The US is one of the few countries that impose tax based on citizenship and not residency, so that means that citizens will pay income tax regardless of where they live. Many US citizens faced with US taxation and reporting requirement have considered or are planning to renounce US citizenship. The renunciation process has many…
Foreigners who are interested in investing in US property will certainly have some tax ramifications arise. Plus, there are rules as to how to purchase, operate, and sell US real property. Find out what you need to know before investing in US property. Investing in US Property? Get to Know FIRPTA The Foreign Investment Real…
Every year, we ask expats to weigh in on key aspects of life abroad. This year, over 4,000 US citizens living in 125 countries shared their opinions on US taxes, voting, the Coronavirus pandemic, and more. What did we find out? Following the unique events of 2020, expats are ready to make their voices heard….
If you plan on working abroad as an independent contractor, you will be subject to self-employment tax on your freelance income just as you would if you were self-employed in the US. To make sure you don’t overpay, read our guide on how to avoid self-employment tax while working abroad. What Is US Self-Employment Tax?…
If, like many expats, you’ve considered filing with the streamlined procedures on your own, you might want to read our list of reasons why you may want to reconsider. Unless, of course, you’re an accountant who specializes in expat taxes; in that case, you have our blessing. So You’re Late Filing Expat Taxes. Don’t Worry—You’re…
More and more people are accepting opportunities to work overseas. People working in the field of education as grade school teachers or college professors are often presented with a fantastic opportunity to teach abroad. Depending on the employer and location of the services, this transition could result in some unexpected tax consequences. The impact could…
So, maybe you’ve heard of the Streamlined Filing Procedures for Americans living abroad who need to report their foreign financial assets and accounts to the IRS. But did you know that Americans residing stateside also have to report these foreign accounts? They do. Luckily, there’s an IRS amnesty program for them, too. It’s called the…
Your employer has given you an opportunity to work overseas—an assignment that will provide immense career growth. You are excited and ready to adapt to the new environment; however, proper planning concerning state taxes prior to moving will help in saving significant taxes, penalties, and interest down the road. States can continue to assess income…
Does the IRS Care If You Are a Dual Citizen? The Short Answer Is: No! The US is one of the only countries in the world that utilizes a citizenship-based tax system rather than a territorial one. The only other one is Eritrea. What this means is that the IRS taxes citizens—including dual citizens—wherever they…
How a country’s taxation system works makes all the difference in the world—something that many expats, and certainly accidental Americans, are well acquainted with. It determines who is taxed, on what, and sometimes, how much. Learn about the tax implications for residency-based taxation and citizenship-based taxation for expats. What Is Residency-Based Taxation? With residency-based taxation,…
