What If You Work Abroad? How To File Taxes
You must know that you are obliged to pay taxes by the US government if you are an American citizen living overseas. If you don’t know how, you’ll find that it’s a rather easy process. To steer clear of IRS problems, filing is certainly a much better option.
Most people think that they have a free pass for not filing their taxes if they work abroad. They also believe that their taxes do not have to be paid, either. Unfortunately, this isn’t the case. The IRS expects everyone to file their tax returns to avoid severe IRS issues, regardless if you work in a foreign nation or in the United States.
Citizens of the United States of America, as well as residents of the United States, can fill out two types of tax forms when residing in a foreign nation. These are the the IRS Form 2555-EZ and Form 2555 (Foreign Earned Income).
Similar general rules apply. Your tax return should be filed at the 15th of April each year, and an automatic extension is offered if you require more time. In fact, you will be offered an automatic two-month extension, offering you more time to pay the correct tax debts due and file the appropriate forms. You have to attach an official statement to confirm that you qualify for this two-month extension to be able to utilize it.
The loss of tax information is a problem that usually confronts American citizens moving abroad. It’s likely that they did not receive their W-2 information before they moved. It’s your duty to obtain this information, whether it’s getting someone to track down your mail for you, or requesting another copy from your employer through email. This has to be done in a timely manner to prevent an IRS issue.
There are several options to choose from when filing your taxes if your spouse isn’t an American citizen. You can elect to file as Married Filing Separately wherein you only must report your own income for the year. If you have children, you can file as Head of Household. You can also file as Married Filing Jointly by declaring your spouse as a resident alien.
It’s advised to consult a tax professional when filing taxes from abroad. With the various factors involved, this is the best way to prevent IRS issues.
Niche Article Directory: http://www.thatsmyniche.com
Darrin T. Mish (www.getirshelp.com) is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel’s Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He teaches attorneys, CPAs and Enrolled Agents in the finer aspects of IRS representation all around the United States. He can be reached at his website at www.getIRShelp.com
What If You Work Abroad? How To File Taxes
You must know that you are obliged to pay taxes by the US government if you are an American citizen living overseas. If you don’t know how, you’ll find that it’s a rather easy process. To steer clear of IRS problems, filing is certainly a much better option.
Most people think that they have a free pass for not filing their taxes if they work abroad. They also believe that their taxes do not have to be paid, either. Unfortunately, this isn’t the case. The IRS expects everyone to file their tax returns to avoid severe IRS issues, regardless if you work in a foreign nation or in the United States.
Citizens of the United States of America, as well as residents of the United States, can fill out two types of tax forms when residing in a foreign nation. These are the the IRS Form 2555-EZ and Form 2555 (Foreign Earned Income).
Similar general rules apply. Your tax return should be filed at the 15th of April each year, and an automatic extension is offered if you require more time. In fact, you will be offered an automatic two-month extension, offering you more time to pay the correct tax debts due and file the appropriate forms. You have to attach an official statement to confirm that you qualify for this two-month extension to be able to utilize it.
The loss of tax information is a problem that usually confronts American citizens moving abroad. It’s likely that they did not receive their W-2 information before they moved. It’s your duty to obtain this information, whether it’s getting someone to track down your mail for you, or requesting another copy from your employer through email. This has to be done in a timely manner to prevent an IRS issue.
There are several options to choose from when filing your taxes if your spouse isn’t an American citizen. You can elect to file as Married Filing Separately wherein you only must report your own income for the year. If you have children, you can file as Head of Household. You can also file as Married Filing Jointly by declaring your spouse as a resident alien.
It’s advised to consult a tax professional when filing taxes from abroad. With the various factors involved, this is the best way to prevent IRS issues.
Niche Article Directory: http://www.thatsmyniche.com
Darrin T. Mish (www.getirshelp.com) is a Nationally recognized Attorney whose practice focuses on representing clients across the United States with IRS Problems. He is AV rated by Martindale-Hubbel and is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. He has been honored by a listing in Martindale-Hubbel’s Bar Register of Preeminent Lawyers. His passion is providing IRS help to taxpayers with both individual and payroll tax problems. He teaches attorneys, CPAs and Enrolled Agents in the finer aspects of IRS representation all around the United States. He can be reached at his website at www.getIRShelp.com
Identity Theft Impacting Your Taxes
If your identity is stolen, your finances can quickly become a nightmare. A less obvious problem is the effect identity theft can have on your taxes.
Identity Theft
Generally, thieves steal your personal data for the purpose of running up credit card charges or opening and abusing new accounts. A developing trend in the identity theft field concerns schemes impacting your taxes.
Selling Social Security Numbers
Identity thieves have created a new line of business – selling your social security number. Who would want to buy it? The list is surprising long, but undocumented workers, individuals with bad credit and people trying to obtain a new identity lead the list. This can create a huge problem for you since any income paid to those individuals is reported to the IRS as being paid to you. This results in the IRS having inflated income numbers and, often, audits when you “under report” your income.
With the creation of the Real ID Act, better known as the National ID Card, things will only get worse. Under the Act, all workers will be required to submit social security numbers to obtain jobs. With our leaky borders, there will be a high demand for your social security number.
False Tax Filings
It doesn’t take much to file a tax return. What’s to stop an identity thief from filing one under your name to generate a refund? Nothing. To generate the maximum refund, you can be all kinds of frivolous deductions will be claimed. After all, it will be you that has to attend the audit.
What Can I Do?
If you receive a notice from the IRS that leads you to believe someone may have used your Social Security Number fraudulently, you should notify the IRS immediately. Indicators can be found in notices from the IRS that state:
1. More than one tax return for you was filed, or
2. IRS records indicate you received wages from an employer unknown to you.
Don’t hesitate or be nervous about contacting the IRS. The agency knows this is a growing problem and not an “opportunity” to pound on taxpayers.
Richard A. Chapo is with BusinessTaxRecovery.com – providing information on taxes.
