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Archive for the ‘U.S. Expatriate Taxes’ Category.

The TCJA and Foreign Real Property Taxes

While the TCJA of 2017 eliminated the Schedule A deduction for Foreign Real Estate taxes, Foreign Real Estate taxes form part of the Qualified Foreign Housing expenses that qualify for the Housing Exclusion if employed or Housing Deduction if self-employed?  But you first need to qualify ...

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What New Expats Should Do About Their Taxes

Founder at Protax Consulting Services, Marc J Strohl CPA, has just revealed essential information that U.S. expatriates need to consider when seeking a U.S. international assignment specialist. For more information please visit Protax Consulting Services, Inc. ("Protax"). All United S...

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Facts US Expatriates Should Know About Their Taxes

US income tax laws can be very difficult to understand and they often change year to year. US expatriate tax laws tend to be even more complicated and many US expatriates find the laws difficult to understand, never mind their CPA's and tax attorneys! Our professionals at Protax Consulting...

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New Law Makes Clear: Combat-Zone Contract Workers Qualify For Foreign Earned Income Exclusion

As per IRS IR-2018-173 it seems under the Bipartisan Budget Act of 2018, enacted in February the Tax Home requirement was changed to make Combat Zone Contract workers supporting US Armed Forces qualify for the FEIE, but the real issue is will they qualify under the BFR or Bonfide Resident ...

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The Physical Presence Test For Excluding Foreign Earned Income

Sometimes even less than a full day in a foreign country can count toward the at least 330 days. Although section 911(d)(1)(B) states that an aggregate of 330 full days of physical presence in a foreign country or countries is required, under Reg. Sec. 1.911-2(d)(2) An individual who has b...

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Negotiation Tips for Expatriates

An excellent list of 12 tips the US expat should consider prior to accepting a foreign assignment. US taxes are #1! Negotiation tips for expatriates Before taking a role in a different country, consider these 12 factors that could affect your compensation and quality of life. By Neil ...

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General Rules For Filing The Expatriate Tax Return

Importance of US Expatriates and their Foreign Earned Income Exclusion with their US tax Needs There are general rules for filing the expatriate tax return whether you stay in the States or in a foreign country. All the income generated worldwide by Americans is subject to the United St...

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The Meaning of Foreign Income Tax Credit

The Meaning of Foreign Tax Credit This is a non-repayable tax credit that is paid to the government of a foreign country due to foreign income tax withholdings. Foreign income tax credit is only obtainable by people who did work in a foreign nation or have their investment income flowin...

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Expatriate Tax Return: What Is It and Why You May Need to File It?

If you are a U.S. citizen, but also an expatriate, filing an expatriate tax return should be your top-most priority to save yourself against hefty fines, penalties, interest and even imprisonment. Filing expatriate tax return is essential, but how you are going to file it will make all the...

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BONA FIDE RESIDENT TEST

The Bona Fide Resident Test is one out of the two tests given to United States citizens and those holding green cards that live overseas to qualify them to claim the Foreign Earned Income Exclusion, The Foreign Housing Deduction and the Foreign Housing Exclusion. The Bona Fide Test is only...

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US expat taxpayers: How to pay off IRS tax debts

Written by Phil  Bradford Are you an American expat who owe money to the IRS? Or, are you thinking of escaping your US tax debt by moving abroad? If so, then beware! The IRS won’t leave you without grabbing its money. It’s because, the US has tax treaties with more than 42 countrie...

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IRS to Hold Webinar for U.S. Overseas Taxpayers on Foreign Earned Income Exclusion

WASHINGTON — The Internal Revenue Service will hold a free online, web-based information session to assist U.S. overseas taxpayers in understanding the foreign earned income exclusion on Wednesday, June 29. In general, a U.S. citizen or a resident alien of the United States living abr...

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Strategies for Decreasing U.S. Tax Obligations When Living Abroad

Strategies for Decreasing U.S. Tax Obligations When Living Abroad For U.S. residents that do not wish to renounce U.S. citizenship, but that will be living and working abroad, it is necessary to file all worldwide income with the U.S. for taxation purposes. Understanding exactly which d...

