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Expatriate Tax Returns

Expat Filing Requirements

Recovering from Identity Theft

Identity theft can be prevented in many ways, but if you are a victim, there are a few ways to recover your information and ease the financial burden. Once you discover that your identity has been stolen, contact your local law enforcement, freeze your credit, and place a fraud alert on all accounts. Once all necessary parties have been contacted, review your credit and debit charges for anything fraudulent and report them to your financial institutions. Work to handle your disputes as quickly as possible to recover any changes to your credit score. Next, change login information on all websites that contain your personal information. Protecting your data is essential, and identity theft is likely to occur through an internet security breach. Stay on top of your credit reports and banking information for the next few months after the theft occurs. You will want to contact the credit bureaus and banks to ensure all fraudulent charges have been removed and any new accounts will be rejected as fraud.

Gig Economy Income

The IRS recently sent a news release reminding taxpayers that all income must be reported, including such from the gig economy. The gig economy is where workers earn money from on-demand roles, services, or goods.
Gig economy jobs include grocery delivery, creative or professional services, or transportation.
Taxpayers may find that jobs in the gig economy provide more flexibility, allow for additional pay, and provide a better work-life balance. In the last few years, these types of roles have become more common, although the process of declaring the income may be confusing.
These jobs are often short-term and can be performed via an app or website. Employers from these roles will issue a  Form 1099-K or 1099-MISC. This income must be noted on your tax return. Provide all income to our tax professionals, and we will ensure that it is correctly recorded and submitted as required by the IRS.

Will You Owe Taxes?

In another year that seems different than anything we are used to, some expatriates may find themselves owing taxes this time around. If expatriates received an advanced payment of the Child Tax Credit, you could owe taxes if your income changes. The original amount paid out for the Child Tax Credit was based on tax returns from previous years. However, if your take-home pay increased substantially, you may no longer be eligible for the amount you received. In this case, you will have to pay that money back. This example is just one of the many uniquenesses expatriates will experience when filing taxes this time around. If this is your first time, or you are just looking for that extra vote of confidence in your tax preparation, we are here to help. Give us a call or visit our website today for more information.

Why Expatriate Tax Returns?

You may find yourself uncertain as to what to look for in a tax preparer. Is it necessary? What is the cost? How can I be confident in their work? We understand the uncertainty, and we are here to help.
Expatriate Tax Services works with individuals and businesses and can assist with estates and trusts. We are transparent with our pricing structure and provide additional a la carte options for any situation
We have been providing tax services for over 25 years and have seen it all. In the past few years, advancements in technology have made tax preparation easier than we could have ever imagined.
Our clients consider us helpful, timely, and accurate, and we wouldn’t have it any other way.

Storing Tax Related Documents

Keeping your tax-related documents is extremely important in the digital age. If you are storing your tax documentation on a computer, be sure that the computer itself is protected. Use lengthy and unique passwords and restrict access to only those necessary. We recommend changing your passwords frequently for maximum security. Additionally, consider keeping the information on an external hard drive should your computer crash. When accessing your tax files or filing your taxes, be sure you do so over a secure network. Avoid using public wi-fi as those around you may be able to access your information more easily. If you are keeping paper copies of your tax information, ensure they are stored safely and securely. The IRS recommends storing the information under lock and key, and ideally in a waterproof container. The IRS generally recommends keeping your tax return documents for three years. After that time, shred any paper documentation and permanently erase the files from your computer. If you are getting rid of an old computer entirely, ensure that tax and other personal data have been removed. We are constantly working to stay on top of the latest safety and security recommendations, and you can trust that your information is safe in our hands.

Foreign Housing Exclusion

If you are living abroad and are receiving income from your employer for housing, you may be eligible for the Foreign Housing Exclusion. Employers may offer housing funds directly to you or may include them as part of your overall income. Both options are acceptable qualifies for the exclusion for the deduction. Those who are self-employed can also receive the deduction. The costs of renting an apartment and repairs, utilities, and insurance are deductible. Extra expenses such as furniture, television, or home improvements are not eligible. The IRS calculates your Foreign Housing amount as the “expenses for the year minus the base housing amount.” Housing limits are enforced based on where you reside. Use form 2555 to calculate your amount. (https://www.irs.gov/forms-pubs/about-form-2555). Give us a call with any questions or concerns on this deduction in particular or any general tax information.
We look forward to speaking with you!