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Expatriate Tax Returns

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Expat Coronavirus Stimulus Q&A

Q. EXACTLY WHAT ARE THE STIMULUS PAYMENTS?

A. On April 2, 2020, the US government signed into law a stimulus program to help US taxpayers through with the financial stress associated with the Coronavirus. Tax relief in the form of stimulus payments and SBA loans have been made available to qualifying individuals, small business, large business and nonprofit organizations.

Q. HOW WILL INDIVIDUALS QUALIFY FOR THE PAYMENTS?

A. Currently it appears that all US taxpayers who have a social security number and filed a tax return in 2018 or 2019 will qualify for these refundable tax credits.

Non-resident aliens, individuals who are reported as a dependent on another person’s return and those who have an ITIN (as opposed to a social security number) do not qualify.

If you have not filed, it is not too late, however your payment will be delayed until the returns can be processed. Don’t put off your filing requirement, there will be no payments made after December 31, 2020.

Q. WHAT ARE THE INCOME LIMITS TO GET PAYMENTS?

A. The most up to date information is based on your filing status and adjusted gross income (before the foreign income exclusion) ….

Single Under $75,000-$99,000
Head of Household Under $112,500-$136,500
Married Filing Joint Under $150,000-$198,000
For every $100 of income that exceeds the above minimums the tax credit will be reduced by $5 up to the maximum amounts.

Q. HOW MUCH CAN I EXPECT TO RECEIVE?

A. The maximum credit will be $1200 per taxpayer and $500 for each dependent child reported on your tax return that have a valid social security number. Remember, ITIN’s do not qualify.

Q. HOW WILL I RECEIVE THE FUNDS?

A. The payments will be directly deposited into your US bank account if it has been reported on your US tax return. If you receive direct deposit of social security, or any other government benefits, the stimulus benefits will also be directly deposited.

Q. WHAT HAPPENS IF I DO NOT HAVE A US BANK ACCOUNT OR THE IRS DOES NOT HAVE MY BANKING INFORMATION?

A. A check will be issued and sent to your last known address If you are not required to file a return, the IRS is working on creating a simplified document for which you can provide them with your bank account information. EXPECT AN 8-16 WEEK DELAY!

Getting ACA’s “Same Country Exemption” Passed

It is important for all United States citizens living and working abroad to understand the American Citizens Abroad’s Same Country Exemption. This will have an important effect on expats and specifically on Expatriate Tax Returns.

The National Taxpayer Advocate has recently come out in full support of regulatory changes to both FBAR (Foreign Bank Account Report) and FATCA (Foreign Account Tax Compliance Act). This would make it easier for American expatriates living overseas to report tax information. At Expatriate Tax Returns, we believe that it is already a very confusing and onerous process for American expats to file their tax returns and we’re in favor of easing this process. All expats are encouraged to help the American Citizens Abroad (ACA) gather the documentation it needs to go back to the table for meetings with the U.S. Treasury.

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If you are an American resident overseas and have had a foreign financial institution close one or several of your financial accounts or have been denied banking services, it is important that you send your testimony to the ACA via email to info@americansabroad.org. If any foreign financial institution is denying you services or the ability to open a financial account due to FATCA, U.S. tax legislation or because of the fact that you are an American citizen, it is important that you let them know so you can work with ACA and the government to get these restrictions overturned. American Citizens Abroad requests that you notify them before the deadline on May 15th 2015.

Together, we can work to make it easier and less stressful for American citizens to live and work abroad. At Expatriate Tax Returns, we put our expat clients first and want them to have a worry-free experience when it comes to expat taxes. Call us today toll-free on our Support Hotline: (877)-ETAX-123 or (877)-382-9123.