U.S. Taxes & Filing Requirements

1. U.S. Tax Return - Due by June 15

A frequently asked question on taxation ... Why should I worry about U.S. income taxes (or filing a U.S. tax return)? All my income comes from my host country and I pay plenty of taxes there!

For that answer, see Association of Americans Resident Overseas (AARO) FAQs at http://aaro.org/faqs.

IMPORTANT:  Back financial information (usually copies of the last 3 years returns) will also be required if you/your children are applying for financial aid, loans, etc. for attending college or you buy a home in the United States, as well as for the American sponsor of a visa application (green card) such as for a foreign national spouse to live in the U.S.

It is also important to remember:

  • Other minimum income filing requirements rules apply for those over 65, and those self-employed with earnings over $400 for the year;
  • For overseas taxpayers, the filing deadline is automatically June 15 (vs. Apr 15);
  • The law also allows for payments for select taxpayers who have no tax liability, such as low-income workers or those who receive Social Security benefits
  • The deadline for mandatory reporting of foreign bank and financial accounts is June 30 (more details follow)

NEW! The Internal Revenue Service (IRS) has developed a brochure to assist taxpayers living overseas in locating useful tax information to help in the preparation of their tax returns and/or in resolving tax account problems. Publication 4732, Federal Tax Information for U.S. Taxpayers Living Abroad, is available on the Web at http://www.irs.gov/pub/irs-pdf/p4732.pdf.

FAWCO's online article "Tips for Older Taxpayers" maybe also be relevant to you. 

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2. Report of Foreign Bank & Financial Accounts - Due by June 30

The Report of Foreign Bank and Financial Accounts (Form TD F 90-22.1) must be filed annually if you had any financial interest in, or signature or other authority over, a bank, securities, or another financial account in a foreign country and if the aggregate for all accounts was the foreign currency equivalent of $10,000 or more on any one day in the year. This means not only your own accounts but a spouse's accounts on which you have signing privileges (or a joint account, even with a foreign spouse), accounts of a club, church, school, etc. if you are a signatory.  See also related FAWCO article What's that about death and taxes? The deadline for IRS reporting is just around the corner! including penalties for failure to report go up to $10,000 and for willful failure to comply, up to $100,000 or 50% of the money in your account! 

There is more and more checking and coordination between U.S. and other countries and many foreign banks are now requiring all customers whose birthplace is listed as the U.S. (regardless of whether you are also a local citizen) to fill out and sign a Form W-9 authorizing the bank to report certain information about your account to the IRS.  

Source: Federation of American Women's Clubs Overseas/FAWCO (http://www.fawco.org ) U.S. Issues>U.S. Taxation

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3. Additional online U.S. Tax information resources

http://www.irs.gov/

Internal Revenue Services (IRS)
including for all tax forms and
publications for downloading, as
well as Form TD F 90-22.1

http://www.usembassy.de/

U.S. Embassy in Germany U.S. Tax
Information page (under U.S. Citizen
Services) including IRS Philadelphia and
IRS Frankfurt offices contact info *

For additional info, see also Page 2 of American Citizen Services News 1-2010 (pdf).

http://www.aca.ch/

American Citizens Abroad (ACA) - Taxation page
See also Alert to Americans overseas
about taxes
- What Americans overseas who
have not filed U.S. tax returns should know

 

 

 

 

 

 

 

And, http://www.aaro.org   Association of Americans Resident Overseas - Taxation page

* NOTE: A U.S. and German tax professionals list is kept by U.S. Embassy/Consulate and is online its U.S. Tax Information page (at above links and resources). Also on this page are exchange rates for the immediate past and previous tax years. The 2009 Yearly Average: 1 U.S. Dollar = 0.719 Euro. To convert from Euros to Dollars, divide the Euro amount by the applicable above-mentioned decimal figure. To convert from Dollars to Euros, multiply the Dollar amount by the applicable above-mentioned decimal figure.

Several years ago the IRS and Embassy/Consulate cancelled the VECTA volunteer tax assistance program pending a review of the overseas filing services. So unfortunately, there are no VECTA services currently available.

 

Updated 06/12/2010
Copyright 2010

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