Taxes & wealth
Federal, state, SALT, equity taxes, FBAR, PFICs, estate and the U.S.–Italy treaty.
State & remote work
State income tax ranges from 0% to over 13%. If you work remotely for an employer in another state, some states (e.g., New York) may still tax you under a "convenience of the employer" rule. Clarify this before accepting a remote role.
Relocation is taxable
Employer-paid moving expenses are taxable income for most employees, and the 2025 tax law made this permanent. Ask for a tax gross-up in your relocation package.
Equity taxes
RSUs are taxed as income at vesting, and withholding is often too low for high earners. NSOs are taxed at exercise; ISOs may trigger the Alternative Minimum Tax. Plan with a tax adviser.
Your first U.S. year
Newcomers usually become tax residents under the "substantial presence" test. The arrival year is often a "dual-status" year, with special filing rules and elections.
Foreign accounts
U.S. residents must report foreign accounts above $10,000 in aggregate (FBAR) and may need to file Form 8938 (FATCA). Penalties for missing these are severe.
The PFIC trap
Italian and other non-U.S. mutual funds and ETFs are usually "PFICs" for U.S. tax purposes, taxed punitively. Review your Italian investments before or soon after you move.
Estate planning
If one spouse isn't a U.S. citizen, the unlimited marital deduction for estate tax doesn't apply automatically. The U.S.–Italy estate tax treaty can help. Update wills in both countries.
U.S.–Italy tax treaty
Prevents double taxation on salary, pensions and investment income. Italian rental income and property can remain taxable in Italy with a U.S. foreign tax credit.
Moving back to Italy?
Italy's "impatriati" regime (rules in force since 2024) can exempt 50% of employment income (60% with a minor child) for 5 years, for highly qualified workers with income up to €600,000 who return after at least 3 tax years abroad and commit to staying in Italy for at least 4 years. Conditions are strict; plan before you return.
How-to guides
How toFile your first U.S. tax return as a newcomer
- Determine your residency status for the arrival year (substantial presence test, first-year choice, dual-status).
- Collect your W-2, 1099s, brokerage statements, and records of Italian income and taxes paid.
- Report foreign accounts (FBAR) and assets (Form 8938) if above thresholds.
- Claim the foreign tax credit or treaty benefits to avoid double taxation.
- File by April 15, or request an extension (the extension is for filing, not for paying).
- Use a cross-border CPA for the first year. It usually pays for itself.
How toPlan your taxes before relocating from Italy
- Review Italian funds and ETFs for PFIC exposure and consider restructuring before you become U.S. tax resident.
- Understand how your departure affects Italian tax residency under the 2024 rules; register with AIRE.
- Plan the timing of bonuses, equity vesting and asset sales around the move.
- Negotiate a tax gross-up on relocation benefits.
How toCheck if you are taxed by two states
- Identify where your employer is based and where you physically work.
- Check whether your employer's state applies a "convenience of the employer" rule to remote workers.
- Look for credits in your home state for taxes paid to another state.
- Ask payroll to set up withholding correctly from day one.
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Read the guideCompensation
Base, bonus, LTI, sign-on, sales comp, pay transparency and exempt status.
Read the guideEquity & long-term incentives
RSUs, PSUs, options, vesting, 83(b), deferred comp and clawbacks.
Read the guideExecutive agreements
Cause, good reason, severance, change in control, covenants and D&O.
Read the guideVisas & green cards
O-1, EB-1, EB-2 NIW, L-1, E-2, H-1B, Gold Card and citizenship.
Read the guideBenefits & time off
Health plans, 401(k), HSA, ESPP, disability, PTO and parental leave.
Read the guideYour rights at work
At-will, discrimination, whistleblowing, background checks, AI rules, WARN.
Read the guideLeaving a job
Resigning, layoffs, separation agreements, severance and garden leave.
Read the guideLeadership & culture
U.S. vs. Italian work culture, leading U.S. teams, hybrid work.
Read the guideCredentials & licenses
Degree evaluation and licensed professions: PE, CPA, bar, medicine.
Read the guideRelocation & life
Housing, credit, banking, driving, schools, insurance and Italy ties.
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Information reviewed September 2026. General information only, not legal, immigration, tax or financial advice. Laws change frequently and vary by state and personal situation; consult qualified professionals.