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US expat tax in Thailand

The address is USTHTAX.COM  (Jun 17, 2013 | post #2)

US expat tax in Thailand

The temporary website for United States Thailand tax Service is now up and running.  (Jun 17, 2013 | post #1)

Personal Finance

A basic guide to the United States Taxation of Expatriate...

The United States reserves the right to tax its citizens on their worldwide incomes regardless of where they are residing at the time the money is earned. However the United States has tax exclusions and credits that may result in a zero US tax liability for taxpayers who have foreign income. It is important to note that regardless of the liability, the taxpayer is still required to properly report all income. The United States is somewhat unusual in how it treats the income of its citizens residing outside of its borders because of its use of a dual system of exclusions and credits. The US system allows citizens that are living overseas to exclude income that is earned up to certain limits while it also allows for foreign taxes to be credited toward their US tax liability if certain requirements are met. Of importance is that any tax on income that is excluded may not be used as a tax credit. For 2012, the Foreign Earned Income Exclusion (“FEIE” from this point forward) is $95,100. To qualify for the exclusion, the filer must meet one of two requirements. First, the filer must have worked out of the country for 330 days for any 12 month period. (The 330 days may be split among two calendar years. For instance 200 days in the last part of one year then 130 days in the first part of the next year.) Or alternatively, the filer must be a Bona fide resident of another country. Bona fide resident is poorly defined. It is considered to be a fact and circumstances test because the IRS will study the facts and circumstances of a person’s residency. The IRS will review the reasons for claiming the provision such as where a person’s work, family, and main home are located to make a determination of residency. While the test may seem to be arbitrary, in many cases the taxpayer will gain a level of flexibility in travel if they choose to use this test over the more rigid fixed period test. For income types that are not eligible for the FEIE exclusion or for earned income that exceeds the FEIE limits, US tax payers with foreign source income are able to utilize the Foreign Tax Credit (“FTC” from this point forward) to negate the effects of double taxation. The FTC allows eligible foreign taxes to be used as either a deduction from income or they can be used as a credit against US tax liability. It is important to note that when used as a credit, the FTC can only be used up to the amount of US tax liability for the same year. The credit is not refundable. However, a person subject to a limitation on the credit is able to utilize the credit by carrying it back 1 year then carrying it forward for 10 years. In order to claim a refund on the 1 year carry back, the individual needs to file form 1040x amended return. For foreign taxes to qualify for the credit they must meet four tests. A. The tax must be imposed upon the tax payer. B. The tax must have been paid or the tax must have been accrued. C. The tax must be the legal and actual foreign tax liability. D. The tax must be an income tax (or a tax in lieu of an income tax). E. The tax must arise from income that is subject to taxation in the foreign country. There are also type of taxes that are excluded from “Foreign Taxes for Which You Cannot Take a Credit” Those taxes are: · Taxes on excluded income, · Taxes for which you can only take an itemized deduction, · Taxes on foreign mineral income, · Taxes from international boycott operations, · A portion of taxes on combined foreign oil and gas income · Taxes of US person controlling foreign corporations and partnerships who fail to file required information returns One of the most important facts about the taxation of US expats living overseas is that any income earned in the United States is taxable first in the United States. Thomas M Carden EA JSM Director United States Australia Tax Service USAUTAX.COM [email protected]  (Jan 18, 2013 | post #1)

