07/05/2018
When campaigning, Donald Trump promised not just to lower taxes, but also to simplify the tax filing process. Last week, the IRS released the draft of a new form 1040 for consultation over the summer, with the final version due to be confirmed in the Autumn. In this article we look at what the changes […]
07/02/2018
All American citizens and green card holders are required to file US taxes, reporting their worldwide income, even if they live abroad. Most expats don’t end up owing any US taxes, as they claim one or more exemptions such as the Foreign Earned Income Exclusion or the Foreign Tax Credit, however they still have to […]
05/28/2018
If you’re an American citizen or green card holder, you’re required to file US taxes wherever in the world you live, reporting your worldwide income. The US is almost the only country in the world that requires all of its citizens to file even if they live abroad. This means that US expats often have […]
03/06/2018
Donald Dewees is an American citizen who has been living in Canada since 1971. He is employed, and he also does some consultancy work, and he is paid for his consultancy work from a corporation he set up (on advice from a Canadian accountant) to improve his tax-efficiency. Because he wasn’t drawing income from the […]
01/11/2018
Americans who live abroad are still required to file a US tax return, reporting their worldwide income. Expats can claim the Foreign Earned Income Exclusion and/or the Foreign Housing Exclusion however, which allow them to pay less (or in many cases no) US tax (although they still have to file a US return to claim […]
12/04/2017
Over the last few years, millions of US expats have been asked by their foreign banks and investment firms to fill out IRS form W-9. Receiving form W-9 often causes surprise or alarm. While there’s no need to panic, there are a number of things that expats should know if they receive form W-9, to […]
11/02/2017
Americans living abroad are still required to file a US tax return, reporting their worldwide income, as well as obey the tax rules in the country where they live. Many US expat have settled abroad permanently though, and they justifiably wonder why they must continue filing a US tax return every year, even if they […]
09/25/2017
Americans living abroad are still subject to US tax filing requirements on their worldwide income. There are also further US filing requirements just for expats, including having to report foreign bank and investment accounts if the expat’s combined balances exceed $10,000 at any time during the year, and reporting foreign financial assets on form 8938. […]
07/17/2017
IRS form 5472 is a US filing requirement that affects some Americans living abroad who own or part-own corporations. Form 5472 must be filed by US-registered corporations that are 25% or more owned by a foreigner, and foreign corporations that trade in the US, that make any ‘reportable transactions’ during the filing period. A ‘reportable […]
05/01/2017
Americans living abroad are still required to file US taxes and declare their worldwide income. They may also have to pay US taxes, regardless whether they are also paying foreign taxes, though most expats claim one or more of the IRS exclusions available to expats that reduce or eliminate their US tax liability. Claiming these […]