The United States IRS defines a “US Person” as an individual to whom all US tax laws and regulations apply, regardless of whether they work within the United States or in another country. Understanding this designation is crucial for fulfilling international tax responsibilities. Failing to comprehend your role as a US Person can lead to …
When strategizing your return to the US after living abroad, it’s crucial to understand the impact of your move on your taxes. Depending on your foreign earnings and other variables, you might be subjected to different US tax regulations. Below are ten tax insights to bear in mind when making your way back to the …
Expats Moving Back to the US, here are 10 tax tips for you Read More »
As the June deadline for filing US expat tax returns approaches, you might find yourself in a rush to complete your tax obligations. If you need some extra motivation to meet the deadline, we’ve got you covered. Read on to discover why it is crucial for expats to adhere to the deadline. Accruing Interest is …
3 Reasons why you should Meet the June Deadline for US Expat Tax Returns Read More »
Act 60, passed in 2019, offers significant tax incentives for individuals who establish residency in Puerto Rico. These incentives include a 4% flat individual income tax rate, a 100% tax exemption on dividends and capital gains for individuals and a 100% exemption on dividends and interest for corporations. Establishing Residency in Puerto Rico To take …
Puerto Rico Act 60 – Tax saving incentives for Americans Read More »
The U.S. exit tax is the last thing you’ll pay if you give up citizenship. The U.S. exit tax is a tax on capital gains for American citizens who renounce their citizenship. It was implemented in 2008, as a response to the growing number of Americans renouncing their citizenship. The exit tax is a tax …
Form 8621 for U.S Expatriates and Passive Foreign Investment Companies Tax forms for American expatriates living abroad, such as Form 2555 (Foreign Earned Income Exclusion) and Form 1116 (Foreign Tax Credit), can be relatively easy to understand. However, if you have shareholder investments, you may also be required to complete disclosure forms that must be …
The United States tax code is complicated, and it can be especially confusing for digital nomads who often travel or live abroad. To bring some clarity to this complicated topic, let’s take a look at the basics of tax filing for nomads. Key Takeaways Like all US citizens, digital nomads must file a tax return …
Partnership Withholding: Form 8804 & Form 8805 If a partnership with a foreign partner has income that is effectively connected with a US business or trade, it is required to file Form 8805, U.S. Partnership Withholding Tax Return, and Form 8804, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests. …
Expat Tax Relief is the best US expat tax preparation service in America. We have helped hundreds of Americans living abroad with their taxes and we can help you too. We are an experienced team with years of experience making sure that your taxes are done correctly and on time. We understand the complexities of …
Best US Expat Tax Preparation service in America Read More »
Tax guide for u.s citizens and resident aliens abroad This document is a tax guide for U.S. citizens and resident aliens abroad. It explains the U.S. income tax rules that apply to you based on your residency and other circumstances. If you are a citizen or resident alien of the United States, you must report …
Tax guide for u.s citizens and resident aliens abroad Read More »
If you’re an American citizen living abroad, you can enjoy tax exemption on your income earned outside the United States. The IRS will consider you a nonresident alien if you meet any of these four conditions: You are a U.S. citizen who lives in a foreign country and is not considered to be resident in …
For American expatriates, it’s important to be familiar with the most common income tax forms. For example, Form 2555 (Foreign Earned Income Exclusion) and Form 1116 (Foreign Tax Credit) are both fairly easy to understand. But if you’re an expat with shareholder investments, you may also have to complete disclosure forms that must be filed …
Form 8621 for American Expatriates and Passive Foreign Investment Companies Read More »
Expats must carefully evaluate particular circumstances of residing in another country while creating an estate plan. Here are a few areas to consider Select an Attorney-in-Fact to Manage Your US Assets If you still have assets in the United States, one of the first things you should do is to appoint an “attorney-in-fact” with a …
Question I’m an expatriate and live and work in Europe, visiting family in the United States a couple times a year. I didn’t think about my U.S. taxes until recently, when I sat down to work on them. How is my changed marital status going to affect my U.S. tax liability? Answer Congratulations on the …
How Does My Marriage to a Foreign Citizen Affect My Taxes If We Don’t Live in the U.S.? Read More »
As an independent contractor or an employee, working abroad has both advantages and disadvantages. A US expat living overseas might have numerous financial and non-financial perks, especially when compared to their domestic counterparts. However, your taxes will vary greatly depending on whether you are an independent contractor or an employee. Read the following case studies …
Contractor Versus Employee Taxes for Americans Working Abroad Read More »
The IRS typically taxes contributions to foreign plans, the income that has been generated in those plans (growth) but has not yet been distributed, and payouts from such plans. The extensive list of information-reporting obligations and the severe penalties for infractions should draw your attention if the lack of tax deferral is insufficient to do …
Reporting Requirements for Foreign Retirement Plans: Issues and Solutions Read More »
The new changes to US federal tax laws impacts expats filing their 2021 tax returns in 2022. The standard deduction for married couples filing jointly for tax year 2021 has been increased to $25,100. For single taxpayers and married individuals filing separately, the standard deduction increased to $12,550 for 2021, and for heads of households, …
Some US Tax Law Changes Impacting US Expat Taxpayers Read More »
U.S. Expat Taxes are determined under U.S. tax rules, not those of a foreign country. The variations between what is deductible in one country versus another can sometimes result in significant differences between the foreign tax return amounts reported abroad and on the U.S. tax return. When the reported taxable income is exactly the same …
It is on my foreign tax return, so I can take this deduction Read More »
Americans overseas can reduce their US tax burden using the foreign earned income exclusion, the foreign tax credit or a combination of both. This year, for example, claiming foreign earned income exclusion allows higher-earning expats to qualify for coronavirus stimulus payments that they would not otherwise qualify for. Unfortunately, it is not permitted to switch …
What are the IRS exchange rates for Americans living abroad? Filing your expat taxes generally means converting your foreign income into US dollars. To do that, you need to understand IRS currency exchange rates. This is what you need to know. Why are IRS exchange rates important for expat taxes? Every year, Americans living abroad …
What are the IRS exchange rates for Americans living abroad? Read More »
