Useful Tips When You Need Expatriate Tax Services
Need Expatriate Tax Services To File A US Tax Return?
We specialize in Expatriate Tax Services and filing US tax returns. Benjamin Franklin reminded people so many years ago that “but in this world nothing can be certain, except death and taxes”. In colonial times, he was considered well-traveled as US Ambassador to France and a wealthy man in many aspects of his life. Tax Samaritan wants to help you achieve similar successes not just in planning and properly filing income tax but in the larger perspective of wealth management. One of the most important decisions about your income taxes is whether to get your tax preparation done with the help of an experienced expatriate tax service like Tax Samaritan or go it alone. You need more than Ben’s suggestion that “early to be and early to rise… makes (someone) healthy, wealthy and wise” to protect the fruits of your hard work! You deserve expert advice from experienced practitioners in long-term financial planning and, especially, the US tax code.
While many taxpayers feel that they can prepare their taxes on their own each tax year, it is more prudent to think about utilizing the resources of an expatriate tax services firm because what you improperly report on a tax return can hurt you years from now. In fact, if you ever wondered whether you could take a specific deduction or credit you don’t know about or if you could be paying less or getting a larger refund, or even if you simply wonder if you are preparing your taxes correctly, you should consider experienced professional tax preparation to provide expatriate tax services. US expatriates follow very special and often changing sets of rules; you need and deserve advice from a seasoned specialist. Our free 30-minute consultation might provide you, as a US expat, with a single idea, a strategy for this tax year, or an entirely new prospective on managing your financial future wherever you decide to live.
Tax Planning Is Only One Part Of Managing Wealth
Even though there are many opportunities as an overseas resident for tax savings, there are also many expatriate tax risks. American expats living abroad in the past few years have been hit especially hard when they realize that they were required to file tax returns and foreign bank account reporting (the “FBAR”) even when there was no tax liability. Are you self-employed or own a part of a business in a foreign country? Do you own a foreign-source mutual fund or have other foreign investments? Have you received an inheritance from an estate or from a relative outside the country? Do you have any financial service accounts outside the United States? If you are a U.S. citizen or resident alien, the rules for filing an expatriate tax return and paying estimated taxes are typically the same whether you are living in the United States or abroad. Your worldwide income is subject to U.S. income tax regardless of where you reside; the U.S. government imposes an expatriate tax return filing requirement and these rules are changing from year to year.
Tax Samaritan Expatriate Tax Services
Tax Samaritan’s Expatriate Tax Services are based on 20+ years of experience and knowledge about the US tax code as it applies to overseas Americans. We will guide you through the complex expatriate tax preparation process to obtain the optimum tax benefit for you. Benjamin Franklin reminded us that “lost time is never found again.” Our methods offer a simple and straightforward process for expat tax filing to help you save that time and your money.
Tax Samaritan expatriate tax services include assistance in the following areas and more:
- Report of Foreign Bank and Financial Accounts FBAR (now FinCEN 114)
- Foreign Earned Income Exclusion
- Foreign Tax Credit
- Form 5471 – Information Return of US Persons with Respect to Certain Foreign Corporations
- Form 8621 – Passive Foreign Investment Company (PFIC) Return
- OVDP – Offshore Voluntary Disclosure Program
- Streamlined Filing Compliance Procedures
- Totalization Agreements
- Unfiled Tax Returns
As an expat, you face a changing assortment of issues from how to get your mail forwarded from the U.S. to overseas, to saving money on foreign currency exchange when sending money home or making a large purchase or currency transaction. Many expats face the same challenge of finding a reputable service provider to solve these issues and more, in addition to finding a reputable professional to prepare your U.S. tax returns. Tax Samaritan’s expatriate tax services can make your filing process and financial planning easier.
You can find Tax Samaritan takeaways at the bottom of this page as well as many value-added links across our website especially for US expats. We share all kinds of reference information with you about service providers that we think that will be of value to you. Tax Samaritan works hard to shorten the time you spend searching for answers to specific questions or discovering new ideas and services that you may need. All of our partners are carefully selected and are known to specialize in providing services for expats.
