MyExpatTaxes Explains What Survived and What Was Cut From New Tax Relief Proposals for Americans Abroad

Vienna, VIENNA, Sept. 11, 2026 (GLOBE NEWSWIRE) -- MyExpatTaxes, the award-winning expat tax service and software for Americans living abroad, has released a new update examining what the latest version of the Taxpayer Assistance and Service (TAS) Act proposed legislation could mean for US taxpayers overseas.

Tax Relief for Americans Living Abroad

The bipartisan IRS reform bill contains more than 60 proposals, including a rare section specifically addressing the challenges faced by Americans living abroad. Six expat-focused measures were originally proposed, but only three survived in the version approved by the Senate Finance Committee on July 30, 2026.

According to the MyExpatTaxes analysis, the provisions removed from the bill include some of those that could have delivered the most direct financial and administrative relief to expats.

Among them was a proposal addressing foreign currency gains on overseas mortgages. Under current US tax rules, exchange-rate movements can potentially create taxable gains when an expat repays or refinances a foreign-currency mortgage, even when they have not received additional money. The original proposed reform would have provided relief from this issue for principal residences.

Also removed was a proposal to increase the threshold for claiming the Foreign Tax Credit without completing the full Form 1116 calculation, from $300 to $1,000 for individuals and $600 to $2,000 for joint filers.

A third discarded provision would have allowed Treasury to waive the five-year tax compliance certification requirement in certain circumstances for lower-income dual citizens seeking to renounce US citizenship.

“The fact that Congress has specifically recognized some of the tax and reporting challenges faced by Americans abroad is positive and significant,” said Nathalie Goldstein, EA, CEO and Co-Founder of MyExpatTaxes. “But the measures that would have provided the most immediate financial relief were also the ones that have been removed. For Americans dealing with foreign-currency mortgages, complicated Foreign Tax Credit reporting or the tax requirements around renunciation, the current rules remain unchanged.”

Three measures remain. One would extend the time Americans abroad have to respond to certain IRS math error notices from 60 to 120 days. The legislation would also commission studies into the tax compliance burden faced by lower- and middle-income Americans abroad and the possibility of allowing FBAR information to be submitted alongside a federal tax return rather than through a separate system. Neither study would change anyone's tax bill, but the MyExpatTaxes analysis notes that "a public GAO report documenting the burden on Americans abroad creates an official record, and lawmakers build future legislation on records like that."

MyExpatTaxes cautions that none of these measures are currently law and the TAS Act does not change the current tax or reporting obligations of Americans living abroad. The bill must still pass the full Senate and House and be signed by the President before its provisions can take effect.

The legislation also does not change citizenship-based taxation or existing international reporting requirements, including FBAR and FATCA obligations.

MyExpatTaxes’ new update “Tax Relief for Americans Living Abroad: What Congress Kept and What Was Cut” provides a detailed breakdown of all six proposals, what survived the committee process, what was removed, and what Americans abroad should watch for and do next.

About MyExpatTaxes

MyExpatTaxes is an intuitive tax software built for Americans living abroad. It simplifies US expat tax filing by automating complex forms, guiding users through credits and exclusions, and helping prevent double taxation. For more complex tax situations, users can also work with experienced Tax Professionals for personalized support and review.

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