There are many Americans who live and work outside of the United States. If you are an expatriate, and get your income in part or wholly from a foreign corporation, you may be wondering what your United State tax responsibility is. There isn’t an American expat guide that you can purchase at Barnes & Noble, but there are accountants and tax professionals who can guide you through the complex world of your expat income tax.
An expat tax consultant can tell you exactly what you need to do to make sure you are in compliance for expat IRS taxes. For instance, did you know that you may qualify for the Foreign Earned Income Tax exclusion? This exclusion allows for the first $91,400 of your income earned overseas to be excluded from income tax in the United States. If you weren’t aware of this exclusion you could have paid double the tax that you needed to. An expat CPA can help guide you through all of these types of benefits, as well as your obligations.
An expat accountant is different to a regular tax professional because they specialize in foreign tax laws. They know which countries we have tax treaties with, and which ones we do not. They know what you have to do if you still have a permanent residence in the states and what your state might require. If you still own your home and managed to rent it, an expat CPA can tell you what you have to report in regards to that rental income. Essentially, a specialized expat accountant can help you fully plan your expatriate income tax so you can be confident of avoiding any penalties or fines that you might incur if you try to manage your taxes on your own.
Another thing to consider about an expatriate accountant is that many accountants have audit protection. This is a service they provide so you know they are making sure that everything that needs to be reported is reported. Your Aunt Sally can’t offer that kind of protection when she does your taxes with online software. Unless you are a CPA yourself, you probably don’t have the confidence of audit protection in yourself when you file your expatriate income tax.
The purpose of hiring a professional is to give yourself confidence when you file your taxes. An expat CPA can make sure you are receiving the maximum benefit from working overseas. They can make sure you’re not paying too much tax, or too little tax. They make sure that you are protected should you ever get audited. You should enjoy the time you spend in a foreign country and not worry whether the IRS is going to come after you. Let the professionals take care of you, so you can relax.
An expat tax consultant can tell you exactly what you need to do to make sure you are in compliance for expat IRS taxes. For instance, did you know that you may qualify for the Foreign Earned Income Tax exclusion? This exclusion allows for the first $91,400 of your income earned overseas to be excluded from income tax in the United States. If you weren’t aware of this exclusion you could have paid double the tax that you needed to. An expat CPA can help guide you through all of these types of benefits, as well as your obligations.
An expat accountant is different to a regular tax professional because they specialize in foreign tax laws. They know which countries we have tax treaties with, and which ones we do not. They know what you have to do if you still have a permanent residence in the states and what your state might require. If you still own your home and managed to rent it, an expat CPA can tell you what you have to report in regards to that rental income. Essentially, a specialized expat accountant can help you fully plan your expatriate income tax so you can be confident of avoiding any penalties or fines that you might incur if you try to manage your taxes on your own.
Another thing to consider about an expatriate accountant is that many accountants have audit protection. This is a service they provide so you know they are making sure that everything that needs to be reported is reported. Your Aunt Sally can’t offer that kind of protection when she does your taxes with online software. Unless you are a CPA yourself, you probably don’t have the confidence of audit protection in yourself when you file your expatriate income tax.
The purpose of hiring a professional is to give yourself confidence when you file your taxes. An expat CPA can make sure you are receiving the maximum benefit from working overseas. They can make sure you’re not paying too much tax, or too little tax. They make sure that you are protected should you ever get audited. You should enjoy the time you spend in a foreign country and not worry whether the IRS is going to come after you. Let the professionals take care of you, so you can relax.