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Expatriate Tax Returns

expat tax information

The Tax Implications Of Getting Married Or Divorced As An Expat

To start off, an expat is someone who lives in a foreign country for a prolonged period of time, usually for work or retirement. If you are an expat and considering getting married or divorced, it’s important to be aware of the tax implications that may arise from either decision.

The Tax Benefits of Marriage

If you are an expat and thinking about getting married, there are a few tax benefits that you and your spouse may be eligible for. For example, many countries offer a tax deduction for married couples. This deduction is usually based on the joint income of the couple and can result in a lower tax bill for the household. Additionally, married couples may also be able to file their taxes jointly, which can further lower their overall tax liability.

The Tax Benefits of Divorce

While getting divorced may not seem like it would have any tax benefits, there are actually a few situations where it can save you money. For example, if you get divorced and your spouse is the breadwinner, you may be able to file as head of household on your taxes. This can result in a lower tax rate and a larger standard deduction. Additionally, if you have children, you may be able to claim them as dependents on your taxes even if you are no longer married to their other parent.

The Tax Implications of Remarriage

If you get divorced and then remarry, there are a few things to be aware of from a tax perspective. First, if you remarry someone who is a non-resident of your country, you may no longer be eligible for the married couples’ deduction. Additionally, if you have children from a previous marriage, you may no longer be able to claim them as dependents if your new spouse also has children. Finally, if you have remarried and your new spouse has a higher income than you, it may push you into a higher tax bracket.

The Tax Implications of divorce for expatriates

If you are an expatriate and getting divorced, there are a few things to keep in mind from a tax perspective. First, you will need to file for divorce in the country where you are a resident. This can be a complicated process if your spouse is living in a different country. Additionally, you will need to divide up your assets and income in a way that is acceptable to both countries. This can be a challenge if you have investments or property in multiple countries. Finally, you may need to pay taxes in both countries on any income or assets that you receive as part of the divorce settlement.

So, what are the tax implications of getting married or divorced as an expat?

The tax implications of getting married or divorced as an expat can be complex. If you are thinking about either of these things, it’s important to speak to a tax professional to ensure that you are doing everything correctly. Additionally, be sure to stay up to date on the tax laws in both your country of residence and your spouse’s country of residence, as they may change over time.

If you want to learn more about tax implications, read our blogs or visit our contact page to connect with us.

Stay Organized for Tax Season

It’s back-to-school season! Use the cooler temperatures and time away from the kids to get organized. We always like to keep taxes top of mind and have perfected a few organizational tips that help us stay on track. Here are a few tips that we find work for our customers and ourselves:

  1. Designate a Space: Keep all of your tax documents in one place. A simple file folder with all of the necessary forms will keep you from running around attempting to locate everything come April.
  2. Label Your Things: Divide your receipts into separate sections, with everything nicely labeled with a system that works for you. Keep childcare expenses separate from medical, or create categories that you find helpful.
  3. Find Some Time: Don’t let tax season sneak up on you! Carve out some time on your calendar of choice. If it’s an hour per month or 5 minutes a day to stay organized, make sure you keep yourself ahead of the game.

IRS Amnesty Program: Streamlined Filing and How It Helps Expats Pay Taxes

Expatriate Tax Returns IRS Amnesty Program 2018

Moving to a foreign country can be exciting. During a time when many expats are learning a new way of life, they may forget about old responsibilities. This can lead to overdue taxes. The IRS’s Streamlined Filing Procedures may be able to help.

How Does Streamlined Filing Work?

Today’s Streamlined Filing Procedures were introduced in 2012. The new system was intended to provide an alternative to previous programs, which missed the mark by excluding many of the expats who needed them.

Streamlined Filing Procedures encourage expats to catch up on their taxes. To do this, the program reduced the number of previous years’ returns that are required. In order to use the new procedures, you will need:

  • Federal Returns – You must submit three years’ worth of returns. These must be the most recent three years and can include amended returns.
  • FBAR Forms – Six years of FBAR forms are required. The FBAR is usually only needed if your non-U.S. bank accounts total $10,000 or more. Streamlined Filing Procedures require FBAR forms even if you have less than $10,000.
  • Signed Form 14653 – You must submit a Certification by U.S. Person Residing Outside of the U.S. statement that is signed. This will certify that you are eligible, have filed all FBAR forms, and that your failure to file taxes was not intentional.

