Expats - US Taxes Pay For Their Protection Abroad
Imagine you're living in a foreign country and you wake up one morning to rioting in the streets, a toppled government and a state of complete lawlessness.
What are you going to do? If you're a US citizen, you have the option of making your way to the nearest US embassy and asking for help, confident in the knowledge that you will get it.
Consular services are one of many reasons why US citizens who live abroad can feel they're getting their money's worth when they pay their US taxes.
For citizens and Green Card holders, paying US taxes is not only a responsibility, but also a privilege when viewed as the price of the freedoms, opportunities and protections that go along with being an American.
US citizens who live abroad must still file tax returns in a timely manner and pay any US taxes they owe for as long as they retain their US citizenship.
Luckily for expats, the IRS currently allows them to earn up to $91,400 that is not subject to US taxes, in addition to writing off the cost of their housing overseas.
The foreign earned income exclusion does not apply to Social Security and Medicare taxes for self-employed expats.
They must still calculate their 15.
4% self-employment tax based on their entire income, including the first $91,400 that is exempt from US income tax.
US expats who are employed by a foreign company do not have to pay the self-employment tax, but even if they have no US taxes due they must file an annual return, why? Because it's the law, only people whose income falls below an extremely low threshold - far below the poverty line - do not have to file a return.
Although the tax code has a number of provisions that allow US citizens living abroad to minimize their US taxes, the regulations are fairly complex and a misreading of just one of them could easily cost an expat thousands of dollars in taxes that could have been avoided.
The surest way for US citizens living overseas to take advantage of every tax benefit the IRS offers them is to work with a CPA who specializes in helping expats to minimize their US taxes while complying with all legal requirements.
Tax Planner CPA has a team of such specialists, with real world knowledge and experience in minimizing US taxes for Americans living abroad.
What are you going to do? If you're a US citizen, you have the option of making your way to the nearest US embassy and asking for help, confident in the knowledge that you will get it.
Consular services are one of many reasons why US citizens who live abroad can feel they're getting their money's worth when they pay their US taxes.
For citizens and Green Card holders, paying US taxes is not only a responsibility, but also a privilege when viewed as the price of the freedoms, opportunities and protections that go along with being an American.
US citizens who live abroad must still file tax returns in a timely manner and pay any US taxes they owe for as long as they retain their US citizenship.
Luckily for expats, the IRS currently allows them to earn up to $91,400 that is not subject to US taxes, in addition to writing off the cost of their housing overseas.
The foreign earned income exclusion does not apply to Social Security and Medicare taxes for self-employed expats.
They must still calculate their 15.
4% self-employment tax based on their entire income, including the first $91,400 that is exempt from US income tax.
US expats who are employed by a foreign company do not have to pay the self-employment tax, but even if they have no US taxes due they must file an annual return, why? Because it's the law, only people whose income falls below an extremely low threshold - far below the poverty line - do not have to file a return.
Although the tax code has a number of provisions that allow US citizens living abroad to minimize their US taxes, the regulations are fairly complex and a misreading of just one of them could easily cost an expat thousands of dollars in taxes that could have been avoided.
The surest way for US citizens living overseas to take advantage of every tax benefit the IRS offers them is to work with a CPA who specializes in helping expats to minimize their US taxes while complying with all legal requirements.
Tax Planner CPA has a team of such specialists, with real world knowledge and experience in minimizing US taxes for Americans living abroad.
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