03/09/2020
The US – Korea tax treaty was signed in 1976, and ratified in 1979. The purpose of the treaty is to prevent double taxation for Americans living in Korea and Koreans living in the US, however it doesn’t prevent US citizens living in Korea from having to file US taxes. US taxes for expats in Korea The US […]
03/05/2020
American expats are required to file a US tax return, reporting their global income, even if they file foreign taxes too. When they file, expats can claim either the Foreign Earned Income Exclusion, or the Foreign Tax Credit, to reduce their US income tax bill, most often to zero. The Foreign Tax Credit lets expats […]
03/02/2020
The proliferation of high speed internet globally has inspired tens of thousands of Americans to choose to work remotely from abroad. Digital Nomads get to explore the world without the financial downside taking time out of their career. Many work as self-employed freelancers, or have established their own business, while others remain employed by a US […]
02/27/2020
The question is simple, the answer less so. As so often with tax questions, the devil is in the detail. The US introduced a citizenship based tax system during the Civil War, and it’s never been repealed. This means that the US taxes based on citizenship, so all US citizens have to pay US taxes […]
02/24/2020
Of the over 9 million Americans living overseas, many still aren’t aware that they have to file US taxes, despite living abroad, and reporting their worldwide income. The IRS has several amnesty programs available for these expats, depending on their circumstances. Two of the most important of these are the Voluntary Disclosure Practice, and the […]
02/20/2020
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 they input their information […]
02/17/2020
One of President Trump’s central election pledges in 2016 was to cut taxes. The result was the signing into law in 2017 of the Tax Cuts and Jobs Act, more often referred to as the Trump Tax Reform. The Act didn’t just cut income and corporate taxes though, it also created some new ones, notably […]
02/13/2020
Americans who move abroad have to continue filing US taxes on their global income. This is because the US taxes all US citizens (and green card holders), wherever they live – including abroad. Most other countries only tax their residents on their worldwide income, or only tax income arising within the country, regardless where the […]
02/10/2020
There are an estimated nine million Americans living overseas, and all of them who earn over $12,200 (in 2019, globally), or just $400 of self-employment income, are required to file a US federal tax return. When they file, expats have to file additional IRS forms to reduce their US tax bill, such as Form 2555 […]
02/06/2020
The US tax system is different compared to other countries, as it requires expats to file US taxes from abroad, reporting their worldwide income, even if they file foreign taxes too. Expats often also have additional reporting requirements that Americans living in the states don’t, such as the requirement to report their foreign bank and […]