Tax for Expats for US Citizens

April 8th 2019

Getting your taxes right as a US citizen is not only important, but crucial to settling into your new life in your new country.

  1. Even if you reside in a new country, or perhaps have citizenship to a new country, you still have to file a US tax return until you renounce your US citizenship. These forms are the 2555 and the 1116 forms.
  2. If you are resident outside of the US for more than 330 days out of every 365 days, you will be protected by a ‘double tax treaty’ which may require you not to pay some taxes to the US government.
  3. Every US state has its own rules and regulations over tax. For example, Virginia, New Mexico, South Carolina and New Mexico don’t have state taxes and so tax will not be collected from you should you move abroad. In other states, taxes are payable as long as you have any ties with that state, such as a mortgage or bank account.
  4. Mid-April is when US citizens need to file their taxes, usually 15 April. This date is extended to 15 June for Expats to consider a mis-match in timescales or processing times between the two countries involved. It is also possible to have this extended until 15 October if requested prior to 15 April.
  5. All income generated in the US will be taxed as though you were resident in the US, as you were before. All income generated on foreign soil will be taxed as per the regulations above which includes a large tax-free sum of exclusion and double treaty terms.
  6. All foreign bank accounts have to be disclosed as long as combined they amount to more than 10,000 US dollars at some point that financial year.
  7. Most importantly, don’t forget to forward your mail and change your address on as many things as possible, opting for digital versions or e-mail when offered, so that you don’t miss any important documents, or even cheques in the post.

Find us on Skype by searching for Chepyng Global to discuss your case.

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