If you're already an expatriate, or you're planning a move abroad, you have more to think about than adjusting to a new culture.

Expatriate Services

The tax situation for expatriates is often complicated and frustrating. Many variables can affect how much expatriates pay in taxes - these issues range from deducting foreign taxes, your host country, and even your employment situation.

The Lizza & Carullo CPAs & Advisors's Foreign Tax Services (FTS) Team can help ensure that you have a smooth filing process.

Your Expat Taxes: Breaking Things Down

If your worldwide income meets or exceeds certain filing thresholds (which are generally equal to the standard deduction for your filing status), you need to file a United States tax return as an expat — end of story. The fact that you're being paid by a foreign employer in another country doesn't change that fact. If you're self-employed, that threshold is just $400.

Filing requirements include a standard U.S. 1040 income tax form (if applicable) and it could involve filing full-year, part-year or even non-resident returns depending on the specifics of your situation. Likewise, if you have a bank and/or brokerage account outside of the United States, you'll have to file a form 114 (or Foreign Bank Account Reporting Form) as well.

The good news is that there are a few ways to significantly reduce — or even eliminate — this burden. One is the Foreign Earned Income Exclusion, which lets you exclude roughly $100,000 of income earned from services provided outside of the U.S. (not including interest, dividends, stock sales or pension income). Another is The Foreign Tax Credit, which lets you reduce your United States income tax by the amount of foreign taxes you've already paid.

The Lizza & Carullo CPAs & Advisors FTS Expatriate Difference

Although the IRS offers numerous deductions, credits, and exclusions to expats, taking advantage of them is not straightforward.  Some exclusions vary by country, while others can only be claimed for a portion of the year.

  • In addition, each requires supporting forms and worksheets, which can be more than cumbersome to prepare.  For people who are either planning a move or have already settled abroad, we offer the following tax services:

  • Preparation of your U.S. income tax return, including schedules and forms.

  • Preparation and filing of your state tax return, if applicable.

  • Preparation and filing of required forms and schedules for small business owners, self-employed individuals, and individuals with significant rental property.

  • Preparation and filing of the FBAR form for individuals with assets above a certain threshold in foreign accounts.

  • All information is transmitted through our highly secure, fully encrypted Client Portal which enables quick, free, and safe transfer of files.

The FTS team at Lizza & Carullo CPAs & Advisors understands that living abroad can be an adventure — but when your taxes are concerned, it isn't always a positive one. That's why we want to help you make the most of a tricky situation, not only getting all your forms, paperwork and other documents in order, but helping you to reduce that expat tax liability as much as possible. In the end, you'll be able to rest easy knowing that your expat income tax burden is truly taken care of. To find out more information, please don't hesitate to contact Lizza & Carullo CPAs & Advisors today.

If you are interested in our Lyndhurst-based expatriate tax and accounting services, call us at (201) 896-1170 or contact us.