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Expatriate Tax Returns

FATCA

TRUMPS TCJA (Tax Cuts and Jobs Act) and THE EXPAT

Expatriate Tax Returns Trumps TCIA and the Expat Tax Cuts and Jobs Act

Originally it was thought the tax relief was on the horizon for expats when President Trump’s new tax program was put into law, but the reality is that nothing is really different from the new rules that apply to all US taxpayers:

  • Tax Brackets
  • Standard Deduction
  • Personal Exemptions
  • Child Tax Credit
  • Mortgage Interest Deduction
  • State and Local Tax Deductions

The major change regarding international taxpayers is how Controlled Foreign Corporations are handled. Trump’s tax reform details a new category of corporate income called the Global Intangibles Low-Taxed Income (or GILTI), that requires recognition of a percentage of previously deferred foreign earnings and is now taxed as Subpart F income.

Current undistributed retained earnings are taxed at 15.5%, if held in liquid assets, and 8% if held in illiquid assets. This is a one-time tax and can be paid over 8 years.

Starting with your 2018 Corporate Tax Filing, everything is Subpart F Earnings.  Any income in excess of $102, 100 (or $204,200 if your spouse is active in the business) will be taxed at ordinary income rates.

Questions regarding your unique situation can be directed to Expatriatetaxreturns.com.

The Importance of Taking Risks to Experience Life

 

Taking risks is never the easy route to go. This is especially true when the risk is taking a journey that will change your life and your family’s lives. Becoming an expatriate and moving overseas for a year or two is certainly a risky decision. However, it is a decision that will allow you to reap the benefits of being an expat – living in a new part of the world and contributing to your company on a global scale.

Studies have shown that risk-taking is essential to business people’s success. In fact, American expats have written about how taking the risk and spending time overseas with their family has been one of the most beneficial moments of their professional journey.

 

Expat Taxes Best Price

 

Human beings naturally tend to view risk-taking negatively, often regarding it as dangerous and even unwise. Some risks don’t pay off, but those are usually the uncalculated ones. When you choose to become an expatriate, you’ll do it in a very calculated and intelligent way. This is called a calculated risk and it will pay off for you both personally and professionally. Taking a risk and becoming an expat will also help you stand out and present yourself as a leader and smart risk taker among your colleagues.

When you choose to become an American expatriate and travel overseas for your job, one of the most important things to remember during this calculated risk journey is to select the right accounting firm to handle your expatriate tax returns. ExpatriateTaxReturns.com is the industry leader for preparing the often-complicated tax returns of American expats. Fill out the simple form on our website or call us today at 877-382-9123 to get started.

Why Expatriate Tax Returns Exists

 

Watch just one episode of Shark Tank, featuring entrepreneur Sharks like Mark Cuban, Barbara Corcoran, and Kevin O’Leary, and you’ll immediately understand that every company has a reason for existing. In fact, one of the first questions the Sharks ask contestants on the hit reality TV show is for them to ask their mission and vision. This is a question that our company, Expatriate Tax Returns, takes very seriously.

We are a purpose-driven company. That means that our reason for existing is based on what we see as our purpose. Our mission as an online tax consultancy is to specifically assist the segment of the population known as American expatriates. We do this by preparing the U.S. tax returns of expats in a highly skilled and professional way. At Expatriate Tax Returns, we believe that the specific tax returns that American expats have to prepare are very challenging and time-consuming. Our goal is to alleviate the stress that often comes with expat tax preparation.

 

Diane Siriani, Founder of Expatriate Tax Returns
Diane Siriani, Founder of Expatriate Tax Returns

 

How did we come to understand our mission? We believe that there was a missing piece in tax prep in our country. Private CPA firms and large accounting companies were not focusing any attention on the expat population. We saw that missing piece as an opportunity. We believe we’re solving a problem and, in doing so, we found our niche. Expatriate Tax Returns has created a solution to the problem of challenging expatriate taxes.

Our mission is the reason we exist. We are here to help you — American expats who live and work abroad but are still responsible to pay U.S. taxes. We are dedicated to this mission and we love what we do. Call us today at 877-382-9123. We want to serve you.

 

How the Trump Tax Cuts and Jobs Act Will Affect American Expats

Just before Christmas, President Donald Trump signed the 1,100-page Tax Cuts and Jobs Act, or TCJA, into law. This reform of the tax code won’t affect your 2017 expatriate filings, but it will have an effect on your 2018 tax returns. This is meant as a general guide; you should always consult with a professional at Expatriate Tax Returns before filing.

