Business & Finance Taxes

Expatriate Tax Filing Requirements Tips

If you are a citizen of U.S. and posses a green card then you need to continue to file U.S .federal income tax returns, even if you are not a resident of U.S. and have no source of U.S. income .The regular due date has been extended and special tax breaks are available to many expats. The time has been extended so that it becomes easy to qualify for foreign earned income exclusion on forum 2555.State tax returns may not be due at all Moving outside the U.S. does not exempt you from tax filling obligation.

If you are green card holder and earn more than certain minimum then you must file for individual tax services. For 2012, you need to file if your gross income is more than $9350 if you are single and $ 18,700 for married filling joint. There are different amounts applicable at different situation .It is important to file a return in order to claim the foreign earned income exclusion; expatriate tax services or any other credit.

Filing for tax does not mean that we are under the debt of tax .As an expatriate you can qualify foreign earned income exclusion on forum 2555of $91,500 including the housing amount. The exclusion of this also provide you with the opportunity to earn money outside U.S. without paying any U.S. tax .secondly if you have paid foreign income taxes , you  can claim for foreign  tax credit up to the part of your U.S. tax

Federal tax returns are due only for those people who are not the resident of U.S. The due date is June 15. To get an extra time you just need to undergo a simple procedure you just need to show your foreign address on the return .automatically the date of filling a simple forum 4868 will be extended till October 15.The maximum time to qualify for the foreign earned income exclusion granted by IRS is February 15 under form 2350.

There are different addresses for an expatriateto file for return. If no payment is due you can simply file or mail or delivery services with IRS, Austin, TX 73301-0215 USA. If your payment is due you need to file mail or delivery with IRS, P.O.Box1303, Charlotte, NC 28201- 1303, USA .You can also file through the nearest U.S. Embassy or consulate, but one problem which normally occurs is if the personnel there do not know how to do it.

You can prepare your own return on paper forms by mail or by electronically filling with computer software like H&R Block Tax Cut or Turbo Tax. Also if your total income is less than $58,000, you can file it free with IRS site. Paper and electronic forms are available from the above IRS site. In case if you need any help with your return you can contact a professional who will e-file your returns with e file you will be able to know your return was accepted by the IRS for processing within a day or two. Another advantage of e-filing with direct tax return is that you can refund any tax in less than 10 days.

IF you move outside U.S. and cease resident in your old state then as a non resident there is no need for you to file a return until you earn money that state .your income includes salary , business income or interest in a partnership or S corporation with operation in the state .but if you return back to same country within five years then  New York and few other states try to claim for the returns .renting out your old home will likely increase a state income tax filing requirement  . State filing requirement may vary. You need check your state's income tax website or ask your own tax return preparer. Don't forget to check your tax benefits that can eliminate your U.S. income tax .Always try   to file your return on time.

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