The Tax Samaritan Service Promise is to provide the best counsel, advocacy and personal service for our clients. Our practiced staff are not only tax preparation and representation experts but seasoned advisers and valued business partners. Tax Samaritan understands your unique needs and knows that every tax situation needs a personal approach to achieve a realistic and cost-effective solution.
Consider our monthly newsletter or click on company logos and buttons on subsequent pages if you require more information regarding service providers and want to contact them in order to learn more about what they can do for you.
Finally, if you have received excellent service or value from an expat resource, share your experience with us here at Tax Samaritan so that we can share your discovery with others.
Tax Samaritan Takeaways and Expat Resources
2014 IRS Publication 54, Tax Guide for US Citizens and Resident Aliens Abroad
United States Income Tax Treaties – A to Z
Save money on changing currency by using a Foreign Exchange Broker
No more missing mail by using a Mail Forwarding Service
If You Own A Business, Save Taxes And Health Costs With A Health Reimbursement Arrangement (HRA)
If you would like a quote, please click on the button below for a free, no obligation Tax Preparation quote and/or free 30-minute consultation to discuss your situation regarding PFICs further:
Tax Samaritan is a team of Enrolled Agents with over 25 years of experience focusing on US expatriate tax services and representation. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional. Our articles are also designed to help taxpayers looking to self prepare, providing specific tips and pitfalls to avoid.
When looking for an expatriate tax services professional, choose carefully. We recommend that you hire a credentialed tax professional such as Tax Samaritan that is an Enrolled Agent (America’s Tax Experts). If you are a US taxpayer overseas, we further recommend that you seek a professional who is experienced in expatriate tax services, like Tax Samaritan (most tax professionals have limited to no experience with the unique tax issues of expat taxpayers).
Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking assistance from an expatriate tax services professional.
U.S. Expatriate Tax – This Is The Latest Info You Need for Expat Taxes
Get Expert U.S. Expatriate Tax Return Preparation Wherever You Live
The expat tax filing requirements for filing a U.S. tax return and paying estimated taxes are the same when living abroad. Your worldwide income is subject to U.S. income tax. The U.S. imposes an expatriate tax filing requirement irrespective of where you reside. Most taxpayers that live overseas have no idea that they need to file U.S. taxes. If this applies to you, you are not alone.
Living overseas generates many unique tax opportunities as well as expat tax risks. However, the requirement to file an expat tax return while living abroad is one that many American expats are often not aware of. Iven when there was no tax liability.
Tax Samaritan professionally prepares US income tax returns for American taxpayers living abroad. Our Enrolled Agents (EAs) and CPAs have the experience and training to help you navigate through this process.
Reporting Foreign Income
Many United States (U.S.) citizens and resident aliens receive foreign earned income. Moreover, there have been recent reports about the interest of the Internal Revenue Service (IRS) in taxpayers with accounts overseas. The interest of the IRS covers accounts anywhere in the world. You must report your worldwide income on your U.S. expat tax return and ensure that you have an accurate and complete disclosure.
You must report income from all sources within and outside of the U.S. Above all, this is true whether or not you receive a Form W-2 Wage and Tax Statement, a Form 1099 (Information Return), the foreign equivalents or no statement at all.
Not reporting income from foreign sources may be a crime. Consequently, the IRS and its international partners are actively pursuing those who hide income or assets offshore to evade taxes. The goal is to ensure U.S. citizens and residents are accurately reporting their income and complying with their U.S. Expatriate Tax Obligations.
You will face serious consequences if the IRS finds you have unreported income or undisclosed foreign financial accounts. In addition, these consequences can include not just the additional taxes, but also substantial penalties, interest, fines and even imprisonment.
Generally, the statute of limitations for an expat tax return now is three years after you file your return. However, if you do not file an expatriate tax return, the statute of limitations does not expire.
US expatriate tax preparation by Enrolled Agents trained and experienced in foreign earned income laws and regulations
As an overseas resident, there are many opportunities for tax savings but also many risks. Most importantly, Tax Samaritan has the experience and knowledge of the tax code to guide you through the complex expatriate tax preparation process. This includes, but is not limited to the following areas that may be utilized to maximize your tax savings:
Foreign Earned Income Exclusion
The Foreign Earned Income Exclusion is the single largest expatriate tax advantage available to you.
