How to Do Tax Returns for People Working Abroad.
In every 5 Americans that live abroad, 3 of them also work there. There are several reasons why people are making money outside the US, such as relocation by their domestic jobs, to start a business and seeking special opportunities. Tax is a common factor for all people working outside the US. Whether you are a domestic or international worker, you have to pay taxes to the US government. This article is for anyone who needs information on how to file tax returns for expats.
The law requires all green card holders and US citizens to pay taxes, even if they don’t leave in the country. You will need to pay taxes, if you can access all the benefits from the United State government. the only alternative to not paying the federal taxes is by giving up your US citizenship or residency.
Did you know you might also be required to pay state taxes? If you don’t live in any state, you may not be required to pay the state taxes. The easiest way to know your tax obligations is by getting consulting an accountant.
The government has set aside special deadlines for expats to file their tax returns. The deadline for filing taxes for expats is June, while for the domestic workers its on April. This does not apply to anyone who has unpaid taxes from the previous year.
Also, there are penalties for international workers who choose not to file their taxes. If there is money that you owe the IRS and you don’t pay, it will start accruing interest. Some of the consequences of chronic tax delinquency are additional fees, wage garnishment and even jail time.
In addition, the country you are living will also want your money. There are several tax collectors for Expats, even with the Tax Equalization programs.
If you are a visa or green card holder, keeping up with your taxes when working abroad is important. It will be easier for you to acquire citizenship or your residency to be extended, if you have a good tax payment record. If you have been defaulting on paying taxes and you don’t have citizenship status, you may be forced to leave the country.
It is important you look for an accountant that deals with expats taxes, to help you in the whole process of filing your taxes. The accountant will use their experience that have gained over the years to work on your tax returns. Your tax returns will not have any mistakes, if you are dealing with a professional accountant. The accountant will charge you a nominal fee to offer you their services.
In conclusion, the information above can be of great help for anyone who has a problem in filing tax returns for expats.