.Jane Mepham, CFP (00:04.492)

What is English for life insurance, and how does it apply in a cross-border context?

In today's shortie episode, where in 10 minutes or less, we pick a term used in the cross-border space, we'll talk about what life insurance is, very high level, and whether you need it or not, and when you'd need it in a cross-border context.

Manasa Nadig, EA (00:30.707)

Alright, so Jane, what is life insurance?

Jane Mepham, CFP (00:35.936)

Okay, like the way you just jumped into it, but that's perfect. So, I'd like to think of life insurance as a contract between you, the insured and the insurance company. And essentially, what they're saying is you pay us a certain amount of money over a certain period of time. Obviously, there's more into it, and God forbid you get hit by a bus, we'll give a boatload of money to the person you've appointed to the beneficiary. In other words, think of it as we're replacing your income. So, if you have kids or family overseas, you're supporting and you were not there, what happens to them?

Manasa Nadig, EA (01:21.459)

That's essentially what life insurance is. Now, can we talk about what are all the different types of life insurance?

Types Of Life Insurance: Term And Permanent

Jane Mepham, CFP (01:32.96)

Okay, again, high level, this is a shortie. There are two types of life insurance that we commonly discuss in this space. One is what's called term life insurance.

Term life insurance gives you a certain amount of time, right? So, you buy a policy for let's say 30 years and you pay more or less the same amount, although you do have different ways of paying it, once the 30 years are over, you're done.

Sort of like the car insurance. If, during those 30 years, something happens to you, your beneficiary will receive a payout of whatever the face value was. So, let's say you do something like a 30-year term, with a million dollars, and 25 years into it, something happens to you; your beneficiaries will receive the $ 1 million.

And then the second type of life insurance is what's called permanent life insurance. And under this, there's two, there's whole life and there's universal, but I won't go into the details.

The main differences, there's a death benefit, one, but there's also what's called a cash value. So, something happens to you after a certain period of time, your beneficiaries will get a certain amount of death benefit, but there's also a certain amount of cash that goes along with that, that you can actually take out at some point, depending on the details of the contract.

These ones tend to be a little bit longer, so you can go to a hundred years or something like that. And that's key for the next thing I think you might ask me, but let's move on.

Manasa Nadig, EA (03:14.108)

Yes, you guessed it. Next, can we discuss what type of insurance would be suitable, especially in a cross-border context?

Life Insurance And The Cross-border Considerations

Jane Mepham, CFP (03:30.702)

Okay, so the people that we work with, have foreign nationals and work visas, and we know these work visas are non-immigrant visas, so the assumption is, or not the assumption, you're going to be leaving the country at some point at the end of your term, unless, of course, you end up getting the green card and you end up staying.

And then we have the second group, they're already here on green cards, or they're U.S. citizens, but they have assets, or they have ties overseas.

And then you have U.S. expat, which are U.S. citizens or green card holders who live overseas. So, when I think of that group, and this is where each case is very specific and needs to be custom designed, but at a very high level, if you're the main breadwinner for the family and you're supporting kids and family overseas, the term life insurance...most likely makes sense for you.

Again, remember, we're just trying to replace you. This is not about wealth building; we're not thinking of that. We're just replacing you in terms of support. And so, if you're working and a W-2 employee, term life insurance makes a lot of sense.

The only difference is, or the key thing to watch out for is, the time-life insurance from a company that's willing to pay out, pay to your beneficiaries, regardless of where they live.

And those are the type of companies that we use in all practice. As long as you continue paying the premiums, and we can discuss how you do that, and you end up leaving the country, you will continue paying for 20 years. If something happens to you, these U.S. companies should still be able to pay your beneficiaries that amount.

That’s probably the best case for term life. And it's almost what I advise everybody to get.

Using Life Insurance To Mitigate The 60k Estate Tax Exemption

The second case, the permanent, the universal, the whole life portion of it, the best-case scenario for it when you're in a cross-border context is if you become an NRI, non-resident, which is a word alien, but that's what the IRS uses. You know what I mean.

Jane Mepham, CFP (05:47.254)

And you're not in the US anymore and you have what's called U.S. Situs asset. This is, let's say, shares, property, and you're not here, there's a very high possibility that your estate taxes, the exemption you have is 60K, not the current 15 million that almost everybody else has.

