Filing tax while living and working overseas - expat's tax
Preparing income tax returns is almost always a headache to most people. Especially so if you are living in a foreign country and struggling in a life in a different custom and culture, and already have enough stress everyday.
We are here to help make your life easy by reducing your headaches during the US income tax filing season. We specialize in the preparation of U.S. income tax returns for people living and working abroad. We are committed to provide an accurate, quick, and professional service as an experienced Enrolled Agent (EA) at a reasonable fee, seeking the largest allowable refund which is due to you.
What is Enrolled Agent? An enrolled agent is a person who has earned the privilege of practicing, that is, representing taxpayers, before the Internal Revenue Service. Enrolled agents, like attorneys and certified public accountants (CPAs), are unrestricted as to which taxpayers they can represent, what types of tax matters they can handle, and which IRS offices they can practice before.
Income Exclusion for Taxpayers Living Overseas
Do I have to file?
In some situations you may have no tax to pay. However, you probably have to file a tax return. As a taxpayer living overseas, you may exclude foreign earned income of up to $85,700 (2007) from your total income. After this exclusion, your adjusted gross income is smaller or totally wiped out, then you think "there's no taxable income and therefore I don't need to file!" However, this is not correct. You are still required to show the IRS that you took this exclusion filing Form 2555.
Those who with higher income may be able to claim Foreign Tax Credit (Form 1116) to offset their tax liability. If you still have some tax liability, special attention is required to calculate, because the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) made significant changes to some of the rules pertaining to the foreign earned income and its tax. Since 2006 tax year, many people have noticed a large increase in their tax liability.
If you have a child younger than 17 years old you may also be qualified an Additional Child Tax Credit to receive a tax refund! This may be another reason to file your tax.
If your child goes to college in the US, to seek a student loan you also have to submit a FAFSA application which requires that you must file an income tax return.
We offer you a professional tax preparation with free Electronic Filing, a year-round service, and a taxpayer representation should you ever be audited (additional fee will be applied.)