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Frequently Asked Questions (FAQs) on US expatriate tax. Who is required to file for expat income tax? For an American living abroad, filing US expat tax isn’t a matter of choice. It is a matter of compulsion. Whether you’re a green card holder or a US citizen, if you’re income is above a minimum threshold and you’re living abroad, you need to file for US Income Tax every single year. The condition remains same even if you’ve paid for the tax in the country you reside in. What is the current minimum threshold for single or married persons? • Single with income over $9,350 • Married filing jointly with income over $18,700 • Married filing separately with income over $3,650 Who is an expat? The IRS has devised multiple measures to eliminate dual taxation, but one must qualify as an expat to take advantage of them. In order to qualify as an expat, you must meet the following requirements: • You must have foreign earned income • Your tax home must be in a foreign country • You must do one of the following: 1. Pass the Bona Fide Resident Test 2. Pass the Physical Presence Test 3. Be a US resident alien who is a citizen or national of a country with which the United States has an income tax treaty with a non-discrimination article in effect who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year Is there a way to get away from double taxation? Yes there is! The Foreign Earned Income Exclusion (FEIE) is one such way provided by IRS. Via form 2555, an expat is able to exclude up to $92,900 on foreign earned income from US taxation. Does one need to file a State Return? Well the situation for each stands differently here. Whereas some states namely Alaska, South Dakota, Texas, Florida, Nevada, Washington require no income tax, some others namely California, New Mexico and South Carolina require you to file for the return. Why choose United States Australia Tax Service for expert Expatriate Tax Services and Individual Tax Services? As a renowned and much trusted international tax firm, our firm focuses on both Expatriate Tax Services and Individual Tax Services. We assist expatriates, individuals, and businesses with NZ, US, and AU tax planning, consulting, return preparation. We are experts in correctly completing past due returns for U.S. Citizens and Green Card holders with this problem. For expert Expatriate Tax Services or Individual Tax Service, contact us at http://www.usautax.com/. Thomas M Carden EA JSM Thomas is a director at United States Australia Tax Service. USAUTAX.COM He enrolled to practice before the Internal Revenue Service. He has over 17 years of Tax and Financial Industry experience. If you are looking for Expatriate Tax Services or any question for Individual Tax Services or you are looking for Australian expat tax service then feel free to him at THOMAS@USAUTAX.COM
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