Individual US Tax Filing

US Expat Tax Requirements

As opposed to most countries in the world, the United States has a citizenship-based taxation system. This means that U.S. citizens are required to report their worldwide income to the IRS regardless of where the income is earned and where the taxpayer lives.

Any US person that is required to file a tax return has to use a 1040 form. The form alone comes in different variations, such as: 1040EZ, 1040A, and 1040. They vary, depending on the complexity of the taxpayer’s income, allowable deductions, tax credits etc. The 1040 is divided into different sections to report the income and deductions to calculate the amount of tax owed or the refund to expect. Depending on the income type, it might be needed to attach other forms and schedules to it.

Filing Deadlines 

  • April 15 – Tax filing deadline for US residents
  • June 15 – Tax filing deadline for overseas residents (including Israel)
  • October 15 – Extended filing deadline for individuals (final for US residents) and the FBAR filing deadline
  • December 15 – 2nd extended filing deadline for individuals living overseas (including Israel)

Minimizing Tax Liability 

In most cases, US citizens abroad do not actually have tax due and there are various options for foreign resident to minimize or avoid taxation, including Foreign Earned Income Exclusion (Form 2555); Foreign Tax Credit (Form 1116); and Treaty-Based Positions (Form 8833).

How We Can Help

Given the unique rules for foreign residents and treatment of foreign income, the requirement to report an annual tax return can become incredibly complicated. We have an experienced team of tax professionals to prepare your tax return in the most efficient way possible while complying with the often-changing IRS rules and regulations.

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