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.
Table of Contents
Tax-year note: this guide concerns 2025 income reported on returns filed in 2026. The regular 2025 calendar-year individual return deadline was April 15, 2026. Qualifying taxpayers abroad could use the automatic two-month extension to June 15, 2026; a further timely requested filing extension generally runs to October 15, 2026. Interest on unpaid tax generally runs from the regular due date. Apply 2026 tax-year rules separately. See IRS guidance for taxpayers abroad.
1) Do US Citizens Still File a Return?
US citizens generally report worldwide income; whether a return is required depends on filing thresholds and other rules, including self-employment. 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 your tax home is abroad and you meet the Physical Presence or Bona Fide Residence test, 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)
Qualifying Dominican income taxes may be eligible for a foreign tax credit, subject to limitations. Taxes on income excluded under FEIE cannot also generate an FTC. 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
FBAR and Form 8938 are separate reporting obligations with different thresholds and filing rules. FBAR is filed with FinCEN, while Form 8938 is attached to the income tax return when required. Filing one does not replace the other. See the IRS comparison of Form 8938 and FBAR requirements. Discuss supporting records through our Bookkeeping & Recordkeeping service.
5) Self-Employment, Rental & Business Income
The FEIE does not reduce U.S. self-employment tax. The Dominican Republic is not listed among the countries with a U.S. Social Security totalization agreement; do not assume foreign contributions remove U.S. liability. 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 for Citizens Abroad
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?
U.S. tax may still be due. FEIE and FTC eligibility, limits, income type and the interaction between elections must be reviewed. Neither provision automatically eliminates all federal, state or self-employment taxes.
What records should I keep?
Proof of travel days and residency documentation, Dominican tax receipts and filed tax returns, detailed bank and interest statements, housing expenses, and comprehensive business records are essential for thorough financial management. We establish straightforward and efficient organizational systems through our specialized Bookkeeping services to help you manage all these important documents with ease and accuracy. Our approach ensures that every piece of documentation is carefully categorized and easily accessible, making your financial record-keeping process smooth and stress-free.
Can you work with me if I’m in the DR?
Yes—our dedicated team led by Pedro Henriquez, EA, MBA, CAA, CPA (Dominican Republic) proudly serves a wide range of clients not only throughout the entire United States but also internationally, including those who are based in the Dominican Republic. We make use of secure, state-of-the-art online collaboration tools designed to safeguard your sensitive information at all times, providing you with peace of mind. Additionally, we manage all filing processes electronically, subject to applicable filing methods and engagement requirements, no matter where you are located in the world.
Get Tax Help for US Citizens in the Dominican Republic
Henriquez Accounting & Tax Services helps US citizens in the Dominican Republic with tax preparation, IRS representation, bookkeeping, and tax planning/consulting. Schedule a Consultation
Official references: IRS foreign earned income exclusion; IRS foreign tax credit; SSA agreement countries. Review our FBAR and Form 8938 guide for separate reporting obligations.