Are Americans Abroad Legally Required to Still Pay into the US Social Security System? (#1)

Are Americans Abroad Legally Required to Still Pay into the US Social Security System? (#1)
And this week’s question comes from a digital nomad Chiang Mai, and the question is: Do I have to contribute to Social Security? The Social Security Totalization Agreement US citizens living in countries which adhere to the Social Security Totalization Agreement only have to pay into the Social Security system of one country. If you ...

How to Stop Being a US Resident and Taxpayer

How to Stop Being a US Resident and Taxpayer

Are You Tax Non-Compliant? You Might Not Be in as Much Trouble as You Think

Are You Tax Non-Compliant? You Might Not Be in as Much Trouble as You Think

Understand Form 5471 and Controlled Foreign Corporations (CFC)

Understand Form 5471 and Controlled Foreign Corporations (CFC)
Greetings, This week’s question comes from a doctor in Canada who as asking about the implications of his corporate structure. Based on the advice of his Canadian accountant, he created a Canadian corporation known as a ‘Canadian-Controlled Private Corporation’ (CCPC) through which he operates his medical practice. More… Taking a Stroll Down Memory Lane Once ...

FBAR & FATCA Information

New rules on financial reporting from the FACTA will affect U.S. expats. FBAR apply to all U.S. tax payers with a foreign account amounting over $10,000. If you’re an expat who hasn’t been filing returns and FBARs, this could affect you. Find out what the rules are, and how they may impact your taxes. For ...

Foreign Earned Income Exclusion

If you’re an expat, you might be able to exclude foreign earned income from U.S. tax up to $100,800 in 2014. This exclusion is available only for earned income and doesn’t apply to passive income. Passive income includes interest, dividends, and rent. The exclusion usually requires you to have lived abroad for at least a ...

Streamlined Program Will Expire!

Streamlined Program Will Expire!
The updated Streamlined Program that was revised in June 2014 is a simplified method of allowing delinquent U.S. taxpayers to become tax compliant. If certain conditions are met, tax and information return penalties could be waived. Refer to my article on the website and the IRS site for additional information on the program. On December ...

IRS increases de minimis safe harbor

IRS increases de minimis safe harbor
On November 24, 2015, the IRS issued notice 2015-82, increasing from $ 500 to $ 2,500 the amount which can be expensed for tangible property for taxpayers without audited financial statement. According to regulations, a taxpayer can deduct/expense the cost of the tangible personal property, if they meet certain requirements of the project. This notice is effective for fiscal years ...

The IRS announces the beginning of the 2016 tax season

The IRS announces the beginning of the 2016 tax season
The IRS has announced the start date for the 2016 tax season. And surprise! There is no delay. Tax season for both paper and electronic returns will be on Tuesday, January 19th, 2016 which is one day earlier than last year start date (January 20, 2015). Even better? There’s no tiered opening season. All taxpayers can ...

2015 Tax Provisions for Individuals: A Review

From tax credits and educational expenses to the AMT, many of the tax changes affecting individuals for 2015 were related to the signing of the American Taxpayer Relief Act (ATRA) in 2012–tax provisions that were modified, made permanent, or extended. With that in mind, here’s what individuals and families need to know about tax provisions ...