Top Tax Tips For Expats Abroad

Source: www.expatfocus.com

Mitigate tax

“No matter where expats decide to work or retire, they still have tax obligations but there are ways to mitigate these.”

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http://www.expatfocus.com/



Tips and ideas that every expat can learn from:

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“Find a specialist. It seems like such a simple recommendation but many people decide to go it alone when it comes to filing income tax returns. In doing so, they may miss ways of saving money. Most tax specialists should be able to save their clients more than they get paid.”

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Tip #1




Tip #2


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“Understand the rules. Again, this is another simple recommendation but many people do not bother to read the rules when it comes to filing a tax return. Spending a few moments understanding what is needed and what needs to be filed could pay dividends.

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Tip #3“Remember your deductions. For US expats in particular, they can deduct various expenses and costs from the federal tax form and this also extends to other expats from other countries.”

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Tip #4“State taxes should not be forgotten. American citizens are still liable to pay state taxes and these should not be forgotten when filing a tax return. Some states do not impose a tax on expats as they appreciate they are not receiving services they are paying for.“

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Tip #5

“Is it worth being a US citizen? There's a growing trend for US expats to give up their citizenship with many more considering whether it's worthwhile to retain their US citizenship. US expats also should know that giving up their citizenship is an irreversible decision.”

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Tip #6

“Claim your Foreign Earned Income Exclusion. One of the main reasons expats head overseas for work purposes is to boost their income and save up a substantial sum.“





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Tip #7“Never forget. Apparently, there are millions of Americans who do not realise the need to file a US tax return and many are years behind. It's never too late for a US taxpayer to catch up and it is an issue that should not be ignored once the taxpayer realises they are behind.“

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Tip #8“Always file. It's crucial that US expats file their tax returns on time and while the dates changed in 2016, the filing dates in 2017 will be similar to those in previous years. There's also a process that makes it easy to access for a taxpayer to delay filing but they need to request permission to do so.”





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Tip #9“Do not overpay. Many Americans err on the side of caution and pay more tax than they owe while working and living overseas. For instance, they should know that if their employer is a foreign company then they don't have to pay US social security taxes.“

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Tip #10

“Pay your tax. It's important that US expats pay their tax bill on time and there are now many ways for them to do so including by electronic funds transfer, cash and credit cards.”




Inform your tax authority

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“Expats from some countries may have to inform their tax authority - for instance in the UK that would be HM Revenue and Customs - that they are moving abroad for work purposes.”

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Tax arrangements“It's also important that expats understand and appreciate the tax arrangements in the country where they are living and working since these will vary between countries and rules will differ.”

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ThankYou

Top Tax Tips For Expats Abroad

Economy & Finance

Transcript of Top Tax Tips For Expats Abroad