Expat Tax Preparation
The Big Move Means Big Decisions for New Expats
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 on 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.
The 2017 Outlook for Expats and Expatriate Tax
Living and working overseas as an American expat comes with a unique tax filing position. It can often be complicated and full of hassle. Most tax advisers and tax return preparers are not experienced in the specific nature of expatriate tax returns. The expatriate tax professionals at Expatriate Tax Returns make up a stellar team of CPAs who have decades of experience in expat tax preparation. We’ve compiled some noteworthy updates that expats will be interested in for the coming year.
The past several years were relatively quiet in terms of changes to U.S. tax law in general and expatriate tax law in particular. With a new Administration and a new Congress, there are likely to be a number of substantial tax changes that expats should be aware of as we continue on in this new year.
In past years, the Foreign Bank and Financial Accounts (FBAR) was due by June 30th and extensions were not allowed. For tax year 2016 and forward, however, the FBAR due date is April 15th. There will also be a maximum extension for a 6-month period ending on October 15th. That should be a good development for American expats as it syncs the FBAR due date with the tax return due date. Plus it provides expatriates more time to prepare their information and file both items at the same time.
If you live outside the U.S. on April 17, 2017, you are entitled to an automatic extension (without the filing of an extension form) until June 15. However, if you owe tax, the extension applies only to the tax return filing and not the tax payment. Therefore, you must still submit your payment by April 17 to avoid paying interest on your late payment (late payment penalties do not commence until June 15th).
Expats who need to file an extension (Form 2350) because they need additional time to meet either the bona fide residence test or the physical presence test to qualify for the foreign earned income exclusion and/or the foreign housing exclusion or deduction, such extension is due by April 17th (not June 15th), even if they are outside the United States at that time. For tax year 2016, the maximum foreign earned income exclusion is up to $101,300 per qualifying person ($102,100 for tax year 2017). The maximum foreign housing exclusion for 2016 is $14,182. The standard deduction amounts are: for joint filers and surviving spouses, $12,600 for 2016 ($12,700 for 2017); for heads of household, $9,300 for 2016 ($9,350 for 2017); for singles, $6,300 for 2016 ($6,350 for 2017); and for marrieds filing separately, $6,300 for 2016 ($6,350 for 2017). For 2016 and 2017, the personal exemption amount is $4,050.
Further, under a new law, timing limitations were added for claiming the child tax credit by providing that a taxpayer identification number (an ITIN or SSN) can be used to claim the credit only if it was issued (not applied for) on or before the due date of the return. Finally, the past year was an important one in the U.S. government’s implementation of FATCA. Digital information exchanges began between the U.S. and its partner countries, and the IRS, in turn, has received more and more foreign account information. Many of the FATCA partner countries and their foreign financial institutions (e.g., banks) have made substantial efforts to become FATCA compliant in order to avoid potentially devastating penalties for foreign institutions with significant portfolios of U.S. investments. In this regard, the U.S. government gave a December 31 deadline for countries to implement FATCA locally or lose FATCA-compliant status.
It remains to be seen what tax changes the Trump Administration will make and we will keep you posted. Right now, it’s a wait and see attitude for these changes to the tax code in general and the expatriate tax code in particular.
Remember, due to April 15 being on a weekend, the due date for the 2016 tax return has been moved to April 17, 2017. Due to October 15th being on a weekend, the extension due date for the 2016 tax return (with the filing of an extension form) is moved to October 16, 2017.
Please don’t hesitate to call on us at ExpatriateTaxReturns.com to take the hassle out of your expat tax preparations. Our experience is your best friend! Call us today at 877-382-9123.
Responsibility for Expat Taxes
President John F. Kennedy said, “Let us accept our own responsibility for the future.” The key word is responsibility. In today’s world, far too few individuals are willing to accept responsibility.
In politics, it seems like members of both political parties find it much easier to just blame the other for the ills in our government. Employees often blame coworkers when something goes wrong. Professional athletes will blame everyone and everything else when the game doesn’t go their way.
When it comes to taxes, responsibility is the principle of both country and community. Tax document preparation is something that we feel very strongly about at Expatriate Tax Returns. Our professionals take their responsibility to our clients very seriously and we understand the trust our clients place in us can never be taken lightly. As expats, your tax returns are your own responsibility, but you have placed the trust in us to prepare them efficiently and effectively.
Our team of tax experts feels that sense of responsibility for your tax returns. We are cognizant that you have a responsibility to the U.S. government to file your expatriate tax returns in a timely manner. When we all place value on being responsible, we are all successful. Your tax returns to the U.S. are filed and paid on time, and we maintain the trust that you have placed in us.
No matter where in this world you currently live and work, the expatriate tax laws must be respected. It can certainly be a hassle to have to file these taxes each year, but we thank you for placing that trust in us and know that we will honor and respect your trust by serving you to the best of our ability at all times. This is the cornerstone of what we stand for at Expatriate Tax Returns — your expatriate tax professionals. Call us today at (877) 382-9123.
Who Can You Trust?
You’re enjoying your time outside the U.S. because being an expat is exciting, rewarding and full of memorable experiences. There are fun and exciting things to see, new people to meet, and great work to accomplish at your job.
However, as well all know, we are living in challenging times. It has become increasingly difficult to determine who you can trust. Both responsibility and trust are the two cornerstones of our world. When it comes to our financial security, privacy is critical, but so are trust and responsibility.
Tax preparation for expats is something we hold sacred at Expatriate Tax Returns. We are 100% committed to both responsibility and trust. What does that mean for us? It means that ensuring your expat tax returns are prepared and filed on time and accurately is of paramount importance to us. Ensuring that our thousands of clients put their complete trust in us is what we are all about. It’s in our DNA.
Our tax professionals take their responsibility to our clients very seriously and we understand that the trust our clients place in us can never be taken lightly. Just as our employees feel that sense of responsibility, we know that our expatriate clients understand that they have a responsibility to the United States to file their expatriate tax returns in a timely manner. This is a two-way street. When we all place value on being responsible, we all win. Your tax returns to the U.S. are filed and paid on time, and we maintain the trust that you have placed in us.
No matter where you live and work, know that Expatriate Tax Returns will complete deserve your trust. It can certainly be a hassle to have to file these taxes each year, but we thank you for placing that trust in us and know that we will honor and respect your trust by serving you to the best of our ability at all times. That’s what we do at Expatriate Tax Returns — yourexpatriate tax professionals. Call us today at our toll free Support Hotline: (877) ETAX-123.
Validation: Expat Taxes Are Confusing
A recent survey found that more Americans are e-filing their taxes on their own these days. In fact, for the last tax year nearly 27.4 million Americans had prepared their own taxes, which was a 5.8% increase over the same period the prior year. U.S. Tax returns filed by professionals are again projected to be down this tax season.
However, the overwhelming majority of U.S. expatriates do not file their own tax returns. The reason for this is simple. Expatriate tax returns are confusing and complicated. It’s no wonder that most expats turn to professional tax firms, like Expatriate Tax Returns, that specialize in filing expat taxes. If you think that your expat tax returns are confusing, we can validate those feelings. You’re correct. That is why there are accounting firms that are highly specialized in expat taxes.
Don’t get bogged down trying to prepare and file your own expatriate returns. Let the tax professionals at expatriatetaxreturns.com handle everything for you. Don’t feel like you need to take on this overwhelming challenge. Rest assured that we are in your corner and will take care of everything. We’re only a toll-free phone call away. Call us today at our 24-hour Support Hotline: (877) 382-9123 or use the simple form on our website.