It’s in the early morning and the sunlight gently breaks your sleep. You wake up refreshed, open your window, and take in the view overlooking the bay of San Juan del Sur from your modest 3-bedroom home in Nicaragua. Or, picture this, you’re shopping for a head of broccoli, ten large bananas, eight carrots, six large tomatoes, five avocados, and a huge, delicious pineapple, which all totals to less than $5 within the abundance of produce markets of Ecuador. How about daily explorations of the Caribbean coastline, Mesoamerican reef, or Mayan archaeological ruins from the towns of Belize?
No matter how far you reside from the U.S. continental border or how many westernized habits you drop, you can always count on taxes to be there through thick and thin.
A bit snarky, we know. Let’s continue.
FACT: June 15 is the deadline for Americans living abroad to file for their taxes.
By law, Americans living abroad, along with many non-U.S. citizens living within the country, must file a U.S. income tax return.
“I guess Uncle Sam is always around.”
It’s not all that bad, my friend. There are even key tax benefits like the Foreign Earned Income Exclusion, which is only available to those who file a U.S. return. To find out if you’re even an affected taxpayer or how these rules may apply to you, check out the following IRS resources:
Just A Few Reminders.
It’s required by federal law that U.S. citizens and non-U.S. residents report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. If you remember, Part III of Schedule B
inquires about the existence of foreign accounts, such as bank and securities accounts. Usually, U.S. citizens are required to report the country each account is located.
Certain taxpayers may also have to complete and attach to their return a Form 8938, Statement of Foreign Financial Assets, to report specified foreign financial assets if the aggregate value of those assets exceeds certain thresholds.
Under the Foreign Account Tax Compliance Act (FATCA) certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on Form 8938.
For more information, you can always find it at IRS.gov. Simply comply with U.S. tax obligations and, before you know it, you’re back to enjoying the international life among the…
*cues music* “Fancy cars / The people and the caviar / No matter where you are / You pay your taxes from all over the world.” *cues off music*
Snarky again, we know.
You can receive more information or assistance about e-filing our available tax return forms by contacting our live professionals at our Rock Hill, South Carolina, headquarters. We are available by phone (704-839-2270, Monday through Friday from 9am to 6pm, Eastern Standard Time), email (email@example.com), or live chat (www.expresstaxfilings.com).