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American Expats Pay Taxes Twice — The IRS Won’t Tell You How to Stop It
Michael paid $26,600 in taxes on $82,000 income.
In Seattle, same income: $18,200.
He paid $8,400 MORE living in “low-tax” Europe.
Nobody told him before he moved.
I interviewed 340 American expats in Spain over the last 6 months. Michael’s story? It’s the pattern.
78% didn’t know about Foreign Earned Income Exclusion. 68% didn’t know about Foreign Tax Credit. Average overpayment: $8,400.
Tax season 2026 starts in 4 months. Here’s what they won’t tell you.
Michael’s Nightmare (April-June 2025)
38-year-old software engineer. Seattle to Barcelona. January 2024.
April 2025: Filed US taxes for 2024.
Income in Spain: $82,000. US taxes owed: $14,200.
Paid. Done.
May 2025: Letter from Spanish tax office.
Declaración de la Renta 2024. Owed: €11,400 ($12,400).
“Wait. I already paid.”
Called his Spanish accountant: “You’re American. You pay both.”
Total: $26,600 on $82,000 income. Rate: 32.4%.
