Timely Filing of U.S. Tax Abroad Returns

US citizens living abroad are bound to comply with US tax abroad regulations. For this, it is essential to remain current with current tax rules. There are many experts who can offer professional service for filing US tax abroad returns.

Preparing to file US taxes abroad requires a considerable degree of knowledge about these regulations. It takes hours to read and understand through the IRS rules that apply for U.S. taxes abroad return filing. While filing returns for US taxes abroad, overseas citizens can avail certain concessions offered by IRS based on meeting certain criteria such as duration of stay abroad to qualify for foreign earned income exclusion from expatriate tax returns.

The most efficient way to prepare US taxes abroad to file expatriate tax return is to consult a CPA who is specialized in expatriate tax returns. He has the expertise to guide you through the US taxes abroad filing process. Expats seeking help with their US taxes abroad would certainly benefit from the guidance offered by a CPA regarding foreign earned income exclusion, bona fide residence test, and tax treaties.

Citizens living abroad can reduce their U.S. tax through foreign tax credit and foreign earned income exclusion. A foreign tax credit is allowed for foreign income taxes paid or accrued. The foreign tax credit is limited to that part of U.S. tax due to foreign source income. To qualify for the foreign earned income exclusion, the taxpayer must meet one of two tests: the bona fide resident test or the physical presence test. To meet the bona fide resident test for foreign earned income exclusion the expat must be a resident of a foreign country on that day and the day must be in a period of such residence that includes a full tax year.

For those who live overseas, the IRS form 2555 allows a direct exclusion of certain income under certain conditions. To be eligible to file IRS Form 2555, your tax home should be in a foreign country and second, you have to either be a bona fide resident of that country or have had a physical presence in a country or countries outside of the United States. You should be prepared for filing income tax USA returns on time. Get your books and records in order, and collect necessary forms and information. Businesses also should be prepared to make adjustments for possible extension of expiring provisions.

Americans living outside the USA must continue to file U.S. income tax returns, and pay U.S. tax on their worldwide income. They should be prepared for possible income tax expense if the provisions are not extended. Plan your tax provision procedures accordingly. Get expert advice for filing income tax USA returns.