Expatriate Tax Returns

Let’s start with some acronyms:

CBT – Citizenship-Based Taxation – a country, like the United States, taxes you based on the citizenship you hold.

RBT – Residence-Based Taxation – a practice employed by many other countries, taxing you based on where you live.

FEIE – Foreign Earned Income Exclusion – This is a dollar for dollar deduction on foreign-earned money that you’ve already paid foreign taxes on, currently limited at $104,100 annually. This is calculated every year but will no longer increase as quickly. Going forward, it will no longer be calculated on the Consumer Price Index (CPI), but rather on the slower moving Chained Consumer Price Index.

FATCA – Foreign Account Tax Compliance Act – This law was enacted in 2010 and increased the US government’s authority to come after expatriate taxes.

NIIT – Net Investment Income Tax – This is a 3.8% tax that is exempt from the FEIE and often results in double taxation.

The Tax Cuts and Jobs Act won’t necessarily have a large impact on American expatriates, but you can always contact us at Expatriate Tax Returns for detailed information and consultation. In conclusion, the Tax Cuts and Jobs Act won’t have significant impacts on American expats working overseas, but expatriate owners of small businesses will definitely feel the pinch.

Tax returns are always a complicated endeavor for expats, and that will be true for this year’s returns, next year’s and beyond. Every individual situation is different, and our certified expatriate tax consultants are here for you. The 2017 tax filing deadline is June 15th – let us help you get started today!

The Big Move Means Big Decisions

Now is the time of year that many big corporations are discussing HR changes for the fall. If you’re involved in these discussions, you could soon be contemplating a big move overseas.

If you plan to move abroad this year, it will be an exciting and challenging time. There are many factors to consider like what your spouse will do overseas and where your kids will go to school. There are also a plethora of opportunities and experiences to look forward to as an American expatriate. After accepting a new job overseas or a job transfer to a country outside the United States, it’s important to create a long “To Do List” with critical items like finding a place to live, forwarding mail, and finding a physician in your new country. Selecting a trustworthy and dependable CPA firm with experience working with expats is also essential.

Expatriate Tax Returns has many years of tax planning and preparation experience, specifically for expats. We put that knowledge to work for you — our clients. It’s critical to inform the Internal Revenue Service (IRS) that you are moving abroad and to call our accounting team to make sure you’re prepared before you make the big move.

A few things to remember before you become an expat: update your contact information with the IRS so they can properly send your refund or any future correspondence. You can update your address with the IRS by completing Form 8822, Change of Address at any time during the year. Failure to notify the IRS of an address change can be costly. For example, it can keep you from contesting a lien for unpaid taxes. At Expatriate Tax Returns, we understand that planning for the big move abroad is challenging and there are already so many things to think about. We can help you alleviate the stress by walking you through this journey hand-in-hand. We’ve helped thousands of U.S. expatriates successfully transition to their new country and we’ll help you too.

No matter where you are in the process of your preparation for becoming an expat, call us for trusted, professional assistance. There are some many wonderful advantages to being an expatriate, but it’s also a time full of important decisions to make. Here’s an easy one: Call ExpatriateTaxReturns.com today at 877-382-9123 or fill out the form on our Website. We’ll be with you every step of the way.

Your Referrals Are Appreciated

A recent study by McKinsey showed how important it is for CPA firms to acquire new clients through the referrals of current clients. At Expatriate Tax Returns, this is something we’ve known since our inception. We rely on the referrals from our hundreds of satisfied clients. While we love receiving thank you notes and testimonials, we really appreciate getting referrals from our expat clients.

When we get a referral it shows how much our client recognizes our top notch service. We know that American expatriates depend on each other’s recommendations because it’s often confusing becoming an expatriate. When an American citizen and his/her family moves abroad for a period of time becoming an expat, they are looking for suggestions when it comes to everything from where to do grocery shopping to the best pediatrician. It’s also essential that expatriates know whom to trust for preparing their tax returns. This is why Expatriate Tax Returns is eager to receive more referrals from our current clients.

ExpatriateTaxReturns.com Expatriate Tax Returns Referral Program

Expatriate Tax Returns is excited to announce our new Referral Program. We will give current clients a 20% discount off their 2017 tax returns for each referral they send to us (new client must pay for tax return preparation). There is no limit to how many discounts you can receive!

We thank you in advance for your referrals and remind you that October 15 is the final day to file an extension. To refer a colleague or friend, please use the Contact form on our website.

Do not hesitate in calling Expatriate Tax Returns today to have us prepare your tax returns and to refer your colleagues and fellow expatriates: 877-382-9123