US Expats living and working in a foreign country tend to open bank accounts to effectively manage their finances. If they are living there for a longer time period, they mayalso decide to invest in a foreign pension plan or insurance policy. However, there’s a catch to that, as US Expats must dedicate considerable time […]
If you are a US expat living in a foreign country, the US law requires you to file your US tax returns on the income that you earn abroad. Generally, US expats are allowed to benefit from the same tax deductions that they could have benefited from, if they resided in the US only. However, […]
FATCA stands for The Foreign Account Tax Compliance Act. This is relatively recent act that has been introduced by IRS for the US citizens residing in foreign countries. This act requires all the expats to declare the market value of the assets owned by them in the foreign country while filing the income tax return. […]
All US citizens whether residing in the country or in some alien nation need to file U.S. income tax as per the rules of US government. The rules for filing income tax do not differ much in case you are an expat. Any income you have in the whole wide world is subject to US […]
Normally if you are a US citizen working in a foreign country then you need to pay US tax on the foreign earned income. When in the US, your employer withholds the income tax from your salary. However, in your current country of your residence if the employer does not withhold the income tax or […]
While US Tax laws make it mandatory for US citizens living abroad to file income tax returns under US IRS, they also provide few deductions from the income which can help reduce your taxable income. One such deduction allowed under IRS Publication 521 is Moving Expenses Deduction. Under this provision, a US citizen is entitled […]
An FBAR needs to be filed if you are an expat having a foreign account holding more than $10,000. It is a mandatory filing. Eligibility: You need to file FBAR if you are a US citizen or resident alien and if: You have a bank account holding $10000 dollars or more of money or assets […]
Tax home is the basic area where you are involved for work, duty or business. Your actual personal home need not be in your tax home. Tax home is a place where you are indefinitely involved in work. In case of work that involves a lot of travel, the place where you live mostly is […]
When you are an American citizen but residing in a foreign country there are certain deductions that you can make from your income when filing US income tax return. However, any amount that has been claimed as a part of the exclusion like foreign housing expense cannot be claimed as a deduction. Even any item […]
The income threshold that is tax free when you are an expat, in 2014, is $99,200. This exclusion is only on earned income. Other sources of income like capital gains, rent, interests , dividends and similar ones ,not requiring personal efforts, do not count as ‘earned’ and hence cannot be included in the tax-free limit […]
