US expat Chabad rabbis have an interesting US tax situation:
They often work for a nonprofit registered in the country they operate in. If this nonprofit was opened as a foreign affiliate of a US based organization, the parent organization may have special filing requirements.
If they are paid as a regular wage, they normally won't owe any US taxes if they live in a country with higher tax than the US. Utilizing the foreign tax credit or foreign income exclusion is necessary for this.
If they're considered self employed, if their country of residence has a totalization agreement with the US (such as Canada and much of Europe), they won't owe any US self-employment tax, either.
They can claim the child tax credit if eligible. If they and their family resided in the US for 6 months or more of the calendar year, they could qualify for the earned income credit.
They often need to file FBAR reports for foreign accounts with values over $10,000 or equivalent. Often overlooked is the requirement to also report the value of foreign accounts with signature authority - such as nonprofits they direct.
Form 8938 - FATCA foreign account reporting, part of the regular tax return, may be required if their foreign assets reach certain thresholds.
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