Look no further than USA Expat Taxes if you're looking for a CPA firm that can assist American expatriates with their us expat tax returns from almost anywhere in the world. We provide various tax services from federal, state, and corporate returns to U.S. expat tax planning and a simplified process for expats behind on their taxes. Our clients like our knowledge, easy filing procedure, and dedication to reducing their tax liability.
There are three forms of Form 1040: 1040, 1040A, and 1040EZ; however, expats practically never use any other version than the original Form 1040. Your names, Social Security numbers, and addresses are reported on this form to the IRS. Historically, this form contains two sections that list your income and deductions and determine whether you owe money or will get a refund. To complete the tax forms required for expats, different schedules and documents should be attached to Form 1040 and submitted with your U.S. tax return.
The Foreign Earned Income Exclusion amount that can be claimed on your U.S. tax forms for expats is calculated using Form 2555. In addition to your FEIE, it computes the number of overseas housing expenditures you might be entitled to deduct. Your overseas earned income amount, foreign address, employer's address, and the dates you visited the U.S. throughout the year are all listed on the form.
The amount by which the taxes you paid to your home country might lower your U.S. tax obligation is calculated on Form 1116. The information on Form 1116 will include the following:
•
The payment is subject
to foreign taxes.
•
The amount of foreign
taxes paid or accumulated on that income.
•
Different types of
income must be classified in specific ways; your tax return may contain
multiple 1116 IRS forms for foreigners. The formula is used to determine the
amount the FTC would reduce your current year's taxes on your tax return.
A corporation is a
legitimate entity that the laws of the resident nation have created.
Shareholders in overseas businesses must utilize Form 5471. Most filers who
possess more than 10% of the equity in a foreign firm must submit this form.
This lengthy form has several pages and typically asks for the corporation's
financial records. Although it is often filed along with your tax return, Form
1040, there are a few situations when it may be done independently. This form
exposes the taxpayer's ownership stake in the business; it does not tax the
corporation. Any income from the corporation you receive must be declared
elsewhere on your 1040 for it to be taxed correctly on your tax return.
Although the IRS does
not mandate it, Form 114 is technically not a tax form; nevertheless, most
expats will need to file it. The U.S. Treasury Department's FinCEN (Financial
Crimes Enforcement Center) section. Your overseas bank accounts' details and
their most excellent annual balance are reported on the FBAR form. You must
submit this form if you have any overseas bank accounts with a combined balance
of $10,000 or more during the year. Even children with U.S. bank accounts
exceeding the threshold must file these papers as part of their entire tax
return.
We would be happy to analyze your circumstances and help you determine the necessary documents. Get in touch with us if you have any inquiries or begin completing your expat tax filings right now.
