The Life Of A Tax Advisor In The Israel War Zone Today

Over the weekend, I reached out to a Tax Advisor in Israel to learn what was is happening on the ground there. Here is what this Israel/US Tax Advisor (who we will keep anonymous) communicated in his letter to me. To protect this Tax Advisor, we are providing portions of his communication. If you believe you have had a tough tax season, you will appreciate learning what it is like for a US/Israel Tax Advisor in Jerusalem today!

To protect his identity, we will call him David. If you would like to support David and his family, providing your commentary through this site will get to him. Few Americans realize what it is really like for the people living in Israel today.

For the record, TaxConnections does not support war of any kind. We support world peace. Pray for peace for all people.

Hi Kat,

THANK YOU FOR REACHING OUT!!!!!    As you know, most of the world does NOT care and/or is brain dead.

We had a very scary night. We already received reports that the Iranian attack was due to hit us between 2 to 4:30 AM.

We prepared our war room, a room that newer buildings have that is specially reinforced to offer some protection in case.

Scuds (remember Sadam Hussein who shot scuds at Israel a few years ago!) landed and exploded nearby.  The war room is NOT strong enough to resist a direct hit, however.   We stocked water bottles, lights, airbeds, and face masks and flashlights for emergency use.

Then, at 1:30 or 1:35 AM,  we heard several huge explosions near us. Our building shook and rattled, but we could not see anything outside of our windows.   We live on the 7th floor of an apartment building in southern Jerusalem.  We are surrounded by Arab Muslim villages who have perpetrated many terrorist attacks against us, so we are ALWAYS concerned about another October 7th massacre emanating from these hostile villages.   Talk about close proximity to your enemy who is a couple of blocks away ( 1/4 mile?).

There were 6 -8 rockets, missiles, and/or drone that struck near us and put the real fear of G-d into us…. our poor dog was howling and scared out her mind also…….and the Home Front Command Air Raid Sirens went off for 10-15 minutes.

Then, there were continuous smaller booms and explosions, but we still could not see anything.  We have clear views to the north, to the east into Jordan, and to the south.   We have the privilege to see the Temple Mount, much of Jerusalem, Jordan, and the Dead Sea from our windows and porch.

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Managing Taxes In Singapore: An American Expat’s Guide

Living as a US expatriate in Singapore presents a unique set of challenges, especially when it comes to understanding and navigating the tax system. The country’s tax-friendly environment for corporations, featuring a flat corporate tax rate, makes it particularly attractive for business owners and individuals engaging in business operations.

This guide aims to provide a comprehensive overview of the tax obligations for US expats living in Singapore, helping you to better understand your responsibilities and potentially avoid any tax pitfalls related to rental income, employment income, business profits, and more.


The US has a citizenship-based taxation system which means US expats must file a federal income tax return and report their worldwide income annually once their taxable income exceeds the filing threshold regardless of where they reside.

Singapore’s tax system, on the other hand, is territorial, meaning only income earned within the country is subject to tax. Tax obligations in Singapore are determined by one’s tax residency status. Non-resident individuals are only taxed on income earned within Singapore.

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This interview is part of TaxConnections Tax Intelligence Report Series as we profile our tax professional members. This week we present Olivier Wagner who has written many helpful articles read by tens of thousands of our readers interested in expatriate taxes. Olivier Wagner, Tax Managing Director, 1040 Abroad, Toronto, Canada is highly knowledgeable and educates taxpayers on expatriate tax matters. This interview provides many valuable links to his writing during this special interview. If you are an expatriate taxpayer you will want to read this interview and access these valuable and educational links.

Kat Jennings: Can You Tell Me How You Got Started Doing Expatriate Tax Returns?
Olivier Wagner: Funny story. I always had the “foreign on my mind”, as I dreamt of leaving France. I was working at Moody’s, the credit rating agency in New York when the 2008 hit, while my position was safe, and I wasn’t concerned about losing my job, the work conditions did get noticeably worse.
I started to dream of working for myself and have a location independent business.

In 2011, I moved to Canada, and I was a US citizen at that point. Given my skill set, I figured that preparing tax returns for US citizens who live outside the US was a good fit. In addition, I figure that my clients would be spread out geographically, which would serve me well in having a location independent business.
In the coming months became an Enrolled Agent, I subsequently became a CPA (New Hampshire) and became fully nomadic from 2016-2018. I am based in Toronto, Canada but I still regularly hit the road.

