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Expatriate Tax Returns

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Expats: Do You Know What You’re Entitled To?

As an American expatriate living abroad, you have a unique opportunity to claim a Foreign Tax Credit. By doing so, you will avoid dual taxation, which is when two different countries impose taxes on the same income. No one wants to be doubly taxed of course, but if you’re caught unaware you could be subject to this potential unfairness.

Expats should understand how important it is to complete Form 1116. This form is then attached to your U.S. expat tax return. Then you’ll be able to claim this credit and avoid paying United States taxes on income that you have already paid on in your foreign tax home.

expats-foreign-tax-creditIn order to qualify for the Foreign Tax Credit expats must have earned income, have paid tax or acquired a tax liability that you will have to pay in the future and live legally in the foreign country as an American expat.

Claiming the Foreign Tax Credit directly offsets your U.S. taxes for any income earned overseas. This can only be used to offset U.S. taxes on your interest, dividends or compensation earned abroad. It cannot exceed the amount of U.S. taxes you pay on the foreign income. If it does exceed that amount, you can carry forward the balance to future tax years.

The talented team at Expatriate Tax Returns will be able to quickly determine if you are eligible for this credit and if you are, a tax expert will walk you through this process. We don’t want you to be unfairly double taxed and that is why it is critical to know about the Foreign Tax Credit before filing your expat tax returns.

Contact Expatriate Tax Returns for more information by calling 877-382-9123 toll free.

Getting ACA’s “Same Country Exemption” Passed

It is important for all United States citizens living and working abroad to understand the American Citizens Abroad’s Same Country Exemption. This will have an important effect on expats and specifically on Expatriate Tax Returns.

The National Taxpayer Advocate has recently come out in full support of regulatory changes to both FBAR (Foreign Bank Account Report) and FATCA (Foreign Account Tax Compliance Act). This would make it easier for American expatriates living overseas to report tax information. At Expatriate Tax Returns, we believe that it is already a very confusing and onerous process for American expats to file their tax returns and we’re in favor of easing this process. All expats are encouraged to help the American Citizens Abroad (ACA) gather the documentation it needs to go back to the table for meetings with the U.S. Treasury.

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If you are an American resident overseas and have had a foreign financial institution close one or several of your financial accounts or have been denied banking services, it is important that you send your testimony to the ACA via email to info@americansabroad.org. If any foreign financial institution is denying you services or the ability to open a financial account due to FATCA, U.S. tax legislation or because of the fact that you are an American citizen, it is important that you let them know so you can work with ACA and the government to get these restrictions overturned. American Citizens Abroad requests that you notify them before the deadline on May 15th 2015.

Together, we can work to make it easier and less stressful for American citizens to live and work abroad. At Expatriate Tax Returns, we put our expat clients first and want them to have a worry-free experience when it comes to expat taxes. Call us today toll-free on our Support Hotline: (877)-ETAX-123 or (877)-382-9123.