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International Taxpayers; June Filing Deadlines Nearing for Most Americans Abroad

WASHINGTON — The IRS also today reminded U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2015, that they may have a U.S. tax liability and a filing requirement in 2016. The IRS encourages taxpayers with foreig...

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Help for International and US Taxpayers Living Abroad

  Help for International Taxpayers Begins on IRS.gov Six YouTube Videos Now Available to Assist   WASHINGTON – The Internal Revenue Service reminds U.S. taxpayers living abroad, as well as other international taxpayers, that IRS.gov provides the best starting place for getting...

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6 Tax Tips for Reporting Foreign Income

Are you a U.S. citizen or resident who worked abroad last year? Did you receive income from a foreign source in 2014? If you answered ‘yes’ to either of those questions here are seven tax tips you should know about foreign income: 1. Report Worldwide Income.  By law, U.S. citizens a...

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IRS Simplifies Procedures for Favorable Tax Treatment on Canadian Retirement Plans & Annual Reporting Requirements

WASHINGTON ― The Internal Revenue Service today made it easier for taxpayers who hold interests in either of two popular Canadian retirement plans to get favorable U.S. tax treatment and took additional steps to simplify procedures for U.S. taxpayers with these plans. As part of this, t...

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Pressure Builds on US Taxpayers with Foreign Accounts

By Robert Barnett, CPA, JD, MS (taxation) and Renato Matos, JD, LLM (taxation) The Foreign Account Tax Compliance Act of 2010 (FATCA) has manifested outside the United States in recent months, as a result of an agreement announced on Aug. 29, 2013, between the U.S. Department of Justice a...

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June 16 Deadline Approaches for Taxpayers Living Abroad as US Expats

WASHINGTON — Taxpayers abroad qualifying for an automatic two-month extension must file their 2013 federal income tax returns by Monday, June 16, according to the Internal Revenue Service. The June 16 deadline applies to U.S. citizens and resident aliens living overseas, or serving i...

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Countries Eligible for Waiver of Residency Requirement Due to Civil Unrest Released for US Expatriates

Federal Tax Day - Current,I.1,Countries for Which Former Residents Eligible for Waiver of Residency Requirements Due to Civil Unrest Released (Rev. Proc. 2014-25),(Mar. 25, 2014) The IRS has released a list of countries for which the existence of adverse conditions during specified pe...

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US Expat Taxes for US Employees on Foreign Assignments

US Expat Taxes for US Employees on Foreign Assignments As the trend for sending employees overseas increases, it’s important for domestic US businesses to understand the full assortment of US expat tax issues that arise for both the employee and the employer.  The employer cost of se...

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Expatriating in the Middle of the Year

US Expat Taxes: Expatriating in the Middle of the Year Moving abroad in the middle of the year is not uncommon. If you think about it, no taxpayer is going to plan their move around the tax year. No matter the day you move abroad, moving in the middle of the year can have an impact on y...

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US Expat Taxes: The Foreign Tax Credit (Form 1116)

US Expat Taxes: The Foreign Tax Credit (Form 1116) In this edition we focus in on the Foreign Tax Credit. We explain how you can use this on your expatriate tax return. Using the Foreign Tax Credit on Your Expatriate Return US taxpayers required to pay foreign income taxes may elect to ...

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The Foreign Earned Income Tax Exclusion

The Foreign Earned Income Exclusion The Foreign Earned Income Exclusion The Foreign Earned Income Exclusion is essentially a tool for workers that are living abroad. The exclusion is reported on Form 2555. Form 2555 can be included with Form 1040. As a US expat, 100% of your income is ...

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Understanding the Foreign Housing Exclusion for US Expat Taxes

US Expat Taxes Explained: The Foreign Housing Exclusion The Foreign Housing Expense on Your Overseas Tax Return As you may know, as an American living overseas you may be able to deduct some of your housing expenses from your gross income on your overseas tax return. This is know...

