Your 2026 Compliance Checklist
Every form, threshold, and deadline a US expat in Malaysia needs to track this year. Bookmark this page and review it each January, and again as the 2027 remittance exemption expiry approaches.
1. Confirm Your Filing Requirement
File Form 1040 if worldwide gross income exceeds roughly $14,600 ($400 if self-employed), regardless of Malaysia's territorial tax treatment.
2. Claim the FEIE (Form 2555)
Shield up to $132,900 of earned income. Confirm you qualify via the Physical Presence Test or Bona Fide Residence Test, especially if 50+ and not tracking MM2H stay requirements.
3. File FBAR If You Cross $10,000 (FinCEN Form 114)
Aggregate all Malaysian accounts, including any MM2H fixed deposit. File by April 15 (automatic extension to October 15).
4. Check FATCA Reporting (Form 8938)
Applies at higher thresholds than FBAR, generally $200,000+ for single filers abroad ($400,000+ married filing jointly). MM2H deposits and Malaysian property (indirectly, via financing accounts) can factor in.
5. Track What You Remit Into Malaysia
Keep records of remitted foreign income for the current transitional exemption, and start modeling your post-2026 remittance strategy now.
6. Confirm Self-Employment Tax Exposure
If you're a DE Rantau pass holder, freelancer, or contractor, budget for the full 15.3% self-employment tax since there's no Totalization Agreement to offset it.
7. Review Labuan or Malaysian Business GILTI Exposure
If you own 10%+ of a Labuan or Malaysian entity, confirm your GILTI position and whether a Check-the-Box election is warranted.
8. Confirm Your MM2H Tier's Employment Restrictions
Verify you're not working locally on a Silver, Gold, or SEZ visa without proper Employment Pass conversion.
9. Review State Domicile Status
Confirm whether your prior US state still considers you a resident for state tax purposes, particularly if you're from California, Virginia, New Mexico, or South Carolina.
10. Confirm Property Compliance
If MM2H property or an investment condo, confirm the state minimum price threshold was met and the 10-year holding requirement is tracked.
11. Verify Beneficiary Designations on US Accounts
Confirm 401(k), IRA, and life insurance beneficiary designations are current. Cross-border estate planning gets materially more complex the longer you're abroad.