07/05/2024
When most people think about income taxes, they think of the taxes automatically withheld from their paycheck — or, if they’re self-employed, the quarterly tax estimates they pay. But, what about taxes on unearned income? Unearned income — also known as passive income — refers to the income you don’t actively work for. This can […]
12/17/2024
You may already know that Americans who own rental property in the United States can claim depreciation to reduce their tax liability. What you may not realize, though, is that US expats can also claim depreciation on rental property based abroad. While foreign rental property depreciation has some unique nuances, we’re here to walk you […]
09/11/2024
Serving your country overseas comes with its share of challenges, but one you might not expect is navigating the complex world of US taxes. As a member of the US military deployed abroad — one of thousands of Americans working as military personnel supporting US armed forces in combat zones abroad — you’re still required […]
09/04/2020
American expats have to differentiate between US and foreign source income when they file their US taxes. All Americans, including Americans living abroad, have to file US taxes, due to the fact that the US taxes based on citizenship. American expats also have to report their foreign registered businesses, and financial (i.e. bank and investment) accounts and […]
08/01/2024
Many Americans living abroad get the opportunity to acquire foreign investments at some point in their fiscal journey. While investing in financial vehicles outside of the US can play an important role in diversifying your portfolio and aligning your investment strategy to the economy of your host country, it’s important to understand how foreign holdings […]
10/21/2020
The majority of Americans use tax software to file their US taxes. In the light of this, it’s strange that the IRS has been changing Form 1040 over the last couple of years, as very few people use it. Instead, the majority either employ a tax preparer, who uses software, or input their information into […]
10/21/2020
There are several routes to American citizenship, but the main one is that if you’re born in the US then you automatically become an American citizen. Some people are born in the US to foreign parents who may be there temporarily though, perhaps studying, on a temporary work assignment, or just on holiday. These families […]
09/03/2020
As we approach the end of year holidays, it’s a good time for expats to take stock and do some year-end tax planning. Year-end tax planning for expats falls into two broad categories: minimizing year 2019 taxes, and planning ahead for 2020. Minimizing year 2019 taxes Ensure that you qualify for the Foreign Earned Income […]
09/03/2020
Each year the IRS adjusts tax brackets, the Standard Deduction, and exclusion thresholds for inflation. Last week the IRS announced the new figures for 2020. These will be applied to the year from January 1st to December 31st 2020, the 2020 tax year, for which expats (along with Americans living stateside) will file in 2021. […]
09/03/2020
Following recent news that the IRS wrote to over 10,000 Americans (including expats) whom they believe hold Bitcoin or other virtual or cryptocurrency accounts informing them that they may owe tax, the IRS provided new guidance last week on how to report cryptocurrencies and in what circumstances they may be liable to taxation. Furthermore, the IRS […]