2021 Charitable Contribution Deduction
According to the IRS, a special write-off for cash contributions is provided for 2021 tax year for taxpayers who give to charity. This special deduction is offered to anyone even if they take the standard deduction and do not itemize deductions. For Non-itemizers: What are the maximum limits for deduction? Single/ Married Filing Separately/ Head […]
Tax Updates and Reminders – June 2021
Tuesday June 15th (not Wednesday as we accidentally indicated in a prior email) is the extended due date for many U.S. taxpayers to file their 2020 taxes. It is also the 2021 2nd quarter estimated tax payment deadline (if necessary). Good job if you have already filed your 2020 U.S. Taxes! 2021 ESTIMATED TAX PAYMENTS If you need to pay […]
President Biden’s New Tax Proposals
With the beginning of the new Democratic administration of Joe Biden in January 2021, one can expect legislative changes which are consistent with the political and economic agenda of any new administration. With respect to tax law, there is oftentimes modifications of existing tax laws, as well as enactment of new laws for the purpose of fulfilling campaign […]
2020 U.S. Tax Updates – American Pacific Tax
Great job if you have already filed your 2020 U.S. Individual Tax Return! If you have not filed, the IRS announced in March 2021 that the 2020 federal individual income tax filing due date is automatically extended from April 15, 2021, to May 17, 2021.* If you are a U.S. citizen or resident alien residing overseas, you […]
My Hong Kong bank is asking me for a W-8 or a W-9 for my personal account? Which one should I use?
The Foreign Account Tax Compliance Act (“FATCA”) is a 2010 US law requiring foreign financial institutions (FFIs) to review data for their account holders and identify all their US account holders or be subject to withholding on certain payments. FORM W-8 These foreign financial institutions would request W-8 series forms to identify and document their […]
Year-End Tax Planning – 2020 U.S. Tax Updates from American Pacific Tax
Happy holidays! We just celebrated our 8 year anniversary this month and have been continuously looking for the best ways to help our clients, even in these challenging times! As we wrap up 2020, year-end tax planning has never been more crucial. This year brought challenges and disruptions that significantly impacted your personal and financial […]
Foreign Tax Credit for Individuals
In Hong Kong many of our clients commonly claim the foreign tax credit benefit while living abroad. The foreign tax credit prevents the dreaded double taxation by allowing taxpayers a dollar for dollar tax credit for foreign taxes paid. For many taxpayers, claiming a tax credit is more beneficial than claiming a tax deduction. However, […]
Own a foreign corporation? What type of tax filing is required?
Who files Form 5471? Any U.S. citizen, U.S. resident alien, corporation, partnership, trust, or estate who has at least 10% ownership in a foreign corporation, will likely be required to file Form 5471. The tax code explains that any “U.S. person” who meets certain requirements relating to ownership or control of the foreign corporation would […]
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2019 extended tax deadline & 2020 Economic Impact Payments. Details here:
DEADLINES AND PAYMENTS: In the end of March 2020, the IRS announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. The IRS has also said Taxpayers can defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and […]