06/24/2022
Uncle Sam and American expats aren’t exactly the best of friends. Regardless of where they live, American citizens have to declare their worldwide income to the IRS, and many aren’t even aware of this. Yep, you heard that right. That’s because the United States is one of only two countries that applies citizenship-based taxation. And […]
06/10/2022
If you’re an American citizen that lives overseas, then you need to know about IRS Form 1116. It’s the form that helps you claim the Foreign Tax Credit (FTC), which can save you from having to pay taxes both in your new home country and the US. Don’t forget that the US has a citizenship-based […]
06/02/2022
Americans living overseas may not be aware of a key rule: all US expats are required to file a US tax return. If you’re an American expat living abroad, Tax Day, June 15, 2022, is approaching fast. But, if you’re not quite prepared to file your tax return, you have some options. While you can […]
10/21/2021
Many aspects of filing US taxes change drastically when living abroad. However, if you continue to work for an American company abroad as a W-2 employee, one thing will remain consistent: Filing an annual US tax return to report your income. Navigating the realm of expat taxation can be a perplexing journey. For example, even […]
09/09/2021
All Americans have to fulfill the same annual federal US filing requirements, including those living abroad. This includes reporting certain capital gains. A capital gain is the increase of the value of an asset that you realize when that asset is sold. Capital gains (and losses) are reported on Form 1040 Schedule D, however the […]
08/26/2021
This article was updated on March 2, 2023. Giving cash or presents to the important people in your life can feel like a win-win for everyone. But as the old saying goes: No good deed goes unpunished. When it comes to gifting, a generous spirit can create additional tax filing requirements with the IRS. Depending […]
08/02/2021
Doing business in the United States as a non-citizen can be complicated, especially regarding taxes. One form that you may need to fill out is IRS Form 1040-NR, the Nonresident Alien Income Tax Return, which is used by individuals who are not US citizens or tax residents but have certain incomes or other reportable activities. […]
08/02/2021
If you’re a US expat with your own business, you’ll want to read up on Form 8832: Entity Classification Election. With this form, you can choose how the government classifies your business for US federal tax purposes. Understanding the implications of Form 8832 can help you determine the best tax strategy for your business — […]
07/26/2021
Expats are most often adventurous and independent-minded – the same character traits that make great entrepreneurs. So it’s no surprise really that many expats choose to start their own business abroad. The first choices that expats face when starting a foreign company is what legal structure their new foreign entity should have, and where to […]
07/15/2021
US expats who receive income from investments may have to pay an additional US tax called Net Investment Income Tax, or NIIT. The amount of the NIIT is calculated on Form 8960. What is NIIT? NIIT is an additional US income tax applied to whichever is smaller of your net investment income or your Modified Adjusted […]