Foreign Nationals and Expatriates
We are very familiar with reporting requirements concerning international taxation issues for the United States. We have:
· Done business outside the United States for several years.
· Worked with clients who own and operate businesses overseas.
· Worked with Americans working abroad as employees.
· Worked with foreigners investing in the United States for many years.
· Worked with foreigners subject to U.S. taxes.
· If you're planning a move abroad or you're already an expatriate, you have more to think about than just adjusting to a new culture. Although it may be tempting, you must not ignore your U.S. taxes.
Every U.S. citizen who meets minimum income requirements — regardless of whether he or she is living in the U.S. — must file a tax return with the federal government.
The tax situation for expatriates is often complicated and frustrating. Many variables affect how much expatriates pay Uncle Sam, ranging from whether you deduct your foreign taxes to what is your host country to your employment situation. These include:
· Foreign earned income. You may be able to deduct a substantial amount in foreign earned income from your U.S. taxes.
· Tax treaties. Many countries have tax treaties or conventions with the United States that dictate how you file your U.S. taxes.
· U.S. state income taxes. Some states do not have income taxes; others make it difficult to sever your ties with that state.
· Rental income and dividends/interest from assets in the U.S. You must pay taxes on these exactly as if you were living in the U.S.
· Self-employment. You must pay self-employment tax on your income, even if you can exclude it as foreign earned income on your income taxes.
U.S. Taxpayers with Foreign Investments
The U.S. government has imposed draconian penalties for not disclosing foreign activity. These disclosures do not increase your tax or potential for being audited. U.S. taxpayers are subject to numerous disclosures:
· If you own or have signature authority over foreign financial assets, you may need to disclose them.
· If you own an interest in a foreign corporation, you may need to disclose it.
· If you receive a gift or inheritance, you may need to disclose it.
Foreigners with U.S. Income
If you are not a U.S. taxpayer and have U.S.-sourced income, you may be subject to U.S. taxation.
Our rates are similar or less than those of other CPAs, and I am sure you will find that my services give you a great value for the cost. There's no need for expats to pay more than required — or to suffer penalties and interest — just because the process is more confusing for them. Let us help you navigate the tricky waters of U.S. taxes for expats or foreign nationals. Contact us today — and enjoy the use of more of your money.