Foreign Pension Plan Contributions – When are they Taxable under US Tax Laws

If you are a US Expatriate employed by a foreign employe you are allowed to make contributions to a foreign pension plan. These foreign pension plans usually have advantageous tax treatment under local tax laws. Regrettably, these foreign pension plans normally don’t meet the “qualification rules” of America. Consequently, the advantageous treatment under local laws are not made available to … [Read more...]

Report of Foreign Bank and Financial Accounts

You need to file this report with the US Department of Treasury if you meet certain conditions. These include: having a financial interest in, having authority to sign for or any other kind of authority over financial account(s) in foreign countries.  Your account must also be valued at over $10,000. If you meet any of these conditions you need to file this report. Our professional … [Read more...]

Using Itemized Deductions on United States Expatriate Taxes

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Using Standard or Itemized Deductions To file expatriate taxes in the United States, you will use the standard deduction or itemized deductions as a way to decrease the amount of your income that is taxable. Each year, the IRS adjusts the amount of the standard deduction for each filing status. If you believe that your itemized deductions are greater than the standard deduction amount, you should … [Read more...]

United States Expatriate Taxes – Form 1116 (Foreign Tax Credit)

Most foreign countries collect taxes from foreign residents just the same as they do with national residents. The Foreign Tax Credit allows United States residents and citizens living abroad to claim any taxes paid to a foreign country on their United States expat taxes. This credit is claimed on Form 1116 and it needs to be submitted along with the usual tax return, Form 1040. The Foreign Tax … [Read more...]