Australia

Obtaining a US ITIN in Australia

I would welcome a knock on the door or a call or an email. We will provide copies of our professional qualifications to any interested individual. Appointments are also available. It is true that the site and the firm are relatively new. A fact that was published in a press release here on topix on Oct 12th. The press release specifically stated the "New website is live" http://www.topix.c om/forum/topstorie s/THQFCQ7M98PT8KTP Q However as with many young professional service firms USAUTAX is a partnership of experienced and qualified individuals in the area of United States International Taxation and how it interacts with the Australian Tax system. The professional staff consist of Daniel Mitchikoff, CPA, FTIA Daniel is an Australian CPA he brings his unique set of skills and experience to United States Australia Tax Service with over 14 years of experience working for Big 4 accounting firms including Coopers & Lybrand, Price Waterhouse, and KPMG. Daniel's experience encompasses both US and Australian tax matters with consulting to some of Australia's largest corporations. Thomas M Carden EA, JSM, Thomas is enrolled to practice before the IRS. He has over 17 years of Tax and Financial Industry experience. He started in 1995 in his fathers CPA firm and progressed to being the international expatriate tax specialists for a surviving remnant of Arthur Anderson. He has a Masters in International Tax and Financial Service Law, and he is currently working on a Doctoral Degree in International Tax and Finacial Servcies Law at Thomas Jefferson School of Law. Kimberley Kellogg BA, RTRP, JD, LLM Kim is enrolled as a registered tax return preparer. She has experience in the private tax sector and as tax examiner for the Internal Revenue Service. She has prepared tax returns and taught individual tax classes for the last twelve years. She has a wealth of knowledge in individual, investor, and business tax returns. She has a bachelor's degree in psychology from The University of Missouri- Kansas City (UMKC), and a Juris Doctorate from The University of Missouri at Kansas City (UMKC) School of Law, working with Tax Professor Edwin Hood. She recently completed her LLM at Thomas Jefferson School of Law in the International Taxation and Business Program in US Federal Taxation. STEVE M. WINDHAM, LLM, MBA, EA Steve has been working as a tax professional since 2003. In 2003, Steve obtained his California Tax Education Council Registration; which he continues to hold. In 2008, Steve obtained his Enrolled Agent license from the US Treasury Department; thereby increasing the scope of work that he was able to perform as a tax professional. Currently, Steve has also taught accounting at Heald College. Steve has a diverse educational background. Relevant degrees and coursework include: Master of Business Administration from Ashworth College in 2012; Master of Laws in International Taxation with certificates in US Taxation and E-Commerce from St. Thomas University, School of Law in 2006; Bachelor in Liberal Studies from Excelsior College in 2002; and an Associate in Science in Accounting from Solano College in 2006. In addition to tax preparation, Steve has experience with the IRS audit and appeals process. One client that Steve recently represented owed the IRS over $46,000. After extensive negotiation with the IRS audit and appeals divisions, Steve was able to reduce this amount to $2,815. Steve is continuing his graduate studies by pursuing a Doctor of Business Administration. If you would like to talk to any of our staff members please feel free to send an email or call and we will set up an appointment. Thomas M Carden Internal Revenue Service Enrolled Agent #9092 Masters of Juris Science In International Tax and Financial Service Law Thomas Jefferson School of Law.  (Dec 3, 2012 | post #6)

Australia

Obtaining a US ITIN in Australia

Everyone in the firm has fully verifiable credentials. The site is not a scam. In fact it is easy to do a search and crosscheck the site.  (Dec 2, 2012 | post #3)

Australia

Obtaining a US ITIN in Australia

From United States Australia Tax Service USAUTAX.COM For FulL Text visit USAUTAX.COM Updated ITIN Procedure Changes Announced November 2012 The Internal Revenue Service has announced updated procedures to strengthen the Individual Taxpayer Identification Number (ITIN) program requirements. The updated procedures take effect Jan. 1, 2013 and build on interim procedures announced June 22, 2012 and Oct. 2, 2012 to safeguard the integrity of the tax identification number system, while improving the refund process. The interim procedures announced earlier this year remain in effect through 2012. For those who are applying directly to the IRS for an ITIN, original documents or copies certified by the issuing agency are required. The IRS will continue to accept only original identification documents or certified copies of these documents from the issuing agency with the Form W-7 and federal tax return attached. The documentation list includes passports, national I.D. cards, visas issued by U.S. Department of State, U.S. or foreign military identification card, civil birth certificates, medical and school records, U.S. state or foreign driver’s licenses, U.S. state identification card, foreign voter’s registration card and U.S. Citizenship and Immigration Services photo identification. A full list of acceptable documents is available through the ITIN page on IRS.gov. Additional Options for Applicants The IRS heard from stakeholders that it was difficult in some instances for individuals to be without documents such as passports for extended periods of time. As a result, the IRS determined that other outlets will be available to review original documentation. As part of this effort, while original documents or copies certified by the issuing agency are still required for most applicants, there will be more options and flexibility for people applying for an ITIN. These options provide alternatives to mailing passports and other original documents to the IRS. The Certifying Acceptance Agent (CAA) program will remain but will be modified. CAAs will be required to review original identification documents or copies certified by the issuing agency from applicants, spouses, and dependents. CAAs will be able to certify and then forward proof to the IRS that they have verified the authenticity of the documents supporting the ITIN application for applicants and spouses. This means they will not need to mail original documents such as passports to the IRS, a step previously required under the interim procedures. However, ITIN applications for dependents submitted to the IRS by CAAs will continue to require original documents or copies certified by the issuing agency. There will also be new requirements for the CAA program that are described later in this document. In addition to direct submission of documents to the IRS centralized site or use of CAAs, ITIN applicants will have several other avenues for verification of key documents. These options include some key IRS Taxpayer Assistance Centers (TACs), U.S. Tax Attachés in London, Paris, Beijing and Frankfurt, and at Low-Income Taxpayer Clinics (LITCs) and Volunteer Income Tax Assistance (VITA) Centers that use CAAs. The procedure announced Oct. 2, 2012 for foreign students at educational institutions to be certified through the Student and Exchange Visitor Program (SEVP) remains. The table below provides the full list of options for submitting ITIN documents. The finalized procedures are effective Jan. 1, 2013 ITINs Will Have An Expiration Date For the first time, new ITINs will be issued for a five-year period rather than an indefinite period. The Oct. 2, 2012 procedures put into place for the following groups will remain in effect: If you have questions about this or any other US tax matters in Australia you may go to USAUTAX.COM or email [email protected]  (Dec 2, 2012 | post #1)

