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Expatriate Tax Returns

Expat Tax Preparation

Number of Expatriates is Growing at Steady Rate

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!

The Importance of Taking Risks to Experience Life

 

Taking risks is never the easy route to go. This is especially true when the risk is taking a journey that will change your life and your family’s lives. Becoming an expatriate and moving overseas for a year or two is certainly a risky decision. However, it is a decision that will allow you to reap the benefits of being an expat – living in a new part of the world and contributing to your company on a global scale.

Studies have shown that risk-taking is essential to business people’s success. In fact, American expats have written about how taking the risk and spending time overseas with their family has been one of the most beneficial moments of their professional journey.

 

Expat Taxes Best Price

 

Human beings naturally tend to view risk-taking negatively, often regarding it as dangerous and even unwise. Some risks don’t pay off, but those are usually the uncalculated ones. When you choose to become an expatriate, you’ll do it in a very calculated and intelligent way. This is called a calculated risk and it will pay off for you both personally and professionally. Taking a risk and becoming an expat will also help you stand out and present yourself as a leader and smart risk taker among your colleagues.

When you choose to become an American expatriate and travel overseas for your job, one of the most important things to remember during this calculated risk journey is to select the right accounting firm to handle your expatriate tax returns. ExpatriateTaxReturns.com is the industry leader for preparing the often-complicated tax returns of American expats. Fill out the simple form on our website or call us today at 877-382-9123 to get started.

Summer is a Time of Transitions

In the 1998 business bestseller, “Who Moved My Cheese? An Amazing Way to Deal with Change in Your Work and in Your Life,” by Spencer Johnson, we learned important advice on how to handle change in our business and personal lives through a motivational business fable based on a mouse who freaks out when his cheese is moved from its usual location one day.

This fable reminds us all that transitions are difficult. When we have been driving the same way to work at the same time each morning and then arrive at the same office or cubicle, it can be a harrowing experience when that all changes. Such is the case for American expats.

Summer is a time of transitions for many in the business community. Those becoming expatriates this fall know that the summer is the most common time to make the move abroad. The kids will be leaving their school and friends, which can make for a traumatic experience. For adults, it’s not much easier as there are many important things to plan and think about. Heading overseas can be an exciting experience, but it certainly isn’t hassle-free. Whether you are married, have a family, or are single, there are a lot of important elements that go into preparing for a move abroad.

expatriates moving

After accepting a new job overseas or a job transfer to a country outside the United States, it’s important to create a long “To Do List” with critical items like finding a place to live, forwarding mail, and finding a physician in your new country (here’s a full planning checklist). One often overlooked item on the “To Do List” is informing the Internal Revenue Service (IRS) that you are moving abroad.

It’s important to update your address information with the IRS so they can properly send your refund or any correspondence. You can update your address with the IRS by completing Form 8822, Change of Address at any time during the year. Failure to notify the IRS of an address change can be costly. For example, it can keep you from contesting a lien for unpaid taxes. At Expatriate Tax Returns, we understand that planning for the big move abroad is challenging and there are already so many things to think about. We can help you alleviate the stress by walking you through this journey hand-in-hand. We’ve helped thousands of U.S. expatriates successfully transition to their new country and we’ll help you too.

No matter where you are in the process of your preparation for becoming an expat, call on us for trusted, professional assistance. We’ll be with you every step of the way. Call us today at 877-382-9123 or fill out the form on our website: www.expatriatetaxreturns.com.

More Expats as the World Gets Smaller

 

Globalization is defined as “the process by which businesses or other organizations develop international influence or start operating on an international scale.” Globalization has made the borders between countries virtually disappear, causing the world to feel like a much smaller place. This undoubtedly has contributed to a rise in workers choosing to move abroad and become expatriates.

The vast increase in expatriates, however, hasn’t led to it being any easier to become an expat. In addition to the typical demands placed on you as you plan to relocate to a foreign country, there is a host of challenging decisions to make and financial responsibilities.