If you meet certain requirements, you may qualify for the foreign earned income exclusion and foreign housing exclusions. Most importantly, it is only applicable by filing an expat tax return and claiming the exclusion with the requisite forms.
The maximum foreign earned income exclusion amount is adjusted annually for inflation. For example, the maximum foreign earned income exclusion for tax year 2019 is $105,900 per qualifying person. However, for tax year 2020, the maximum exclusion is $107,600 per person.
Earned income is income that you earn from work and does not include passive income. For instance, passive income includes interest and dividend income, rental income and other income that does not come from labor.
In addition, you may also be able to claim an additional foreign housing exclusion or housing deduction for your housing expenses that exceed a standard amount established by the U.S.
Tax Samaritan can help you claim the foreign earned income exclusion that can be used to partially or completely reduce your foreign earned income.
Foreign Tax Credit
If you paid or accrued foreign taxes to a foreign country on foreign source income and are subject to U.S. tax on the same income, you may be able to take either a foreign tax credit or an itemized deduction for those taxes. Taken as a deduction, foreign income taxes reduce your U.S. taxable income. Taken as a credit, foreign income taxes reduce your U.S. tax liability. In most cases, it is to your advantage to take foreign income taxes as a credit.
We can help you claim the foreign tax credit and ensure that you are paying the least amount of expat taxes legally possible.
FBAR – Reporting Foreign Assets
If you have a financial interest in or signature authority over a foreign financial account. Including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account; exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the IRS. In short, this is done by filing a Report of Foreign Bank and Financial Accounts (FBAR) on the FinCen Form 114.
Form 5471 – Controlled Foreign Corporation
U.S. citizens and U.S. residents who are officers, directors, or shareholders in certain foreign corporations are responsible for filing Form 5471 Information Return of U.S. Persons With Respect to Certain Foreign Corporations. The reporting requirements of transactions between foreign corporations and U.S. persons is satisfied by filing the Form 5471 and associated schedules. Consequently, substantial penalties exist for U.S. taxpayers who are liable for filing Form 5471 and who failed to do so.
The filing requirements for Form 5471 relate to persons who have a certain level of control in certain foreign corporations. So, let Tax Samaritan put your mind at ease by having one of our experts prepare the Form 5471.
The Form 5471 is filed as an attachment to the your expat tax return.
Totalization Agreements
International Social Security agreements, often called “Totalization agreements,” serve to eliminate dual Social Security taxation (to both countries) on self-employment income. We will review to determine whether you can benefit from a totalization agreement and assist you with the presentation of the required documentation for your return.
Expatriate Tax Return Due Date
When residing overseas on the regular due date of your return (April 15), you are allowed an automatic 2-month extension to file your return (until June 15) and pay any amount due without requesting an extension.
Why Choose Tax Samaritan?
We have carefully studied those particular code sections that apply to foreign earned income and other areas that are of direct interest to US taxpayers overseas, and we are certain that we will give your taxable events the most advantageous tax treatment. Our specialty is expat tax services and tax planning.
We have been working with overseas clients for several years and we understand the communication challenges. On the other hand, many tax preparers unfortunately are unable or unwilling to deal with these communication challenges. You will find that we are easy to reach and 100% with you every step of the way.
-
Pingback: October 15th Tax Filing Deadline Approaches - Tax Samaritan | Tax Samaritan
-
Pingback: Same-Sex Marriages Recognized For Federal Tax Purposes | Tax Samaritan - Part 1
-
Pingback: Why US taxes citizens on worldwide income regardless of where they live? - Tax Samaritan | Tax Samaritan - Part 1
All About Randall Brody
Randall is the Founder of Tax Samaritan, a boutique firm specializing in the preparation of taxes and the resolution of tax problems for Americans living abroad, as well as the other unique tax issues that apply to taxpayers. Here, they help taxpayers save money on their tax returns.