Australia

US Tax Accountant in Australia

Kimberley Kellogg BA, RTRP, JD, LLM, Has Joined the firm Of United States Australia Tax Service. She is available to help US citizens in Australia handle their US tax filing requirements. Kim is enrolled as a registered tax return preparer. She has experience in the private tax sector and as tax examiner for the Internal Revenue Service. She has prepared tax returns and taught individual tax classes for the last twelve years. She has a wealth of knowledge in individual, investor, and business tax returns. She has a bachelor's degree in psychology from The University of Missouri- Kansas City (UMKC), and a Juris Doctorate from The University of Missouri at Kansas City (UMKC) School of Law, working with Tax Professor Edwin Hood. She recently completed her LLM at Thomas Jefferson School of Law in the International Taxation and Business Program in US Federal Taxation. For More information visit the United States Australia Tax Service website at USAUTAX.COM or Email [email protected]  (Nov 29, 2012 | post #1)

Australia

Obamacare for US Expatriates in Australia

Many US Expatriates are concerned about the ramifications of Obama Care as the mandate to obtain health insurance is being enforced by the tax code I thought it time to write a post about the affects of the law on US citizens living in Australia. The rules for expats are contained in section 1501 of the law. Section 1501 ‘‘(4) INDIVIDUALS RESIDING OUTSIDE UNITED STATES OR RESIDENTS OF TERRITORIES.– Any applicable individual shall be treated as having minimum essential coverage for any month– ‘‘(A) if such month occurs during any period described in subparagraph (A) or (B) of section 911(d)(1) which is applicable to the individual, or ‘‘(B) if such individual is a bona fide resident of any possession of the United States (as determined under section 937(a)) for such month. Section 911(d)(1) is part of the Internal Revenue Code and provides: “(d) Definitions and special rules For purposes of this section– (1) Qualified individual The term “qualified individual” means an individual whose tax home is in a foreign country and who is– (A) a citizen of the United States and establishes to the satisfaction of the Secretary that he has been a bona fide resident of a foreign country or countries for an uninterrupted period which includes an entire taxable year, or (B) a citizen or resident of the United States and who, during any period of 12 consecutive months, is present in a foreign country or countries during at least 330 full days in such period.” Now you are probably asking what does all of that mean for me. the short answer is that if you qualify for the Foreign Earned Income Exclusion using either the physical Presence test or the Bonafide Residence Test you do not have to obtain US qualified Health Insurance. To meet the Physical Residence Test the filer must be physically out of the country for 330 days for any 12 month period. (The 330 days may be split among two calendar years. For instance 200 days in the last part of one year then 130 days in the first part of the next year.) 2 To meet the Bonafide Residence test, the filer must be a bonafide resident of another country.3 Bonafide resident is poorly defined. It is considered to be a fact and circumstances test because the IRS will study the facts and circumstances of a person’s residency. The IRS will review the reasons for claiming the provision such as where a person’s work, family, and main home are located to make a determination of residency. While the test may seem to be arbitrary, in many cases the taxpayer will gain a level of flexibility in travel if they choose to use this test over the more rigid fixed period test. While the Bonafide residence test is somewhat murky if you have achieved a permanent resident visa status in Australia and you are resident there through tout the year you will qualify for this test. It is important to note that the rules do not remove the extra tax amounts on income they just remove the insurance mandate. Starting in 2013, an extra 0.9% Medicare tax will be charged on: - salary and/or SE income above $200,000 for an unmarried individual, - combined salary and/or SE income above $250,000 for a married joint-filing couple - salary and/or SE income above $125,000 for those who use married filing separate status. For self-employed individuals, the additional 0.9% Medicare tax hit will come in the form of a higher SE bill. It is assumable that the tax may be able to be reduced by the Foreign Tax credit but at this point that is not clear. If you have more questions about the tax ramifications please feel free to contact me at [email protected] Thomas Carden Director United States Australia Tax Service USAUTAX.COM  (Nov 21, 2012 | post #1)

