13
US TAX SERVICES -MIDDLE EAST Expat US tax Dubai

Expat US Tax Dubai | American Expat Tax in Dubai

Embed Size (px)

Citation preview

Page 1: Expat US Tax Dubai | American Expat Tax in Dubai

US TAX SERVICES -MIDDLE EAST

Expat US tax Dubai

Page 2: Expat US Tax Dubai | American Expat Tax in Dubai

How to Save Money on Your US Expat Taxes

• Living and dealing in an exceedingly foreign country, whether or not it's temporary or permanent, will be a satisfying and appreciated expertise.• Moving to a different country, though exciting, will go with

some challenges and needs that you just learn slightly of recent info because it relates to your United States taxes. So as to reap the complete edges of living abroad you wish to do some analysis relating to your expatriate tax return obligation before you wish to file. • Nobody likes filing their taxes, and definitely nobody likes

to pay cash unnecessarily, thus saving cash is crucial. This text can give you with four nice ways that to avoid wasting on your US expat taxes.

Page 3: Expat US Tax Dubai | American Expat Tax in Dubai

Take advantage of the Foreign Tax Credit & Foreign Earned Income Exclusion

• While you are living abroad and filing your U.S. taxes, it's vital to create positive that you just take full advantage of form 1116 and Forms 2555, otherwise known as the Foreign tax credit form and the Foreign earned income Exclusion, respectively.• The Foreign tax credit offers you a credit on your U.S.

expat taxes for the quantity of cash you've got paid in tax to a foreign government. • The Foreign earned income Exclusion helps you by

excluding a giant chunk of your foreign earned income from your U.S. taxes.

Page 4: Expat US Tax Dubai | American Expat Tax in Dubai

• This is often vital as a result of while a U.S. expat; all of the financial gain that you just build outside the u.s. is subject to identical tax rates as somebody who is working and living within the U.S.. • That’s wherever form 2555 comes in. By finishing this

form, you'll be able to exclude up to $91,500 U.S.D of financial gain earned abroad from your US expat tax return.• Whereas together with potential deductions of housing

and living expenses, it's doable to counterbalance most if not all of your tax liability during a given year.

Page 5: Expat US Tax Dubai | American Expat Tax in Dubai

• he Foreign tax credit (or form 1116) is totally different than form 2555 however they work along to assist you save cash on your expat tax return. • It’s vital to notice that a lot of folks take a wrong turn

when using these 2 forms by assuming their taxes are going to be offset by the numbers they need worked out, and they decide to not bother filing their expat taxes at all.• Clearly this is not about to do you any good! If you earn

cash abroad you'll need to file in order to receive these tax breaks and avoid being hit with penalties.

Page 6: Expat US Tax Dubai | American Expat Tax in Dubai

Adjust your Foreign Housing Credit for the country you live in

• A second tip for filing your US expatriate tax return is to create sure your Foreign Housing Credit is adjusted for the country you reside in. The rates vary from country to country which may drastically have an effect on the end result, therefore it's very vital to create sure that this is often adjusted. As a US national living and working abroad, you will be eligible to deduct a number of your housing prices from your financial gain so as to avoid wasting some cash on your taxes. So as to qualify for this deduction, you would like to meet the "bona fide residence test" or the "physical presence test." This test ensures that you are indeed living and dealing abroad.

Page 7: Expat US Tax Dubai | American Expat Tax in Dubai

• The authority permits this deduction as a result of they acknowledge that you may need to pay more cash on housing outside of the US. Generally, the deduction is for a cost of $27,450 or half-hour of your Foreign earned financial gain Exclusion and you deduct this quantity from your gross financial gain for housing prices. As mentioned, this rate is adjustable depending on wherever you're living. as an example, compared to living within the US, places like London, Paris, Singapore, Hong Kong, urban center and Perth all qualify for a much higher deduction rate than the standard rate because of the higher prices of living. By being conscious of the dynamical rates related to your country of residence, you may find yourself saving lots of money!

Page 8: Expat US Tax Dubai | American Expat Tax in Dubai

Use the most advantageous foreign exchange rates

• You can conjointly save plenty of cash by ensuring that the accountant who is filing your expatriate tax return is using the foremost advantageous foreign exchange conversion dates. Once filing your taxes, you'll opt for totally different exchange periods like annually or on a selected day. Ensuring you make the right selection as to what period you select can end up saving you plenty of cash within the long run. for instance, if you receive a $10,000 bonus on June first and therefore the foreign exchange rate is less than the monthly range has been, you may need to use the precise date to translate it into us dollars (as everything needs to be filed in us dollars).

Page 9: Expat US Tax Dubai | American Expat Tax in Dubai

Don't get overcharged for your expatriate tax return preparation fees!

• Finally, it's imperative to hire a professional expert to prepare your United States expat taxes and agree upon and pay one flat fee to the one who is filing your expatriate tax return so you are not shocked by the final bill. It happens only too usually that expatriates believe they'll be paying one quantity only to be hit with further charges and charges on their final bill. Several firms do not disclose their costs or they quote you one worth solely to possess add-ons for each additional service. This clearly implies that the bill will increase over the course of preparing the return, and you do not wish to pay more than you can afford or more than you were expecting. You would like to seek out somebody you're comfy coping with and this likely means that an organization that has very clear prices!

Page 10: Expat US Tax Dubai | American Expat Tax in Dubai

• As you'll see, there are various ways to save cash on your U.S. expatriate income tax return. By understanding the credits and exclusions that are accessible to you as an expat, you'll be able to make sure that you're well familiar and intimate with the ways that can prevent cash. For additional info regarding however the assorted elements of an expatriate income tax return work please have a glance at our new series Your Expat Taxes Explained.

Page 11: Expat US Tax Dubai | American Expat Tax in Dubai

• About US tax services-me Expat Tax Services• Established in the UAE with over 10 years of US tax

return preparation and filing experience, US Tax Services - Middle East is Middle East’s premier full service tax firm for Americans living and working in the region.• We are ideally placed in several GCC countries including

the UAE, Qatar and Saudi Arabia to manage the complex tax issues facing many US expatriates living in the region. • Expert, but local, our US tax expertise is welcomed by

our many clients in the region.

Page 12: Expat US Tax Dubai | American Expat Tax in Dubai

AddressPO Box 58234Dubai Silicon OasisDubai, United Arab Emirates Tel: + 971 (0)4 266 1682Tel: + 971 (0)56 140 2305Email: [email protected] : http://www.ustaxservices-me.com

Page 13: Expat US Tax Dubai | American Expat Tax in Dubai

•Thank you….