So if your exemption is only 60k what this means is God forbid something happens to you your family most likely will have to sell everything because they need to pay 40 % taxes on anything over 60k so this is a really good use case for a permanent contract because you wanted to go on for a long time but of course you'd want to make sure you find the right people to design this for you so something happens to you there's this estate taxes your family needs to pay, the life insurance will pay out.

Because remember, at that point, it's not going to be taxed. It covers the taxes and your family can enjoy the money.

And so those are probably the two use cases that I can think of right now, contrasting use cases in the cross-border context when it comes to life insurance. There's a whole lot of other use cases, but I think those are probably the two main ones that would apply to just about everybody in this space. Does that answer your question?

Manasa Nadig, EA (07:17.391)

Yes, that perfectly answers all our questions and I'm sure it answers our question on “what is English for life insurance?”. So now that we've learned about that in this shortie episode, thanks for listening to friends and thanks for stopping by.

If you like the content we share, please go to our website, theimcafe and subscribe to our newsletter and you will know ahead of time when our episodes are dropping. So thanks for stopping by.

What Is NIIT (Net Investment Income Tax)?

Jane Mepham, CFP®  

And we are back with one of our favorite formats, “a shortie”, in which in 10 minutes or less, we take a term used in used in the cross-border finance/tax space and kind of tell you at a very high level what it is.

So, the other day I was reviewing one of my clients' returns, let's call him John, and John had a really great income and he noticed as I started explaining that he had been charged 3.8 % tax on some income. And so, as I explained to him what this is my thought process was there are quite a few people who may not be aware of it.

So, in today's shortie we're going to tell you or explain what the Net Investment Income Tax is. Manasa, want to jump into it?

The Source Of NIIT

Manasa Nadig, EA

Yeah, it is pronounced NIIT  by the way. Because we know we love acronyms. So, the net investment income tax basically depends on two conditions.

-           One is that you have investment income and then your MAGI or the Modified Adjusted Gross Income exceeds a certain amount.

The net investment income tax was imposed by section 1411 of the Internal Revenue Code. And this applies a rate of 3.8 % tax on certain investment income of individuals, estates, and trusts that have income over the statutory thresholds. Now, the statutory thresholds are based on your filing status.

So, if you're married filing jointly, or you're a surviving spouse, it's $250,000. If you're single or married filing separately, it's $125,000, and all others are $200,000. So that's when the 3.8 % NIT is applied to your investment income. And basically, you should also note that even if you are someone who is exempt from Medicare taxes, you may still be subject to the NIIT because remember the NIIT is based on investment income and your MAGI being over the thresholds we just talked about.

What Contributes To NIIT

Jane Mepham, CFP®

Okay, so let's define what this net investment income tax itself is. So, in general, investment income includes, but is not limited to, you know, interest, dividends that you most likely see in your brokerage account, passive rental, and royalty income. What's the other one? Non-qualified annuities, income from businesses involved in the trading of financial instruments or commodities.

Manasa Nadig, EA

Good idea.

Jane Mepham, CFP®

Businesses that are passive activities to the taxpayer, and I'm sure Manasa can give you the exact code for that. Capital gains from the sale of stocks, mutual funds, and distributions from mutual funds. Again, this is where we see a lot of it. Sale of investment of real estate, including, which is interesting, the sale of a second home, but not the primary residence.

Sale of interest on partnerships and c-corps to the extent that you're the passive owner. And the way they calculate it, of course, this is higher, right? Your investment income is reduced by sudden expenses properly allocable years to the income. I had to think of that word.

And so then the question is what is not net investment income, Manasa?

Income Not Included In NIIT

Manasa Nadig, EA (04:04)

Yeah, so all of the income that is not investment income is basically, know, like your wages, your unemployment income, the operating income that you have from your non passive businesses, that is the businesses that in which you are an active participant in, of course, your social security benefits, your tax exempt interest, any self-employment income.

And there are some vague stuff in there, like Alaska permanent fund dividends and distributions from some qualified plans, et cetera. So those are not net investment income.

