Tax Return Preparation for Americans Working Abroad
Many Americans who are working overseas forget or simply neglect to file their income tax returns. Even if all of your income is derived from foreign sources, you are still required by law to file a tax return in the United States. Additionally, if you have foreign bank or financial accounts that exceed $10,000 at any point during the year, you are required to report that to the US Treasury. Failure to file taxes or report foreign bank accounts can lead to severe penalties. It is important to take care of these responsibilities no matter where in the world you live.
There is a Foreign Earned Income Tax exclusion in place, which means that if your foreign income is less than $95,100 for 2012 or $97,600 for 2013, you will not owe US taxes on up to those amounts if you meet certain requirements. For many expatriates, this means you will not owe any taxes at all. So why do you need to file a tax return? Aside from it being required by US law, you could also be missing out on money owed to you by the IRS. Depending on your situation, you may still be eligible for refundable credits, which are only given to you if you claim them through your tax return.
The standard due date for individual income taxes is April 15. If you are living overseas, you are granted an automatic extension until June 15. It is also possible to apply for an additional extension to October 15. Regardless of whether you extend your tax return or not, if you owe taxes to the IRS, payment is due on April 15.
Lucky Leong has over 35 years of experience in income tax preparation for both individuals and businesses, with clients around the globe. Let us help you get your tax situation under control, to avoid penalties for not filing, and to claim refunds you may be entitled to. If you can scan us your salary statements and other relevant information, we can complete your returns without the hassle of sending paperwork back and forth through international mail. Our rates are reasonable, and in most cases we can electronically file your taxes with the IRS directly from our office.
Income taxes can be confusing and frustrating, and having a more complicated situation like working overseas can make it even more complicated. As tax professionals, we can help get your tax returns prepared conveniently, quickly, and most important of all, correctly.
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Contact us today for a consultation and fee estimate. It’s never too late to get yourself in order tax-wise.
Additional information can be found on the IRS website: