Expatriate Tax Returns
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!
Love from a distance and stay healthy this Easter weekend. Wishing you well!
Happy Passover to our clients, family and friends who celebrate. We wish good health to you all.
With all of the stress that is going on in the world, let us take some weight off your shoulders and file your taxes for you. Our expat tax preparers know the ins and outs of the changing U.S. tax laws. If you are living abroad, you are still required by law to file a U.S. tax return, even if you are like most of our clients and do not owe money. Rest easier by making sure your taxes are prepared properly. GET STARTED.
From the Desk of Diane Siriani, owner and Managing Member of Expatriate Tax Returns
As of today, the US Treasury Department and the Internal Revenue Service are providing special PAYMENT relief to individuals, estates, trusts and businesses in response to the COVID-19 Virus Outbreak. All income tax payments (including self-employment tax) are extended to July 15, 2020 without penalty or interest assessments.
THE FILING DEADLINE REMAINS APRIL 15, 2020. If you are a US individual resident or expat who owes tax, you must file your return or an extension by the April 15 due date to get payment, interest and penalty relief under this program. NO FILING, NO RELIEF!
If you are a C-Corporation, you will automatically receive the same payment extension date of July 15, 2020.
The payments that are extended are estimates due April 15, 2020, tax due per your filed return, extension payments due based upon your estimate of tax due. Payments extended for individuals are limited to $1,000,000; payments extended for C Corporations are limited to $10,000,000 of their 2019 tax due.
As of today’s writing, THIS EXTENSION ONLY APPLIES TO YOUR FEDERAL TAX RETURN. ALL STATE AND CITY RETURNS MUST BE FILED AND PAID BY APRIL 15, 2020 in order to avoid interest and penalty assessments.