Tax returns

If you are referring to the Affordable care Act penalty. As long as you are out of the USA for 330 days you are exempt.  As far as filing income taxes you are not exempt.

As a US citizen you will always need to file an annual 1040 Tax Return each year. If the property generates income from rental then that income must be reported. You will also need to report any Brazil sourced income to the IRS as part of your "worldwide income" and since there is no bilateral Tax Treaty between the USA and Brazil, that income may or may not also be taxable in the USA. You must report any Brazilian bank account, and interest income on that account. The bank is required under FATCA (Foreign Account Tax Compliance Act) to send account information of US citizens directly to the IRS.

Contact accounting firms near you to see if they have anyone experienced in foreign income tax returns.

Cheers,
James
expat.com Experts Team

Depending on your income in the US if you are below a threshold amount  and  make less than the threshold amount for filing taxes you may not have to file a return at all in the US.  We lived solely on my wife’s income from the Salon and I didn't earn enough to go above the threshold therefore there was no need for me to file a return.  We filed separately in that she is not a US citizen there is no requirement or need for her to file a return with the IRS in the US on her income in Brazil. For all intents and purposes on that filing status ( filed separately) she had no US Taxable Income to worry about.  Tax laws are convoluted and dependent on each persons income and financials. For Instance if you have rental income you may have to file even if you are below the threshold.  The IRS in the US is getting like Brazil they are searching for every penny they can possibly get from the taxpayers. It is good to have an accountant that knows the current tax laws and keeps abreast of the changes since they are always tossing in new requirements and changes.  This next year may not be a problem at all as I will have no US income and my earnings are again well below the Threshold.

The link below lists the income levels above which you are required to file an annual 1040 Income Tax Return with the IRS.

https://www.irs.gov/publications/p554/ch01.html

Regardless of whether or not your income may fall below those levels, if you have ANY income from Brazilian sources you would be obligated to file a 1040 at any rate, because you are required to report your worldwide income. You can't do that without filing.

Also if you hold a Brazilian bank account, the bank is obligated to report your account information directly to the IRS too. If you've had any interest income on that account, no matter how small, you could be creating a serious problem for yourself by not filing and reporting the interest.

Cheers,
James
expat.com Experts Team