Everyday we are contacted by a US Expat that had no prior awareness of their tax-filing obligations. Realising that you have US tax filing obligations is often a very stressful and overwhelming moment.
This article is aimed to break down some of the basic tax matters around income as a US Expat.
If you have any questions after reading this article or would like support in getting up to date on your US Tax filing obligations, contact us.
Expat Income Related Documents
One of the first steps to take when addressing your US tax filing obligation sis to gather all of your Income Tax-Related documents, this will be helpful in identifying your tax liability.
Your Income Tax Related documents include:
This can be found on your payslip
Annual interest, dividends and capital gains.
A summary of all income and expenses from any rental income.
This can include annual income, balance sheet, purchase or disposition of fixed assets, or office-in-home information.
This includes documents such as retirement income, gambling winnings and alimony.
Appropriate tax deductions and credits
There are number of tax deductions and credits that can be claimed to reduce any tax owed on your federal and state tax return. Below are some of the documents that will help towards a claim:
Foreign housing expenses
Real estate and personal property tax records
Loan or mortgage interest statements
Health insurance and medical expenses summary
Charitable contribution summary
Foreign Bank Account Status
Another step you must take is gathering a summary of your Foreign Bank Accounts, these should be reported on your FBAR. Record the following to ensure and accurate return:
Name and address of financial institutions:
Highest account balance
Balance at the end of the tax year
Other records that should be reported include:
Foreign mutual funds
For more information on the documents you should consider and report on your federal, state tax return and FBAR contact us.