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Shakiyah Mone

The GlossBoss Guide to Filing Taxes for US citizens working aboard

There are two facts of life, you die and you pay taxes. Especially if you're American. The United States' tax law states that all US citizens are required to file taxes, even if they are not living in America…but how do you file taxes? There are many other tax websites that file for you, but you’ll have to pay for their help. Filing your own taxes isn’t that difficult, here are some tips to help you file…


**DISCLAMIER**

The GlossBoss Guide is not a tax expert and The GlossBoss Guide does not work for the IRS these are basic tips and information found from the IRS website.



 

WHO HAS TO FILE

Again, the IRS states that all US citizens and US residents who are living outside the United States need to file taxes regardless if you are paying taxes in a foreign country. Don’t worry, you can prevent being double taxed by filing for a foreign earned income exclusion. More specific information can be found in Publication 54 Tax guide for US citizens and resident aliens aboard.


WHERE TO FILE

Of course in the age of technology, you can file your tax forms online with a variety of options suggested by the IRS…however you must look to see which e-filing option you are eligible for. Another option is the good old fashion mailing service. If you have money to pay you will send your forms to this location:

Internal Revenue Service

P.O. Box 1300

Charlotte, NC 28201-1300

USA


If no is no payment amount send your forms here:


Department of the Treasury

Internal Revenue Service Center

Austin, TX 73301-0215

USA


WHEN TO FILE

Everyone knows tax day is April 15 in the United States. However, for US citizens who live overseas there is an automatic 2 month extension. Which means their taxes are due June 15. Now, if you want to claim this extension attach a written statement on why you qualify for the extension or fill out and send in Form 4868. But be careful, because if you owe money you can pay late fees starting from April 15.


WHICH FORMS TO FILE

Now that you know when and where to file…what are you actually filing? The simple answer is forms. You will be filing forms. But know which forms to file and providing the correct information is where it can get complicated, but don’t worry each form comes with instructions.


The most basic form that every taxpayer uses is the Form 1040. Only use 1040R if you are older than 65. Form 1040 will ask you basic info and here are the instructions to help you properly fill out the form. The main purpose of this forms to put down your total income including your what you earned overseas and figuring out what you owe. Make sure to sign this form on page 2.


Along with Form 1040 you may also have to attach 1040 Schedule 1,2, or 3.

Schedule 1 is generally used to include more income like alimony

Schedule 2 is generally used to include additional taxes

Schedule 3 is generally used to include additional payments.



For those living overseas, you will still fill out form 1040. After filling out form 1040, have to chose one of two forms to file. Make sure you read and understand which form you are eligible for…

Form 2555 Foreign Earned Income Exclusion. Use this form to exclude your foreign income from your US taxes up to $107,000, You may file this if you have foreign earned income, live in a foreign country for 330 days or more within 12 consecutive months, are a bona fid resident of a foreign country for a full tax year. Instructions.

Form 1116 Foreign Tax Credit. Use this form to get credit for paying taxes overseas. You may be eligible if you paid or accrued any foreign taxes. Instructions.


FORMS YOU DON'T NEED TO FILE

W-2 forms are usually given to employees from US employers, however if you don't work for a US employer you won't have a W-2 form-therefore you won't need to file it. You will not need to provide a proof of income statement either. However, if you did happen to work for a US employer and still don't have a W-2 Form you can still file Form 4582 Substitute for W-2. If you only for an employer aboard you will not need Form 4582.


IRS USEFUL LINKS


Tax Guide for US citizens living aboard https://www.irs.gov/pub/irs-pdf/p54.pdf






Figure out the past and present exchange rates (All figures when filling will be in US dollars) https://www.fiscal.treasury.gov/reports-statements/treasury-reporting-rates-exchange/


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