If you are a US citizen or resident alien (green card holder), your worldwide income generally is subject to US income tax, regardless of where you are living. Thus, expatriates, who have earned more than about $10,000 in a given tax year, must file a US Federal Income Tax Return, and may also require to file state taxes, depending on which State last lived in. We provide comprehensive tax preparation service including Federal tax reuturn, State tax return, Late tax retrun filing, FBAR, FATCA forc US citizen residing abroad
1. Federal Tax Return Preparation
The rules for filing income are generally the same whether you are in the United States or abroad. However, there are slight differences and additional requirements that frustrate many expat tax payers. Expatriates must be aware of the deadlines for their US tax return. US filing deadline and the due date for the taxpayment is April 15th and US expats receive automatic 2months extension to file their taxes.
2. State Tax Return Preparation
An expat may be required to file a state tax return, depending on which State last lived in. It varies by state and the rules are different for each state, but generally speaking, if the state you reside withhold the state tax, you need to file a state tax return at the state you reside. We are experts in state taxes for US expats, and we can help you file a state return if you need to, or prove that you are no longer resident and required to file if you don't.
3. Foreign Bank Account Reporting (FBAR)
If you have a financial interest in foreign financial accounts that in total exceed $10,000 during any given tax year, you must comply with the Foreign Bank Account Reporting. The FBAR form (also known as FinCEN Form 114) must be filed electronically to the US Treasury Department (not IRS) by April 15th. Please note that the filing deadline has been changed to April 15th from June30th starting 2016, and automatic extension is available until June 15th for expatsor October 15th for expats who has filed another extension. The US Department of the Treasury can impose significant amount of penalties if you have failed to file FBAR.
Under Foreign Account Tax Compliance Act, expats, who own total value of specified foreign financial assets more than $200,000 at the end of the tax year or more than $300,000 at any time during the tax year, must attach Form 8938 to the annual income tax return (Form 1040). Please remember that the reporting requirement for Form 8938 is separate from the reporting requirement for the FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). Expats may have to comply with both filing requirements depending on their financial situation, and separate penalties may be imposed for failure to each form.
5. Late Tax Return Filing
If you are an expat and failed to file a tax return in years, please do not panic and contact Hansong. The IRS recognizes that there are many expatriates who have not timely filed their US income tax returns or Foreign Bank Account Reporting (FBAR) form, and offers Streamlined Filing Compliance Procedures designed to bring non-compliant taxpayers back into the tax filing system without facing penalties or potential scrutiny.