What US Income Tax For US Citizens Living Abroad Must Need To Know About

Most of the Americans living abroad agree that US expat taxes can be daunting. There are the only two countries in the world (The U.S. and Eritrea), which impose taxes on their citizens despite their residence. Taxes are a complicated matter, but it’s even more difficult for US expats as they need to comply with 2 different tax systems and keep an eye on ever-changing US tax laws as well. Tax situations become more complicated when Americans abroad haven’t been filing for years. In this article, we’re going to tell you a few things about US income tax for us citizens living abroad you must know about

• Deadlines And Extensions

Americans living abroad can receive 3 filing extensions in a tax year: 1) Automatic filing extension until June 15th. Taxpayer does not need to file any form or submit any letter to the Internal Revenue Service (IRS) as long as he or she resides abroad.

2) If anyone is not ready to file before June 15th, then he or she can file for an additional extension until October 15th. Also, you will need to file and send Form 4868 before June 15th. The form is an Application for Automatic Extension of Time to File U.S. Tax return.

3) The final extension available will push the deadline to file a US expat tax return to December 15th. In order to get one, send a letter to the IRS explaining why you need the additional two months. You have to do this by October 15th.

• Have To File A State Income Tax Return If Living Overseas

If you are a US Citizen living abroad, then you have to make sure that you file an income tax return with the IRS every year if you meet the minimum filing requirements,  then you may have to file a state tax return. You may have to file a non-resident state income tax return even if you are living abroad depending on which state you most recently lived in before your move. Do not assume that as you have left the US you are not obligated to file a state tax return. Keep in mind that each state has its own set of rules about whom it considers a “resident” as well as their minimum filing requirements. In the US, most states allow the foreign earned income exclusion in determining taxable income

• What Else To US Citizens Living Abroad Need To Report?

US citizens living abroad are required to report their foreign bank accounts and investments only if their combined total values exceed certain value thresholds. In addition to this, the rules for foreign account (FBAR) reporting are complex, and penalties for not doing correctly, accurately and fully are high, thus it’s not a requirement that Americans with foreign-registered bank or investment accounts should pay no attention to. You may have to report your foreign-registered businesses and financial assets as well.

Why Fill Your Tax Returns Online?

You can file your US taxes by yourself simply by downloading and printing the forms of the Internal Revenue Service (IRS) website and sending the return along with a check if you owe a payment. Besides, you can also fill out the forms online and submit the return electronically with a credit card payment too.  In this post, we have going to tell you – why fill your Tax Returns Online.

What To Know Non-Resident in US About Tax Return

Filing a tax return in the US is in the best interest of everyone who has earned U.S. dollars, no matter what is their status. Many non-residents failed to file as they assume they do not own and this issue usually lies in overpayment. Keep in mind that the amount withheld from the average non-US resident paycheck is over the amount that would be due at the end of the year. Keep in mind that failing to file means you have suffered a huge loss of a refund.

Do US citizens need to pay taxes when living abroad?

No matter whether you are a U.S. citizen or resident alien, the rules for filing income tax or even gift and estate returns and paying estimated tax are the same whether you are in the U.S or abroad. This means you as an American living abroad or Green Cardholder has to file a US federal tax return if your total income – irrespective of where the income was earned exceeds any of the following minimum thresholds:

• $10,300: For citizens filing as single
• $20,600: For citizens filing as Married Filing Jointly
• $4,000: For citizens filing as Married Filing Separately
• $400: For citizens filing as Self-Employed

Know About the Key Consequences Of Not Filing US Tax Return

The rules for filing US taxes are the same whether you are living abroad or in the US. Even if you are a permanent citizen of a foreign country, you have to report your worldwide income.

How US Taxes for Americans Living Abroad Is An Important Matter

If you are US citizen and living abroad, then you have to pay US taxes. Outstanding concerned towards the taxation laws and tax filing will help you to remain as a responsible citizen of the US and it can help you to stay away from the legal actions that may be taken against you in case you miss to file your tax on time. 

How to Make Your US Expat Taxes Easier?

We know that living abroad can be both thrilling and exciting. It’s a great opportunity for you to experience new cultures, traditions and expand your horizons.