An Overview of IRS Form 5471

Men in Business Planning

An Overview of IRS Form 5471 Written by: Josh Katz, CPA In today’s globalized economy, many Americans are involved in business ventures abroad, including ownership or control of foreign corporations. However, with international business activities come complex tax implications and reporting obligations, particularly concerning ownership of foreign entities. One crucial component of this business landscape is […]

Do I Need to Report my Superannuation on my FBAR?

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Do I Need to Report my Superannuation on my FBAR? Written by: Josh Katz, CPA For Americans living in Australia, navigating the complexities of tax obligations can be challenging, particularly when understanding how to report foreign financial accounts such as superannuation funds on the FBAR (Report of Foreign Bank and Financial Accounts). Let’s delve into what […]

WHO NEEDS AN ITIN AND HOW TO GET ONE

Men in Business Planning

Effective January 1, 2013, the IRS has updated procedures that affect the Individual Taxpayer Identification Number (ITIN) application process. TAXPAYER IDENTIFICATION NUMBER An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with the number 9 and has a range […]

Foreign Earned Income Exclusion: Bona Fide Residence Vs Physical Presence Test

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Foreign Earned Income Exclusion Bona Fide Residence Vs. Physical Presence Test Written by: Josh Katz, CPA What is Foreign Earned Income Exclusion? Foreign Earned Income Exclusion (FEIE) is a tax benefit designed to alleviate the double taxation burden faced by US citizens and residents earning income abroad. Double taxation occurs when an individual is subject to […]

Do I have to file a state income tax return if I am living overseas?

Men in Business Planning

If you are a US Citizen or resident alien living abroad not only do you have to ensure you file an income tax return with the IRS each year if you meet the minimum filing requirements, you may have to file a state tax return. Depending on which state you most recently lived in before […]

WHY EXPATS NEED TO FILE A TAX RETURN

Men in Business Planning

If you are a U.S. citizen or resident alien, the rules for filing income and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside. If you are a U.S. citizen or resident alien residing […]

What is a Tax Treaty?

Men in Business Planning

US EXPATTAX TRETAIES Overview The United States has an income tax treaty with a number of foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U.S. income taxes on certain items of income they receive from sources within the United States. These reduced […]

What is a Social Security Totalization Agreement?

Men in Business Planning

Totalization agreements are the bilateral Social Security agreements between the United States and other countries that eliminate dual Social Security taxation of earnings and provide additional benefit protection for employees who divide their careers between the Unites States and other certain other countries. The 25 such countries are Austria, Australia, Belgium, Czech Republic, Canada, Chile, […]

Claiming Social Security Benefits Early

Men in Business Planning

  It is worth exploring what your options are when deciding to claim your social security benefits early to take full advantage of your retirement money. Deciding the retirement age at which you would get the maximum amount can be tricky. Depending on the circumstances, for some people claiming their social security benefits before full […]