Looking for US Tax Preparation for Ex Pats? We Can Help.
Who Needs to File?
US citizens or US residents living abroad are commonly referred to as expatriates. Ex Pats have the same tax filing requirements as citizens or US residents living in the United States. Not filing a tax return can subject you to civil penalties, criminal prosecution and having your passport revoked, just to name a few.
What Needs to Be Reported?
Ex Pats pay US income taxes on their worldwide income. It does not matter that the income is from sources outside of the US. All income is considered. Taxable income includes foreign wages, self-employment income, interest and dividends, pensions, profits from foreign companies and more.
How Are US Income Taxes Calculated?
Income taxes for ex pats are calculated similarly to filers that reside in the US. However, ex pats often qualify for tax relief for foreign earned income and foreign income taxes paid.
Foreign Earned Income Exclusion
The foreign earned income exclusion is a provision where you can often exclude earned income of $100,000 or more on income earned outside of the US. You can reduce your taxable income where you reside in, or are also a resident of, a foreign country, more commonly known as the substantial presence test, or bona-fide resident. Read more
Foreign Taxes Paid
You can often reduce your income taxes for foreign income taxes paid. Since you have already paid taxes on your foreign income, US tax law allows you to receive a credit to avoid double taxation on the same income. You can often reduce your taxes by the amount foreign income taxes you paid. In many cases, this provision will eliminate US taxation of your foreign income.
Tax law and rules for filing ex pat returns are often complex where you have income outside of the US and you are looking to reduce your income taxes for foreign earnings and foreign taxes paid. Your going to need professional help!
You can call or use our on-line chat (at the bottom of the page) to speak with a licensed tax specialist on how to get started.