A small business us tax return is not needed if you are operating as a sole proprietorship. Income can simply be reported as self-employment income on a Schedule C as part of your individual Federal Tax Return. Self-employment income reporting is part of our standard Federal US Tax Return Package at no additional cost.
Included in our Federal Package:
All standard expat forms: Forms 1040, 1116, 2555
All standard schedules: Schedules A, B, C (profit and loss from self-employed business), D, and E (one rental property), up to three Schedule K-1s, and up to 20 bank and brokerage transactions – all included as part of our flat fee!
Greenback always offers…
Expertise. You work directly with a knowledgeable CPA or IRS Enrolled Agent on your Federal Tax Return. Our entire team specializes in expat tax preparation.
Experience. We have clients in 212 countries and territories, so we are very familiar with US expat taxes across the globe.
Security. Your data will always be secure — we use 256-bit encrypted security, which is the same as most banks use.
Simplified tax prep. We make it easy to work with us. We share documents online, communicate via email/Skype/phone and don’t expect you to do all the financial calculations — that’s our job!
Support. Tax assistance, advice and services are available to you year-round, not just at tax time.
Sincerity. Our customers love working with us because we’re easy to work with and explain taxes to you in everyday language, not in tax speak!
Most people don’t need any additional forms beyond those included in our flat fees, but if you need any, we can prepare these at an additional charge. Please see additional services and pricing for more information.
As an American expat, do I need to file a US Federal Tax Return?
Overall, US citizens and Green Card holders are required to file a US Federal Tax Return each year if their income is over the minimum threshold. No matter where you have earned this income, what currency it is earned in, or whether you have also paid taxes in the country in which you reside, you are required to file in the US if your income is above these levels.
The thresholds are currently:
Single with income over $10,300
Married filing jointly with income over $20,600
Married filing separately with income over $4,000
Self-employed individuals need to file if their income is over $400
Note: You may need to file state taxes as well as taxes for your small business operating overseas. Depending on your situation, you may also be required to file additional reports including Form 8938 and the Foreign Bank Account Report (FBAR or FinCEN Form 114) to report assets held overseas.
How do I qualify as an American expat?
The IRS has multiple tools in place to eliminate dual taxation, but you must qualify as an American expat to take advantage of some of them.
In order to qualify as an American expat for the Foreign Earned Income Exclusion, you must meet the following requirements:
You must have foreign earned income.
Your tax home must be in a foreign country.
You must do one of the following:
Pass the Bona Fide Residence Test – A US citizen who is a bona fide resident of foreign country or countries for an uninterrupted period that includes an entire tax year, basically meaning you live abroad with no intention of permanently returning to the USA;
Pass the Physical Presence Test – A US citizen or a US resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months; or
Be a US resident alien who is a citizen or national of a country with which the United States has an income tax treaty with a non-discrimination article in effect.
What is the Foreign Earned Income Exclusion (FEIE)?
The IRS has many tools in place in order to reduce double taxation. One of those tools is the Foreign Earned Income Exclusion (FEIE). If you qualify as an expat, you are able to exclude up to $104,100 of your foreign earned income from US taxation via Form 2555 in 2018. Note that this amount cannot be deducted from any income earned inside the United States. Also, government employees (including military service members) are unlikely to qualify for the Foreign Earned Income Exclusion.
What is the Foreign Tax Credit?
One of the tools the IRS has in place to reduce double taxation is the Foreign Tax Credit. The Foreign Tax Credit provides US citizens – not just expats – with a dollar-for-dollar tax credit on your US taxes for taxes paid to a foreign government.
For example, if you owed the IRS $2,000 in taxes but paid the Hong Kong government $500 in taxes, you could deduct the $500 from the $2,000 owed to the IRS and pay $1,500. This is applied to a US tax return by attaching Form 1116.
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I was really impressed with how easy and painless this process was. I needed to catch up on a few year’s of tax returns, and my accountant was more than helpful. She did a thorough job answering my questions and filling out my return, and I was pleased with the quick turnaround time. I’ll definitely be using this service next year!
Carrie B - United Kingdom
The process is easy and they help you through it right up to paying your taxes. This is important if you don’t have a bank account in the USA. They are completely trustworthy and look after your best interest.
Eric K - France
I am an entrepreneur and my main focus is making my business the best it can be. I had fallen behind on my US taxes and that’s when I engaged Greenback. The process was simple and smooth – I uploaded my tax records, the questionnaire and then my accountant prepared and filed my returns. Now I can stay focused on my business knowing that Greenback will take care of my US taxes!
Dan A - Vietnam
3rd year customer and impressed with the constant check up by customer support. The whole team understands what’s like to live and work overseas, their price remains pretty competitive and I will come back next year.