All Blog Posts for income tax

US or Foreign Income? The Ultimate D-I-Y Guide.
- By America's International Tax Experts
- income tax, income, tax compliance
Is it important to know whether your income is attributable to the USA or another country? In fact, the determination of the source of an item of income is a number one priority when it comes to taxation rights, allocation of deductions, and foreign tax credit provisions. As an ease to taxpayers, we have developed this do-it-yourself guide to explain some of the most relevant source of income rules. For simplicity and transparency, we have also presented 14 real-life examples!
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04jan
The 12 Bona Fide Residence Test Factors
- By America's International Tax Experts
- income tax, tax return, resident, expat
US citizens and residents are subject to tax on worldwide income regardless of the location of their permanent home. Expatriates and Americans who are continuously living overseas are still required to file US income tax return and pay any taxes due. Because of the immense burden on taxpayers, Section 911 of the Tax Code was enacted to heave a sigh of relief. The current language of the statute has its roots back to 1942 when Congress considered it necessary to encourage, promote and stimulate international trade, by providing foreign earned income exclusion. The exclusion is capped at $100,800 for 2015 and $101,300 for 2016 tax year. Foreign earned income is defined as income derived from or attributable to services performed in a foreign country. But what is the definition of a foreign country?
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28jan
Foreign Bank Account Reports. Doing them right!
- By America's International Tax Experts
- income tax, tax compliance, tax advice, expat, FBAR
The last several years marked a tremendous increase in the number of Foreign Bank Account Reports filed with the Treasury Department's Financial Crimes Enforcement Network. In fact, the IRS has announced that the number of Forms 114 (Former TD.F. 90.22-1 or FBAR) filed in 2015 topped at over 1.1 million! This record number shows an upsurge in awareness of the foreign financial account reporting requirements and a trend towards voluntary compliance. Still, many taxpayers experience practical difficulties in complying with the FBAR regulations. So, what it takes to do it right?
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10jan
Tax Guide for Americans & Expats Living in the United Kingdom
- By Hristo Ivanov, CPA, EA, ADIT
- resident, self-employed, tax compliance, tax advice, expat
This tax guide aims to supplement and enhance your understanding of the UK income tax laws by providing current insights and practical information. In addition, we have also stressed on valuable tax planning opportunities and tax treaty provisions available to United States citizens, permanent residents, and expatriates residing in the UK.
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28jun
Fraud & Tax Numbers. The IRS revokes ITINs not used on a return.
- By America's International Tax Experts
- resident, nonresident, tax compliance, ITIN
The Individual Taxpayer Identification Number (ITIN) is a nine-digit number that is used to identify certain individual taxpayers within the tax system. The ITIN is assigned directly by the IRS to eligible nonresident and resident taxpayers who do not have and do not qualify for a Social Security Number. The first ITIN was issued back in 1996 when the IRS replaced the temporary Internal Revenue Service Number (IRSN) with the ITIN as a mean to address accurate identification of international taxpayers with tax return filing or reporting requirements. Until recently, the number was personal and valid for life. Well, not anymore!
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31aug
Tax Guide for Americans & Expats in the Netherlands
- By America's International Tax Experts
- income tax, tax advice, expat
This brief tax guide aims to supplement and enhance your understanding of the Dutch tax system by providing current insights and practical information. We have also stressed the importance of on-time tax planning and treaty provisions available solely to Americans expatriates residing in the Netherlands.
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17nov
Trump on Taxes! The Outcome of the Elections.
- By America's International Tax Experts
- income tax, income, tax deductions
The President promised a massive “across-the-board reduction of taxes for working and middle-income Americans.” The Trump Plan proposes to revamp and simplify the tax code with the expectation to boost the economy, create jobs and reduce the tax burden on taxpayers. We have highlighted some of the most relevant changes that affect the average American family.
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09nov
2017 Federal Tax Update. Part 1 – Individuals
- By America's International Tax Experts
- income tax, tax deductions, tax tips
The Internal Revenue Service has recently released Rev. Proc. 2016-55 which is setting forth the cost-of-living adjustments in effect for 2017 tax year. We have compiled the most common individual income tax provisions and contrasted them to the 2016 limits enumerated in Rev. Proc. 2015-53.
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25nov
Tax Guide for American Expats in Germany
- By America's International Tax Experts
- income tax, tax return, expat
This brief tax guide aims to supplement and enhance your understanding of the German income tax system by providing current insights and practical information. We covered the most important rules that expats should consider when it comes to residency, income and tax withholding. In addition, we have also stressed the importance of tax planning and treaty provisions available solely to American citizens and residents living in Germany.
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01feb
Tax Guide for American Expats in Ireland
- By America's International Tax Experts
- income tax, tax advice, expat
This tax guide aims to enhance your understanding of the Irish income tax system by providing current insights and practical information. We covered the most important rules that expats should consider when it comes to residency, income, taxes, and withholding. We have also highlighted some tax planning and treaty provisions available solely to American citizens and residents living in Ireland.
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17jul
Tax Guide for American Expats in the Philippines
- By America's International Tax Experts
- income tax, tax tips, expat
This tax guide aims to supplement and enhance your understanding of the Philippine income tax system by providing current insights and practical information. We covered the core rules expats should consider when it comes to residency, income and tax withholding. We have also stressed the importance of on-time tax planning for American expats in the Philippines.
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25aug
Form 5472 Now Required for a Foreign-Owned U.S. LLC
- By America's International Tax Experts
- income tax, nonresident, tax compliance
On December 13, 2016, final regulations were issued under Sections 6038A and 7701. The new rules treat a U.S. disregarded entity, wholly owned by a foreign person, as a “U.S. corporation” solely for the report on Form 5472 “Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business.”
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08jan