Kat Jennings:Can You Tell Us About The New IRS Program That Enables Former U.S. Citizens To Become Compliant With U.S. Tax Law Without Risking Any Penalties?
Olivier Wagner: Yes, absolutely. By way of background, people were renouncing without having filed the prior 5 years of tax returns which, wither due to ignorance or defiance. It would by itself make them covered expatriate, subject to the exit tax.
The IRS found it somewhat unfair, for people who are no longer US citizen, have not and possibly never regarded themselves as US citizens.
The requirement is that:
– They are not otherwise covered expatriates
– They never filed US tax returns (hence my comment above)

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US Expats Abroad: Understanding Your State Tax Obligations

Moving overseas can be both exciting and challenging, particularly when it comes to understanding state tax obligations as a US expat. This article will clarify what you need to know about state and federal taxes and what to do to avoid them.

US expats’ need to file state tax returns depends on their residency status and income earned, including self-employment income, dividend income, and other forms of income while living abroad. Domicile-based or statutory state residency rules apply. Green card holders may also have to report worldwide income. Some states offer exclusions or tax credits for foreign taxes paid to avoid double taxation.

Establishing non-residency typically exempts expats from filing state tax returns, except for those with income from that state. States without an income tax, such as Florida, Texas, and Nevada, don’t require state tax filings. Moving abroad or returning to the US during the tax year may require expats to file a part-year resident tax return.

Each state has its own set of rules to determine residency for tax purposes. Understanding these distinctions can help you navigate your state tax responsibilities and ensure compliance with relevant laws and regulations.
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A Guide To ITIN Renewal For Taxpayers: How To Avoid Delays

An Individual Taxpayer Identification Number (ITIN) is a unique identification number assigned by the Internal Revenue Service (IRS) to individuals who are required to have a taxpayer identification number but do not have, or are not eligible to obtain, a Social Security Number (SSN). The ITIN is used for tax purposes and is required for certain tax-related transactions. However, ITINs are assigned for a specific period and need to be renewed periodically to maintain their validity.

If an ITIN is not used on a federal tax return at least once in the last three consecutive years, it will expire. Additionally, ITINs that have the middle digits of 78 or 79 will expire at the end of 2021. It’s important to renew the ITIN in a timely manner to avoid any delays or complications when filing taxes or carrying out other tax-related transactions.

This guide will walk you through the renewal application process of your ITIN. From determining if your ITIN needs to be renewed, to gathering the necessary documentation, and submitting the form and federal tax return. By following this guide, you can ensure that your ITIN renewal process is smooth and without any delays.

How to renew your ITIN?
To renew an ITIN (Individual Taxpayer Identification Number), individuals must complete and submit Form W-7 to the Internal Revenue Service (IRS), along with the necessary documentation and a federal income tax return. Here is a step-by-step guide on how to renew an ITIN:

Determine if your ITIN needs to be renewed: An ITIN is valid for a specific period of time. If it has not been used on a tax return for at least three consecutive years, it will expire.

Gather the necessary documentation: Depending on your citizenship and residency status, you may need to provide proof of identity and foreign status. Examples of accepted documents include a passport, birth certificate, or national identification card.
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Are You Entitled To A Tax Refund When You Live Abroad?

We’ve been getting a lot of inquiries about tax refunds for U.S. citizens who live abroad. If you live in the U.S., your refund would be directly deposited to your account. Once you move overseas, receiving a refund becomes more complicated as many U.S. Expats no longer keep their U.S. bank account.

Since the refunds cannot be deposited to a foreign bank account, taxpayers living overseas receive a check instead. However, these can take month to arrive. There are few things you can do to ensure you receive your refund faster.

Receiving A Tax Refund For U.S. Citizens Abroad

Receiving a tax refund is surely the best thing about filing your U.S. Expat Tax Return. You cannot imagine how much joy it brings us to inform our clients they’re now not only compliant, but they are actually due a refund. Many taxpayers are simply not aware of the credits they are eligible for. The additional child tax credit is the most common example of a tax credit U.S. expats don’t know about.

