Sending our love to all who are working overseas this Valentine’s Day.
Originally it was thought the tax relief was on the horizon for expats when President Trump’s new tax program was put into law, but the reality is that nothing is really different from the new rules that apply to all US taxpayers:
- Tax Brackets
- Standard Deduction
- Personal Exemptions
- Child Tax Credit
- Mortgage Interest Deduction
- State and Local Tax Deductions
The major change regarding international taxpayers is how Controlled Foreign Corporations are handled. Trump’s tax reform details a new category of corporate income called the Global Intangibles Low-Taxed Income (or GILTI), that requires recognition of a percentage of previously deferred foreign earnings and is now taxed as Subpart F income.
Current undistributed retained earnings are taxed at 15.5%, if held in liquid assets, and 8% if held in illiquid assets. This is a one-time tax and can be paid over 8 years.
Starting with your 2018 Corporate Tax Filing, everything is Subpart F Earnings. Any income in excess of $102, 100 (or $204,200 if your spouse is active in the business) will be taxed at ordinary income rates.
Questions regarding your unique situation can be directed to Expatriatetaxreturns.com.
An article on the CNBC website, which appeared this past summer, shows that a steady stream of American citizens have chosen to live and work outside of the United States as expatriates. Some of these Americans have renounced their U.S. citizenship because of the implementation of stricter tax rules. However, most expats do not renounce their citizenship. The tax issues that American expats face are significant and can include facing higher tax bills, difficulty in obtaining and keeping financial accounts and complex retirement savings rules.
At Expatriate Tax Returns, we are happy to see such a notable rise in the rate of expatriates. We think it’s a wonderful experience for professionals to spend a few years abroad, but we also caution our clients that there are several important tax considerations to keep in mind as an American expat. Remember that Americans who reside in another country must file a Report of Foreign Bank and Financial Accounts, or FBAR. That form should disclose any accounts Americans have that hold an aggregate of more than $10,000. There are stiff penalties if you fail to file an FBAR. Additionally, the Foreign Account Tax Compliance Act (FATCA) requires foreign institutions to disclose the holdings U.S. citizens have. Americans also need to disclose any foreign mutual funds and insurance or pension products that they own. Those holdings may be viewed as passive foreign investment companies, or PFICs, by the IRS. There are also certain rules that can offset the tax bills that Americans living abroad face.
Many of these tax rules and policies could change in the coming years. It’s a lot to consider for expatriates and staying abreast of IRS changes is even more difficult to do. That’s where we come in. The experienced tax professionals at Expatriate Tax Returns have made it our mission to help expatriates like you and to follow all of the changes in the tax code for expats. Leave it to us to handle your tax returns and ensure that your experience as an expat is a stress-free one. All of us at Expatriate Tax Returns wish you and your family a happy new year. We hope 2019 is a successful and great year for you!
It’s hard to believe that the year 2018 is almost over. It’s been a wonderful year for us at Expatriate Tax Returns and a time for reflection. While we have been serving American expats for many years, we still think of our company as a startup. The reason is that it keeps us thinking in innovative ways. Expatriate taxes are constantly changing for American citizens working abroad and we see it as our mission to keep ourselves a few steps ahead of the pace.
Our expat tax strategies are constantly evolving to meet the needs of our expatriate clients. The recent Thanksgiving holiday gave us at Expatriate Tax Returns a chance to count our blessings. We are so very grateful for our many clients, who are living and working in interesting countries throughout the world. We thank you for putting your trust in our tax preparers to prepare your expat tax.
Ensuring that the expat tax returns for thousands of clients around the world are complete and thorough is quite an undertaking for our team, but it’s our reason for existing. We take tax prep very seriously and take great pride in keeping apprised of the many recent changes in IRS tax rules for expatriates. The gratitude we receive when a client is satisfied with their expat tax preparation reminds us that what we do really makes a difference. It gives our clients peace of mind.
During the winter holiday season, we gave thanks for all the good that we have in our lives. Everyone at Expatriate Tax Returns is grateful for you — our clients. We wish you a joyous and blessed holiday season and a successful ending to 2018. Please do not hesitate to contact us with any questions regarding your expatriate tax preparation.
There are a lot of tax firms that are good at a lot of different areas when it comes to tax preparation. And then there is Expatriate Tax Returns. We’re very good at one area… expat taxes. That is what we focus on. Nothing else.
With so many tax preparers out there, you need to be sure of the type of firm you are hiring. Many tax firms are not accustomed to dealing with the complexities of expatriate tax returns for Americans living abroad and that may mean less money refunded on your tax return, or more tax you will have to pay that you actually should not.
We specialize in expat taxes and we have the years of experience that give us a considerable edge in this category of tax preparation. You can see from the client testimonials on our website that our clients recognize we are in our own category when it comes to preparing tax returns for American expatriates. We truly understand all of the deductions and credits that you, our expat client, may be eligible for. We will not allow you to pay one cent more than you owe.
At Expatriate Tax Returns, we are efficient, quick and honest. We will work with you either via video chat, email or the phone. This high level of communication allows you the flexibility and convenience of filing your taxes securely from anywhere in the world. Contact us today to see why we’re the #1 expat tax firm.
Our company, Expatriate Tax Returns, believes that we only have one client. This belief allows us to completely focus on each client as if they are our only reason for existing. Why do we do this?
We know that we have a niche in the tax preparation industry. Working exclusively with expatriates means we understand our clients and their needs better than any other CPA firm. Being an expat is a unique experience — you’re away from home for several years and trying to accommodate your family abroad. The specific tax returns American expats have to prepare are very challenging and time-consuming. Our goal is to alleviate the stress that often comes with expat tax preparation.
While we actually have thousands of expats as our clients and have helped countless American expatriates with their tax returns over the years, it’s our mantra to say that we only have one client. And that client is YOU! Our emphasis on making each client feel special is what has led us to become one of the country’s top expat tax preparation firms. Each of our clients is unique and has a tax return that demands our focus. We work diligently to understand each of our client’s situation before delving into the expat tax return. You have our pledge that you will always feel like you are our only client.
When you pay for tax preparation at Expatriate Tax Returns you are automatically covered under our “etax” guarantee which entitles you to reimbursement for penalties charged by a taxing authority if our tax specialist makes an error on your tax return. We are here to help you — American expats who live and work abroad but are still responsible to pay U.S. taxes. We are dedicated to this mission and we love what we do. Call 877-382-9123 today and become our only client!