Things To Know When Filing Taxes Abroad
Filing taxes is a necessary but confusing process. It can be time-consuming and tax laws can seem very complicated. There are a lot of rules and processes that need to be followed to ensure you can have a tax-efficient year. Complications can further compound if you move abroad.
Filing Taxes as an American Expat
Whether you are based locally in America or you decide to move away as an expat, you are still subject to tax laws that may require you to pay state income taxes. Unlike most other places in the world, Americans are required to pay U.S. income taxes while abroad. American expats can benefit greatly from keeping their tax affairs in order through tax experts.
Taxes don’t have to be complicated. All it takes to effectively pay your taxes as an expat is a little extra planning, a little extra research, and a boost from recognized experts such as H & R Block.
Keep Up With Deadlines
You may need to keep tax deadlines in mind when filing taxes abroad. Most expats qualify for an automatic two-month filing extension. This means that their 2019 tax return would be due by June 15, 2020. You are required to pay taxes by April 15, 2020, even if you’re an expat who is filing a return by June 15, 2020. Failure to pay results in a penalty. Penalties can be avoided by making payments by June 15, 2020, but will need to pay for interest charged on the unpaid amount.
The IRS expects quarterly estimated tax payments if you live outside the United States and usually owe U.S. taxes. This will help you to avoid end-of-year penalties.
It’s not all about penalties and deadlines. Expats can gain from tax benefits which may result in no U.S. taxes owed. You should keep in mind that you could still owe taxes if you are not taxed on your foreign investments or you live and work in a country with lower tax rates than the United States.
Your tax information is reported on a calendar-year basis, irrespective of whether you live in a country that taxes using a fiscal year. It is important to request an extension if you feel you need more time to collate information before you file your taxes.
Tax Filing in Easy and Quick Steps
With H & R Block, you are guaranteed with expert tax services that empower you as an American expat. No longer do you have to worry about making mistakes or wasting time when filing your taxes. You only have to take a few simple steps to simplify your tax filing processes.
First, you need to register online and complete your tax organizer. After you complete the registration, you will be assigned to a tax adviser and the price will be verified. Following this step, your returns can be prepared for you.
H & R Block was founded in 1955. Since its establishment, it has prepared taxes in different regions around the world, including North America, Australia, and India. It has 12,000 retail tax offices. With H & R Block, you are guaranteed superior tax services and smooth customer experience.
Originally published at https://morethanfinances.com.