If you are a US citizen do you have to report your income to the Internal Revenue Service? If you said, no, what I make in Saudi Arabia or China is none of their business, you would be dead wrong.
Provided you fit into the following categories:
Single ……………………. $12,000
65 or older ………………. $13,600
Head of household …………… $18,000
65 or older ………………. $19,600
Qualifying widow(er) …………. $24,000
65 or older ………………. $25,300
Married filing jointly………….. $24,000
Not living with a spouse at the end of
Year …………………… $ 0
One spouse 65 or older ……… $25,300
Both spouses 65 or older ……. $26,600
Married filing separately….. … $12,000
If you make this amount, then you are required to file a Federal U.S. Tax Return.
In addition, if you made over $400 through self-employment, even if you were single, for example, and made well under the $12,000 cut off, you would also be required to file a return, chiefly to pay self-employment tax.
So if you made $4,000 via YouTube, regardless of how much or how little you made elsewhere, you would be required to file and pay tax on those earnings.
Finally, if you had over $10,000 in a Foreign Bank, the IRS wants to know about it to establish a tax on earnings whether in New Zealand, Thailand, or Abu Dhabi.
All of this information can be found on the IRS Website, in particular, Filing Requirements for US Citizens Living Abroad and IRS Publication 54.
Expat Taxes are Complicated
The rules are pretty clear in principle, however, in practice, that’s often another matter. While Publication 54 establishes the rules, there are countless decisions to be made concerning taxes. For example, how to do handle estimated taxes.
Does the country where you are living at have a joint agreement with the United States over taxes? Do you have a foreign spouse that works? Do the two of you have a joint bank account that earns a substantial amount of interest? Do you already pay taxes in your second country, and wish to get an exclusion from your U.S. taxes?
With so many questions, it’s no wonder that many individuals, as well as companies, hire expert agencies such as Versare Relocation to create a Versa international assignment profile.
Although paying taxes is never painless, companies such as Versa Relocation can help businesses educated and guide foreign employees through the myriad of landmines that are a part of the relocation process.
Besides taxes, Versare Relocation can:
- Offer complete orientations
Which orients employees to neighborhoods, traffic commutes, medical facilities, places of worship, shopping options, community service, and more.
- Rental Assistance
Finding the best rentals are never easy, no matter what part of the world you are in, but when you are in a Foreign Country, you need an ally to not only help you find the best locations but to negotiate with landlords, many who do not speak English. Versa Relocations can help you understand exactly what the deposits, damage terms, and other restrictions are involved in your rental.
- Settling In
Orientation is one thing, but after a week or two, Versa Relocations often finds that families need a second, more practical orientation to answer the dozens of questions that often come up.
- Language Orientation
Versa Relocation partners with many language schools to provide language training to those who need it.
- Moving of Goods
Families who have never relocated before are often overwhelmed at the entire process of moving their goods, including deciding whether they will leave some of those goods behind. Versatel Relocators are experts at helping people move their goods to a foreign country.
Contact Versatel Relocators today if you feel their valuable foreign relocation services can assist those in your company.