Expatriate Tax Services

International Tax Services

If you're planning to move abroad or are already an expatriate, you have more to consider than adjusting to a new culture. Every U.S. citizen must file a tax return with the federal government regardless of whether they are living in the U.S.

The tax situation for expatriates is often complicated and frustrating. Many variables affect how much expatriates pay Uncle Sam - from whether you deduct your foreign taxes from your host country to your employment situation. Fortunately, we can help.

U.S. Taxes for Expatriates - Pitfalls and Traps

To ensure a smooth tax-filing process, you must be well informed. Take up residence in a foreign country without exploring the tax ramifications. You may find yourself paying more than you expect to the U.S. government or your home state - as well as penalties and interest.

Some of the essential considerations include:

• Amount of foreign earned income. You can deduct a substantial amount in earned foreign income from your U.S. taxes.
• Your host country. Many countries have tax treaties or conventions with the United States, which will dictate how you file your U.S. taxes.
• Which state have you most recently lived in? Some states do not have income taxes; others make severing ties with that state difficult.
• Rental income and dividends/interest from assets in the U.S. You must pay taxes on these precisely as if you were living in the U.S.
• Whether you are self-employed, you must pay self-employment tax on your income, even if you can exclude it as foreign earned income on your income taxes.
• Your holdings are in a foreign bank account. Any interest in or authority over a foreign financial account over a certain amount must be reported to the U.S. Treasury Department.

Our Expat Tax Services

Although the IRS offers numerous deductions, credits, and exclusions to ex-pats, taking advantage of them is not straightforward.

Some exclusions vary by country, while others can only be claimed for a portion of the year. In addition, each requires supporting forms and worksheets, which can be more than cumbersome to prepare.

For people who are either planning a move or have already settled abroad, we offer the following tax services:

• U.S. Tax Returns - We prepare your U.S. income tax return, including the most common schedules and forms.
• State Tax Returns - You may need to file a state return depending on which state you most recently lived in.
• Small Business Tax Returns - We assist small business owners, self-employed individuals, or folks with significant rental property with their returns.
• Online Filing - When living in a foreign country, sending forms and documents back and forth through the mail is impractical. Our highly secure, fully encrypted Client Portal enables the quick, free, and safe transfer of files between our office and yours.
• Foreign Bank Account Reporting - We file the FBAR form for individuals above a certain threshold in a foreign account.
• Compliance - It's common for ex-pats to fall behind on their taxes. We help you sort through the paperwork, forms, and rules and get you back in compliance with the IRS.
• Consulting - If you're unsure of your need to file federal or state tax returns, call us. We will help you get clear on your situation.

These are the most common ex-pat tax services we offer - but it's not our complete list. Please get in touch with us to discuss your needs if you don't see them reflected here.

ABA Tax Accounting can assist you with all your tax issues, whether headed "outbound" to a foreign country or entering the U.S. economy from abroad. Our International Tax Services include the following:

• Foreign National returns
• Tax equalization
• Foreign Bank and Financial Accounts (FBAR) Reports

International Tax Returns prepared include but are not limited to the following:

• IRS Form 2555

Contact Our Office Today

Ex-pats do not need to pay more than required - or suffer under penalties and interest - just because the process is more confusing. We'd like to help you navigate the tricky waters of U.S. taxes for ex-pats. Give us a call or send us an email today - and use more of your money to enjoy your life abroad!

Please do not hesitate to call us with any other questions or if you need any more help.

Call us for a free consultation at 651-337-0015   or 1-612-282-3200