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Expatriate Tax Returns

Expats

Foreign Earned Income Exclusion Physical Presence Test

Expatriate Tax Returns Foreign Earned Income Exclusion Physical Presence Test

Typically, to meet the physical presence test, you must reside in a foreign country or countries for a minimum of 330 full days during a 12-month period. Days can be counted spent abroad for any reason, as long as your tax home is in a foreign country. The 12-month period can start any day of the month, so that it provides you the greatest exclusion. In IRS Revenue Procedure 2020-27, the IRS waived the time requirements outlined in the Bona Fide Residence and Physical Presence tests if you returned to the United States because of the COVID-19 pandemic emergency. Need help filing? Contact Expatriate Tax Returns!

How to Avoid Late Tax Payments and Fees

Expatriate Tax Returns Will Help You Avoid Late Fees by Filing On-Time

Filing by the deadline is essential and can save you money. The IRS charges interest for any balance left unpaid after the deadline, so if you miss the deadline not only will you be paying late fees, but you will also be paying extra interest. Filing by April is always a smart choice (or June in 2020), but if you are struggling to gather your information on time, you can estimate a payment to the IRS and reduce overall interest until it is fully paid. Please note most expats do not owe U.S. taxes. If you want peace of mind and are in need of tax assistance, get in touch with Expatriate Tax Returns.

5 Tax Tips When Moving Abroad

Expat tips on how to save money

  1. Each state has their own policy for abroad taxation. Some U.S. states do not tax overseas (Florida, Nevada, Washington), while other states require tax filing while overseas (South Carolina, California, Virginia). Stay up to date on how your state handles expat taxes and adjust your plan accordingly. Want to learn more? Contact Expatriate Tax Returns. 
  2. You may be able to apply for special credits and exclusions. There are two important forms that you will need to consider when completing your taxes. Those forms are the 2555 and the 1116 forms, which can help to reduce the amount of taxes you pay. Keep in mind that most U.S. expats do not owe money to the IRS but are required by law to file. If you need assistance or would like to learn more about these forms, contact Expatriate Tax Returns. 
  3. You need to report your foreign bank accounts and assets when living abroad. The two forms that apply are the FBAR and the Special Foreign Financial Assets form. If you need support with these forms, get in touch with expatriate tax returns. 
  4. Find a licensed CPA specializing in expat taxes. Don’t stress and worry if you are filing correctly, especially now if you think you qualify for the stimulus package. Use Expatriate Tax Returns experienced expat tax accountants. We are able to help you utilize all of the necessary forms and credits for the lowest possible taxes you can get. Most of our clients do not owe any money to the IRS. Need help, contact Expatriate Tax Returns.
  5. U.S. filing dates. The U.S. tax filing date is in mid-April usually on April 15th, unless it falls on a holiday or weekend. In 2020, it was extended to June 15th due to COVID-19. For expats the final date is ALWAYS June 15th. Expats are allowed a two-month delay on the deadline that allows for delayed paperwork as a result of living overseas. We recommend that you don’t take advantage of the delay and file on time in April. If you need help filing your taxes, get in touch with Expatriate Tax Returns

Expat Taxes for Dual Citizens

Expatriate Tax Returns Helps U.S. Dual Citizens File Taxes

All United States citizens and green card holders must file taxes every year as written in U.S. law. Yet, many individuals are unaware that they need to file, usually because they are unaware of the law. Thankfully, due to United States policy dual citizens will not be double taxed. To start the filing process, you will need your social security number and U.S. passport information. If you are in need of assistance and want to make sure that your taxes are filed correctly, get in touch with Expatriate Tax Returns.

Expats and the Pandemic

Expatriate Tax Returns Help Expats File U.S. Taxes During COVID-19

The United States has approximately 9 million expats living overseas. Some are relieved that they are living abroad while others are concerned about their own healthcare if they should need it and worry about family back in the U.S. COVID-19 has made many Americans reevaluate living out of the country due to potential restriction to travel, access to healthcare, and changing financial circumstances. WILL YOU CONTINUE TO LIVE ABROAD?

Are Expats Required to File U.S. Taxes?

Expatriate Tax Returns Can Help You File Your US Taxes

All U.S. Expats must file taxes annually. The United States government has established significant exclusions, deductions, and credits to make sure expats are not taxed twice on the same income. Even though most expats do not pay tax to the U.S. federal government because of the Foreign Earned Income Exclusion or Foreign Tax Credit benefits, they still have to file. NEED ASSISTANCE? GET IN TOUCH WITH EXPATRIATE TAX RETURNS!