So you do not pay the 3.8 % net investment tax on that.

And so that brings us to how do you report and pay the net investment income tax? So all of this, the net investment income, and your MAGI is looked at on form 8960. And if all of these rules apply to you, then you calculate the 3.8 % tax and it flows to your form 1040 and the 8960 is attached to the1040. And basically you pay this tax.

The same for estates and trusts, but for them, It's calculated on form 1041, whereas the individuals, it's form 1040, of course. And you are also subject to estimated tax provisions if you are subject to this, which is if you fall short on paying your net investment income tax, there will be an income tax penalty that you might end up paying.

So make sure that you're looking at this if that applies to you.

Jane Mepham, CFP® (05:38)

Okay.

How Does NIIT Apply In A Cross-border Context

Manasa Nadig, EA (05:59)

Now, coming to the most interesting part of this is how does the NIIT apply in the cross-border context? So this has been something that we look at on a constant basis. Now, you have a client who's an expat who lives overseas or who lives in the US and has a large amount of foreign income, which comes from investments.

Then we have the net investment income tax apply to that investment income. Now, these same people might also be filing taxes in the other country, but then the income taxes that they are paying in the other country cannot be claimed as a foreign tax credit against the net.

Court Cases and NIIT

Having said that though, there have been recent court cases which have looked at this and for specific countries, which are France and Canada right now, and we link these court cases in our episode notes, they have allowed the tax paid in that country in France and in Canada to be claimed against the NIIT

Jane Mepham, CFP® (07:05)

Yep.

Manasa Nadig, EA (07:21)

On the US tax return. So if you're a financial planner or a tax preparer who sees this, then be aware that this is a possibility and is available. But for the most part, until we have more clarification on this for other countries, foreign tax credit is not allowed against the NIIT.

 So, that's more or less everything about the net investment income tax, Jane. Do you have anything to add?

Jane Mepham, CFP® (07:52)

The court cases are interesting and it might be interesting one of these days to just take a bunch of those and kind of talk through them, kind of nerd out on them. But I think you've addressed the most important aspect of it, the two conditions. And I think with that, we hopefully still under 10 minutes we can bring it to a close.

Manasa Nadig, EA (08:12)

Absolutely. one thing that I would like to add here is if you know that this is something that you're subject to and it's a possibility for you and you do not want to have the hassle of paying estimated taxes every quarter and you have a W-2, just increase your withholdings to cover for that. So yes, here's what we conclude the Shortie episode.

Jane Mepham, CFP® (08:32)

Great idea.

Manasa Nadig, EA (08:42)

Thank you so much for listening. If you like this episode and you want to hear more of our shorties, where we distill all of the complex stuff into quote-unquote plain English, please make sure to go on our YouTube and catch one of our episodes there. The handle is the International Money Cafe. So youtube.com forward slash at the International Money Cafe. Thank you so much for listening.

Your uncle just sent you a ton of money from overseas - what are the tax implications?

We discuss the complexities of gift taxes, particularly for individuals receiving gifts from overseas.

We explore the annual gift tax exclusion, reporting requirements for large gifts, and the implications of receiving money from non-U.S. persons.

The conversation also touches on exceptions to reporting requirements and the potential issues surrounding covered expatriates. 

We emphasize the importance of transparency and consulting with experts to navigate these financial matters effectively.

Some Key Takeaways

• Gifts over $100,000 must be reported on Form 3520.

• Receiving money from non-U.S. persons (outside the US) generally has no tax implications.

• The reporting threshold for gifts from foreign entities is around $17,000.

• IRS penalties for non-filing can be significant, up to 25%.

• Late filing of Form 3520 may allow for a reasonable cause statement.

• Exceptions exist for qualified tuition and medical payments.

• Consulting with financial experts is crucial when receiving large gifts.

• Understanding covered expatriate status is important for tax implications.

Episode Links & Resources

• Ep 08: What Is English For "Domicile?"

• Ep 18: What Is English For "Situs?"

• Ep 22: What Is English For "Covered Expatriate?"

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

In this heartfelt episode,  we celebrate Mother's Day by reflecting on the lessons learned from our mothers, particularly in the context of financial education and cultural influences.

