Way to Do Tax Returns for Expats.
In every 5 Americans that live abroad, 3 of them also work there. There are several reasons why people are making money outside the US, such as relocation by their domestic jobs, to start a business and seeking special opportunities. Tax is a common factor for all people working outside the US. Whether you are a domestic or international worker, you have to pay taxes to the US government. Below are some useful tips on how to do taxes return for expats.
The law requires all green card holders and US citizens to pay taxes, even if they don’t leave in the country. As long as you can access the United States and take advantage of the benefits that come with being a legal citizen of the United States, you have to pay taxes. You will need to give up your US citizenship, if you don’t want to pay the taxes.
Did you know you might also be required to pay state taxes? You may end up paying taxes, if you live in a state on part time basis. The easiest way to know your tax obligations is by getting consulting an accountant.
The government has set aside special deadlines for expats to file their tax returns. The reason why expats are giving a special deadline is because filing returns for expats can be completed. This does not apply to anyone who has unpaid taxes from the previous year.
Did you know there are expats who choose not to file their taxes? Everytime you don’t file your taxes, there is an interest you will be charged. Some of the consequences of chronic tax delinquency are additional fees, wage garnishment and even jail time.
In addition, the country you are living will also want your money. There are several tax collectors for Expats, even with the Tax Equalization programs.
For green card and visa holders, filing your taxes when working abroad is very important. Chances of your residency been extended or acquiring citizenship status are high, if the USA immigration department see you have a good tax payment record. If you have been defaulting on paying taxes and you don’t have citizenship status, you may be forced to leave the country.
It is important you look for an accountant that deals with expats taxes, to help you in the whole process of filing your taxes. The accountants from their knowledge they will help you in filing the tax returns. Also, the taxes are less likely to have any mistakes, if you are using an accountant. The accountant will charge you a nominal fee to offer you their services.
In conclusion, the information above can be of great help for anyone who has a problem in filing tax returns for expats.