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US Tax Help for Americans in the Netherlands
Short answer: Americans in the Netherlands may file two returns, one Dutch and one US, and the US return is ours to prepare. All State Tax Resolution, led by Sabih Shafi, an Enrolled Agent, handles the US side only. The Netherlands has both an income tax treaty and a Social Security agreement with the US, and the Dutch Tax Administration itself says US citizens must always file in the US.
Key takeaways
The Dutch Tax Administration says a US citizen must always file a US tax return, wherever they live.
The exclusion is up to $130,000 for 2025 and $132,900 for 2026, per person. The credit for Dutch income tax is the other tool, and we run both.
The Netherlands is on the IRS treaty list and has a Social Security agreement with the US, which changes how employees and the self-employed are covered.
Dutch banks send financial data on US citizens through the Dutch Tax Administration to the IRS.
If you missed US filings, the streamlined procedures may fit when the failure was not willful.
Do Americans in the Netherlands have to file a US return?
Yes. The Dutch Tax Administration says so on its own English site: if you are a US citizen, you must always file a tax return in the United States, and it does not matter where you live. The IRS agrees that you are taxed on worldwide income from all sources, with filing rules generally the same abroad as at home. Green card holders are in the same position.
The regular due date is April 15. If you live outside the US and your main place of business or post of duty is outside the US on that date, you get an automatic two extra months, to June 15, by attaching a statement. Interest on tax you owe still runs from April 15. Form 4868 adds four more months, to October 15, for filing only.
Two returns, one income
The Dutch Tax Administration notes that an American living in the Netherlands may have to file two returns, one in each country. It says the US will usually set off the tax you paid in the Netherlands against your US tax on the same income. It also warns that the rules differ, so the result can change. Its examples: an exemption in the Netherlands that still leaves US tax due, or an amount the Netherlands does not treat as income that the US does.
That is the difficulty in one paragraph. The Dutch Expat Scheme, for example, is a Dutch rule, and the Dutch Tax Administration itself says an exemption in the Netherlands can still leave tax due in the US. We do not advise on Dutch law, and we do not prepare Dutch returns. We take the figures from your Dutch return and your pay slips and work out what they mean in the US.
The IRS list of US income tax treaties includes the Netherlands. The IRS also says most income tax treaties contain a saving clause that stops a US citizen or resident from using the treaty to avoid tax on US source income. We read the treaty for your facts instead of assuming.
Exclusion or credit
The foreign earned income exclusion, claimed on Form 2555, leaves up to $130,000 of foreign earnings out of US income tax for 2025, and up to $132,900 for 2026, per person. You need foreign earned income, a tax home abroad, and either the bona fide residence test or 330 full days in foreign countries in any 12 months in a row. The IRS says it does not apply to pension or annuity payments, including social security benefits, or to pay from the US government.
The foreign tax credit, claimed on Form 1116, reduces US tax by qualifying foreign income taxes. The IRS says generally only income, war profits and excess profits taxes qualify, and you cannot take a credit for tax on income you exclude. We run both ways and show you which comes out better. We also check whether each Dutch charge counts as a creditable income tax.
Social Security: the Netherlands agreement in plain terms
The Social Security Administration lists an agreement with the Netherlands, in force since 1990. Its purpose is to stop dual Social Security tax on the same earnings. For employees working in the Netherlands, it says:
If a US employer sent you to work in the Netherlands for five years or fewer, you stay in the US system.
If the US employer sent you for more than five years, or you were hired in the Netherlands, or you work for a non-US employer, Dutch coverage applies.
For the self-employed, the agreement assigns coverage by where you live. Self-employed workers who reside in the Netherlands are assigned Dutch coverage. Whichever system covers you, the Social Security Administration says you need a certificate of coverage from that country to prove the exemption in the other. If Dutch coverage applies, a self-employed person attaches a copy of the certificate to the US tax return every year. If US coverage applies instead, the self-employed owe US self-employment tax, and the exclusion does not reduce it.
Euros, bank accounts and FATCA
You must report amounts on a US return in US dollars. The IRS says you generally use the exchange rate in effect when you receive, pay or accrue the item, and it generally accepts any posted rate used consistently. The IRS yearly average rate table lists the euro.
FBAR (FinCEN Form 114). FinCEN says you must file if your foreign financial accounts together exceed $10,000 at any time in the calendar year. It is filed online with FinCEN, not with your return, and due April 15 with an automatic extension to October 15.
Form 8938. It is attached to your return. If you live abroad by the IRS definition, the thresholds are above $200,000 on the last day of the year or $300,000 at any time for a return that is not joint, and $400,000 or $600,000 for a joint return.
The Dutch Tax Administration says all financial institutions worldwide must send financial data of US citizens to the IRS, and that it passes on the data it receives from Dutch institutions. The US Treasury lists an intergovernmental agreement with the Netherlands as in force. Assume your Dutch accounts are visible to the IRS.
Behind on US filing from the Netherlands?
The streamlined foreign offshore procedures are for people abroad whose failures were non-willful, meaning negligence, inadvertence, mistake or a good faith misunderstanding of the law. The IRS asks for returns for the most recent three years with a passed due date, FBARs for the most recent six years, all tax and interest paid with the returns, and Form 14653 certifying non-willful conduct. You need no US abode and at least 330 full days outside the US in one of the three years.
The IRS says a filer who qualifies and follows the instructions is not subject to failure-to-file, failure-to-pay, accuracy-related, information return or FBAR penalties, unless an exam finds fraud or a willful FBAR violation. A civil exam or criminal investigation already underway rules the procedures out. If your conduct may have been willful, talk to us before filing.
State taxes after you move
California's Franchise Tax Board treats you as a resident if you are domiciled in California but outside the state for a temporary or transitory purpose. Other states have their own tests. We check your last state's rules instead of guessing.
How we help
I am Sabih Shafi, an IRS Enrolled Agent, federally licensed to represent taxpayers before the IRS in all 50 states. We work by phone and video, in English or Spanish, with Americans in Amsterdam, Utrecht, Rotterdam, The Hague and anywhere else in the Netherlands.
Your US return: Form 1040 with Form 2555 or Form 1116, run both ways.
Dutch figures into US terms: we work from your Dutch return and pay slips.
Foreign account reports: FBAR and Form 8938 checks.
Missed years: several unfiled years prepared, with a straight answer on whether streamlined fits.
A flat fee quoted in writing before work starts.
Frequently Asked Questions
Do I need to file a US return if I already pay tax in the Netherlands?
Yes. US citizens file in the US wherever they live. Dutch tax you paid usually reduces your US tax through the foreign tax credit, but the rules differ between the two countries.
Does the Netherlands have a tax treaty with the US?
Yes. The Netherlands is on the IRS list of US income tax treaties. Most treaties contain a saving clause, so we check the specific article for your income.
Does the US have a Social Security agreement with the Netherlands?
Yes, in force since 1990. It assigns coverage by how you work: sent by a US employer, hired locally, or self-employed in the country where you live.
Will my Dutch bank report my account to the IRS?
The Dutch Tax Administration says financial institutions must send data on US citizens to the IRS. Treat your accounts as visible.
Can you prepare my Dutch tax return?
No. We prepare the US side only, and work with the figures your Dutch preparer gives us.
I have not filed US returns since I moved. What now?
Book the free review before filing anything. We see which years are missing and whether the streamlined procedures fit.
General information, not tax advice for your situation.
Related Reading
Talk to an Enrolled Agent
This article is general information, not individual tax advice. If you want to talk through your own IRS or state balance, book a free 20-minute review or call or text us directly.
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