We discuss the unique challenges faced by immigrant mothers in raising children in a new country, the importance of open conversations about money, and the role of mentorship in empowering the next generation. 

The conversation emphasizes the universal values of motherhood and the significance of sharing knowledge across generations.

Some key takeaways

• Lessons from our mothers often include important financial wisdom.

• Cultural influences can change the way we approach motherhood.

• Navigating parenting as immigrants presents unique challenges.

• Open conversations about money are crucial for financial literacy.

• Adapting financial lessons for the next generation is essential.

Tune in to find out who is saving for their daughter's wedding, just like their mother did.


Episode Links & Resources

• My Mom Is Not Afraid To Talk About Money

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process 

How do you find a good financial planner?

We share personal experiences and insights on the importance of cultural sensitivity, qualifications, fee structures, and effective communication in financial advising.

These are the things you want your financial planner to have in addition to cross-border technical knowledge.

We emphasize the importance of advisors understanding their clients' unique backgrounds and financial goals, as well as the fiduciary responsibilities they hold.

This will help you find the best financial advisor for your specific situation.

Key Takeaways on finding the right advisor for your cross-border needs

• Look for cultural sensitivity

• Look for advisors with CFP certification for quality assurance.

• Understand the fee structure.

• Ensure their communication will help you understand complex financial concepts.

• Ensure they are a fiduciary - put your interests first.

• Agree on how you define financial success and much more.

Episode Links & Resources

• Ep 37: How To Find The Right Tax Pro For Your Cross-border Needs

• Ep 31 Five Important Financial Planning Questions For Foreign-Born Families

• A Prospect's First Visit - Nightmare Os The Start Of Something Beautiful

• Kitces: Navigating Challenges Investing For Nonimmigrant Visa Holders

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process 

There is a huge difference between the gift and estate tax. This is highly magnified based on your immigration status (U.S. residents and non-resident aliens (NRAs)).

We also explain the annual exclusion for gifts, the unified tax credit, and the importance of tax planning to navigate these complex tax laws.

The conversation highlights the need for careful planning to avoid significant tax liabilities, especially for non-resident aliens with U.S. assets. 

Some Key Takeaways

• A gift tax is applicable during the lifetime of the giver.

• The estate tax is assessed after a person's death.

• The annual exclusion allows gifting up to $19,000 without tax in 2025.

• Non-resident aliens have a much lower exemption of $60,000, while U.S. tax residents have $13.99 million - set to sunset in 2025.

• Planning is crucial to manage tax liabilities effectively.

• Understanding domicile is key for tax implications.

Future episodes will delve deeper into the tax and financial planning strategies that will help with the above.


Episode Links & Resources

• Ep 08: What Is English For "Domicile?"

• Ep 18: What Is English For "Situs?"

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

We discuss the concept of Birthright Citizenship, its historical context, and its implications for foreign nationals in the U.S.

The 14th Amendment defines it.

We explore the ongoing debate surrounding the potential removal of birthright citizenship. We delve into the responsibilities of U.S. citizenship (taxes), which are not being discussed.

We touch on the global perspective of citizenship and the importance of compliance with immigration and tax laws. 

Finally, we give you some practical tips if this situation impacts you, especially if you are on a work visa. 

You are going to need to rely on our super strength - the immigrant mindset to get through this.


Episode Links & Resources

• The Fourteenth Amendment

• Bonus Episode: Post Election  - Thoughts And Mitigating Concerns

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

We've seen a lot of mistakes made by individuals filing taxes, particularly focusing on immigrants, foreign nationals, and green card holders living overseas.

In today's Shortie, we list these critical mistakes, hoping you'll avoid making them.

They range from ignoring taxes, ignoring immigration status, forgetting to report overseas gifts, including foreign dependents, all the way to completing the backdoor Roth wrong. 

We also address those overseas with expired green cards who are ignoring their tax obligations.

If you find yourself in this situation, please contact a tax pro to help you rectify these issues and hopefully avoid what could be a huge tax penalty.

Onto the 10 mistakes. 

Episode Links & Resources

• Ep 34: What is English For "FBAR?"

• Ep 22: What Is English For "Covered Expatriate?"

