Expats still need to file U.S. tax returns if you live and make money in a foreign country

  • 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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