United States tax laws have long been a burden on American expats. For this reason, Expatriate Tax Returns was launched. Our team of CPAs recognized that focusing on expatriate tax returns was necessary as this had quickly become its own field of accounting. Expat taxes are confusing and preparing them is a frustration that expatriates do not want to have to burden amidst the many other challenges facing them as expatriates.

expatriate tax returns

With the growth of globalization has come the surge in technological advances. While this technological innovation has made so many things easier (like finding our company on the web!), it hasn’t caused expatriate tax return filing to be any easier or less of a hassle. Americans living abroad must file their United States tax returns in an exacting way and this can be terribly complicated (especially for a new American expat). To make this process easier and to save you precious time, the tax experts at Expatriate Tax Returns are here to handle that responsibility on your behalf.

Contact our team of expat CPAs today and then you can trust us to take care of everything. Simply fill out the form on our homepage or call us at 877-382-9123 and we’ll get the process started for you. We have your best interests in mind. The world may be getting smaller and becoming an expat may be more common, but expatriate tax returns will always be a reality.

How the Trump Tax Cuts and Jobs Act Will Affect American Expats

Just before Christmas, President Donald Trump signed the 1,100-page Tax Cuts and Jobs Act, or TCJA, into law. This reform of the tax code won’t affect your 2017 expatriate filings, but it will have an effect on your 2018 tax returns. This is meant as a general guide; you should always consult with a professional at Expatriate Tax Returns before filing.

Expatriate Tax Returns

Let’s start with some acronyms:

CBT – Citizenship-Based Taxation – a country, like the United States, taxes you based on the citizenship you hold.

RBT – Residence-Based Taxation – a practice employed by many other countries, taxing you based on where you live.

FEIE – Foreign Earned Income Exclusion – This is a dollar for dollar deduction on foreign-earned money that you’ve already paid foreign taxes on, currently limited at $104,100 annually. This is calculated every year but will no longer increase as quickly. Going forward, it will no longer be calculated on the Consumer Price Index (CPI), but rather on the slower moving Chained Consumer Price Index.

FATCA – Foreign Account Tax Compliance Act – This law was enacted in 2010 and increased the US government’s authority to come after expatriate taxes.

NIIT – Net Investment Income Tax – This is a 3.8% tax that is exempt from the FEIE and often results in double taxation.

The Tax Cuts and Jobs Act won’t necessarily have a large impact on American expatriates, but you can always contact us at Expatriate Tax Returns for detailed information and consultation. In conclusion, the Tax Cuts and Jobs Act won’t have significant impacts on American expats working overseas, but expatriate owners of small businesses will definitely feel the pinch.

Tax returns are always a complicated endeavor for expats, and that will be true for this year’s returns, next year’s and beyond. Every individual situation is different, and our certified expatriate tax consultants are here for you. The 2017 tax filing deadline is June 15th – let us help you get started today!

The Big Move Means Big Decisions

Now is the time of year that many big corporations are discussing HR changes for the fall. If you’re involved in these discussions, you could soon be contemplating a big move overseas.

If you plan to move abroad this year, it will be an exciting and challenging time. There are many factors to consider like what your spouse will do overseas and where your kids will go to school. There are also a plethora of opportunities and experiences to look forward to as an American expatriate. After accepting a new job overseas or a job transfer to a country outside the United States, it’s important to create a long “To Do List” with critical items like finding a place to live, forwarding mail, and finding a physician in your new country. Selecting a trustworthy and dependable CPA firm with experience working with expats is also essential.

Expatriate Tax Returns has many years of tax planning and preparation experience, specifically for expats. We put that knowledge to work for you — our clients. It’s critical to inform the Internal Revenue Service (IRS) that you are moving abroad and to call our accounting team to make sure you’re prepared before you make the big move.

A few things to remember before you become an expat: update your contact information with the IRS so they can properly send your refund or any future correspondence. You can update your address with the IRS by completing Form 8822, Change of Address at any time during the year. Failure to notify the IRS of an address change can be costly. For example, it can keep you from contesting a lien for unpaid taxes. At Expatriate Tax Returns, we understand that planning for the big move abroad is challenging and there are already so many things to think about. We can help you alleviate the stress by walking you through this journey hand-in-hand. We’ve helped thousands of U.S. expatriates successfully transition to their new country and we’ll help you too.

No matter where you are in the process of your preparation for becoming an expat, call us for trusted, professional assistance. There are some many wonderful advantages to being an expatriate, but it’s also a time full of important decisions to make. Here’s an easy one: Call ExpatriateTaxReturns.com today at 877-382-9123 or fill out the form on our Website. We’ll be with you every step of the way.