In every 5 Americans that live abroad, 3 of them also work there. Some have been relocated there by their domestic jobs, while others are there to start a business or seek special opportunities. Tax is a common factor for all people working outside the US. It is a requirement by law to pay taxes, even if you are working outside the US. This article is for anyone who needs information on how to file tax returns for expats.
First, you have to file taxes as long as you are a citizen of the US or a green card holder, even if you don’t live there. 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.
Also, state taxes may be a requirement. If you don’t live in any state, you may not be required to pay the state taxes. It is advisable you consult an accountant, so that you can know your tax obligations.
When it comes to filing tax returns expats have special deadline. The reason why expats are giving a special deadline is because filing returns for expats can be completed. There is no extension for expats who have taxes that they owe the government 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. Chronic tax delinquency can lead to additional fees or in worst cases jail term.
As an expat, did you know the country you are living in will need your money too? The Tax Equalization programs don’t help much in ensuring your money does not go to many pockets.
For green card and visa holders, filing your taxes when working abroad is very important. It will be easier for you to acquire citizenship or your residency to be extended, if you have a good tax payment record. You may not get your citizenship status, if you don’t have been defaulting on taxes.
If you don’t know much on how to file taxes for expats, it is advisable you get help from an accountant. The accountants have knowledge in this field, since this is what they do. Also, the taxes are less likely to have any mistakes, if you are using an accountant. The accountant will not charge you much to offer you these services.
In conclusion, the information above can be of great help for anyone who has a problem in filing tax returns for expats.