How your report your income on your tax returns can have a significant impact on both the amount you need to pay in income tax, and how much you can get as a refund. Mistakes often mean that you either pay too much, or you don’t get enough back; neither option is viable. That’s why it’s important to understand the tax laws, whether you’re in the country or not. Ex-patriates taxes Edison makes it easy to ensure that you don’t pay too much, or get short-changed on a return.
What is Ex-patriates taxation?
This is a tax that you are responsible for when you leave the country and set up residence abroad. The United States is the only country in the world (with the exception of Eritrea) to impose this kind of tax on its citizens. Essentially, persons must pay tax on worldwide incomes; this also applies to stock options and pension plans. While the expatriation tax laws have changed over the years since its inception in 1966, the main goal has remained the same: to tax U.S. citizens regardless of where they live. The law was put in place so that citizens who have settled in other countries don’t ‘skip out’ on paying their due taxes.
This may not apply to those who have dual citizenship. If you’re unsure as to whether or not it applies in your situation, you’ll need to talk to an ex-patriates tax specialist.
Filing taxes can be a complex procedure for anyone, but is especially complex in these cases. Ex-patriates taxes Edison professionals understand the intricate process of filing these types of taxes and take careful measures to ensure that all forms are filled out and completed correctly. This helps to avoid fines and other legal ramifications. It’s important to have all documents needed to avoid delays in this type of tax filing.