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The Bonafide Residence Test for US Expat Taxes

US Expat Taxes Explained: The Bona Fide Residence Test The Bona Fide Reside Test is a test used on your US expat taxes. The test is used to determine whether you meet the eligibility requirements for certain tax deductions. The biggest deduction it will qualify you for is the Foreign Ea...

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US Expat Taxes Explained: The Physical Presence Test

US Expat Taxes Explained: The Physical Presence Test The Bona Fide Resident Test is mainly geared towards American expats who plan to reside overseas for good. The Physical Presence Test is designed to give a tax break for those who are only away from home for eleven months or more. Qua...

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It’s My First Year Abroad; How Should I File Back Home, and How do I get an Extension?

Q: This is my first year abroad and I have been away since April 2009. I was a resident of Oregon in the beginning of 2008 then California as of May 2008. What do i need to do/know to file taxes? Do I automatically get the extension for filing or do i need to file by April 15th since its m...

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I’ll be Working in Another Country But Am Paid by My Company in the US; What do I Need to Know?

Q&A: I’ll be working in another country but paid by my company in the US– what do I need to know? Q: I would like some information regarding expatriate tax as related to my somewhat unique situation. My company is planning to send me to the Dominican Republic to work with our of...

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I Don’t Think I’m Actually an Expat. Do I Need to File?

Q&A: I don’t think I’m actually an expat. Do I need to file? Q: Hi, I’m American but I live in the Netherlands and am married to a Dutch citizen. I am not an expat, as I’m on a highly skilled migrant visa and I work for a Dutch company, earning euros. I’ve been told that I...

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What Do I Need to Do About Self-Employment Taxes if I Have Already Paid into a Foreign System?

Q&A: I’m self-employed and confused– what do I need to do about US Self-Employment taxes if I have already paid into a foreign system? Q: I have been in Finland for 12 years, and I am returning the the United States and filing previous year’s taxes. I am confused by the appare...

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If I Take a Cruise Departing from the US, How Will it Affect my Physical Presence Test?

Q&A: If I take a cruise departing from the States, how will it affect my Physical Presence Test? Q: I am a US expat living in Brazil. I am trying to find some data on US expats taking cruises. I recall something about if a cruise departs from a US port, it will still be considered a...

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Can I Deduct Moving Expenses & Mortgage Taxes Abroad in My US Return?

Q&A: Can we deduct moving expenses and mortgage interest/taxes abroad in our US return? Q: My wife is a dual Australian / US Citizen. We are now residents of (and homeowners in) Australia. In June 2009, we incurred approximately $10,000 in moving expenses from Tennessee to Australia...

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Should I Pay into the US Social Security System so That I can Receive Medicare Benefits Later in Life?

Q&A: Should I pay into the US Social Security system so that I can receive Medicare benefits down the line? Q: I am considering whether it would be worthwhile for me to pay into the US social security system, in order to receive a Social Security payment and receive Medicare benefit...

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Are Lottery Winnings in a Foreign Country Taxable in the US?

Q&A: Are lottery winnings in a foreign country taxable in the US? Q: I am a US citizen living in England. If I were to win the UK lottery (which is tax free) – would I still be liable to pay taxes to the U.S? I file U.S. taxes each year along with the foreign earned income form. ...

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How do we Handle Residency When We’ve Left our US Home to Foreclosure?

Q&A: How do we handle residency when we’ve left our US home to foreclosure? Q: In July 2009, we “walked away” from our Ohio home, deciding to leave it to foreclosure. As we are officially homeowners in the state of Ohio, until such time as foreclosure occurs, does Ohio still c...

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Are Education Assistance, Housing, and Vehicle Benefits Taxable Income?

Q&A:  Are education assistance, housing, and vehicle benefits taxable income? Q: I’m getting transferred to the UAE and I can get up to $13,000 USD for education assistance for my elementary school daughter. Is this taxable income? What about housing and company car? I would apprec...

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