Americans living abroad have to file US tax returns yearly if they meet the tax filing rules of the United State of America. Many US expats move abroad and believe that state return tax need do not apply to them.
But this is not true as US expats must be aware that some states in the US will come after Americans living in another country and even put The Internal Revenue Service tax lien on US bank accounts and other possessions. This is the prime reason that it is very vital that the US expatriates review state return tax rules and cut ties in order to avoid state income taxes.
Keep in mind that knowing and understanding the state rules is compulsory. The US expatriates must check the tax laws of their last state of residency before moving abroad. Out of 50 states in the United States, some states are friendly for US expats such as Wyoming, South Dakota, Washington, Texas, Nevada, Florida and Alaska, but others like New Mexico, California, Virginia or South Carolina, will go after American expats abroad unless they cut the ties.
Tips To Avoid State Income Taxes For The US Citizen Living Abroad?
Changing a residency to a favorable state before moving overseas is one the easy solution. Changing a residency means moving some ties to another favorable state such as U.S. address, Driver’s license, Voter registration, Mail, Dependents, Bank accounts, Phone and utility bills, Memberships, Library cards, etc. Also, a change of residency must be done several months in advance. US expatriates will be exempt from the need to file a state return with American expatriate tax returns.
Tax Deadlines for The US Expats
You are required to filing US tax returns when living abroad or pay any taxes due by April 15 just like most taxpayers in the United States. Also, expats living and working abroad as a U.S. citizen are required to file as well. But, if you are living overseas, the rules for expat tax filing deadlines are a bit different.
2019 Tax Year
Filing deadline April 15, 2020
Filing deadline for expats June 15, 2020
Filing deadline by requesting extension October 15, 2020
Deadline to pay tax due April 15, 20
Most American expats qualify for an automatic two-month filing extension that means your 2019 tax return is due by June 15, 2020. Also, you must pay any taxes due by April 15, 2020, even if you're a US expat filing your return by June 15, 2020. In case you do not pay by this date, The Internal Revenue Service will not assess a Failure to Pay Penalty provided you file, but be charged interest on the unpaid amount.
[See: Tax Tips For US Non Resident]
How Tax Consultant Can Help File US Taxes On Foreign Income
Keep updated with tax laws, forms and deadlines can be overwhelming as well as much less exciting than traveling and learning new traditions and cultures so lean on a professional tax consultant to do this for you. A tax consultant will remind you of any upcoming deadlines as well as walk you step-by-step through all of the forms. So, get started on filing your US citizen living abroad taxes today.
Read: Tax Planning Tips To Follow For U.S. Expats Living Abroad
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