IRS Videos For US Internatonal Taxpayers, expatriates and nonresidents

The following videos are now available on the IRS YouTube page for expatriates, US international taxpayers and nonresidents.

International Taxpayers-Introduction to the International Taxpayers Web Page   [Text]
Learn about the International Taxpayers section on IRS.gov and the helpful resources available to you.

International Taxpayers-Individual Taxpayer Identification Number (ITIN)   [Text]
This video helps non-U.S. citizens determine if they need an IRS-issued tax reporting number, known as an ITIN, and how to apply for one.

International Taxpayers-Filing Requirements   [Text]
Learn about the requirements for filing an individual income tax return, including income limits while living abroad.

International Taxpayers-Filing Status If Married to a Nonresident Alien   [Text]
Find out different filing status options if you are married to a nonresident alien.

International Taxpayers-Foreign Earned Income Exclusion   [Text]
Find out who is eligible, what income qualifies and how to claim the exclusion.

International Taxpayers-Foreign Tax Credit   [Text]
Find out if you can claim a foreign tax credit for the foreign tax you paid.

If you need individual assistance on any of these matters go to www.TaxMeLess.com and www.expatattorneycpa.com for attorneys and CPAs with specialized expertise in all of these matters. Email us at ddnelson@gmail.com 

 References/Related Topics

• International Taxpayer

IRS International Tax Topic Index Will Answer Most Expat and International Tax Questions

The International Tax Topic Index is a gateway into IRS Tax Map specifically designed for taxpayers with international filing requirements. IRS Tax Map gathers all information about a topic in one place and contains topics from across the IRS.

You can find international topics using search or the  link below below. Use the search box on the left navigation bar to search all topics in Tax Map including international topics.

LINK TO IRS INTERNATIONAL TAX TOPICS INDEX

If you need further help with any question or assistance contact  our firm Kaufman Nelson LLP for assistance from an Attorney, CPA with over 30 years experience.  Ask for a mini consultation.  Email us at ddnelson@gmail.com 

Great Presentation on US Expatriate Taxes Presented by Don D. Nelson, Attorney, CPA

LINK TO POWER POINT SLIDES ON FBAR FILING AND EXPATRIATE TAX POWERPOINT PRESENTATION http://www.slideshare.net/dondnelson/intercam-presentation-pv-214-9

US Expatriates - Every Resource You Need to Know about filing Taxes When Living Abroad

If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns 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.

When to File

If you are a U.S. citizen or resident alien residing overseas, or are in the military on duty outside the U.S., on the regular due date of your return, you are allowed an automatic 2-month extension to file your return without requesting an extension. For a calendar year return, the automatic 2-month extension is to June 15.  Note that you must pay any tax due by April 15 or interest will be charged starting from April 15.

Where to File

If you are a U.S. citizen or resident alien (including a green card holder) and you live in a foreign country, mail your U.S. tax return to:

Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
USA

Filing Requirements  U.S. Citizens and Resident Aliens Abroad - General InforWmation U.S. Citizens and Resident Aliens Abroad -- Filing Requirements U.S. Citizens and Resident Aliens Abroad -- Extensions of Time to File e-file Filing Prior Year Tax Returns Tax Information for Members of U.S. Armed Forces Tax Information for U.S. Government Civilian Employees Stationed Abroad Taxpayer Identification Number Requirement		U.S. Residency Status Election to Treat Nonresident Spouse as a Resident and File Joint Return Individuals Living or Working in U.S. Possessions U.S. Citizens and Resident Aliens Abroad -- Head of Household
Income Allowances, Differentials, and Other Special Pay Fulbright Grants Hong Kong Scheme 6000 Payments: FAQs Income from Abroad is Taxable U.S. Foreign Service Employees Yearly Average Currency Exchange Rates		Deductions Foreign Earned Income Exclusion Foreign Housing Exclusion Individual Retirement Arrangements and the Foreign Earned Income Exclusion/Deduction Moving Expenses to and from the United States
Credits Foreign Tax Credit Earned Income Tax Credit Rules Education Credits Child and Dependent Care Credit		Other Taxes Expatriation Tax Certification of U.S. Residency for Tax Treaty Purposes Persons Employed Abroad by a U.S. Person Persons Employed by a Foreign Employer Persons Employed by a Foreign Person Persons Employed by a Foreign Government or International Organization Social Security Tax Consequences of Working Abroad Social Security Agreements with Foreign Countries (Totalization Agreements) U.S. Citizens and Resident Aliens Employed Abroad -- Employees Wages Paid to U.S. Citizens and Resident Aliens Employed Abroad
Forms Certain Taxpayers Related to Foreign Corporations Must File Form 5471 Publication 54, Tax Guide for U.S. Citizens and Residents Abroad Publication 519, U.S. Tax Guide for Aliens  When you need more help go to our website at www.TaxMeLess or www.expatattorneycpa.com  We offer a service to review your self prepared return or one prepared by another for correct application of the complex expat and international tax laws. Email ddnelson@gmail.com for more		Resources/Help Frequently Asked Questions (FAQs) About International Individual Tax Matters New Developments in International Taxation

2014 Fast Tax Facts for US Expatriates and Green Card Holders Living and Working Abroad

If you are a US Citizen you must file a US tax return every year unless your taxable income is less than

$20,300 - for a joint return or $ 10,150 - for a single return or married filing separately (these amounts are for 2014 and are lower for earlier tax years) or have self employment-independent contractor net self employment income of more than $ 400 US per year. You are taxable on your worldwide income regardless of whether you filed a tax return in your country of residence. You must file a tax return each year if you income exceeds the amounts stated above even if you owe no tax.

