Ex-Pats and International Tax

Workbook

You can run, but you can’t hide! ALL US citizens and Green Card holders are required to file every year and disclose financial assets. Sorry….FYI: That is Joe on the left and Daina on the right.

WORKBOOK: Get Yours

For us to do your taxes, the workbook needs to be filled out and submitted to us. Most of it will probably not apply to you, but we must make sure we are covering all aspects of your U.S. filing requirements. You wouldn’t want the IRS to be chasing you down, would you???? 😀

FBAR – Federal Bank Reporting Get Yours

All non-residents present more than 183 days in the US, US citizens, and Greencard holders with more than 10K in the aggregate outside of the US (including retirement accounts) must complete this form. This even includes accounts that you may only have signatory authority.

International Tax Issues Q&A:

International tax issues are complicated and the literature available for taxpayers is often conflicting. We stay apprised of tax treaties, the special issues, and requirements for US citizens living abroad, and non-residents with US-based income. Read and learn, but we are also available to chat on the phone, or email us with the Contact Us form at the bottom.

Can I take my US return to a tax advisor in the US and my other nation return to a tax advisor there?

Yes, but only if they consider the income in both countries. You cannot file returns in a vacuum reporting only US income to the US and vice versa.

But that’s what all my friends do!

It’s still wrong and they are getting poor advice. You could potentially pay twice the taxes on the same income! How? If one filing was audited (or not filed) and the other was closed due to a lapse of time. It will be too late to make any changes to the other return. – – (An un-filed return has no closing date. If the country where you did not file, or filed incorrectly, assessed tax on one of those years, you will not be able to amend the return you filed with the other country.)

I am claiming a tax home in a country other than the US. Do I have to file a tax return there?

Yes, if you are claiming a tax home in another country, that country has the right to tax worldwide income. You may be entitled to tax credits and exclusions based on your situation. Usually, you will not get double taxed. The tax treaties are in place to account for this.

I am working in one area more than 12 months in the US, can I still receive tax-free housing?

IRS rules limit temporary assignments to less than 12 months in a metropolitan area, consecutively or non-consecutively. Though you may have treaty protection, your temporary status for deductible living expenses may cease. To keep them tax-free you will need to go to another part of the country. The only exception to this rule is a situation where the hospital itself provides housing on their campus – not an offsite apartment.

Can I claim my dependents residing in my home country?

Children belonging to Mexican and Canadian taxpayers can be claimed. They will require an ITIN unless they have a SSN. We can help you obtain an ITIN for your dependents.

How do I get an ITIN for my child or dependent?

An ITIN is not a Social Security Number, it is a tax ID and it is only issued when a tax return requires an ID. ITIN’s can only be obtained by filing a W7 (Application for Taxpayer Identification Number) with a tax return. The return and ITIN application must be mailed with specific documentation of foreign status and identity. The request for an ITIN is processed by a specific IRS campus.

You will either: 1) have to mail ORIGINAL documentation OR 2) take your identifying documents to an IRS office that handles document certification. There is no flexibility in this requirement. It is best to get a copy of the spouse/dependents passport certified by a CONSULATE or EMBASSY of the country that issued the passport to avoid nasty waits and hassle.

Can I be considered a tax resident of two nations?

Yes, though the treaty will decide functional residency for tax purposes.

Getting a big refund in the US is not important

This may sound odd, but the greater the refund, the less tax liability. When filing in your home country, your foreign tax credits are based on your tax liability, not your withholding. It is like a see-saw. Pay less here, pay more there, the total is the same – you will always pay the higher tax of the two nations. Good international tax planning focuses on minimizing your total tax liability, not just the liability in one nation. Sometimes it is a matter of taking exchange rates into account.

Major currency fluctuations can impact the way you approach a return

In 2004 and 2014, the USD/CDN exchange rate moved dramatically. This presented an opportunity. Since tax returns are based on events of the past, one currency may be more desired over another.

Staying in the US less than 183 days each year is not so important.

Days spent in the US is not important so long as the ties to the other country are sufficient to remain a resident of that nation. Tax treaties trump domestic law, so the rules governing tax residence may be based on your treaty claim.

Common mistakes of Puerto Rico-US ax planning and reporting

1) Puerto Rico is considered a foreign country for tax purposes and vice versa. Residency is important!

2) Puerto Rico has its own tax system. Merely filing in the US is not sufficient.

3) A Puerto Rican resident with US income will prorate their standard deduction based on total income in both countries

Common mistakes of UK, Australian and NZ-US tax planning and reporting

These countries do not follow a calendar year tax regime. The income and taxes must be prorated based on when earned. In countries following different calendars, it is usually best to wait until the end of both calendar years have ended before filing.

Contact Us

We love emails. Please send us any questions and if we’re able to answer them via email we will, and if not, we’ll let you know if you need to schedule a tax home or a preparer consult.

Please note: Your inquiry is private. We do NOT share your information, directly solicit, message or “friend” you through social media (unless initiated/requested by you).

We are unable to answer questions related to the use of tax software programs.

If you haven’t heard from us within 48 to 72 hours, please email us directly at info@traveltax.com, or call us at 402-379-7818.

Talk To Us

If you are a current client with questions about contracts, withholding forms, or information regarding a new state you are heading to, feel free to call us! we are here to help. - If you are calling to talk about establishing or maintaining a tax home, you may schedule a tax home consult here.Remember that tax home issues can create a major tax liability if not handled correctly.

Open: Monday to Friday – 8:30 a.m. to 4:30 p.m. EST
(Please note: On Fridays our phones switch over to voicemail at noon, in order for us to prepare for the upcoming week.

Phone: 402.379.7818 Canada: 902.482.8128

Send Us Documents

The most secure way to send us your documents is to utilize this link that will allow you to select your saved files and upload them via our encrypted site.

Documents are processed within 24 hours EXCEPT ANY DOCUMENTS SENT AFTER 2:00 PM EST ON FRIDAYS OR ON THE WEEKEND. Weekend docs will be processed Monday or Tuesday at the latest.

Email: documents@traveltax.com
Mail: 46 St. Mark Rd., Taylors, SC 29687
Fax: 877.872.8829

Pay Your Invoice Online

You will be directed to a separate PayPal portal page to complete the transaction. A PayPal account is not required.

Need to Make a Payment to the IRS?

Taxpayers can make electronic debit or credit card payments through our official IRS payment website, Drake e-Payment center, at 1040paytax.com. Convenience fees for credit cards (1.96%) or debit cards ($2.55) will be applied at the time of payment. Use this link to make your payment.