2019 Non-Resident Taxation Research Project

Democrats Abroad is launching their 2019 Non-Resident Taxation Research Project to generate information we will use to advocate for reforms to relieve the burden of tax, banking, financial account reporting, securities and other laws that discriminate against Americans living abroad.

https://www.democratsabroad.org/carmelan/2019_non-resident_taxation_research_-_please_contribute?utm_campaign=glb_ttf_012119_emea1&utm_medium=email&utm_source=democratsabroad

Thanks for the alert.

The Tax Fairness for Americans Abroad Act was not acted upon by the end of the last Congress and will now need to be introduced again in this Congress. Supposedly, there is/was a Democratic Representative who would co-sponsor the Bill. This survey may provide up-to-date statistics giving a nonpartisan reintroduction of the Bill justified support.

Thanks for this, I have completed the survey.

The results of the 2019 Research on non-resident Americans and U.S. taxation is now available. It's the most thorough collection of data for US expats to date and for those interested, is most enlightening.

The summary page is located:
https://www.democratsabroad.org/carmelan/tax_filing_from_abroad_2019_research_on_non-resident_americans_and_u_s_taxation

For the full, detailed report, click on the download link in the second paragraph.

"they [US expats] are ordinary, middle class Americans - 71% employed, 61% with household income of less than $100k, 72% married (71% to non-U.S. spouses), 63% own their own home. As 32% left the U.S. for marriage or a relationship, 25% left the U.S. to pursue employment/work....."


There were roughly 10,000 respondents, which gives a reliable data set, but it appears the responses may be skewed by the lack of interest in the below 35 year old age group. This is understandable, and the report reflects the over 45 year old bias with the following statement - "when discriminatory U.S. tax policy has its biggest impact it is reasonable to surmise that the Americans abroad who responded to this taxation research project are those 1) who are of stable, working age (able to save and invest) and 2) into their retirement years." IMO, the majority of those in the 18-34 age group will likely be those with the simplest returns (2555) with smaller savings/investments, and appears to reflect a cross-section of UK Yankee members.

From a very cursory scan of the report:

As compared to US population distribution, those responding to the survey in the 45+ age group represent an above average distribution for their age (70%). As compared to US population distribution, those responding to the survey in the 18-34 age group represent a below average distribution for their age (13.5%).

72% of respondents have a household income above $50,000. 51% of respondents are in the $50,000 to $150,000 household income range. 28% have a household income of less than $50,000. These figures very much reflect normal household income distributions for those in the US.

21% of respondents plan to return to the US permanently at sometime in the future. 15% are unsure of future plans. 64% do not plan on returning to the US permanently, ever.

Of the respondents, 75% are compliant with US tax reporting. This is the most obvious indicator that the respondents may not accurately reflect the entire US diaspora, especially when one reads of the IRS claims of a 'tax gap'.

28% of the respondents filed form 8938 (FATCA).

56.5% of the respondents, an increasing number, utilised the services of a tax professional to file their US returns. The IRS claims 92% of US domiciled "taxpayers self-prepared and efiled their own 2017 returns in 2018". Even with TurboTax, et. al., given the number of shop front/ strip mall tax preparers in the US, the IRS statement would appear questionable.

61% of those living abroad and using a professional paid $500+ for the service. Only 10% paid less than $200.

The research uses the figure for the population of US citizens abroad (diaspora) of 6.5 million, a much more believable number than the 9 million figure often thrown about when one looks at the number of expats resident in countries with the highest numbers of US expats: Canada - 1 million; Mexico - 1 million; UK - 200,000;  France and Germany - 125,000; and all others much below those figures. The responses to the survey reflect those distributions with the exception of Mexico (fewer respondents).

EDIT to ADD: There are many quotes from US expats abroad in the report, and a good number are from expats in the UK.

Reading some of the quotes from respondents... man... I find reporting the fact that I don't owe tax tedious, but at least my situation is simple enough that I can do it myself for the cost of postage (can't e-file ).  Some of the respondents have complicated situations and have to pay a preparer £1000s to tell the IRS they don't owe tax.  Seriously, I didn't realize how easy I have it compared to some of the anecdotal responses in that report.  Interesting reading!

Reading some of the quotes from respondents... man... I find reporting the fact that I don't owe tax tedious, but at least my situation is simple enough that I can do it myself for the cost of postage (can't e-file ).  Some of the respondents have complicated situations and have to pay a preparer £1000s to tell the IRS they don't owe tax.  Seriously, I didn't realize how easy I have it compared to some of the anecdotal responses in that report.  Interesting reading!

I also use the pencil and paper method (well, spreadsheets and downloaded forms to be precise) and mail my return to the IRS. I've never used E-filing. After years of reading posts about the manipulations some require, I suppose I could 'manipulate' an e-return to report the correct taxable income, but the return would in no way reflect my actual tax situation. I pay the money for sending the return by courier simply for the peace of mind of knowing the IRS has it, and has acknowledged it by signature. Yes, there are ways on the IRS site, but I prefer not to use those. And all for a 'no tax due' return.