The recent plan to turbocharge Missouri’s economy is not only set to reduce the top personal income tax rate and offer a special non-refundable credit to certain low income earners, but also the tax plan would cut the corporate income tax rate from 6.25% to 4.35%. This change would mean that Missouri has the second-lowest corporate income tax rate in the county among states that impose corporate income tax.
To achieve a revenue neutral tax plan, Governor Eric Grietens has proposed to eliminate certain tax breaks and close certain tax loopholes. These include eliminating the 2% discount that is allowed when vendors file their sales and use tax returns or employers file and pay their withholding taxes in a timely manner.
In addition, all corporate taxpayers would be required to use single-sales factor appointment.
Missouri is one of the very few that states that allow individual taxpayers to deduct federal income paid from state taxable income. Under the Governor’s new tax reform, the 50% corporate tax deduction for federal taxes would be repealed, and the individual deduction would be phased out based on the tax payers income level.
With the income tax rate being slashed by 10%, this reform is likely to eliminate taxes for over 380,000 Missourians.
As a US citizen living and working outside of the US, it is often possible to exclude part- or even all of your foreign income and self-employment income from federal tax through the Foreign Earned Income Exclusion (FEIE).
As an American living abroad, US taxes can be complex. We have had a brief look at some of our US expatriate tax cases to identify common US tax mistakes and make recommendation on how to avoid them.
A deduction/exclusion that is massively under claimed amongst US expatriates is the Foreign Housing Exclusion/deduction. The exclusion/deduction works in conjunction with the Foreign Earned Income Exclusion (FEIE) and is an allowance that includes some of your housing expenses from your gross income on your US tax return.
The allowance is deductible at different thresholds depending on where you live and how many days you have lived outside of the US.
The Foreign Earned Income Exclusion (FEIE) is a deduction that the IRS allows to certain US citizens and resident aliens living and earning income abroad on a consistent basis.
What is foreign earned income?
Foreign earned income is classed as income from either employed or self-employed work. It does not include passive income from investments such as interest, dividends, IRA distributions or rental income.
A few examples that the IRS (taxpayers) have given includes on what doesn’t qualify as foreign income includes:
As an expert in tax for US expats we are expert in identifying US expats tax filing obligations, reliefs, deductions and exclusions. This article is aimed at helping US expats identify whether their income is taxable in a foreign country.
Over the years, we have come across thousands of US expat who are behind on their taxes. This article focuses on US expats who have either missed the June 15th tax deadline over a month ago or perhaps are years behind.
As a US tax accountant based in Covent Garden and New York we make it our business to keep all of our clients informed and up to date on how the latest US tax changes will affect them.
The U.S. has entered into a number of agreements with countries worldwide named ‘Totalization Agreements’. The agreements aim to serve the purpose of avoiding double taxation on income in respects to social security taxes.
As an accountant for US expats, we have come across many self-employed expats that don’t know where their US tax obligations start and finish.
If you are a US Expat entrepreneur thinking of starting a business or going self-employed your expat taxes will be more complex than the average expat. Below is our guide on the tax implications of going self-employed or starting up a business as a US expat.
Adjusted Gross Income. Companies such as Efile operate tax software - an online automatic system allowing easy preparation and filing of your California state tax return. Basic state tax return forms are automatically calculated with the relevant data you provide, and any additional state forms are also listed if completion is necessary. Filing state tax returns in California can be done singularly or alongside federal tax returns.
As an accountant with over 10 years experiences accounting for US Expats and non-resident aliens based in the UK, we are expert in advising about all matters surrounding US tax.
This article is aimed to break down the US tax rates, penalties and interest US Expats and non-resident aliens should be aware of.