You may be surprised to find out that you are required to file a US federal income return if your income, whether domestic or foreign, if it meets the filing threshold which changes every year if you are a citizen or resident of the United States or a non- resident who is having an income from the US. Therefore, irrespective of where you reside if you are a
Us person who is residing outside of the United State, you are required to file US tax returns every year and declare your worldwide income. USA Expat Tax Services is an American expatriate service provider that specializes in expatriate solutions.
The IRS does not have double taxation meaning if you are paying taxes in the country, you are residing you will not be taxed again in the US but will be able to take tax credits for the taxes paid.
Do American residents living abroad have to file state income tax returns? Yes, as a US person who is a citizen or a green card holder is required to declare their worldwide income and file a US tax returns every year.
We would suggest speaking to a tax professional to determine your exact situation and what steps you need to take to come in compliance with the IRS.
Foreign nationals who live in the US and meet the substantial presence test or nonresidents who are residing outside the US and still have a US sourced income are required to file a US tax returns.
If you’re an American citizen working and residing outside of the country and was not aware of the filing requirement the IRS has an amnesty program called the Streamlined Filing Compliance Procedure (SFPCP) under which you will file your last 3 years returns and six years FBAR and come in compliance with the IRS.
You must file a return within three years of its original due date (often April 15), or any refund you’re owed for that return will expire. You should still file your tax return if it’s past the three-year limit, but we won’t be able to issue any refund. For expats they have an automatic extension of filing their returns till June 15th however any tax owed is due by April 15.
What happens if you must pay your taxes in the country where you’re currently residing? How can you avoid having to pay double taxes?
The U.S. has treaties with most of the countries that help protect American citizens which prevent double taxation on foreign earnings.