U.S. Taxes on Foreign Income
U.S. TAXES ON FOREIGN INCOME U.S. citizens and residents are subject to U.S. income taxation on their worldwide income, including income from foreign countries. Generally, that means you’re subject to U.S. taxes on foreign income. However, you may be able to claim a credit for the income taxes you’ve paid to the foreign country on […]
U.S. Tax Deadlines for Citizens Living Abroad
U.S. TAX DEADLINES FOR CITIZENS LIVING ABROAD Generally, the due date for your U.S. federal tax return is April 15. However, the U.S. tax deadline for citizens living abroad is June 15: you are allowed an automatic 2-month extension to file your tax return and pay any amount due without requesting an extension. If you […]
COVID-19 and the Foreign Earned Income Exclusion
COVID-19 AND THE FOREIGN EARNED INCOME EXCLUSION U.S. citizens living in a foreign country are subject to the same U.S. income tax laws that apply to U.S. citizens living in the United States. This means that U.S. citizens living abroad are subject to U.S. income tax on their worldwide income and are required to file […]
U.S. Nonresident Withholding Tax
U.S. NONRESIDENT WITHHOLDING TAX Payments to foreign persons, including nonresident aliens (non-U.S. individuals), foreign corporations, foreign partnerships, foreign trusts and foreign estates, etc. may be subject to U.S. nonresident withholding tax. This is a general overview with information about 1) the persons responsible for withholding (withholding agents), 2) the types of income subject to withholding, […]
IRS Form 5471: Reporting Requirements for Americans Who Own Stock in a Foreign Corporation
IRS Form 5471: Reporting Requirements for Americans Who Own Stock in a Foreign Corporation As a U.S. citizen living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. Therefore, you are required to file a U.S. income tax return. U.S. citizens who are officers, directors, or […]
FIRPTA: Withholding of Tax on Dispositions of United States Real Property
FIRPTA: Withholding of Tax on Dispositions of United States Real Property Under the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), the sale or other taxable disposition of United States real property by a foreign person is subject to income tax withholding. U.S. income tax treaties generally allow for such U.S. taxation. The […]
Taxation of Investments in US Real Estate by Non-US Citizens
TAXATION OF INVESTMENTS IN US REAL ESTATE BY NON-US CITIZENS A foreign investor who derives income from renting out or the disposition of U.S. real estate is generally required to file a nonresident federal income tax return with the U.S. tax authorities (IRS). In addition, there may be a state tax filing requirement, depending on […]
US Filing Requirements for US Disregarded Entities Owned by 1 Foreign Person
US FILING REQUIREMENTS FOR US DISREGARDED ENTITIES OWNED BY 1 FOREIGN PERSON Until recently, there were limited U.S. tax reporting requirements for U.S. disregarded entities that are owned by a single foreign person (such as a Limited Liability Company, LLC). However, in December 2016, the IRS issued final regulations that amend the entity classification regulations to […]
US Taxation of Foreign Corporations with Business Activities in the United States
US TAXATION OF FOREIGN CORPORATIONS WITH BUSINESS ACTIVITIES IN THE UNITED STATES Foreign corporations may be subject to tax in the United States if they have business activities in the United States or if they receive income from U.S.-sources. Corporations organized under the laws of the United States are subject to tax in the U.S. […]
US Taxation of Foreign Students, Teachers, and Researchers
US TAXATION OF FOREIGN STUDENTS, TEACHERS, AND RESEARCHERS Foreign students, scholars, teachers, and researchers in the United States may or may not be required to file a tax return and/or apply for a U.S. Social Security Number (SSN) or International Taxpayer Identification Number (ITIN), depending on their tax status and specific facts and circumstances. Tax […]
