Living or traveling outside the United States does not exempt U.S. citizens and residents from their tax filing obligations. In fact, the rules and requirements for filing income tax returns, estate tax returns, and gift tax returns, as well as paying estimated taxes, remain largely the same as for those residing within the country. This blog aims to shed light on the key filing requirements and considerations for U.S. taxpayers abroad. Income Tax Return Filing Requirements The primary determinant of whether you must file an income tax return is your gross income from worldwide sources. Genera ..read more

For U.S. citizens and resident aliens living or working abroad, understanding the specific filing and payment deadlines for their tax obligations is crucial. This blog aims to provide a comprehensive overview of where and when to file and pay taxes, ensuring compliance with IRS regulations. Where to File The filing address for your U.S. federal individual income tax return depends on your specific circumstances. If you live in a foreign country, use an APO or FPO address, or file Form 2555 to claim the foreign earned income exclusion and/or the foreign housing exclusion or deduction, you shoul ..read more

The Internal Revenue Service (IRS) has officially announced Monday, January 29, 2024, as the start date for the nation’s 2024 tax filing season. This year, the agency expects to receive over 128.7 million individual tax returns by the April 15, 2024, tax deadline. While taxpayers can begin working on their returns with software companies or tax professionals before the official start date, the IRS will not begin accepting and processing returns until January 29th. Building upon the success of the 2023 tax season, which saw significant improvements following the passage of the Inflation Reducti ..read more

US tax filing can be complicated where one might feel like navigating a maze. However understand the basics of tax filing or collaborating with a dedicated USA tax expert can make it less stressful. Here are some of the steps involved in federal tax filing- Know your tax situation – It is important to assess the individual tax situation. Here are some of the things to be considered. Filing status: The marital status of the person on 31st December of the tax year significantly impacts the filing options. Income sources: Identify all the sources of income one received throughout the year, like ..read more

US citizen referred as expats are required to file US income tax returns just like any other individuals living in the USA. The American tax for US residents living abroad has different tax obligations because of their international status. For IRS both expats and American residents living in the country are both same when it comes to taxation. So, if you are an US expat, you are required to file an income tax return using Form 1040 in the same way as Americans residing in USA. Do expats have tax exemption? US citizens living abroad are eligible for Foreign Earned Income Exclusion or the Forei ..read more

Form 1099-K is a tax form used in the USA to report payments received through payment card transactions and third party network transactions. The form is issued by the payment settlement agencies to report the transactions they have processed for third parties or retailers. To receive Form 1099-K, one must meet certain criteria of the IRS that includes- Eligibility: One need to meet the specific threshold to receive Form 1099-K. The reporting limit is $ 20,000 in payments and over 200 transactions within a calendar year. Engage in reportable transactions: Form 1099-K is issued to business en ..read more

US Income Tax for US Citizens living Abroad can be reduced significantly with the Foreign Earned Income Exclusion (FEIE). What is Foreign Earned Income Exclusion? FEIE or the Foreign Earned Income Exclusion is a tax benefit that expats can use to exclude foreign income from the US taxation. The FEIE helps the American expats avoid double taxation. As the foreign income will be likely taxed in their country of residence, FEIE protects the US expats from paying taxes twice on the same income. But there are limits to how much foreign income one can exclude using the FEIE. What are the limits of F ..read more

As per American Tax for US residents living abroad policy, the US expats are required to fulfill specific tax responsibilities even if they are living abroad. The United States taxes its citizens on income earned by them all across the world, regardless of where they reside. They are required to file federal tax returns and make the payment of taxes on their worldwide income. This unique aspect of US tax policy applies to all its citizens including the expats who are living abroad. The United States distinguishes itself as one of the few nations globally that imposes taxes based on the citizen ..read more

Filing US expat taxes from Canada can be challenging for many Americans. American expats residing in Canada are obliged to file US income tax returns every year if they meet the US tax filing requirements and thresholds. They are required to file tax returns for all the income earned by them all across the globe. Also, they are required to file a Foreign Bank and Financial Accounts Report if they have more than US $ 10,000 in financial accounts outside US at any time during the year. They are also eligible to claim Foreign Earned income exclusion that can exclude a part of foreign income from ..read more

The payment of Federal tax for non-residents is mandatory for all the expats even if they do not live in USA. Generally, all the US citizens and green card holders are required to file and pay their federal taxes to the IRS on the income earned by them at any part of the world, regardless of where they live. This means an US expat even if they reside outside the United States are still subject to US Tax laws. However, the IRS has certain provision to help the expats avoid double taxation and to address tax issues. The Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit are the tw ..read more