How to keep your Dutch and US taxes straight in 2025

With 2025 around the corner, it's time to start thinking about filing your US tax return. Worries about double taxation, making errors or missing deadlines can make this a stressful task, but it doesn't have to be - help is out there! Here's a handy guide to what you need to know about your filing obligations.

US taxes

US citizens or green card holders must file annual income tax returns with the IRS, even when living abroad. For 2025, you will need to make sure you report your income, investments and if your foreign bank accounts went over a cumulative 10.000 US dollars at any point in 2024.

The standard filing deadline is April 15, 2025, with an automatic extension to June 17, 2025 for expats.

IMPORTANT: You must still make an estimated payment to the IRS by April 15 if you expect to owe taxes, even with the automatic filing extension to June 17.  The IRS considers filing and paying taxes to be separate actions.

Foreign taxes

As a resident, you must also file taxes in your European country of residence. If you earn income from US investments or have worked remotely for a US company, be aware of potential double-taxation issues. Working with a tax advisor can help you avoid being double-taxed.

Residency and legal compliance

For those applying for foreign residency or renewing permits, ensure your paperwork is in order. Most European countries require proof of financial independence, health insurance and compliance with local tax obligations. If you are working remotely for a US employer, make sure that this aligns with local labour and immigration laws.

Investment and retirement accounts

US-based investments, such as mutual funds, ETFs or RSUs might be treated unfavourably under European tax rules. Make sure you talk to your tax advisor so they can help you mitigate potential tax liabilities!

If you’re nearing retirement, local tax authorities may tax your US pension payments. Take time to review the tax treaty provisions to optimise your retirement income.

Inheritance and estate planning

US expats expecting to inherit assets or pass on wealth should consider the differing inheritance laws between the two countries.

Streamlined filing procedure (amnesty programme)

Did reading this article make you realise you need to file your US taxes? Are you an “accidental American"? No worries, there is a great amnesty program provided by the IRS that allows you to catch up on your filing obligations.