Tax preparation services for American expatriates abroad
Most United States citizens living abroad are required to file annual U.S. income tax returns and report their worldwide income. You may, however, exclude a certain amount of foreign earned income, deduct part of your housing cost and receive a credit for income taxes paid to a foreign government. Whether you will actually have any US tax liability depends on a myriad of factors including income levels, types of income and tax rates in your foreign location.
New IRS laws on U.S. expat taxes
U.S. expatriates must be confident they are in full compliance with U.S. tax laws and not have to worry about the aggressive enforcement of the new laws by the IRS. The most common recent changes relate to (i) FBAR reporting (Foreign Bank Account Reporting) and (ii) FATCA reporting (Foreign Account Tax Compliance Act). One area expatriates are also commonly not aware of is filing requirements for ownership interests in foreign corporations and partnerships.
When living abroad items you may not necessarily consider can have an impact on your U.S. tax liability. Take the test:
Do you live a community property country and your spouse is a non-resident alien?
Have you bought or sold real estate in a foreign country?
Do you have a foreign corporation or partnership engaged in supplying personal services?
Have you invested in foreign financial products?
Have you not filed a U.S. tax return recently?
If you answer “yes” to any of the questions, please contact me for a complimentary consultation.