Living abroad can be an adventure, even for your taxes

Domestic Expat Taxes

If you are a U.S. citizen or resident alien, the rules for filing income tax returns are generally the same whether you are in the United States or abroad.

Everything You Need to Know About Expat Taxes

The term "expat" is short for "Ex-Patriot," which describes a person who lives outside of their native country. If you were an American citizen living in the United Kingdom, for example, you would be considered an American expat. Just because you don't live in the U.S. anymore doesn't mean that Uncle Sam has forgotten about you, however. There are a few critical things about taxes in particular that you'll definitely need to know moving forward.

Your Expat Taxes: Breaking Things Down

If your worldwide income meets or exceeds certain filing thresholds (which are generally equal to the standard deduction for your filing status), you need to file a United States tax return as an expat — end of story. The fact that you're being paid by a foreign employer in another country doesn't change that fact. If you're self-employed, that threshold is just $400.

Filing requirements include a standard U.S. 1040 income tax form (if applicable) and it could involve filing full-year, part-year or even non-resident returns depending on the specifics of your situation. Likewise, if you have a bank and/or brokerage account outside of the United States, you'll have to file a form 114 (or Foreign Bank Account Reporting Form) as well.

The good news is that there are a few ways to significantly reduce — or even totally eliminate — this burden. One is the Foreign Earned Income Exclusion, which lets you exclude roughly $100,000 of income earned from services provided outside of the U.S. (not including interest, dividends, stock sales or pension income). Another is The Foreign Tax Credit, which lets you reduce your United States income tax by the amount of foreign taxes you've already paid.

Other Considerations

As stated, you'll also have to concern yourself with FBAR — or Foreign Bank Account Reporting. All American expats are required to list all of your liquid or financial assets, including, but not limited to, things like mutual funds, stocks and bank accounts if the highest account balance (or if the sum total of all accounts) is $10,000 or more. 

You'll also have to deal with FATCA, or the Foreign Accountant Tax Compliance Act. Established as part of the HIRE Act, this requires American expats to report, depending on the total value, all of their foreign financial accounts and assets come tax season.

The good news is that all American expats receive an automatic filing extension until June 15 each year — which means that you don't have to start stressing out because April 15 is right around the corner just yet. However, if you want to avoid any penalties or interest you might owe, you still need to get those payments in by April.

At Omotayo CPA LLC, we understand that living abroad can be an adventure — but when your taxes are concerned, it isn't always a positive one. That's why we want to help you make the most of a tricky situation, not only getting all of your forms, paperwork and other documents in order, but helping you to reduce that expat tax liability as much as possible. In the end, you'll be able to rest easy knowing that your expat income tax burden is truly taken care of. To find out more information, please don't hesitate to contact Omotayo CPA LLC today. 

Title: Accounting / Tax Manager 

We are seeking an Accounting/Tax Manager to join our team! You will lead and manage multiple operations of the tax practice area and deliver quality tax services that will increase the firm’s reputation. You will oversee the work of accountants, review financial statements, and prepare reports. Schedule: Monday to Friday. 

Job Type: Full-time. 

Interested parties please call 214-646-0300.  

Duties and Responsibilities: 

  • Manage and Prepare tax returns for over 2,000 individuals, businesses, non-profits and estates 

  • Contact clients to obtain tax documents 

  • Review tax returns with clients 

  • Provide basic tax planning/solutions services to clients 

  • Accounting/Bookkeeping for firm clients in various accounting software (QBO, QBD, Intacct, Xero, Wave, Zoho Books, BQE Core, etc...) 

  • Other administrative tasks when necessary: 

  • Plan and schedule appointments and events 

  • Greet and assist onsite guests 

  • Answer inbound telephone calls 

  • Draft correspondences and other formal documents 

  • Develop and implement organized filing systems 

  • Manage requests from website and social media management company 

Qualifications: 

  • Tax preparation experience is required 

  • Experience with Lacerte / Drake Tax software is required 

  • QuickBooks experience is required 

  • Previous experience in office administration or other related fields 

  • Ability to prioritize and multitask 

  • Excellent written and verbal communication skills 

  • Strong attention to detail 

  • Strong organizational skills 

  • Must be able to speak Hindi and English 

Education: Bachelor's (Required), CPA (required), Enrolled Agent: Preferred. 

Experience level: 3 years. 

Compensation 

Salary: $75,000.00 - $110,000.00 per year 

Benefits: 

  • 401(k) 

  • 401(k) matching 

  • Dental insurance 

  • Disability insurance 

  • Health insurance 

  • Life insurance 

  • Paid time off 

  • Vision insurance 

  • Work from home 

Contact 

Interested parties please call 214-646-0300.