FALL 2025 TAX UPDATES

Season of colors is here....

...and a time for giving thanks. The tax season is essentially over and time to get ready for the holidays before the cycle starts again in 2026.

Reminder:

January 15, 2026: Fourth quarter estimated payments due

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Happy Thanksgiving to all and hoping you spend time with your family and friends!

What's the Trump Accounts?

U.S. expats with U.S. citizen newborn children are also eligible for The Trump Account

Any U.S. Citizen living abroad that welcomed a new baby in 2025, can participate in a new government funded account that will give the newborn a $1,000 head start to life. The Trump Account is available to U.S. expat parents as well. The child may be eligible for a $1,000 government-funded savings account under the One Big Beautiful Bill Act (OBBBA). 

Step by step of what is required of the U.S. taxpayer:

1.    Confirm U.S. Citizenship: The child must be a U.S. citizen to qualify.

1. Apply for a Consular Report of Birth Abroad (CRBA) and U.S. passport at any local U.S. embassy or consulate.
2. Keep copies of all issued documents.

2.    Obtain a Social Security Number (SSN) - Before a Trump Account can be opened or funded, the child must have a valid SSN.

1. Apply at the U.S. embassy or consulate that handles SSA services.
2. Expect 4–8 weeks for processing. One of the parents must hold a valid SSN.

3.    Confirm “Qualifying Child” Status

1. Ensure the child meets definition of a “qualifying child” for the parent as stated by the IRS.
2. Child must:
   1. Be under 18,
   2. Live with parents more than half the year (even if abroad),
   3. Not provide more than half of their own support, and
   4. Not file a joint return.

4.    Opening the Trump Account in the U.S. 

1. The U.S. Treasury is expected to launch the program sometime mid-2026
2. Choose a U.S. financial institution that supports non-resident account holders.
3. Open the account in the child’s name and designate as a Trump Account.
4. A U.S. mailing address might be required.

5.    File the Election for the $1,000 Contribution: File the official election form with the IRS once released.

1. The Treasury deposits the $1,000 directly into the child’s account.
2. The deposit isn’t offset for tax debts and can only be made once per child.

6.    Continue Growing the Account

1. After the government contribution:
   1. The parents (or other family) can contribute up to $5,000 per year.
   2. Earnings grow tax-deferred, and withdrawals later follow IRA-style tax rules.

Year-End 2025 Tip

What Expat Parents Should Do Aware Until the Program Launch

As 2025 winds down, many new parents are already hearing about Trump Accounts — but the official program is not open yet. The IRS and U.S. Treasury are still finalizing implementation rules.

1. It is not possible open or fund a Trump Account yet.
The statutory start date is after July 4, 2026, so no financial institution is permitted to open an official Trump Account in 2025. Any account marketed under that name this year would not be IRS-recognized.

2. Avoid rushing to deposit funds before the system opens.
Contributions made to other custodial or savings accounts in 2025 will not automatically convert to Trump Accounts once the program starts. It’s best to wait until Treasury issues formal guidance and approved financial institutions are announced.

3. Plan for 2026 contributions.
Once the program launches:

1. File the Trump Account election to claim the $1,000 federal deposit on the 2025 tax return in 2026.
2. Open the official account through an eligible U.S. provider; and
3. Begin contributing up to $5,000 per year for the child’s future savings.

4. Stay tuned for IRS guidance in early 2026.
Treasury regulations are expected to outline how overseas parents can file the election, designate accounts, and prove eligibility from abroad.

Global News - Tax Reading List

United States Act Now To Prepare For Big Changes To Individual Charitable Contribution Deductions

United States New Limitations On Charitable Deductions Take Effect In 2026

United States IRS Guidance Clarifies Tax Treaty Benefits On Branch Profits Tax For Funds And Multinationals Using Reverse Hybrids

United States Serving As Personal Representative Of An Estate? A Quick Guide To The Estate Administration Process

United States Will Jarkesy Stop The IRS From Asserting Penalties Against Taxpayers?

United States FTC And Nevada AG Crack Down On Deceptive Tax Debt Relief Scams Mimicking The IRS

United States California State Income Tax Law Changes: What Taxpayers Need To Know For 2025

United States New York State Income Tax Law Updates: What Taxpayers Need To Know For 2025 And Beyond

United States The One, Big, Beautiful Bill Act: The Future Of Tax Policy?

United States IRS Now Permitted To Share Tax Identification Data With ICE: Considerations For Employers

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Malta Malta Introduces Citizenship By Merit

Malta Malta Streamlines Procedures For The Malta Permanent Residence Programme

Portugal Portugal's Golden Visa: Understanding The Investment Fund Route

Netherlands Changes In Dutch Tax Legislation For Expatriates

Worldwide Tax Consequences Of Golden Visa Investments

Portugal Capital Gains Tax Under The Portugal NHR Regime

Worldwide The Taxation Of Royalty Income In Portugal: A Look At The Patent Box Regime

Portugal Owning A Holiday Home In Portugal

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