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Foreign Tax Credit for U.S. Citizens and Residents

Foreign Tax Credit for U.S. Citizens and Residents

If you are a U.S. citizen or resident but you paid taxes to a foreign country, you may also be subject to international tax by the U.S. on that same income. However, in some cases, you may be able to take a foreign tax credit or itemized deduction on your U.S. tax return for those taxes already paid to the foreign country. The IRS allows you to take this foreign tax credit to prevent you from being double taxed on your foreign source income.

U.S. International Tax Law Disclosure Requirements

U.S. International Tax Law Disclosure Requirements

Depending on whether you are a U.S. Citizen or Resident, you have various reporting and disclosure requirements to the IRS on your U.S. source and worldwide income. In this article we will take a look at a few of the most common and most important international tax reporting requirements.

Treating a Non-Resident Spouse as a U.S. Resident For Tax Purposes

Electing to Treat a Nonresident Spouse as a U.S. Resident

If you meet the conditions of the substantial presence test, you are considered to be a U.S. resident for U.S. tax purposes. If you qualify as a U.S. resident under the substantial presence test, you may be able to have your nonresident spouse treated as a U.S.

Closer Connection to a Foreign Country

Closer Connection to a Foreign Country

Non-US Citizens who meet the conditions of the substantial presence test, are considered to be a U.S. resident for U.S. international tax purposes. However, even if you qualify as a U.S.

What is the Substantial Presence Test for U.S. Taxation?

What is the Substantial Presence Test for U.S. Taxation?

If you are not a U.S. citizen, you may be considered as a nonresident alien or a resident alien for tax purposes depending on the outcome of the green card test or the substantial presence test. If you do pass the substantial presence test, then you will be required to comply with applicable US and international tax laws including filing a US tax return and submitting an FBAR.

Filing A Dual Status Tax Return

Filing A Dual Status Tax Return

A dual-status tax year exists when you are treated as both a U.S. resident and a nonresident for tax purposes during the same calendar year. It usually occurs the year that you arrive or depart from the United States. Different tax rules apply to the part of the year in which you are the U.S. resident and the part of the year in which you are a nonresident.

Foreign Earned Income Exclusions for U.S. Citizens and Residents

Foreign Earned Income Exclusions for U.S. Citizens and Residents

As a U.S. citizen or U.S. resident, you subject to US international tax law on your worldwide income even if you do not reside in the U.S. However, the IRS provides certain deductions and credits to U.S. taxpayers who live abroad. If you qualify for the Foreign Earned Income Exclusion, you may be able to exclude a portion of your foreign income from your taxable income.

International Tax Laws for U.S. Citizens

International Tax Laws for U.S. Citizens

If you are a U.S. citizen, but you earn income abroad, the US tax rules that apply to your foreign income are largely similar to those that apply to your domestic income. Ignorance of US international tax laws is not a defense and can quickly get you into deep financial trouble.

Tax Laws for U.S. Green Card Holders

Tax Laws for U.S. Green Card Holders

If you have a U.S. Green Card, you are considered a U.S. resident for tax purposes. Accordingly, you are a lawful permanent resident and are subject to U.S. tax, even on worldwide income.

Who is Affected by U.S. International Tax Laws?

Who is Affected by U.S. International Tax Laws?

One of the least desirable situations a person can find themselves in is unexpectedly on the wrong side of international tax law. Unfortunately, many US Citizens living, working and/or earning money abroad, along with Greencard holders, resident aliens and non-resident aliens often find themselves in this very predicament. Here we will explore a high level overview of the circumstances wherein a person fitting one of these descriptions may find themselves owing taxes.

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