US filing basics for Americans in New Zealand
Living in New Zealand does not terminate your U.S. federal income tax obligations. U.S. citizens, green-card holders, and certain long-term residents are taxed on worldwide income on a citizenship or residency basis, regardless of where the income is earned or where you reside. You generally must file Form 1040 (or 1040-SR) when gross income exceeds the annual IRS filing threshold, typically $15,000 to $30,000 or more depending on filing status, age, and dependency for recent tax years (exact amounts published in IRS Rev. Proc. documents and inflation-adjusted). Even if no tax is ultimately due after credits and exclusions, filing is usually required to claim benefits such as the Foreign Earned Income Exclusion (FEIE) under IRC §911 (up to $130,000 for tax year 2025 per IRS Rev. Proc. 2024-40) or the Foreign Tax Credit (FTC) for taxes paid to New Zealand authorities.
US tax treaty with New Zealand
The United States has an income tax treaty with New Zealand for many common issues, treaty articles must be applied to your facts.
Local considerations in New Zealand
The US-New Zealand income tax treaty and a totalization agreement affect how wages and pensions are taxed. KiwiSaver and many NZ managed funds are often treated as foreign trusts or PFICs for US purposes, which can trigger Form 3520/3520-A or 8621; the FEIE and Foreign Tax Credit remain the core tools. FBAR and Form 8938 apply once thresholds are crossed.
Common services needed by expats in New Zealand
Most Americans abroad in New Zealand need help with at least one of the following core compliance areas, which frequently interact:
- US expat tax returns, Form 1040 with FEIE, FTC, treaty positions, and any required state returns.
- FBAR reporting, FinCEN Form 114 for foreign financial accounts exceeding $10,000 aggregate at any time during the year.
- Form 8938 (FATCA), IRS disclosure of specified foreign financial assets when thresholds are met.
- Streamlined catch-up filing, For eligible non-willful taxpayers with prior unfiled years.