How the IRS Treats International Taxpayers and Returns

How the IRS Treats International Taxpayers and Returns

https://ift.tt/38evniS The proper tax reporting of international and foreign income is rather onerous. Be aware that the stakes are much higher and the returns can become much more difficult if you have a foreign bank account, a foreign corporation, a foreign pension and even a foreign life insurance policy. Frequently Asked Questions About International Taxpayers and Returns If I am a U.S. citizen living outside the U.S., do I need to file a U.S. tax return? Yes. Your worldwide income is subject to U.S. tax, so you will need to file a tax return. Note that there are likely to be various exclusions and deductions you can apply that may reduce the tax you owe. If I pay tax overseas, do I still have to file a U.S. return? Yes. You will need to file a U.S. return unless you revoke your residency status in the U.S. or your U.S. citizenship. When do I need to file a U.S. return? If you are outside the U.S. and Puerto Rico, you will typically need to file your return no later than June 15 in the year following the tax year you’re filing for. You can request an extension to delay filing until December 15. Note that tax underpayment penalties and interest will accrue from June 15. Do I need to file additional forms in addition to my U.S. individual income tax return? In some circumstances, you may be required to file additional forms. These can include: If you have foreign assets worth over a certain amount, you may have obligations under FBAR or FATCA reporting rules. If you run a business outside the U.S., you may need to file additional forms like Form 5471. If you are claiming certain foreign exclusions or deductions, you will need to file the relevant forms. There are some other circumstances where additional reporting and forms may be required. If I am not a U.S. citizen or resident, and I live outside the U.S., do I still need to file a return or pay U.S. taxes? If you’re a nonresident alien, you may need to file a return and pay taxes if you have any income sourced from the U.S. https://youtu.be/6PZxrk9KNNc IRS Medic