Even as an Expat, you still need to file a tax return and, depending on your income, pay taxes, as long as you have a U.S. citizenship. Your worldwide income is taxable even if you filed a tax return and paid taxes in the country where you reside. If your taxable income is over $20,000 a year and you are married; or $10,000 and single; or made over $400 per year as self-employed or contractor, you need to file a tax return.
There is a long list of tax filing requirements the IRS has determined for Expats:
-Automatic Extension until 6/15 but pay taxes on 4/15
-Foreign Earned Income Exclusion (FEIE) of $104,100 only if the return is filed
-Spouses get another $104,100 of foreign earned income exclusion (FEIE)
-If your income is over the FEIE amount, claim a house deduction
-Credit for taxes paid in your country of residence
-Foreign Account Tax Compliance Act (FATCA) reporting requirements
-Foreign Bank Accounts Reporting (FBAR) requirements
-Foreign companies ownership involves more IRS reporting
-Foreign trust creation involves more IRS reporting
-Self-employment income is subject to FICA (social security and medicare taxes)
-The IRS is watching you
-IRS special programs for Expats
-Passive Foreign Investment Company (PFIC)
Learn more on our website: https://fascpaconsultants.com/tax-planning-for-u-s-expats/
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