The IRS reminds us under Tax Tip 2023-36 that American taxpayers that they must report and pay US income tax on their worldwide income, and can use the Foreign Earned Income Exclusion found on Form 2555 and the Foreign Tax Credit found on Form 1116 to reduce or eliminate their US income tax. Further to […]
Terrific discussion on the responsibilities of US persons to file tax returns including worldwide income, US persons filing deadlines, Large Gift Disclosure requirements to US persons from non US persons, US income tax treaty Savings Clause issues and the use of Totalization or Social Security agreements. U.S. persons (citizens and permanent residents) whose financial matters […]
Under IRC Sec 911(d)(4)- Waiver of Time Requirements- The IRS allows for under extraordinary circumstances both the BFR and PPT minimum time requirements to be waived if you must leave a foreign country due to war, civil unrest or similar adverse conditions. The IRS publishes a list of the countries that qualify for this […]
As first reported on April 27. 2020 in light of the Covid-19 epidemic the IRS released Revenue Procedure (Rev Proc) 2020-27. Rev Proc 2020-27 Affects U.S. persons living and working outside the U.S. Rev Proc 2020-27 invokes IRC Sec 911(d)(4)- Waiver of Time Requirements- with respect to the PPT and BFR tests deeming the Covid-19 […]
In light of the Covoid-19 epidemic the IRS released Revenue Procedure (Rev Proc) 2020-20 and 2020-27. Rev Proc 2020-20 Affects Foreign Nationals living and working in the U.S. and Rev Proc 2020-27 Affects U.S. persons living and working outside the U.S. Rev Proc 2020-20 allows foreign nationals trapped in the United States as a result […]
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 under IRC Sec 911. While the cap on the […]
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 States (“U.S.”) persons are taxable on their worldwide income. The U.S. uses the U.S. dollar as the
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 Services Inc (“Protax”) have compiled a […]
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 Bona Fide Resident Test or will they […]
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 been present in a foreign country […]
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 Amato, 1 May 2017 We recommends requesting […]
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 States income tax. Regardless of the country […]
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 flowing from a foreign source. The […]
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 difference. Don’t be appalled; for now, […]
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 used by the expats whose […]
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 countries, where the […]
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 abroad is taxed on their worldwide income. However, these taxpayers may […]
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 deductions are applicable can help to reduce the total amount […]
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 foreign assets, even relatively small amounts, to […]
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 answers to their important tax questions. This filing season, six new YouTube videos on common
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 and residents must report their worldwide
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, the IRS provided retroactive relief to eligible taxpayers who […]
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 and the Swiss Federal Department of Finance. […]
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 in the military outside the U.S. on the regular April 15due date. Eligible
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 periods may excuse failure by a taxpayer to meet the foreign presence or […]
