One of the taxes that still give major stress to taxpayers living outside the United States is the Expat taxes. If you earn more than the minimal criteria, you must submit US expat taxes regardless of where you live, what currency you were paid in, what taxes you paid to other countries, or where the money was produced. United States is one of the few countries that taxes its citizens even if they are residing outside the US and have their sources of income outside. But do not worry that your income will be taxed twice, US has a range of agreements commonly known as Double taxation avoidance agreements, that ensure that your income is not taxed twice and also several exemptions and deductions help you in lowering the overall liability of American taxes upon you.
If you are looking for some professional help, then USA Expat Taxes is the firm you need with years of experience in dealing with expat taxes coupled with reliability and expertise.
While there is no blanket tax exemption for Americans residing overseas, there are several systems in place to prevent Americans from being taxed twice on income earned abroad. The Foreign Tax Credit (FTC), the Foreign Earned Income Exclusion (FEIE), and the Foreign Housing Exclusion can all be used to offset foreign-earned income in most cases.
To be considered a Bona Fide Resident for the first year, you must have spent the whole tax year in a foreign nation, which is where many expats get confused. If you go back to the United States for a month to visit family, the time you spend there does not count. There are a variety of limitations and concerns, as with most foreign tax situations, so it’s always a good idea to hire an ex-pat tax specialist to assist you to handle U.S. taxes while living abroad.
It’s typical for Americans living and working abroad to ignore their tax obligations many are unaware that they must submit US taxes. If you’re a U.S. citizen living overseas who has never filed a tax return, you’re in luck: the IRS recognizes that it’s a complicated issue and is often forgiving of genuine errors. IRS also offers many ways for getting out of this but one of the major ways that many taxpayers are adopting is to hire the services of a professional tax agency. We will list down the major advantages of doing that.
You might be able to fill out Form 1040, but you’ll need Forms 2555 and 1116 for the Foreign Earned Income Exclusion, Foreign Housing Deduction or Exclusion, and the Foreign Tax Credit if you live in the United States. Even experienced taxpayers may find these forms difficult to understand. When filing US ex-pat taxes, don’t forget to include the extra schedules that must be attached to your Form 1040. An expert professional is well versed with all these nuances and can assist you.
You can save a lot of money. A tax preparation services provider can unearth tax deductions and credits that you may not be aware of or have ever heard of. Without living in the dark about your taxes and if they were done correctly, you may receive answers to your tax inquiries and have a better understanding of your situation. A tax preparation services organization may assist you with tax planning for future years, perhaps saving you even more money. Using a tax preparation services provider relieves you of the burden of taxes and saves you time and money.