Although many expats receive refunds every year, there are ways to speed up processing of your refund. Most U.S. citizens abroad receive their refund in a mail, often waiting even months for their checks. In this blog post we’ll discuss the ways to ensure your refund isn’t delayed.

Are You Entitled For A Tax Refund When You Live Abroad?

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OLIVIER WAGNER - Foreign Earned Income Exclusion for US Expats

Even if you’ve moved abroad for a brighter future, you still might have obligations towards the IRS. What happens if you earn income from sources outside the United States? If you live abroad, you might qualify for the foreign earned income exclusion (FEIE). This article explains what FEIE is and how it works, and provides some examples of situations where you might benefit from claiming it.

The U.S. retains its right to tax citizens and Green Card holders who live abroad and they must file their taxes even if they’re not physically present in the country. The foreign earned income exclusion (FEIE) allows U.S. taxpayers to exclude from their taxable income certain amounts they earn outside the United States. The FEIE was created in 1954 to relive American Citizens from the burden of double taxation when they move overseas.

What is the Foreign Earned Income Exclusion?

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Expatriates: U.S. Tax Guide And Forms You Need To Know

Generally, if you are a United States citizen or permanent resident (Green Card Holder) living outside the United States for more than one year, you are called an expatriate or “expat.”* Rather than adding to the long list of tax guides that explain the general concepts of expat taxation,** we will focus on the specific requirements to file several US international tax forms, not well known. These are forms not well known, but they carry huge penalties for excluding or screwing up.

We will give you a general understanding of the following United States IRS Tax Forms:

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Tax Law Updates For Americans Overseas In 2022

2021 is ending and 2022 is coming. Post-holiday is tax filing season and Americans living abroad need to file their taxes. Just like Americans living in the United States, federal tax returns are filed every year. However, applying from abroad is more complicated. Below is new information about the taxes collected abroad for 2022 that Americans file with the United States.

Some things stay the same

First, it might be helpful to look back at what’s not new for Americans overseas in 2022.

Americans living abroad must submit US tax documents and report that foreign accounts, assets, and businesses remain unchanged. This year there was hope that President Biden’s tax reform might be accompanied by some kind of exemption for Americans living abroad, but that has not materialized.

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What To Do If The IRS Freezes Your Assets As An Expat

How would you feel if you found your bank account frozen? After all the sweat and the sacrifice, you make after hours of working and putting together all your resources only for the IRS (Internal Revenue Service) to freeze them. Can the IRS freeze your foreign bank account?

When you delay paying your taxes, the IRS can access your bank account, savings, or assets such as a house or a car. They can take your salary before it gets to your pocket. Two, they can place a tax lien on your personal property. Finally, they can freeze your bank account and use the money to pay your tax due. When you move overseas, the IRS does no longer has such power.

However, don’t believe that your money is safe just because it is in an offshore bank account. The IRS can issue a levy to any bank within the US. If you’re an account holder of a foreign bank that has a branch in the US, the IRS can easily issue a levy notice to the US office and empty your account overseas.

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Social Security Tax And Employer Withholding

Must You Pay Social Security and Medicare Tax?

Nonresident aliens who are F-1, J-1, M-1 or Q-1 visa holders are not subject to social security and Medicare taxes (FICA) on services are performed to carry out the purpose for which they are admitted to the United States [IRC sec. 3121(b)(19)]. This generally includes on-campus work for which authorization is granted on Form I-94, Arrival and Departure Record, or Form I-20, Certificate of Eligibility for Nonimmigrant Student Status.

A nonresident alien admitted to the US as a student is not permitted to work off campus for a wage or to engage in business unless given approval by the U.S. Citizenship and Immigration Services (CIS). This should be noted on the student’s copy of Immigration Form I-20, or Form I-688B, Employment Authorization Document.

Off-campus work due to severe economic necessity or for optional practical training is considered by the IRS to qualify for the exemption. The IRS does not consider other off-campus work performed by a nonresident alien student to be performed to carry out the purpose of a student visa.

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US Citizens Living In Canada Will NOT Pay US Tax On $1200 US Cares Act Payment But Likely Will Pay US Tax On Canada’s CERB Payment

Prologue – The Only Certainties Are Death And Taxes

The above tweet references an article in the Globe and Mail on May 7, 2020. The article contains interesting perspectives, but much has changed since that time.

COVID-19 And The Role Of Government Assistance

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