US citizens are subject to US income tax as a result of their citizenship and not their residency. This means that if you are a US citizen living outside of the United States, you will still need to file a US tax return (subject to certain thresholds) and possibly pay US income tax on your worldwide income.
There may also be an obligation to file US foreign bank account forms if the combined maximum balance for all of your non-US bank accounts amount to more than $10,000.
Green card holders
US Green card holders have a US tax return filing obligation (subject to the thresholds above) no matter where they live. Green card immigration status remains with you until you formally renounce your green card.
US resident aliens
If you are resident in the United States (as determined by a "days of presence" test) you are required to file a US tax return to report your worldwide income (subject to the thresholds).
In US tax terms, this is everybody else in the world not detailed above. If you are a non-resident alien but have US source income of almost any type, you will need to file a non-resident US tax return (1040NR).
What services do we offer?
US federal tax returns
US tax returns for US citizens and Green Card holders must include worldwide income, which will often necessitate a claim for a credit for the tax paid in a foreign county (foreign tax credit) and /or a claim for the foreign earned income exclusion. US tax returns for individuals living outside of the US tend to be quite complicated and normally require a specialist tax preparer to complete them correctly.
US federal income tax returns for non-residence US source income are reported on a separate form and can be just as complex. We have the expertise to ensure your non-resident return is completed correctly.
US state tax returns
The majority of US states have their own income tax systems with separate tax returns to be filed. Many of these states do not have minimum filing thresholds, therefore as little as one work day in the State could trigger a filing requirement. Filing requirements will also arise if an individual earns various types of investment income depending on the nature.
Foreign bank account reporting
US persons with interests in non-US financial accounts have an increased reporting requirement as a result of the FATCA rules. We can help simplify all aspects of this process.
We can provide advice on all types of US income tax queries and estate planning.
Below is our full list of US services:
• IRS Annual Tax Returns (Federal, State & Non Resident)
• Streamline Program
• Ex-Patriation and Exit Charge Planning
• Late Filing & Non-Filers
• PFIC and FBAR Reporting
• FinCen and Foreign Income Exclusion Returns
• Bespoke Taxation Reports
• FATCA advice
• Passive foreign investment
• Foreign Tax Treaties
Contact us today for a free, no-obligation consultation.