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

We discuss the intricacies of Backdoor Roth IRAs, a popular strategy for high earners to contribute to Roth IRAs despite income limits.

We explore the mechanics of the Backdoor Roth and the Mega Backdoor Roth, including eligibility, contribution limits, and tax implications.

We also cover the importance of understanding 401k options, the pro rata rule, and key considerations for executing a Backdoor Roth conversion effectively. 

We address work visa considerations when looking to complete a back-door role or a direct contribution.

We help you think through whether this is for you or not based on your work visa, your country of origin, and where you are likely to be when you finally withdraw the money.

We finally address the biggest mistakes we see when people DIY backdoor roth and the tax preparation that comes after that.

Episode Links & Resources

• Ep 20: What Is English For "Custodial Accounts?".

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

There is more than one type of individual retirement account (IRA). In this episode, we focus on the different types, including Traditional, Roth, SEP, SIMPLE IRAs, and spousal IRAs.

We explore each type's tax advantages, eligibility, and implications, especially for individuals with cross-border considerations.

The conversation also covers important aspects such as distributions, rollovers, conversions, and the significance of consulting financial and tax advisors for personalized advice.

A Few Takeaways 

• An IRA is a tax-advantaged investment tool for retirement savings.

• Traditional IRAs allow for tax-deductible contributions under certain conditions.

• Roth IRAs are funded with after-tax dollars, allowing for tax-free growth.

• Cross-border implications are crucial for those on work visas.

• Consulting both financial planners and tax advisors is essential for effective retirement planning.

• Withdrawals from traditional IRAs are taxed as ordinary income.

Tune in for the rest of the details.

Episode Links & Resources

• Ep 20: What Is English For "Custodial Accounts?".

• Ep 23: Applying For Social Security From Abroad.

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

Tax season is around the corner. If you are looking for a new tax professional, we have you covered.

In today's episode, we are going to walk you through how you select a good tax professional, especially if you have cross-border needs or assets overseas. 

The ten items or tips to consider as you select your tax professionals. If your tax preparer meets these tips, you are likely in excellent hands. The tips range from 

• Checking the preparer's history for any disciplinary actions, to service fees, to electronic filing, and realistic expectations, amongst others.

We end the episode by explaining what to do if you see suspicious or abusive tax preparers. IRS is interested in hearing from you.

Episode Links & Resources

• Loving v. IRS: Treasury's Authority to Regulate Tax Return Preparers

• Circular 230 

• Watch Out For Unrealistic Expectations and Falsely Inflating Returns

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

We discuss Tax Identification Numbers (TINs). We have fun discovering what they are called in various countries.

TINs are nine-digit numbers assigned by the Internal Revenue Service (IRS) or the Social Security Administration (SSA) for tax reporting purposes.

We discuss the history of TINs and the introduction of the Individual Tax Identification Number (ITIN) in 1996.

We also explain the eligibility criteria for obtaining a Social Security Number (SSN) and the process of applying for an ITIN. We highlight the importance of TINs for filing taxes, claiming treaty benefits, and opening bank accounts.

We also mention the Employer Identification Number (EIN) used for business entities.
 
Episode Links & Resources

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

In Part 1 of this podcast, we discussed figuring out your "why", for wanting to retire abroad, the residency/visa requirements, and the practical aspects of moving overseas. 

In Part 2 of this episode, we answer specific tax and financial questions. Some examples of the questions (amongst others) that we answer here are: -

• Do I still need to file U.S. taxes when overseas, and what does that entail? What about State taxes?

• How do I access my retirement income from overseas? How do I get my RMDs?

• Will my custodian allow a foreign address? How do I transfer my funds from the U.S.?

• Should I roll over my 401k to a rollover IRA before I leave the U.S.?

• Will I have enough SS credits to claim social security from abroad?

• Should I buy a home overseas?

• What about healthcare expenses? How do I deal with that?

• Are there other countries you should consider besides the usual?

We discuss the FBAR (Foreign Bank Account Report) and why it is important to be aware of it.

It's a FORM that needs to be filed under the Bank Secrecy Act if you have a financial interest or signatory authority over a foreign financial account.

