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. It is a requirement by law to pay taxes, even if you are working outside the US. If you are an expat and you are wondering how you can do tax returns, this article can be of great help.
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 way to stop paying your US federal taxes is by denouncing your citizenship or residency.
Did you know you might also be required to pay state taxes? If you don’t want to pay state taxes, look for states that don’t have state taxes. An accountant can help you greatly in ensuring you are meeting your tax obligations.
Did you know expats have a special tax deadline? The deadline for filing taxes for expats is June, while for the domestic workers its on April. However, if you have any taxes that you owe the government for the previous year, you will have to pay by April 15th.
If you are an expat and you choose to not file your taxes, you should be ready for the penalties. 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.
For green card and visa holders, filing your taxes when working abroad is very important. The immigration department will see you are of good character if you tax payment record is up to date. Chances of being forced to leave the country, if you don’t pay your taxes are high.
If you don’t know much on how to file taxes for expats, it is advisable you get help from an accountant. The accountant will use their experience that have gained over the years to work on your tax returns. If you file your own taxes, chances of making mistakes are high. 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.