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Expatriate Tax Returns

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Recovery Rebate Credit

Expatriate Tax Returns Recovery Rebate Credit

Concern and confusion around stimulus check eligibility have been a major topic for U.S. expats. If you are a U.S. citizen or resident with a Social Security number and are within the income brackets, and are not claimed as a dependent by someone else, you qualify for the stimulus checks.

All first and second Economic Impact Payments have been issued by The IRS and Treasury. If you did not receive any Economic Impact Payments or received less than the full amounts, you may qualify for the Recovery Rebate Credit to claim as a credit in lieu of missing stimulus payments for Americans living abroad. If you qualify, you must file a 2020 tax return to claim the credit. Get started!

Tax Filing Extensions for Americans

Expatriate Tax Returns Tax Filing Extensions

Federal tax filings and payments for 2020 are postponed until May 15th, 2021. Expats automatically have until June 15th to file but payments must be made by May 15th. This is to help taxpayers that have been impacted by Covid-19 to have additional time needed to make payments without enduring any penalties. The IRS recommends not waiting until the tax deadline and file as soon as you are able, particularly if you are owed a refund or missed stimulus payments. The IRS tax due date extension applies for Federal taxes only, not State taxes.

If you are unsure of how the recent changes in the tax laws will impact you, please seek professional assistance from our expat tax specialists at Expatriate Tax Returns.

The Latest from The American Rescue Plan

Although we are not sure of the “how”, here is a recap of the benefits you can expect sooner or later if your taxable income is up to $75,000 for single or married filing separate taxpayers, up to $112,500 for heads of household or up to $150,000 for taxpayers filing married joint:  If your income is slightly higher than these limits, you may qualify for a reduced payment.

– Payment of $1,400 for each US taxpayer and US dependent claimed on your 2020 tax return.

– $3,600 refundable child tax credit for each US dependent child under 6, $3,000 for other children under the age of 18 claimed on your 2021 tax return. Individuals eligible for this credit will get advance payments from July 1 thru December 31, 2021. This credit is fully refundable and is extended to low-income families residing in Puerto Rico and US Territories. You must be a US resident for at least six months of the year to qualify.

– $300 per week of Federal Unemployment compensation through September 6, 2021 is available to US permanent residents who have lost their jobs. If you received unemployment in 2020, the first $10,200 is tax free…the same will be true for 2021.

– The tax return filing and payment date is automatically extended to May 15, 2021.

There are many other business, state/local government, and infrastructure benefits available…we will provide more details as become available. Contact us for more information and to start your tax filing.

Not All Tax Preparers Are Created Equal

Expatriate Tax Returns Expat Tax Preparers

Expatriate Tax Returns is licensed, experienced, and current on changing tax laws. From planning to preparation, we are always available to answer your tax questions. You can rest assured that your taxes will be filed accurately and completed by June 15th, your American expat tax deadline! Contact us to get started.