US tax return

You must file a US tax return, wherever you call home.  If you are considered a US Person or you have an (expired) Green Card you are obliged to file a yearly US tax return detailing your worldwide income. A US tax return consists of a Form 1040 with additional schedules and forms, depending on your financial situation the appropriate schedules and forms will be prepared. Not filing can cause high fines and penalties.

Americans Overseas offers US tax return services for American expats, Americans living and/or working abroad, Accidental Americans, digital nomads, and (expired) Green Card holders. The deadline for filing for Americans abroad is annually around June 15th, with a 4-month extension available to be requested. And another extension can be requested until December 15th if necessary.

Most Americans living abroad who file tax returns with the IRS don’t have to pay any tax, due to tax treaties with the US that prevent double taxation. If there’s no treaty or the tax rate is lower in their country of residence, they may have to pay. An experienced CPA can reduce the amount due to zero in 90% of cases by properly preparing the return, including selecting the right forms such as Form 2555 (Foreign Earned Income Exclusion) and/or Form 1116 (Foreign Tax Credit), and considering differences in passive and active income.

In addition to filing a US tax return, one must also file an FBAR form. Unlike the US tax return, there is never any tax owed on the FBAR, it is simply a reporting to the US Treasury with information about (bank) accounts at financial institutions outside of America. It is important to know that despite there never being any tax owed, the penalties are exorbitantly high if an FBAR is filed incorrectly or not at all.

Are you behind on your American tax returns or have you never filed them? You may be eligible for an amnesty program offered by the IRS. Such a program, for example, the Streamlined Procedure, gives you the opportunity to return to compliance without penalties for not reporting your American taxes.

Don’t just file a Form 1040 and FBAR if you’re behind. It’s best to get proper information and use an amnesty program if you’re eligible. The penalties, particularly on FBAR, are extremely high and can easily be prevented.

Americans Overseas can assist with your U.S. tax return through their network of trustworthy and skilled CPAs who are carefully assessed for quality and cost-effectiveness. We cater to individuals with various financial situations, from straightforward to complex, including those who have multiple businesses in different countries. Our aim is to provide excellent tax returns at reasonable rates.

Contact us, free of charge and without any obligation and find out the best way to deal with your tax question(s). We are at your service.