Category Archives: Expat Taxes

Different Types of US Immigrant Visas and Tax Status

Some of the more common visas seen by educational institutions are F-1, J-1 and M-1 visas. Other visa types that are commonly seen include; The H-1b for specialty occupations such as teachers, trainees and researchers; and H-1c for foreign nurses. The O-1 visa is issued to foreign scholars, teachers, researchers or trainees, and the TN… Read More »

What is A U.S. withholding agent?

If you are a U.S. withholding agent for such payments, you must collect, deposit and report the income and the withholding taxes to the IRS. In certain instances, the 30 percent withholding rate may also be reduced if there are other statutory rates (see Publication 515) or the item paid is to a foreign resident covered… Read More »

IRS Withholding From Foreign Persons

In general, a foreign person is subject to U.S. tax on U.S. source income. Foreign “persons” include nonresident aliens, foreign partnerships, foreign corporations, foreign estates, and foreign trusts. The tax generally must be withheld from the payment made to the foreign person. A withholding agent is the person responsible for withholding tax on payments made… Read More »

Nonresident Alien Tax Filing Status

Nonresident aliens generally are subject to U.S. income taxation only if they have U.S. source income or taxable income that is effectively connected with conduct of trade or business within United States. Election may be made to treat nonresident alien as U.S. resident so that alien may file joint return with spouse who is citizen… Read More »

Giving Up U.S. Citizenship or Long Term Residency

A U.S. citizen who gives up U.S. citizenship or a long-term U.S. resident who gives up his residency status and who is a covered expatriate is subject to a mark-to-market rule under which his property is deemed to be sold on the day before the expatriation and he is taxed on the gain in excess… Read More »

Foreign Tax Credit and Completing Form 1116

US citizens and residents determine their US tax considering the income from all sources around the world. This sometimes results in US citizens end up paying double tax on the same income: the government of the foreign country where it originated income and also the US government.   Why does the Foreign Tax Credit Exist?… Read More »

General Summary of U.S. Immigration Terms

There are many different terms used in an immigration context and a tax context. It is important to understand the immigration terms that are used by the IRS. This is essential when filing taxes as an immigrant in the United States.   IRS Immigration Term Definitions Alien – An individual who is not a U.S.… Read More »

Offshore Voluntary Disclosure Program OVDP

The IRS has reopened the offshore voluntary disclosure program (OVDP) to help people hiding offshore accounts get current with their taxes and announced the collection of more than $4.4 billion so far from the two previous international programs. The newest program is similar to the 2011 program in many ways, but with a few key… Read More »

Form 8938 FATCA Form Foreign Asset Reporting

FATCA Form 8938 is used to report your specified foreign financial assets if the total value exceeds different thresholds.   Who must file the FATCA Form 8938? Form 8938 is applicable to U.S. citizens, U.S. individual residents, and a very limited number of nonresident individuals who own certain foreign financial accounts or other offshore assets (specified foreign… Read More »

Filing 2014 FBAR on FinCen 114 by June 30 2015

When American expats are their 2014 tax returns, it is very important that they also do not forget about filing their 2014 FBAR by June 30, 2015. If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of… Read More »