Do I Qualify for Streamlined Tax Filing?

Restrictions were removed in 2014, which means that you may be eligible now even if you weren’t over five years ago. If you can produce the items listed above, you may qualify. You must show that you did not file because you were not aware that it was required.

If you have questions about using Streamlined Filing Procedures, let us know. Expatriate Tax Returns can help you navigate the U.S. tax system and get caught up on your financial responsibility.

Understanding the Tax Fairness for Americans Abroad Act of 2018

Expatriate Tax Returns Tax Fairness for Americans Abroad Act

The Tax Fairness for Americans Abroad Act of 2018 (H.R. 7358) was introduced last December. This legislation applies to anyone with a non-resident citizen status. Ending citizenship-based taxation would require rewriting almost all the current tax code. Instead, steps are being taken to help address issues for expats who live overseas.

What Does the Tax Fairness for Americans Abroad Act of 2018 Change?

If you qualify as a non-resident citizen, you are still expected to pay based on the core tax code. The Tax Fairness for Americans Abroad Act of 2018 changes the way your financial responsibility is calculated.

The Act adds Sec. 911A which amends the code to allow non-resident citizens to be taxed based on their United States-sourced income only. That means any income coming from foreign countries can be excluded.

Do I Qualify for Non-Resident Citizen Status?

You may qualify as a non-resident citizen if you meet the following requirements:

  • You are a citizen of the United States
  • You live in a foreign country which is your “tax home”
  • You are fully compliant through the previous three tax years
  • You are not a U.S. federal employee

You must also meet all requirements outlined by the bona fide residence or physical presence tests. If you meet the criteria, you can elect to receive non-resident citizen status. It’s important to remember that you must be in a non-resident citizen status to exclude the sale of personal property.

If you have questions about your status, let us know. Expatriate Tax Returns can help you learn more about your financial responsibility and U.S. taxes.

Here Comes August 8th… HAPPINESS HAPPENS DAY!

Expatriate Tax Returns Happiness Happens Day 2019

2019 marks the twentieth year anniversary of this exuberant holiday, so get ready to put that smile on your face!

This holiday is based on the premise that happiness is unlimited and contagious. It can bring a lot of joy to you and others.

While being happy can mean different things to different people, Happiness Happens Day encourages people to take stock of their lives and try to do or think about things that make them happy.

Here ‘s a few ways to celebrate this happy day:

  • Do something nice for yourself. Happiness begins at home.
  • Do something nice for others such as donating your time or money to your favorite charity.
  • Do something that is helpful to your community like volunteering to pick up trash, weeding, or mowing lawns.

During this time of strong political differences and a world of unrest, join us at Expatriate Tax Returns celebrating happiness every day. As we all know, a smile is worth a thousand words!

Our Clients Are Our Best Referrals

Expatriate Tax Returns Thanks You

We want to thank all of our clients for choosing Expatriate Tax Returns for trusting us with your expat needs including tax filing. We take great pride in our work that helps out U.S. citizens living abroad.

We very much appreciate the many thoughtful notes of appreciation.

Thank you Suzanne for your recent testimonial:

Having lived in the UK for more that 20 years now, I have struggled to find a decent tax accountant to help me with my US taxes. It is so hard to know if the person you are working with is competent and reliable, let alone legally able to support you when they are so far away. I made the unfortunate mistake of working with H&R Block for several years thinking I would get a reliable service and be covered in with up to date tax laws. Following a lengthy review of my taxes from last year and spending endless hours trying to translate the tax laws into English, I found that the person I was working with there had made some major mistakes. In my research for a new accountant, I found expatriatetaxreturns.com. I reached out to outline my challenges and Suzanne got back to me within a couple of days with some initial information. After confirming her status as a qualified CPA and registered on the IRS list, I had an initial call to review my situation. She was very pleasant to work with and did an excellent job of understanding my complicated situation, as well as very excellent at helping me to better understand the risks and challenges that were ahead of me for this tax year. In addition, she came back with some excellent suggestions for how I could improve future tax returns with some minor changes to my situation here in the UK. Having been down the road of uncertainty and being misrepresented in the past, I can say that it is a real pleasure to find Suzanne and the team and to be comfortable knowing that my taxes are well looked after now and for the future. I highly recommend the team to anyone who is in need of Expat tax services.

Read what other clients have had to say about our services.