Form 8833: Your Key to Unlocking Tax Treaty Benefits
What is Form 8833? Form 8833 is a document that taxpayers must file with the Internal Revenue Service (IRS) if they are claiming a treaty-based return position. A treaty-based return position is when a taxpayer is claiming a tax treaty benefit that overrides the Internal Revenue Code (IRC). Form 8833 is used to disclose the taxpayer’s position and provide the necessary information […]
IRS Letters: The Good, the Bad, and the Ugly
Receiving a letter from the IRS can be a daunting experience, but it’s important to remember that not all letters are bad news. In fact, many letters are simply informational or request additional information as the IRS may need verification in order to process your tax return. Here are some common reasons why the IRS […]
Estimated Tax in the US: What You Need to Know
If you are a freelancer, self-employed, or have income from sources that do not withhold taxes or your withholding is insufficient, you may be required to pay estimated tax to the US government. Here’s what you need to know about estimated tax: What is estimated tax? It is very common for someone working in the […]
Form 8854: Initial and Annual Expatriation Statement
In the past few years, there has been an upsurge in US citizenship renunciations. In a recent Forbes article[i], between 2005 and 2009, less than 2,500 people renounced their citizenship. Between 2010 and 2020, this number went up to 36,840. The reasons behind such renunciations could be political or personal and irrespective of the reasons […]
Selling your home? Any way to save in U.S. taxes?
Planning to sell your main home but concerned about the U.S. tax on the capital gain from the sale of your main home? You may want check if you can utilize the sale of home exclusion before selling your main home. What is the sale of home exclusion? If you are a U.S. citizen or […]
Do I need to file FBAR or Form 8938?
If you have a foreign bank account(s), it is likely you’ll have FBAR and Form 8938 (Statement of Specified Foreign Financial Assets) filing requirement. Below are answers to a few basic questions related to those forms. What is FBAR and 8938? FBAR: The FBAR (Foreign Bank Account Reporting) formerly called the Report of Foreign Bank […]
Happy 10 Year Anniversary – American Pacific Tax
A few pictures from our celebration!
Anything missing or need correction in your Hong Kong tax assessment?
If you have timely filed your Hong Kong individual tax return for the year 20xx/20xx, you should have received/ will receive your Hong Kong tax assessment. Generally, the tax assessment should match with tax returns that you have filed to the Inland Revenue Department (“IRD”) and the employer’s return filed by your employer(s). However, you […]
Should You Claim the Itemized Deduction Instead of Standard Deduction?
This is one of the most common questions that our clients will ask. You should claim itemized deductions if the sum of the itemized deductions is greater than the standard deduction. We have listed 4 of the most common items our clients in Hong Kong have claimed. Medical and Dental Expenses Property Taxes Home Mortgage […]
Holding Over of Hong Kong Provisional Tax
In times of economic difficulties or when cash flow is not consistent, you may apply to the Hong Kong Inland Revenue Department for a deferral of tax payment to help you get through financial difficulties. For example, a large one-time bonus not expected to be receive in the next year. One option is the holding […]