Subsidiary of EtaxService.com | Support Hotline: 877-ETAX-123 | 877-382-9123

Expatriate Tax Returns

Taxes

Helpful Information About The 1099 NEC Form

The 1099 NEC form is required to be filed by U.S. citizens and resident aliens who have been paid $600 or more for services performed for a business by someone who is not an employee of that business. The form is used to report non-employee compensation (NEC) on your federal income tax return.

NEC includes, but is not limited to, payments for services performed by independent contractors, consultants, freelancers, and gig workers. It also includes payments for services performed by attorneys, accountants, and medical doctors.

The NEC form is filed with the IRS and is also provided to the payee. The payer must withhold federal income tax, Socia

l Security tax, and Medicare tax from the payment if the payee does not provide a valid Social Security number or taxpayer identification number.

If you are a payer, you will need to file a 1099 NEC form for each payee you have paid $600 or more during the year. If you are a payee, you will need to report your NEC income on your federal income tax return.

 

What are the penalties for not filing the 1099 NEC form?

If you are a payer and you fail to file a 1099 NEC form for each payee you have paid $600 or more to during the year, you may be subject to a penalty of $50 per form.

More Info…

The 1099 NEC also includes payments for services performed by attorneys, accountants, and medical doctors. Companies must file 1099 NEC firms by January 31. Taxpayers must have this form submitted by February 28.

 

If you have any other questions about filing taxes or what forms you need, visit www.expatriatetaxreturns.com to connect with a tax specialist.

 

Refund Myths

As you await your tax refund, we would like to debunk some common myths via information directly from the IRS.

  • Myth #1 Reaching out to the IRS will increase your refund speed. Utilize the Where’s My Refund? tool to check the status of your refund. An IRS representative cannot get your refund to you faster.
  • Myth #2 Visting Wheres My Refund many times a day will keep me updated.
  • The website updates once a day, and delays may occur.
  • Myth #3 Tax Professionals Can Speed Up Your Return

Although we would love to, our team has no impact on the speed at which your return is processed. We can guarantee accurate and fast filing of your returns but cannot handle speed once your return is submitted. Be diligent in researching tax information. A tax professional or the IRS website is your best bet for accurate information. As always, contact us with any questions or concerns you may have. 

Filing an Extension

Tax Day 2022 is not a done deal! If you filed an extension by April 18, you have until October 17 to file your 2021 return. If you are an expat, you get an automatic extension until June 15, which means that it’s not too late to extend to October 17. Keep in mind that extensions only apply to filing, not paying! If you owe tax it was due by April 18…interest and penalties apply to all payments owed to the IRS after that date.

How Can Expatriates Save on Taxes?

Penalties are the most common reason that expatriates pay more in taxes. An experienced tax professional can help you get into the best situation without paying unnecessary fines. Missing a form or a signature can cost you, so working with a professional like Expatriate Tax Returns can help you in the long run. Pay attention to any exclusions or credits. Whether you are filing domestically or as an expatriate, keep an eye out for any exclusions or credits that can benefit you. Student loan interest or mortgage deductions are beneficial to ensure you aren’t overpaying on your taxes.
When you work with Expatriate Tax Returns, we take the guesswork out of it. We can answer all of your questions, guide forms and documents, and provide you with the best resources to ensure your taxes are filed accurately and on time.

Before Building Back Better…

Biden’s Build Back Better bill has passed the house and there’s no way we can predict if and when it will pass the Senate. Just in case, there are some things you can do before December 31, 2021 to save some tax dollars.

  1. If possible, accelerate any of your 2022 income into 2021 to avoid the increased tax rates for higher-income earner Individuals (over $400,000).
  2. If you intend on making a charitable contribution, do it now. For 2021 you can receive a $300

($600 joint) charitable contribution credit, even if you don’t itemize.  If you do itemize, and you are philanthropic it is feasible to wipe out 100% of your taxable income for 2021.

  1. If you have or expect medical bills, pay them in 2021 since the 7.5% threshold has been temporarily reinstated from 10%.
  2. If you are self-employed, you can deduct 100% of meals and entertainment for employees in 2021, up from the prior 50% limit. Pay for that holiday party in the current year!!!
  3. If you qualify to deduct educational expenses, the lifetime learning credit has been expanded to $2,000 which comes right off the tax owed. Make sure you review the income limits.

As more changes take place we will keep you updated. Contact us today if you have any questions!

Moving Abroad Your Life May Be More Complicated Than Ever Before

Relocating can enable you to get a great job, make more money and have a totally interesting change to your lifestyle.  Moving offshore creates other issues that need to be considered like:

  • Dealing with foreign currency and exchange rates
  • Language barriers
  • Benefit packages such as health insurance, tuition, housing, transportation
  • Tax rules, rates and regulations

Basically, pretty much everything you take for granted.

Before agreeing to any employment contract you should contact Expatriatetaxreturns.com to review the offer, help you to manage your expectations, project your tax liabilities, and help with the answer to the question “Is it worth it?”

Moving across the world is a decision that cannot be taken lightly.  Get some professional guidance along the way to make sure that you are aware of all ramifications.