FATCA (Foreign Account Tax Compliance Act) is a US law introduced in March 2010. FATCA focuses on additional information reporting by US taxpayers about certain financial accounts and offshore assets. In addition, financial regulators, governments and banks are also affected. In foreign countries around the world, foreign institutions such as banks are required to report [...]
With the 2014 tax season underway, find US tax resources here: 2014 Tax Season Resources.
Do you have questions about the recent tax changes? We have provided some updates that could affect you. Please contact us today if you would like to schedule a consultation. Does the New Surtax Apply to You? As of January 1, 2013, there is a 3.8% net investment income tax on some categories [...]
One important benefit for US taxpayers living abroad is the foreign tax credit. The foreign tax credit prevents the dreaded double taxation by allowing taxpayers a dollar for dollar tax credit for foreign taxes paid. For most taxpayers, claiming a tax credit is more beneficial than claiming a tax deduction. The foreign tax credit is [...]
If you are a U.S. citizen or a U.S. resident alien living in a foreign country, you are subject to the same U.S. income tax laws that apply to citizens and resident aliens living in the United States. One potential benefit for U.S. taxpayers living abroad is the foreign earned income exclusion and housing exclusion [...]
Good organization and recordkeeping is very important when tax deadlines approach in April (June for those living overseas). Good recordkeeping will help you with the following: – Prepare accurate income tax returns – Ensures you will provide all necessary information to you CPA – Keep track of valuable deductible expenses – Give you peace of [...]
Most US taxpayers (citizens and resident aliens or greencard holders) living and working in Hong Kong or overseas are required to file US taxes if they meet certain minimum income levels. For tax year 2017, if you file as single, then you must file a tax return if your gross income is $10,400 USD or [...]
The IRS has recently implemented some changes with the American Taxpayer Relief Act of 2012 that may affect taxpayers working and living in Hong Kong and abroad beginning in 2013. Some of these changes are: 2013 tax rates up to 39.6% for income over $400,000 single and $450,000 married filing jointly 2013 AGI above $250,000 [...]
Update: For tax year 2013, Form TDF 90-22.1 has been replaced with by the new Form FinCEN 114 and is required to be filed electronically. The US government has required US citizens and green card holders to file Form TDF 90-22.1 Report of Foreign Bank and Financial Accounts (FBAR) to disclose account balances of [...]
Earnings thresholds US citizens living abroad can exclude up to $95,100 of foreign earned income for the 2012 tax year if certain requirements are met. Be careful as earned income does not include rental income, dividends, interest, capital gains etc. because they are not earned income and will be subject to taxation. This exclusion is [...]