WHO NEEDS AN ITIN AND HOW TO GET ONE
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 VS PHYSICAL PRESENCE TEST
People who live and work outside the United States may be able to exclude all or part of their foreign-source wages and self-employment income from the federal income tax through a provision called the foreign earned income exclusion. To qualify for the foreign earned income exclusion, a person needs to: •Work and reside outside the […]
Do I have to file a state income tax return if I am living overseas?
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
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 […]
When do you need to file Form 5471
If a US Citizen own 10% or more of a foreign corporation (a corporation organized outside of the USA) you are obligated to filed Form 5471 each year with your personal tax return (or your business corporation or LLC tax return if that is the owner of the foreign corporation). ( see following paragraph ) […]
What is a Tax Treaty?
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?
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, […]
Countries with the Highest Tax Rates
Claiming Social Security Benefits Early
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 […]
Countries with the Lowest Tax Rates [Infographic]
