Federal Tax Rules for us Citizens Living Abroad

Being one of those us citizens living abroad, expat taxes were huge thing in my mind to cover. I did it perfectly alright.

Being a USA citizen comes with its share of perks and problems. It is not that easy to live abroad, especially if you are not aware of the Federal tax rules of that place. I came to learn more about it from my recent trip to another country and I am here to share my feelings and thoughts about it with you. When I first thought of living abroad, I started watching various videos and reading materials to learn about the rules I need to forget. One particular YouTube video caught my attention and that was Tax Obligations of U.S. Citizens & Residents Living Abroad - Part I. I came to learn quite a lot over there in that 17 minutes long video.

Some Basic Point to Follow

You should know that if you are a US citizen or any resident alien, then the rules for filing income, gift tax returns, estate and paying estimated tax will prove to be same, no matter where you live. It will be the same if you reside in the USA or abroad. The current worldwide income is well subjected to the USA income tax, regardless of the place where you are residing in. so, the matter remains more or less the same.

The Time to File

Now while checking out more about the taxes, you better be sure of the time that you need to follow in this regard. In case, you are a resident alien or USA Citizen residing overseas, or even in the military duty outside the USA, you can get an automatic 2 months extension automatically. It is for us citizens living abroad expat taxes filing without even requesting for an extension. It is practically associated with the regular due date of return. In the case of the calendar year return, the automated 2 months extension is around June 15th.

Area to File in

It is mandatory for you to pay the taxes due by April 15th of that year or then interest will be charged right from April 15th. In case you are a USA citizen or even resident alien, even for the green card holder, the matter remains the same. If you reside in foreign country, you can mail the USA tax return right to Department of the Treasury. It is situated in Austin TX, USA. If you want, you can further head for the electronic filing or e-file at the same time.

Focus Towards the Value of e-file

Taxpayer, as I have known, with AGI, within specified threshold can file tax return electronically for free, with the help of Free File as available from official online source. Taxpayers with AGI greater than the mentioned threshold can either use free filing forms or the e-file by just procuring he commercial software. I tried it out and it worked perfectly fine. But always remember that only limited companies can provide software to accommodate foreign address. For determining the best work for you, I would suggest you take help of software provider.