Australia

IRS Australia

Due to demand around Australia Thomas will be setting appointments in Melbourne, Perth and Cairns in the spring as well. If your city is not listed please contact Thomas at [email protected] to see if he is able to meet with your virtually or if he will be traveling to your city.  (Nov 20, 2012 | post #2)

Financial Services

FATCA Deadline Extended For Australian Financial Institutes

Forbes has an article out on the Fatca intergovernmental agreement where it says "That’s just the short list. The feds also have an “active dialog” with: Argentina, Australia, Belgium, the Cayman Islands, Cyprus, Estonia, Hungary, Israel, Liechtenstein, Malaysia, Malta, New Zealand, the Slovak Republic, Singapore, South Korea, and Sweden." If the agreement is signed by Australia banks would report account information to the Australian government, which would then transfer the information to the IRS in the US. For more information on FATCA contact Thomas Carden Director United States Australia Tax Service at [email protected] or visit the website at USAUTAX.COM  (Nov 17, 2012 | post #2)

Top Stories

US Tax Services For Australians

Check back soon for the address of the new office in Sydney Australia. United States Australia Tax is proud to have offices in Adelaide and Los Angeles. With the coming opening of our new office in Sydney we will be able to offer our personalized services to even more people in Australia While the IRS does not have offices in Australia we will proudly have two. For queries email United States Australia Tax Service at [email protected]  (Nov 17, 2012 | post #3)

Australia

IRS Australia

IRS Enrolled Agent Thomas Carden is setting spring 2013 appointments for US Expatriates in Sydney Australia. US Citizens and Green Care Holders are required to file taxes on their world wide income regardless of where they live or the income is earned. Contact Thomas at [email protected] or visit the United States Australia Tax Service web site at USAUTAX.COM  (Nov 17, 2012 | post #1)

Financial Services

FATCA Deadline Extended For Australian Financial Institutes

The IRS announced new timelines that extend the dates for withholding agents and foreign financial institutions (FFIs) to complete due diligence and other requirements under the Foreign Account Tax Compliance Act FATCA. The deadline to enter into an information agreement with the IRS has moved to Jan 1 2014 Withholdable payments of clients will now need to be reported from January 1, 2016, with respect to calendar year 2015. Thomas Carden United States Australia Tax Service USAUTAX.COM  (Oct 30, 2012 | post #1)

Australia

Tax News For US Expatriates in Australia

The Foreign Earned Income Exclusion has increased in 2012 to $95,100 for 2012 from 92,900 in 2011. However even if you are able to exclude your income as a US citizen you are still required to file a tax return. Contact a qualified US tax specialist if you have any questions. Thomas Carden United States Australia Tax Service USAUTAX.COM  (Oct 29, 2012 | post #1)

Australia

US Expatriate Tax Programs

The IRS has several programs that allow expatriates to come into compliance with their US taxes when they have not filed returns for many years. (US Citizens are required to file US tax returns regardless of where they live in the world) There is a new streamlined program for expatriates and the OVDP programs for taxpayers with undisclosed accounts. However many taxpayers will not need either one. http://www.forbes. com/sites/robertwo od/2012/10/26/shou ld-u-s-citizens-ab road-pick-streamli ned-irs-program-or -ovdp/ Before entering wither program consult a qualified US Expatriate Tax Specialists to help with your IRS problems in Australia. Thomas Carden United States Australia Tax Service USAUTAX.COM  (Oct 28, 2012 | post #1)