 29, 2015 [2 favorites]
You might look into mail forwarding services. I know many RVers use them. That would allow you to maintain a US based address without having to trouble your parents with the stuff, but still get the stuff wherever you want.
posted by Lame_username at 11:00 AM on September 29, 2015 [1 favorite]
posted by Lame_username at 11:00 AM on September 29, 2015 [1 favorite]
What grouse said above. I kept a US address and used my US cards for several years while living in Australia, and it was well worth it.
Also seconding the thought that you should get a pro who deals with US expat taxes to do yours. The IRS wants you to file your taxes even if you're not making any money in the US, tax laws change all the time, and a mistake can be very (very!) expensive down the line. Our circumstances were maybe more complicated than usual, but we needed to use accountants both in the US and in Australia to deal with reciprocal credits, the April 15 / October 15 filing deadlines, and leapfrogging 6-month extensions.
posted by RedOrGreen at 1:12 PM on September 29, 2015
Also seconding the thought that you should get a pro who deals with US expat taxes to do yours. The IRS wants you to file your taxes even if you're not making any money in the US, tax laws change all the time, and a mistake can be very (very!) expensive down the line. Our circumstances were maybe more complicated than usual, but we needed to use accountants both in the US and in Australia to deal with reciprocal credits, the April 15 / October 15 filing deadlines, and leapfrogging 6-month extensions.
posted by RedOrGreen at 1:12 PM on September 29, 2015
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For some banks, I use my U.S. address and some my foreign address. It can be really handy to have a U.S. address on some payment cards because sometimes U.S. merchants are not set up well to deal with foreign billing addresses. This goes especially for gas pumps which expect you to provide a ZIP code. There are various "tricks" for giving your foreign postal code to a gas pump instead of a postal code but they do not work consistently. It can be handy to have your actual foreign shipping address as a billing address on other accounts. So I suggest a mix if you have multiple U.S. bank accounts and credit cards.
posted by grouse at 6:28 AM on September 29, 2015 [4 favorites]