There are several ways that you can save money when filing your taxes depending on your individual circumstances. These include the Foreign Earned Income Exclusion, Foreign Tax Credit, and Foreign Housing Exclusion. The FEIE reduces your income by paying housing expenses. If you qualify and file on time, you can save big on your taxes. Most of our clients do not owe the IRS anything. If you’d like to learn more about these forms or want us to file on your behalf, contact Expatriate Tax Returns.
Foreign Tax Credit
Have you noticed that in our society, taking responsibility isn’t what it used to be? Too many service related companies have made customer service a low priority. At Expatriate Tax Returns, we put our clients first and their tax needs are foremost for all of our tax professionals.
While some service related companies try to shift the blame, we take responsibility. When it comes to tax preparation, taking responsibility is the utmost principle. Our professionals take their responsibility to our clients, who are living abroad, very seriously and we understand the trust our clients place in us can never be taken lightly. As expats, your tax returns are your own responsibility, but you have placed the trust in us to prepare them efficiently and effectively.
Our team of tax experts feels that sense of responsibility for your tax returns. We are cognizant that you have a responsibility to the U.S. government to file your expatriate tax returns in a timely manner. When we all place value on being responsible, we are all successful. Your tax returns to the U.S. are filed and paid on time, and we maintain the trust that you have placed in us.
It’s not easy for American citizens to relocate to another nation, far from home, and we understand this. We take it as our responsibility to ensure you understand the Foreign Tax Credit, your rights as an American expatriate, and that you are reminded of the IRS deadlines for tax filing.
No matter where in this world you currently live and work, the expatriate tax laws must be respected. It can certainly be a hassle to have to file these taxes each year, but we thank you for placing that trust in us and know that we will honor and respect your trust by serving you to the best of our ability at all times. This is the cornerstone of what we stand for at Expatriate Tax Returns — your expatriate tax professionals. Call us today at (877) 382-9123.
As an American expatriate living abroad, you have a unique opportunity to claim a Foreign Tax Credit. By doing so, you will avoid dual taxation, which is when two different countries impose taxes on the same income. No one wants to be doubly taxed of course, but if you’re caught unaware you could be subject to this potential unfairness.
Expats should understand how important it is to complete Form 1116. This form is then attached to your U.S. expat tax return. Then you’ll be able to claim this credit and avoid paying United States taxes on income that you have already paid on in your foreign tax home.
In order to qualify for the Foreign Tax Credit expats must have earned income, have paid tax or acquired a tax liability that you will have to pay in the future and live legally in the foreign country as an American expat.
Claiming the Foreign Tax Credit directly offsets your U.S. taxes for any income earned overseas. This can only be used to offset U.S. taxes on your interest, dividends or compensation earned abroad. It cannot exceed the amount of U.S. taxes you pay on the foreign income. If it does exceed that amount, you can carry forward the balance to future tax years.
The talented team at Expatriate Tax Returns will be able to quickly determine if you are eligible for this credit and if you are, a tax expert will walk you through this process. We don’t want you to be unfairly double taxed and that is why it is critical to know about the Foreign Tax Credit before filing your expat tax returns.
Contact Expatriate Tax Returns for more information by calling 877-382-9123 toll free.