Expert U.S. Tax Return Preparation for Expats and Everyone With International Income Considerations.

For U.S. citizens and green card holders, moving abroad means their federal and state tax filing responsibilities travel with them.

 

To the IRS, income earned in Amsterdam by United States citizens and green card holders is as taxable as money earned in Topeka. Thus, U.S. expatriates must file annual tax returns reporting their worldwide income.

But U.S. expatriates are also likely paying tax on their non-U.S. income to their resident foreign jurisdictions. This is the scourge of double taxation.

There are provisions in the U.S. tax code to protect expats from that unfair burden. If you’re living and working abroad, you want to take full advantage of them.

For example, a large amount of foreign earned income can be excluded altogether from U.S. taxation. The well-informed may also be able to claim a credit against their U.S. taxes for foreign taxes paid or accrued.

But provisions like these are not automatically granted to expatriates. Their benefits must be claimed on a properly prepared and filed U.S. tax return.

U.S. law also requires that many expats disclose their foreign assets and banks accounts to the U.S. Treasury (the FATCA and FBAR provisions). Filings like those are made as part of an expatriate’s annual tax return.

Fair Warning: Failure to make the proper disclosures as required can result in penalties, both civil and criminal.

 

Foreign persons working, investing, traveling, or attending school in the United States may be subject to U.S. tax laws and filing requirements.

Non-U.S. residents earning sufficient income effectively connected to the United States can be subject to U.S. tax laws and regulations. In those situations, tax returns must be timely filed in the United States.

Even foreign students here, who often begin their educations exempt from U.S. tax requirements, may over time suddenly find themselves having to report income earned here, perhaps even their worldwide income and assets.

Even an unlucky tourist can be ensnared by U.S. tax requirements. For example, just spending too many days in the United States may lead to a visitor’s entire, worldwide income being subject to tax here, and not only that which is sourced to the United States.

Managing such tax issues often depends on understanding and applying the byzantine rules of tax residency and income sourcing. Visa status can also play an important role. And the key to U.S. compliance is filing tax returns as required under U.S. tax law.

Tom has the experience and expertise to help you understand and address your tax issues. If you have concerns or questions regarding your tax compliance, now is the time to address them.

Did You Know?

Dissolution of an LLC does not end its members' tax exposure.

From the Blog

  • Working Abroad – Paying the U.S. Income Tax Expatriates and the federal income tax Going abroad to live and work is a very exciting thing to do.  It also has tax consequences because the United States will tax your income, no matter where you live and no matter… Continue Reading »