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Tag Archive for Expatriate Tax

U.S. Expatriates Object To U.S. Taxes While Living Abroad

Antonio Rodriguez, Expatriate Tax Advisor

A growing proportion of U.S. born expatriates do not feel they should be required to file taxes while they live abroad and about one-fifth of them are considering renouncing their U.S. citizenship, according to a new survey.

The survey, by Greenback Expat Tax Services, a firm that specializes in helping expatriates with their tax issues, noted that 9 million U.S. expats live and work abroad, but since they retain their U.S. citizenship, they also still have federal tax reporting requirements. Greenback polled more than 3,800 U.S. expats between March and May for its survey. It found that 66.8 percent of U.S. expats do not feel they should be required to file U.S. taxes while living abroad. That number has risen 1 percent since a similar survey by Greenback last year.

The tax reform law that Congress passed last December lowered overall tax rates for U.S. individual and business taxpayers but did not aim to provide relief for expat taxpayers, although their rates would also have dropped. But many expats still object to the increased reporting requirements that were ushered in by FATCA, the Foreign Account Tax Compliance Act, which Congress passed as part of the HIRE Act of 2010. That law required foreign financial institutions to report to the IRS on the assets they held from U.S. taxpayers, which led many banks abroad to close the accounts of U.S. expatriates in order to avoid the extra reporting burden.

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Filing Taxes As An American Living In Mexico – US Expatriate Taxes Explained

You are going to be required to file US expat taxes no matter in which country you live, but how will they be affected if you’ve chosen to live in Mexico?  With the familiar language, proximity to the US, warm weather, and beautiful geography, Mexico is one of the most popular destinations for American expatriates.  It is essential to understand how your US tax return will be affected by your move to Mexico, and what US taxes you will be required to pay. On top of your obligation to file and pay US taxes, Mexico has taxes of its own. Read on for the details you need! Read more

Foreign Earned Income Exclusion For U.S. Expatriates

Even if you have left the United States for a brighter future elsewhere, you  (something not as strong) take a moment and think about any obligations you have towards the IRS. The US retains its right to tax globally its citizens and resident aliens who are a citizen or national of a country with which the United States has an income tax treaty in effect. Only two countries have such a citizenship-based taxation system: the United States and Eritrea.

What Is A Foreign Earned Income Exclusion For U.S. Expats?

The Foreign Earned Income Exclusion (FEIE) is offered to US citizens and resident aliens that are living abroad on a consistent basis, have earned income in a foreign country and can prove that they have done so for the past tax year by satisfying either the Physical Presence Test or the Bona Fide Residence. Read more

The Tax Digi-Nomad Series – How To Set Up A Virtual Mail Box

This is Olivier Wagner writing about the life of a Tax Digi-Nomad. As a tax advisor who travels the world with my tax practice, one of the questions that often arise is how to receive mail as I travel from country to country with my tax practice. When I moved to Montreal, I opened a mailbox in Walnut, CA that scans mail for you. In most cases, I just receive the pdf and ask to destroy the original. It works like magic to have your mail scanned daily and emailed to you.

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