US Expats are unique when it comes to taxes. There are a number of unique expenses, deductions and reliefs that are available to US Expats. We specialise in providing a tailored US Tax service that focuses on minimising tax owed and maximising on the US tax incentives and reliefs available.
Saving US Expats money for over 10 years
Citizen based Taxation (CBT)
Under the current House proposal the Worldwide Taxation system of the individuals residing abroad would not change. Therefore the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) remain intact.
A potential increase in tax for taxpayers with children in low-tax or no-tax countries has been suggested. Despite doubling the standard deductions, this group of taxpayers will be negatively affected by elimination of personal exemptions.
Increased credit from $1,000 to $1,600 per child does not compensate loss of personal exemptions. For qualifying households, child tax credit of $1,000 per child was available in addition to personal exemptions. The increased credit per child of $1,600 now replaces the personal exemption of $4,050 but this credit is only available to those who qualify.
Mortgage interest deductions for second homes, unreimbursed employee expenses, medical expenses, state and local tax payments, and loss and casualty deduction. Upon curtailing of itemized deductions the double standard deductions will be a better option for the majority of taxpayers.