Many expats in the U.S. are told to focus on one thing when it comes to taxes: get the biggest refund possible.

But what if that advice is actually working against you?

In this episode of Abroad in America, we break down a critical misconception that impacts thousands of expats every year. While tax preparers play an important role in navigating a complex system, most are trained to think in short-term timeframes. Their goal is often to optimize your current-year return, not your long-term tax outcome.

And for expats, that difference can be costly.

We explore why strategies that look good today, like maximizing deductions or contributing to pre-tax retirement accounts, can create serious tax consequences later. Especially when you plan to leave the U.S. and take your money home.

Using simple examples, we unpack how tax-deferred accounts like traditional 401(k)s can act more like a loan from the IRS than true tax savings. You will see how taxes compound over time, how early withdrawal penalties work, and why many expats unknowingly set themselves up to lose a significant portion of their savings.

This episode also explains the key difference between tax preparation and tax planning, and why working with someone who understands both, especially in an expat context, can make a meaningful difference in your long-term financial outcome.

If you are living and working in the U.S. as a non-citizen or planning to return home one day, this is a conversation you cannot afford to miss.

You will also get a preview of upcoming episodes where we will dive deeper into strategies like Roth 401(k)s, Roth conversions, and how to potentially reduce or avoid unnecessary taxes and penalties when leaving the U.S.

If you know another expat who could benefit from this, be sure to share this episode with them.

Stay curious, stay open, and as always, keep exploring.

In This Episode

• Why maximizing your tax refund can actually increase your lifetime tax burden
• The difference between tax preparation and true tax planning
• How traditional 401(k)s can create hidden tax liabilities for expats
• Why deferring taxes is not the same as saving taxes
• The impact of early withdrawal penalties when leaving the U.S.
• How short-term advice can lead to long-term financial consequences
• What expats should consider before following standard U.S. tax advice

What’s Coming Next

• How Roth 401(k)s can help expats avoid future tax traps
• Understanding Roth conversions and the five-year rule
• Strategies for leaving money in the U.S. and using tax treaties to your advantage

• Visit Baobab Wealth Abroad
• Buy a copy of Jimmy's book, Divorce the IRS
• Download our guide for foreign nationals in the US
• Follow us on Facebook
• Subscribe to us on YouTube
• Connect with us on LinkedIn

Moving to the United States can open the door to incredible opportunities—but it can also introduce a level of tax complexity many expats never expect.

In this episode of Abroad in America, Jimmy Miller steps back from individual tax rules and looks at the bigger picture: the most common mistakes expats make during their first two years living and working in the U.S.

Many newcomers assume the American tax system works like the one in their home country. Unfortunately, that assumption alone can lead to major reporting issues, missed filings, and costly surprises later.

Jimmy breaks down five patterns he sees repeatedly—from misunderstanding worldwide taxation and leaving foreign accounts unchanged, to hiring the wrong tax preparer or ignoring reporting requirements because nothing seems to happen.

He also explains why certain financial decisions that look smart in the short term—like contributing to traditional tax-deferred accounts—can create problems for expats who eventually plan to leave the U.S.

If you’re new to the United States or planning a move, this episode will help you understand the rules earlier, reduce stress, and avoid expensive mistakes.

In this episode you’ll learn:

• Why the U.S. taxes worldwide income once you become a tax resident
• How foreign accounts and investments can create reporting obligations
• Why many expats accidentally hire the wrong tax preparer
• The hidden risks of traditional 401(k) accounts for people who may leave the U.S.
• Why “no IRS letters” doesn’t always mean you’re compliant

Living abroad—especially in the United States—comes with challenges. But with the right awareness, you can avoid the most common pitfalls and focus on the opportunities that brought you here in the first place.

• Visit Baobab Wealth Abroad
• Buy a copy of Jimmy's book, Divorce the IRS
• Download our guide for foreign nationals in the US
• Follow us on Facebook
• Subscribe to us on YouTube
• Connect with us on LinkedIn

There’s an important reporting rule that affects many expats living or working in the United States — and it often shows up as a surprise.

In this episode of Abroad in America, we break down FATCA and Form 8938, one of the most misunderstood parts of U.S. tax reporting for people with financial connections outside the country. While many expats are familiar with the FBAR requirement, Form 8938 operates under a different set of rules and applies to a broader range of foreign financial assets.

If you maintain bank accounts, investments, pensions, or other financial assets outside the United States, understanding how FATCA works — and how Form 8938 fits into your tax return — is essential to staying compliant and avoiding unnecessary penalties.

We explain the purpose behind FATCA, why foreign banks now report account information to the U.S. government, and how Form 8938 requires individuals to disclose certain foreign financial assets as part of their annual tax filing.

You’ll also learn how Form 8938 differs from the FBAR, why the reporting thresholds are different, and why some expats may have to file one form, the other, or both.

In this episode, we cover:

What FATCA is and why the law was created
How foreign banks report U.S. account holders to the IRS
What Form 8938 is and how it fits into your tax return
The difference between FATCA reporting and FBAR reporting
Which foreign financial assets must be disclosed
The reporting thresholds that trigger Form 8938 filing
Why some expats must file both Form 8938 and the FBAR
Potential penalties for failing to file when required

For many expats, these rules can seem complicated at first. But once you understand the purpose behind FATCA and how Form 8938 works, the reporting process becomes much clearer — and much easier to manage.

• Visit Baobab Wealth Abroad
• Buy a copy of Jimmy's book, Divorce the IRS
• Download our guide for foreign nationals in the US
• Follow us on Facebook
• Subscribe to us on YouTube
• Connect with us on LinkedIn