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Expatriate Tax Returns

Expat Taxes

2021 Tax Returns: File and Avoid These Mistakes

 

Don’t miss the deadline! People who have not filed their 2021 tax return have a limited time to complete filing. The extension deadline is October 17, 2022. Learn about the best way to file and how to avoid common mistakes when filing under an extension with Expatriate Tax Returns.

The best way to file tax returns is electronically. Filing electronically is the quickest and easiest way to file since the submission will be immediate, the electronic system can detect form errors, and calculates data. Instead of waiting on the postage system to deliver tax returns or for approval on the filing submission, taxpayers can depend on accuracy and effectiveness by filing online. Filing online helps taxpayers avoid these common mistakes:

Misspellings

Names used for filing should match the spelling on the taxpayer’s Social Security Card and ID. Misspellings could prolong filing time and could disqualify the filing submission.

Inaccurate Information

Information such as the SSN, taxpayer income, address, and other information should be accurate and the exact same as what is printed on the associated documents. Online filing could help prevent submission rejection since the system can prevent mathematical errors.

Missing Information

Provide as much information as possible, especially if the online system is requesting such information. If any data is missing from the submission, preparers will have to collect the information which prolongs the filing process time and can disqualify the submission.

Visit www.expatriatetaxreturns.com if you have any questions or concerns about electronically filing 2021 tax returns under the October 17, 2022 extension deadline.

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.

U.S. Expat Tax Deadline Is June 15th

Expatriate Tax Returns 2020 Tax Deadlines

The tax filing deadline for expats is June 15th, 2021. Expats receive an automatic extension on U.S. filings. The IRS has not issued any changes to this deadline this year. Any payments owed for 2020 are overdue to the IRS. If you inadvertently forgot or didn’t know you owed, contact us as soon as possible to speak with one of our tax experts. We can help. The vast majority of our expats do not owe money. Extensions for tax filing (not payment) can be pushed from June 15th to October 15th, contact us to learn more. Please know that even if you don’t owe money, you must file!

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.