How to qualify for the Physical Presence Test to use Foreign Earned Income Exclusion

How to qualify for the Physical Presence Test to use Foreign Earned Income Exclusion
U.S. expats can claim the Foreign Earned Income Exclusion to reduce taxable income. There are few requirements such as you should have foreign earned income, your tax home must be in a foreign country, and one must qualify for one of the two tests, either Bona Fide Residence or the Physical Presence Test. Last week we ...

What is a Bona fide residence test for U.S. expats? 1

What is a Bona fide residence test for U.S. expats?
As a U.S. expat, you probably heard about Foreign Earned Income Exclusion, which allows you to exclude up to $101,300 for 2016 tax year from your taxable income. But in order to qualify for such exclusion, you need to meet requirements for either Bona Fide or Physical Presence Test. We gathered few facts about Bona ...

Foreign Earned Income Exclusion vs. Foreign Tax Credit: which one is better? 2

Foreign Earned Income Exclusion vs. Foreign Tax Credit: which one is better?
We are often asked if it’s better to use Foreign Earned Income Exclusion or Foreign Tax Credit when it comes to US expat taxes. Yet you always need to remember that each case is different and while you personally may benefit from using FEIE, then your fellow expat may have better outcome utilizing FTC. Today ...

Tax penalties for US expats: failure-to-pay and failure-to-file

Tax penalties for US expats: failure-to-pay and failure-to-file
Do you know the penalties for US expats for being non-compliant? You may have been confused with complicated U.S. tax laws and we have gathered few facts you need to know about failure-to-pay and failure-to-file penalties. Check them out now and do not hesitate to contact us for your customized tax solution.

What US expats need to know about Streamlined Procedures

What US expats need to know about Streamlined Procedures
Many U.S. expats do not know that they have to file their tax returns while living abroad. The IRS introduced few amnesty programs and one of them is called “Streamlined Procedures”. In today’s infographics we cover all necessary facts that you need to know about becoming tax compliant using this program. Educated yourself in easy ...

FATCA for U.S. expats

FATCA for U.S. expats
Since the introduction of FATCA in 2010, it’s been a game-changing law for all U.S. persons abroad. Find out what FATCA is about, why you need to file it and what happens if you fail to do so in our weekly infographics. For 5 years our tax experts have helped U.S. expats with FATCA reporting and ...

10 Facts about FBAR

10 Facts about FBAR
Many U.S. expat forget or get confused about FBAR requirement. But it’s important to understand that failure to file the FBAR will lead to penalties and attention of the IRS. We have gathered 10 important facts, which you need to know about FBAR reporting. Our expat tax specialists have helped hundreds of expats to file ...

Why is it important to file your tax returns?

Why is it important to file your tax returns?
Taxes can be intimidating not only for newbies, but also for pros. It is crucial to understand why you need to file your tax returns and stay compliant. If you don’t know where to start, then take a look at this infographic, which team of 1040Abroad prepared for you. We explain why it is essential to ...

What does US expat need to know about Child tax credit?

What does US expat need to know about Child tax credit?
The IRS offers some relief and deductions for taxpayers. One of them is Child tax credits, which can save you as much as $1,000 per child, if you meet all requirements. We have gathered all necessary information, which you need to know about Child tax credit in this infographic. You can contact me at owagner@1040abroad.com if ...

Self-employment tax for U.S. citizens abroad

Self-employment tax for U.S. citizens abroad
Americans who work for themselves must pay their own version of Social Security called ” the Self-Employment Tax”. This tax applies no matter where in the world the work was performed. We have put together few facts in infographic below to show what this tax is about and which circumstances allow you to avoid paying ...