How is May treating you all so far? Are you sorting out all the papers and receipts to file your annual US expat taxes? If you haven’t started yet, hurry up. This year’s US expat deadline to file your federal tax return is June 15th and it is just around the corner!
What Are The Most Common Tax Mistakes By Americans Overseas?
Wednesday is a day of our weekly tax infographic and today we want to share the top 5 tax mistakes by Americans living abroad. You might be surprised to learn what your fellow US expats don’t do or do wrong when it comes to fulfilling US tax obligations:
- Not filing US expat tax return (yes, you gotta send “a love letter” aka annual federal tax return to the IRS every year you earn more than $10,000 or $400 if you are self-employed);
- Failing to file FBAR (have you got $10,000 or more in those foreign bank accounts of yours? Report them on FinCEN Form 114);
- Misunderstanding nuances of self-employment tax (we have a great article here for self-employed and digital nomad Americans);
- Not reporting stock sales (what is a long-term capital gain anyway?);
- Claiming dependent who isn’t a dependent (for Child tax credit).
Have a question? Contact Olivier Wagner.
Your comments are always welcome!