Filing your own expat tax return can be a real challenge, from maximizing your deductions to minimizing your tax liability. Also, it requires a lot of time on top of your already busy work schedule. Are you willing to sacrifice your weekends sorting receipts and crunching numbers? We prepare tax returns year-round to keep up-to-date with the changing tax laws.
U.S. Tax Preparation and Planning
Our expert tax preparers have years of experience to help you comply with IRS tax filing requirements and avoid unnecessary — and often easily avoidable — tax audits or penalties. We are committed to providing high quality income tax return preparation services. We are fast, accurate, and can help you keep more of your hard-earned money.
With our tax planning services, we will perform a thorough review of your situation to identify potential tax saving strategies, provide a detailed document outlining applicable local tax laws for your country of residence, as well as a clear and concise scenario summary that will show you how much you can potential save in taxes.
Tax Equalization and Hypothetical Tax (hypo tax) Simulations for Expats
Tax equalization, a strategy used by employers to balance U.S. and local tax liabilities to avoid a net INCREASE in tax burden for employees working overseas, is one of the most important concerns for Americans moving abroad and a key par of their employment agreement negotiations. Depending on the contract wording, a U.S. expat could end up paying more tax than he/she would if employed back in the U.S., which could mean less take-home pay than his/her non-American colleagues (especially in relatively low tax jurisdictions such as Singapore or Hong Kong). As part of our consulting services, we are able to run simulation analysis for tax obligations crossing multiple jurisdictions in order to calculate hypothetical tax exposure on the U.S. side. The analysis can be delivered in the form of a PDF report, which can then be used for both your own reference and employment agreement discussions.
“Totalization Agreements” refer to agreements the United States government has entered into with other countries in order to avoid (or reduce) double-tax obligations with respect to national pension or social security contributions for expatriate employees. The agreements may also be used to prevent expat employees from “double-dipping” i.e. receiving social security/pension benefits from multiple locations e.g. the U.S. and their country or residency. Our tax consultants will able to review both your U.S. and local social security/pension obligations to ensure full compliance with applicable laws as well as to avoid potential double-payment of contributions.
FBAR (Report of Foreign Bank and Financial Accounts) Form Preparation
U.S. taxpayers with a combined maximum balance of all foreign accounts, including bank, custodian, brokerage accounts, mutual funds, and trusts (extended to cover accounts for which the taxpayer has signature authority but no financial interest) exceeding $10,000 at any time during the tax year are required to file FinCEN Form 114 (previously TD F 90-22.190-22.1) or “FBAR”. As noncompliance can result in severe consequences—including both civil and criminal penalties—it is extremely important to ensure full compliance and accurate reporting. We can assist in preparation of all required forms, as well as overall compliance review for the the recently introduced FATCA legislation.
Foreign Earned Income Tax Exclusion
The foreign earned income exclusion provides US taxpayers living abroad with a certain amount of excluded income (Foreign Income Exclusion, increased each year for inflation) and Foreign Tax Credits to offset your US tax burden. At a practical level, that means that thanks to the foreign earned income exclusion, most US taxpayers living abroad do not have to pay any taxes to the US, although a tax return must still be filed to ensure eligibility of the above.