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What's Important To Know Before Moving Abroad???

Moving abroad, either for a job, business, marriage, or just pure adventure, is an opportunity of a lifetime. Living abroad can broaden your horizons and the sense of what is possible is redefined. For many, the move abroad has been one of the best decisions of their life.

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What's Important To Know Before Moving Abroad???

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  1. What's Important To Know Before Moving Abroad??? Moving abroad, either for a job, business, marriage, or just pure adventure, is an opportunity of a lifetime. Living abroad can broaden your horizons and the sense of what is possible is redefined. For many, the move abroad has been one of the best decisions of their life.

  2. However, the feeling of being in paradise can get a rude jolt when it comes time to pay expat taxes! This is something most Americans are oblivious to or don’t want to face the reality of when they move abroad. But, it is not wise to avoid tax return services which may even attract heavy penalties. Today, filing taxes abroad is not as cumbersome as it used to be with the help of online tax filing services. You will get all the advice and help you need from qualified CPAs and tax attorneys from expat tax services. So here are the most important things you need to know before you move abroad as an expat: - Even self-employed people have to pay taxes and the threshold for this is $400. - Taxes are to be filed on income from different sources, which would include even rental income, dividends, and any interest garnered. So it’s not just your salaried income! - Even if you have made a mistake, you can still make an amendment and the form for this is 1040X. - Most people are aware of the Foreign Earned Income Exclusion which can give you substantial deduction in taxes, but what they don’t know is that they have to file for it with a special form which is the 2555 or the 2555-EZ, otherwise they don’t get it!

  3. - You will only be eligible for the Foreign Earned Income Exclusion if you fulfill certain criteria, such as spending 330 days of the year in a foreign country. This is called the Physical Presence Test and requires careful tracking of your time spend traveling out of your foreign country. - Even if you are moving out of the U.S. later in the year, you can still qualify for the Foreign Earned Income if you have filed the Form 2350 previously. - If you have dependent children, you could have less taxes to pay if you file for Child Tax Credit. This requires that your children have a Social Security Number from the U.S. - Don’t think of renouncing your citizenship just to avoid taxes as this requires a lot of factors to be put in place and you would also have to pay exit taxes! - Even if you retire abroad, you can still enjoy your Social Security benefits from the U.S., so make sure you keep track of that as it can come in handy in the golden years of your life. There are many more factors to take into account before you move abroad, so consulting with a reliable tax agency that specializes in expat taxes would be the best place to start so that you know exactly what you are getting into before you even get there!

  4. Contact us 10 CORPORATE PARK, STE. 210 Irvine, California 92606-USA http://locustax.com FacebookGoogle PlusTwitterLinkedin

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