How to File US Taxes as a Brazilian Expat

The Direct Answer

Brazilian expats who qualify as US tax residents must file Form 1040 and report worldwide income - including salaries, rental income, and investments in Brazil. The US and Brazil do not have a comprehensive income tax treaty, so avoiding double taxation requires using the Foreign Tax Credit.

Are You a US Tax Resident?

Your tax filing obligation depends on your residency status for tax purposes, not your visa type.

You are a US tax resident if:

• You hold a green card at any point during the year, OR
• You pass the Substantial Presence Test (SPT): at least 31 days in the current year AND at least 183 days using the weighted formula (all days this year + 1/3 of last year's days + 1/6 of the year before)

Most Brazilians on H-1B, L-1, O-1, or EB visas pass the SPT after their first full calendar year. In your first partial year, you may be a dual-status alien, which requires a more complex filing.

Brazilians on F-1 student visas are generally nonresidents for their first five calendar years and file Form 1040-NR instead.

Required Forms

Form 1040 - Your Core Return

File Form 1040 by April 15. If you need more time, file Form 4868 by April 15 for an automatic 6-month extension to October 15. The extension covers filing only - any taxes owed are still due April 15.

FBAR (FinCEN 114) - Foreign Bank Accounts

File FBAR if you had financial interest or signature authority over Brazilian (or other foreign) bank accounts and the aggregate balance exceeded $10,000 at any point during the year. FBAR is filed separately with FinCEN, not the IRS. Deadline is April 15 with automatic extension to October 15.

Form 8938 (FATCA) - Foreign Financial Assets

File Form 8938 with your 1040 if foreign financial assets exceeded:

• $50,000 at year-end (or $75,000 at any point) for single filers living in the US
• $100,000 at year-end (or $150,000 at any point) for married filing jointly

Form 1116 - Foreign Tax Credit

If you paid income tax in Brazil on the same income you are reporting in the US, Form 1116 lets you claim a credit against your US tax liability. This is the main mechanism for avoiding double taxation since there is no US-Brazil treaty.

Brazil-Specific Considerations

No income tax treaty: The US and Brazil have not signed a comprehensive income tax treaty. Unlike Brazilians who live in countries with US treaties, you cannot claim reduced withholding rates or treaty-based exemptions. The Foreign Tax Credit is your primary protection against double taxation.

Brazilian investment income (LCI, LCA, CDB): Interest from Brazilian bank products is taxable in the US even if it was exempt in Brazil. You report it on your 1040 regardless of the Brazilian tax treatment.

Rental income from Brazil: Rental income from Brazilian property must be reported on Schedule E. Brazilian taxes paid on that rental income can be credited on Form 1116.

FGTS: The treatment of FGTS (Fundo de Garantia do Tempo de Servico) distributions is complex and depends on whether contributions were made while you were a US tax resident. Consult a tax professional for this.

Key Deadlines

Get Your Personalized Form List

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