If you’re a US citizen in the Dominican Republic, you likely still have US filing obligations. This quick guide explains the basics—plus when to use the Foreign Earned Income Exclusion (FEIE), the Foreign Tax Credit (FTC), and required disclosures— and how our team can help. Explore our Tax Preparation Services.
1) Do I Still File a US Return?
Yes—US citizens are taxed on worldwide income. You may qualify for special expat provisions. For individuals, see Personal Tax Preparation; for freelancers/business owners, see Business Tax Preparation.
2) FEIE (Foreign Earned Income Exclusion)
If you meet the Physical Presence or Bona Fide Residence tests, you may exclude up to an annual limit of foreign earned income and claim a housing exclusion in some cases. Choosing FEIE vs. FTC can affect future years—plan carefully with our Business Consulting.
3) Foreign Tax Credit (FTC)
If you pay Dominican income tax, the FTC can offset US tax on the same income. Often you compare FEIE and FTC to see which yields the best result. We model both strategies during Tax Prep & Planning.
4) FBAR & FATCA Disclosures
Many taxpayers must file FBAR (FinCEN 114) for non-US accounts and, in some cases, FATCA Form 8938. Penalties can be high—our team ensures the right forms get filed and retained with Bookkeeping & Recordkeeping.
5) Self-Employment, Rental & Business Income
US self-employment taxes may still apply. Rental income from DR property is generally reportable to the US. We coordinate filings and basis tracking via Bookkeeping and Outsourced CFO Services.
6) State Tax “Residency” Considerations
Some states keep you on the rolls if ties remain (home, license, voter reg). We evaluate break-residency steps during Consulting.
7) Late or Missing Filings
If you missed prior FBARs or returns, options may exist to get compliant. Our IRS Representation team handles notices, penalties, and reasonable-cause letters.
Frequently Asked Questions (FAQs)
Do I have to pay US tax if I already pay tax in the DR?
Possibly not on the same income—FEIE or the FTC can reduce or eliminate US tax, depending on amounts and income type. We run both scenarios during Tax Prep.
What records should I keep?
Proof of travel days/residency, Dominican tax receipts and returns, bank/interest statements, housing costs, and business records. We set up simple systems via Bookkeeping.
Can you work with me if I’m in the DR?
Yes—our EAs/CPAs serve clients nationwide and in the Dominican Republic. We collaborate securely online and file electronically.
Get US–DR Tax Help from Enrolled Agents & CPAs
Henriquez Accounting & Tax Services helps US citizens in the Dominican Republic with tax preparation, IRS representation, bookkeeping, and tax planning/consulting. Schedule a Consultation
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