Tax Consulting for U.S. Persons Living Abroad (Expats)
Many U.S. citizens or resident aliens have, for various reasons, decided to live outside of the U.S. If you are one of these individuals, remember that the U.S. taxes you on your worldwide income, and requires that you disclose certain foreign financial accounts and assets.
If you are an US expat, you likely have many questions such as:
- How will my foreign wages and investments be taxed?
- How do I qualify for the foreign earned income exclusion?
- How does the foreign tax credit work?
- What tax treaties may be of benefit to me?
- How is my Social Security impacted?
In addition, you probably have questions regarding what a foreign financial account or asset is. Some are easy to identify, like bank accounts and brokerage accounts, but what about the ones that are more difficult? Is an insurance policy a foreign financial account or asset? Sometimes. Is a security deposit on your rented apartment a foreign financial account or asset? Most likely. This leads to other questions, such as how joint accounts are handled if you are an American living abroad (US expat) and married to a foreigner.
There are also the issues of housing deductions or exclusions, currency conversions, and exchange rates. These considerations are only the tip of the iceberg. The Report of Foreign Bank and Financial Accounts (FBAR) and Foreign Account Tax Compliance Act (FATCA) are very confusing and not something most people want to figure out on their own because the penalties for getting it wrong are severe.
Esquire Group will analyze your specific situation, explain your options in easy to understand language, get you in compliance, and help minimize any penalties attached to your non-compliance.