Filing US Taxes when living in Israel

[YehudaT]

Does anyone have any experience filing US taxes when living in Israel?
I have a client that lived in Israel with his family (they are both Israeli and American citizens) and then moved to the US in July.
Now I need to figure out what’s taxable.
Any advice?

[Chocolate]

whats the question?

[YehudaT]

These questions assume that both the husband and wife are both American and Israeli citizens:

1. If they are living in Israel, do they need to file taxes in the US?
2. If they move to America in the middle of the year and they made money both in Israel (at the beginning of the year) and in the US (at the end of the year), do they need to pay taxes on the money they made in Israel.

[Chocolate]

@YehudaT said in Filing US Taxes when living in Israel:

If they are living in Israel, do they need to file taxes in the US?

I currently live in Israel (though I am not an Israel citizen), as far as I know filing is the same regardless if you reside in the US or not, your second question I am not sure, but somewhere they will have to pay taxes for everything they earned I asume the first half in Israel and the second in the States, you can read up more here.

[DIAMOND]

is it a must to fill if i live in Israel?

[YehudaT]

According to the IRS (https://www.irs.gov/individuals/international-taxpayers/taxpayers-living-abroad), if you are a US citizen living abroad, any income is subject to US taxes.

[Chocolate]

Whoever needs to file in the US needs to file even if they live abroad, paying is a different story if you pay in Israel then you don’t need to pay in the US or UK.

[YehudaT]

My question is, what happens when someone moves from Israel to the US in the middle of the year.
What are they required to do?

[Master]

@YehudaT said in Filing US Taxes when living in Israel:

My question is, what happens when someone moves from Israel to the US in the middle of the year.
What are they required to do?

@Accountant

[Solomon]

modules:composer.user_said_in, @Master, Filing US Taxes when living in Israel

My question is, what happens when someone moves from Israel to the US in the middle of the year.
What are they required to do?

They are required to file all there earnings from the entire year with the US Government.
If they have some tax liability from this year to the Isreal Government then this will take off from there liability to the IRS.
The fact that they moved doesn’t matter at all.