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5 Shocking Tax Facts for US Expats in Israel

#1

You Must File US Taxes (Even Abroad)

The US taxes citizens worldwide — one of only 2 countries that do this

#2

FBAR Penalties Are Terrifying

Up to $12,909 per account per year for non-willful violations

#3

Tax Treaty Can Save You Thousands

The US-Israel tax treaty prevents double taxation on most income

#4

Israeli Pension Has US Tax Traps

Keren Hishtalmut and pension contributions need careful tax planning

#5

The FEIE Excludes $126,500 (2026)

Foreign Earned Income Exclusion can zero out your US tax on salary

$4,200

Average Annual Savings with Proper Planning

What expats save by understanding treaty benefits

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