How Expats Can Save Money With Online Tax Filing Services
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How Expats Can Save Money With Online Tax Filing Services?? - PowerPoint PPT Presentation

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American citizens living abroad find that they can enjoy the best of both worlds wherever they may be.

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How Expats Can Save Money With Online Tax Filing Services

People looking forward to gain American citizenship get to experience all the joys and

adventures that come from living and working as an expat in foreign or even exotic lands

while also enjoying the benefits of being an American citizen in these countries (most of which

will roll out the red carpet for American citizens!). However, there is only one thing that spoils

the fun-and that is taxes! America is one of the few countries in the world where citizens are

taxed even if they are not residents of the country. This means that no matter what your

income is in the foreign country, you would have to pay taxes in America as well as the taxes

of the country you are staying in. This can really erode your savings. However, there is a way

that expats can save their money to the maximum. That is by taking the help of online tax

filing services.

How do online tax filing services help American citizens save money as expats?

These tax return services are managed by experienced CPAs and professional tax attorneys

who know the IRS and its laws and codes and updates inside out. There are many tax

exclusions and exemptions that you may be eligible for as an expat, which you are not aware

of. Not knowing this result in paying more taxes than you actually have to. This is where tax

return services help you save money by making you aware of all the tax exemptions that

you are eligible for.

What kind of exemptions are expats eligible for?

Expat tax services will give you more up-to-date and in-depth information regarding the

exclusions and exemptions that you may be eligible for, but here are a few to start with:

--> Foreign earned income exclusion: As of 2015, this was for incomes up to $100,800. To

claim this, the expat should have lived outside of the United States for more than 330 days

over a period of 12 months, which are consecutive. What is important to remember is that to

claim this exclusion, you have to file a separate IRS form, called 1040, which expat tax

services will help you with. This exclusion cannot be claimed if the country where the expat is

living in doesn’t have a ruling government currently or if the expat lives on the high seas.

--> Foreign tax credit: This is for expats who have lived for more than six months in a foreign

country and is designed to help save your money by subtracting the lower tax from the higher

tax (between the U.S. and the country you are staying in) which will be then split between the

two countries.

There are several other terms and conditions such as the ones quoted above, which you will

be able to get in more detail from professional CPAs or tax attorneys who work at expat tax

return services. Getting to know this helps save a significant amount of money over the long