As a US expatriate living and working abroad 4/15, your 2014 tax return is automatically extended until 6/15/15 but any taxes due must be paid by 4/15/15 to avoid penalties and interest. The return can be further extended until 10/15/15 if the proper extension form is filed. An even further extension may be available.

 For 2014 if you are a qualified expatriate you get a foreign earned income exclusion (earnings from wages or self employment) of $99,200, but this exclusion is only available if you file a tax return. You must qualify under one of two tests to take this exclusion: (1) bonafide resident test or (2) physical presence test. You can read more about how to qualify in IRS Publication 54. This exclusion only applies to income taxes and does not apply to US self employment tax (social security plus medicare). You spouse who lives and works abroad with you will also be able to use this exclusion against any earned income they have abroad.

 For 2014 if you qualify for the entire year for the foreign earned income exclusion (form 2555) you will be excluded from having to comply with the health insurance rules (or possible penalties) of Obamacare (ACA).

 If your foreign earnings from wages or self employment exceed the foreign earned income exclusion you can claim a housing expense for the rent, utilities and maintenance you pay if those amounts that exceed a minimum amount of $15,872 (for an entire year) up to a maximum amount which varies by your foreign country of residence.

 You get credits against your US income tax obligation for income taxes paid to a foreign country but you must file a US tax return to claim these credits.

 If you own 10% or more of a Foreign corporation or Foreign partnership (LLC) you must file special IRS forms or incur substantial penalties which can be greater including criminal prosecution if the IRS discovers you have failed to file these forms.

 If you create a foreign trust or are a beneficiary of a foreign trust you may be obligated to file forms 3520 and /or 3520A each year to report those activities or be subject to severe penalties. Foreign foundations and non-profits which indirectly benefit you may be foreign trusts in the eyes of the IRS.

 Your net self employment income in a foreign country (earned as an independent contractor or in your own sole proprietorship) is subject to US self employment tax (medicare and social security) of 15.3% which cannot be reduced or eliminated by the foreign earned income exclusion. The one exception is if you live in one of the very few countries that have a social security agreement with the US and you pay that countries equivalent of social security. Your investment income (passive income) may also be subject to a 3.8% additional medicare tax if you income as a married filing jointly exceeds $250,000 or $200,000 if filing as single.

 Forming the correct type of foreign corporation and making the proper US tax election with the IRS for that corporation may save you significant income taxes and avoid later adverse tax consequences. You need to take investigate this procedure before you actually form that foreign because it can be difficult to make that election later.

 If at any time during the tax year your combined highest balances in your foreign bank and financial accounts (when added together) ever equal or exceed $10,000US you must file a FBAR form 114 with the IRS by June 30th for the prior calendar year or incur a penalty of $10,000 or more including criminal prosecution. This form does not go in with your personal income tax return and can only be filed separately on the web at:

 In the past several years the IRS has hired thousands of new employees to audit, investigate and discover Americans living abroad who have failed to file all necessary tax forms. These audits have begun and will increase significantly in the future. The IRS gets lists of Americans applying or renewing for US passports or entering the country. They will compare these lists with those who are filing US income tax returns and take action against those who do not.

 Often due to foreign tax credits and the the foreign earned income tax expats living abroad who file all past year unfiled tax returns end up owing no or very little US taxes. The IRS has several special programs which will help you catch up if you are in arrears which will reduce or possibly eliminate all potential penalties for failing to file the required foreign asset reporting forms. We can direct you to the best program for your situation, prepare the returns and forms and represent you before the IRS.

 Beginning in 2011 a new law went into effect which requires all US Citizens report all of their world wide financial assets with their personal tax return if in total the value of those assets exceed certain minimum amounts starting at $50,000 . Failure to file that form 8938 on time can result in a penalty of $10,000. The form is complex and has different rules that apply to you if you live abroad or live in the US. This form is required in addition to the FBAR form. 114.

 Certain types of income of foreign corporations are immediately taxable on the US shareholder's personal income tax return. This is called Subpart F income. The rules are complex and if you own a foreign corporation you need to determine if these rules apply to you when you file the required form 5471 for that corporation.

 If you own investments in a foreign corporation or own foreign mutual fund shares you may be required to file the IRS forms for owning part of a Passive Foreign Investment Company (PFIC) or incur additional, taxes and penalties for your failure to do so. A PFIC is any foreign corporation that has more than 75% of its gross income from passive income or 50 percent or more of its assets produce or will produce passive income.

Download your 2014 US tax return questionnaire prepared expressly for Expatriates at www.TaxMeLess.com or www.expatattorneycpa.com Send us your completed questionnaire and we will immediately provide you with a flat fee quote for preparing your return.

Don D. Nelson, US Attorney, CPA, Kauffman Nelson, LLP
Dana Point, California 92629 USAUS Phone: (949) 481-4094, US Fax: (949) 606-9627Email:ddnelson@gmail.com or ustax@hotmail.com Skype: dondnelson

Visit our International Tax Blog for the Latest Expat and International Tax Developments at www.usexpatriate.blogspot.com.

We have been preparing tax returns and assisting US clients located in over 60 countries around the the world for over 35 years. We also assist US Nonresidents meet their US tax obligations and return filing requirements. Email, skype or phone us for immediate assistance. We offer mini consultations (with attorney client privilege) to answer your tax questions and resolve your tax issues.

For additional useful informaton and tax assistance go to www.TaxMeLess.com and www.usexpatattorneycpa.com

Disclaimer and Conditions: The information contained herein is general in nature and is not to be construed or relied on as tax or legal advice with respect to you individual tax situation or questions. Your use of this material does not create any attorney/CPA relationship between you and this firm or any other obligation. You are advised to retain competent tax professionals help with your individual tax matters and for appropriate answers your specific tax questions.