US Taxes Abroad for Dummies update for tax year 2022 information : taxation Washington, DC


Depending on the type on income you have, you may need to still have to file and pay U.S. taxes. This is the same for estate taxes for U.S. citizens living abroad. Make sure you understand the rules of401 and IRA withdrawals overseasso you avoid hefty penalties.

Net Another New Tax Form For Americans Abroad income tax was introduced as a way to pay for healthcare in the US. The NIIT law came in after most tax treaties were signed and so you can not offset foreign tax credits against the NIIT. However, in 2019, the IRS received only 1,705,656 income tax returns from Americans abroad, those in U.S. territories other than Puerto Rico and U.S. service members abroad.

Foreign assets

If you file on a fiscal year basis , the due date to file your return and pay the tax shown on your return is 3 months and 15 days after the close of your fiscal year. If you are residing or traveling outside the United States or Puerto Rico on May 1, you are not required to file your return until July 1 of the filing year. You must attach a statement to your return certifying that you were outside the United States or Puerto Rico on the date the return was due. In selecting the proper residency status, married couples sometimes find that no one status completely addresses their circumstances. The filing of two returns for the taxable year, using different residency statuses, may be necessary in such cases.

What forms do I need to file taxes abroad?

  • What Tax Forms Expats Need: Start With Form 1040.
  • US Tax Forms for Expats: Form 2555 – Foreign Earned Income Exclusion (FEIE)
  • IRS Forms for Expats: Form 1116 – Foreign Tax Credit (FTC)
  • Form 8938 – Statement of Specified Foreign Assets.

An automatic two-month extension is available by default to U.S. citizens or resident aliens who live outside of the United States . They have two more months to file the tax return, but the federal income tax must be paid on the regular due date of your return, April 18, 2023. 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. You are subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code. No tax credits are allowed for income taxes paid to foreign countries, except on foreign source pension income.

If you want to pass the Bona Fide Residency or Physical Presence Test you need to track your time carefully

If you the requirements and you’re found willfully failing to file an FBAR you can be fined up to the greater of $124,588 or 50% of the total balance in all your overseas accounts. And remember, no matter where in the world you are, we’ve got a tax solution for you—whether you want toDIY your expat taxesorfile with help from an advisor. You will list your bank account information, balances and the income earned from those accounts during the year. Make sure this information matches the amount you have put in Schedule B . The regular due date of your return for the tax year 2022 is April 18, 2023, and the extension will allow you to extend the due date to file your return to June 15th, 2023.

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