5 Things You Need to Know About US Expat Taxes
The United States tax code can be very complex and lengthy. Understanding certain tax aspects are important if you are a resident of another country with U.S. tax obligations.
Here are the top five things you need to know about US expat taxes.
1. Most American Expats Do Not Owe US Taxes
Although almost all expats must file a US tax report, most American expats don’t owe US taxes. To ensure Americans living abroad don’t get twice taxed on the same income, the US has set up several important deductions, credits, and exclusions. Many expats can eliminate their US tax bills by taking advantage of these tax benefits.
Pay no tax twice on your income! The Foreign Tax Credit may be available to US taxpayers for income already taxed in their host country.
2. Consider professional assistance with expat taxes
Expats with simple and easy circumstances may be tempted to file US taxes. But most expats have questions or doubts about the filing process. So we recommend seeking help from a US expat tax specialist. If you’re searching for a CPA firm with international experience and expertise that assists American expats file taxes almost anywhere in the world, expat tax CPA will be helpful.
3. You only need to file a US tax return if you meet the requirements.
Your filing status and worldwide gross income for the 2021 tax year will determine what 2022 tax filing requirements you must file. If your worldwide gross income is less than the amount in the following table, you will need to file a US tax return (in 2022) for the tax season 2021.
|Filing Status:||2022 Worldwide gross income amount:|
|Married Filing Jointly||$25,100|
|Head of Household||$18,800|
4.U.S. Expat Tax Filing & Due Dates
U.S. expats must file their tax returns at the same time as domestic returns — April 15th. However, if you reside outside the U.S., you can apply for an automatic extension up to June 15th or Oct 15th.
If you owe taxes, however, the extension only applies to the U.S. expat return filing and not the tax payment. Your payment must be submitted by April 15th.
5.Tax Treaties Help Prevent Double Taxation for US Expats
The income tax treaties prevent double taxation of Americans living abroad by reducing or eliminating US tax for expats who earn certain income types. The US currently has tax treaties in place with 69 countries.
Expats not taxed differently in each country should read the treaty between their host countries and find out what they will be taxed. Like any other legal document, tax treaties can be complicated and hard to understand. Consult an accountant if you are unsure which rules apply to your situation.
Many Americans who live abroad in 2022 don’t know or are confused about their US tax filing obligations. Because the US taxes are based on citizenship, it is quite unusual. Nearly every country has a tax system that taxes based on residency or on income earned in that country. Now we hope you have found this guide helpful in understanding what you need to know about US expat taxes.
Violent Typhoon Mawar sets sights on Philippines, Taiwan and Japan after blow to Guam
The powerhouse typhoon is the equivalent of a very strong Category 4 hurricane as it approaches the northernmost island of the Philippines before turning to the north, continuing its damaging path.
Japan says scrambled fighter jets after Russian planes spotted
The country’s defence ministry says Russian ‘intelligence-gathering’ aircraft spotted near its coasts along the Pacific Ocean and Sea of Japan.
Japan scrambled fighter jets after spotting Russian “intelligence-gathering” aircraft off its coasts along the Pacific Ocean and Sea of Japan on Thursday, the country’s defence ministry has said.
One Russian aircraft travelled from Japan’s north down along part of its west coast, while the other took a similar route along the opposite coast and returned the same way, the Joint Staff office run under the defence ministry said in a brief statement.
“In response, fighters of the Air Self-Defence Force’s Northern Air Force and other units were scrambled,” it added.
There was no further information on the incident, which comes days after Japan hosted Ukrainian President Volodymyr Zelenskyy at the summit of Group of Seven (G7) – a grouping of rich nations – in Hiroshima city.
Japan has joined Western allies in sanctioning Moscow over its February 2022 invasion of Ukraine, and has warned of the threat posed by Russia.
Its latest security document, which once called for enhanced ties and cooperation with Russia, now warns that Moscow’s military posturing in Asia and cooperation with China are “a strong security concern”.
Last May, Chinese and Russian military jets carried out joint flights near Japan immediately after a meeting of the United States-led Quad grouping in Tokyo. India and Australia are other members of Quad.
And more recently, Moscow has carried out military exercises, including test-firing missiles, in the Sea of Japan.
Russia considers Japan to be a “hostile” country – a designation it shares with all European Union countries, the US and its allies, including the United Kingdom and Australia.
Tokyo had complex relations with Moscow before the invasion of Ukraine in February, and the two sides have yet to sign a post-World War II peace treaty.
Attempts to do so have been hampered by a long-running dispute over islands controlled by Russia, which calls them the Kurils.
France bans short-haul flights to cut carbon emissions
France has banned domestic short-haul flights where train alternatives exist, in a bid to cut carbon emissions.
The law came into force two years after lawmakers had voted to end routes where the same journey could be made by train in under two-and-a-half hours.
The ban all but rules out air travel between Paris and cities including Nantes, Lyon and Bordeaux, while connecting flights are unaffected.
Critics have described the latest measures as “symbolic bans”.
Laurent Donceel, interim head of industry group Airlines for Europe (A4E), told the AFP news agency that “banning these trips will only have minimal effects” on CO2 output.
He added that governments should instead support “real and significant solutions” to the issue.
Airlines around the world have been severely hit by the coronavirus pandemic, with website Flightradar24 reporting that the number of flights last year was down almost 42% from 2019.
The French government had faced calls to introduce even stricter rules.
France’s Citizens’ Convention on Climate, which was created by President Emmanuel Macron in 2019 and included 150 members of the public, had proposed scrapping plane journeys where train journeys of under four hours existed.
But this was reduced to two-and-a-half hours after objections from some regions, as well as the airline Air France-KLM.
French consumer group UFC-Que Choisir had earlier called on lawmakers to retain the four-hour limit.
“On average, the plane emits 77 times more CO2 per passenger than the train on these routes, even though the train is cheaper and the time lost is limited to 40 minutes,” it said.
It also called for “safeguards that [French national railway] SNCF will not seize the opportunity to artificially inflate its prices or degrade the quality of rail service”.
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