My Operaexpatriate tax return
Tuesday, March 6, 2012 10:56:37 AM
Important Things about Expatriate Tax Returns
If you are a US resident living abroad, you must file US tax return annually in order to prevent significant penalties and keep your tax status unchanged. No matter in which country you reside, your income is subject to the US taxes. Even if your return is just informational and you have to pay no tax, you have the obligation to file it anyway. You need to have a social security number (SSN) or an individual taxpayer identification number (ITIN) to file your return.Expat Taxes
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What is the time to file?
You will automatically get an extension of 2 months on the due dates if you are residing abroad for any reason. Normally, this extension is till June 15. If you are not able to file your return before this extension, you can get another extension till 15 October by filing relevant forms before the first due date. You should keep in mind that this delay will mean that you will have to pay more in the form of penalties.
Where do you have to send your return?
* You can mail your U.S. tax return to: Department of the Treasury, Internal Revenue Service, Center Austin, TX 73301-0215 USA.
* Your estimated tax payments (enclosing form 1040-ES) can be mailed to: Internal Revenue Service, P.O. Box 1300 Charlotte, NC 28201-1300 USA.
You can use Free File to file your tax return electronically if your Adjusted Gross Income (AFI) is $57,000 or less. If your AGI is greater than $57,000, you can use the Free File Fillable Forms or e-file (short for electronic tax return filing) using any of the available commercial tax preparation programs.
What would be the exchange rate?
Obviously, all the amounts in your return must be expressed in dollars, regardless of the currency used in your country of residence. Generally, the average of the year is used to convert the local currency into dollars. However, if you made the transaction on a specific day, you may use the exchange rate of that day. The yearly average exchange rates can be checked from this links.
Can your foreign earnings be excluded?
If you meet the requirements of the foreign housing exclusion and the foreign housing deduction, then they can be applied. You can exclude a part of the foreign income which is adjusted to inflation each year. For the year 2012, it was $95,100. You do not need to include the value of the meals and lodging if they were provided by the employer.
What is the minimum requirement of time to apply for the exclusion?
To apply to the foreign income exclusion, you must have been physically present in your country of residence for a minimum of 330 full days during the fiscal year. It is not important if you were working or vacationing; both are counted. You will not be considered physically present if you have to leave the country for problems like order from your employer or family problems. However, in cases of civil unrest or war extrapolations can made, provided that you can show that you intended to spend the minimum required days in that country.expatriate tax return
If you are a US resident living abroad, you must file US tax return annually in order to prevent significant penalties and keep your tax status unchanged. No matter in which country you reside, your income is subject to the US taxes. Even if your return is just informational and you have to pay no tax, you have the obligation to file it anyway. You need to have a social security number (SSN) or an individual taxpayer identification number (ITIN) to file your return.Expat Taxes
|||||}What is the time to file?
You will automatically get an extension of 2 months on the due dates if you are residing abroad for any reason. Normally, this extension is till June 15. If you are not able to file your return before this extension, you can get another extension till 15 October by filing relevant forms before the first due date. You should keep in mind that this delay will mean that you will have to pay more in the form of penalties.
Where do you have to send your return?
* You can mail your U.S. tax return to: Department of the Treasury, Internal Revenue Service, Center Austin, TX 73301-0215 USA.
* Your estimated tax payments (enclosing form 1040-ES) can be mailed to: Internal Revenue Service, P.O. Box 1300 Charlotte, NC 28201-1300 USA.
You can use Free File to file your tax return electronically if your Adjusted Gross Income (AFI) is $57,000 or less. If your AGI is greater than $57,000, you can use the Free File Fillable Forms or e-file (short for electronic tax return filing) using any of the available commercial tax preparation programs.
What would be the exchange rate?
Obviously, all the amounts in your return must be expressed in dollars, regardless of the currency used in your country of residence. Generally, the average of the year is used to convert the local currency into dollars. However, if you made the transaction on a specific day, you may use the exchange rate of that day. The yearly average exchange rates can be checked from this links.
Can your foreign earnings be excluded?
If you meet the requirements of the foreign housing exclusion and the foreign housing deduction, then they can be applied. You can exclude a part of the foreign income which is adjusted to inflation each year. For the year 2012, it was $95,100. You do not need to include the value of the meals and lodging if they were provided by the employer.
What is the minimum requirement of time to apply for the exclusion?
To apply to the foreign income exclusion, you must have been physically present in your country of residence for a minimum of 330 full days during the fiscal year. It is not important if you were working or vacationing; both are counted. You will not be considered physically present if you have to leave the country for problems like order from your employer or family problems. However, in cases of civil unrest or war extrapolations can made, provided that you can show that you intended to spend the minimum required days in that country.expatriate tax return