And the aggregate value of these accounts exceeds $10,000 at any time during the reporting year. The FBAR filing requirement applies to all types of financial accounts, not just bank accounts. 

Failure to file the FBAR can result in substantial penalties. 


Episode Links & Resources

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

There has been an uptick in the number of people looking to retire overseas. In Part 1 of this episode, we discuss the essential considerations for the decision. 

We start by grouping those who want to move into the following groups 

• Those like us, who came to the US ages ago and are now retiring.

• Those who have worked overseas and now want to return

• Those who've only visited as tourists.

We explore the motivations behind such a decision, the importance of choosing the correct country, navigating visa and residency requirements, and the practical steps needed to prepare for the move.

Other topics that we cover here, amongst others, are:

• Maintaining connections and communication while living abroad.       

• Safety and political stability are key factors in choosing a country.

• Visa and residency requirements.

• Visiting a country as a tourist for valuable insights before moving.     

• The cost of living to ensure affordability.    

• Maintaining a US address for various logistical reasons. 

• Healthcare access etc.  

In part two of this episode, we'll address the financial and tax aspects of retiring overseas.

Episode Links & Resources

• CNBC: Retiring Abroad Could Lower Your Cost Of Living

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

What happens to you if you lose a job on a work visa?

It's the biggest threat to your financial life in the US. In this short episode, we detail your options based on your specific work visa. 

Generally, you have to leave the country in 60 days or less, depending on your visa type, visa stamp, home country, and where you are in the visa process. However, there are some unique nuances regarding your other options based on the type of this visa.

In this episode, we address the H-1B, L-1, E3, TN, and O visas and the specific repercussions of losing a job.

The 2024 elections are behind us. In this episode, we discuss the aftermath of the US elections, focusing on the concerns of foreign-born clients and US expats.

We explore the uncertainties surrounding immigration laws, visa changes, and the emotional impact of the election results.

Our conversation emphasizes the importance of financial preparedness, including maintaining an emergency fund, being flexible with career plans, and ensuring proper estate planning.

We include practical advice for navigating potential job loss and the complexities of financial planning in uncertain times.

We remind you to lock your credit to protect your identity, especially if you have to leave the U.S. 



Episode Links & Resources

• Ep 29: Stay A Step Ahead of Cyber Criminals. Protecting Your ID and Other Important Matters.

• U.S. Citizenship & Immigration Services  - Become a Student of Your Visa

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

In this solo episode, I discuss the five questions I ask to create the financial planning framework for foreign-born families.

Each question has many nuances and determines which way we go with the plan.

I believe any foreign-born individual should ask themselves these questions as part of the settling process in the US. Money is tied to all aspects of our lives.

• What's your Immigration status?

• What's tax residency status

• What are your long-term residency status?

• What's your home country of citizenship, what other citizenships do you have, and if married, what's your spouse's citizenship?

• What assets do you have in foreign countries?

Yeah, it's not green anymore, but the name has persisted.

Do you know why the Permanent Residency Card is called the Green Card?

We answer this question and provide many more details about this "magic" document, which permits you to live and work permanently in the US if you are foreign-born.

We know quite a bit about it, having previously held this card.

We discuss the tax obligations and financial planning implications of being a green cardholder rather than a US citizen.

It's challenging to get, based on your home country, but once you get it, you must be careful if you want to abandon it to do it right.

Are you a green card holder? What questions do you have?

Assume that your information is already out there. Your goal is to ensure that nobody misuses your data."

In this episode, we discuss the importance of protecting yourself from identity theft.

We provide practical steps and tips for safeguarding your personal information and financial accounts.

 Key takeaways

• Place fraud alerts on your credit and consider extended fraud alerts if your identity has already been stolen.

• Place a credit freeze on your credit to prevent new accounts from being opened in your name.

• Use a password manager to generate strong, unique passwords for each account.

• Enable two-factor authentication on all your financial accounts.

• Create a separate email address for your financial accounts, and be cautious of suspicious emails.

• Monitor your account activities regularly and set up alerts for any unusual transactions.

• Create a social security account to monitor your earnings and prevent unauthorized access.

• Create an IP PIN with the IRS to prevent fraudulent tax filings using your social security number.

Take proactive steps to protect your identity before leaving the country.