Do I still have to file my US income taxes if I retire, work or just live abroad?
Roy Cannon - Gestoria Cocle - main office in Penoneme
Absolutely, you belong to the IRS as long as you hold a US Passport.
If your world wide income falls below the reporting minimum, you are not obliged to file, although this is recommended for a couple of reasons.
You will be required to file a report listing bank and security accounts in any year where the total value exceeds $10,000, even if you are not required to file an income tax return.
If you work abroad, you may be able to claim an "Earned Income Exclusion" on your wages, but not...
If your world wide income falls below the reporting minimum, you are not obliged to file, although this is recommended for a couple of reasons.
You will be required to file a report listing bank and security accounts in any year where the total value exceeds $10,000, even if you are not required to file an income tax return.
If you work abroad, you may be able to claim an "Earned Income Exclusion" on your wages, but not...
Absolutely, you belong to the IRS as long as you hold a US Passport.
If your world wide income falls below the reporting minimum, you are not obliged to file, although this is recommended for a couple of reasons.
You will be required to file a report listing bank and security accounts in any year where the total value exceeds $10,000, even if you are not required to file an income tax return.
If you work abroad, you may be able to claim an "Earned Income Exclusion" on your wages, but not on bank account interest, rental income or other income that is not "earned" by "working".
Other countries are more understanding than the American IRS
If your world wide income falls below the reporting minimum, you are not obliged to file, although this is recommended for a couple of reasons.
You will be required to file a report listing bank and security accounts in any year where the total value exceeds $10,000, even if you are not required to file an income tax return.
If you work abroad, you may be able to claim an "Earned Income Exclusion" on your wages, but not on bank account interest, rental income or other income that is not "earned" by "working".
Other countries are more understanding than the American IRS
Posted February 4, 2013
Tabitha Paddock - Greenback Expat Tax Services
In a nutshell, yes. The US is one of the only countries in the world which taxes on citizenship, not residency… As such, even after you are no longer residing there, you will still be taxed on your worldwide income.
As long as your income is above the minimum threshold (starting at $11,200 for those single and over 65), you will be required to file a tax return. Now, just because you have to file a return does not mean you will actually owe taxes....
In a nutshell, yes. The US is one of the only countries in the world which taxes on citizenship, not residency… As such, even after you are no longer residing there, you will still be taxed on your worldwide income.
As long as your income is above the minimum threshold (starting at $11,200 for those single and over 65), you will be required to file a tax return. Now, just because you have to file a return does not mean you will actually owe taxes. In fact, the majority of people owe nothing at all to the IRS (thanks to some big exclusions and credits which are available for expats). In these cases, it is really just an informational return that you send off every year.
Posted February 19, 2013
Judy Sacco
Yes you do. Also, if you have bank accounts in Panama over $10,000, you have to file the FBAR (Form TD-F 90-22.1) and over $50,000 the form 8938 reporting your foreign bank accounts and corporations. You also have to report any interest earned on foreign accounts.
The earned income credit is a benefit. You can exclude about $92,000 of income earned in Panama (other than interest). You can figure all of this using TurboTax. If you do not report, there can be...
The earned income credit is a benefit. You can exclude about $92,000 of income earned in Panama (other than interest). You can figure all of this using TurboTax. If you do not report, there can be...
Yes you do. Also, if you have bank accounts in Panama over $10,000, you have to file the FBAR (Form TD-F 90-22.1) and over $50,000 the form 8938 reporting your foreign bank accounts and corporations. You also have to report any interest earned on foreign accounts.
The earned income credit is a benefit. You can exclude about $92,000 of income earned in Panama (other than interest). You can figure all of this using TurboTax. If you do not report, there can be dire penalties.
The earned income credit is a benefit. You can exclude about $92,000 of income earned in Panama (other than interest). You can figure all of this using TurboTax. If you do not report, there can be dire penalties.
Posted October 29, 2013
Terry Bradford
You have to file your US income taxes regardless if you retire, live, or work abroad. US citizens must always file their taxes. Living abroad does not make a difference. You still have to file your income tax without exceptions.
For our US taxes, we use an accountant who is still in the US and who is familiar with international law. We also have a Panamanian accountant who is familiar with international law who helps us file our Panamanian income...
You have to file your US income taxes regardless if you retire, live, or work abroad. US citizens must always file their taxes. Living abroad does not make a difference. You still have to file your income tax without exceptions.
For our US taxes, we use an accountant who is still in the US and who is familiar with international law. We also have a Panamanian accountant who is familiar with international law who helps us file our Panamanian income taxes.
Posted October 23, 2014
Stewart Patton - U.S. Tax Services
Yes, Americans who live abroad are still required to file a U.S. tax return, even if there's no tax due. In fact, filing an annual U.S. tax return is actually MORE important once you live abroad. Here's why: You may be familiar with the Foreign Earned Income Exclusion (the "FEIE")--that's the rule that allows Americans living abroad to make up to about $100,000 from working without paying any U.S. income tax. Some people think that...
Yes, Americans who live abroad are still required to file a U.S. tax return, even if there's no tax due. In fact, filing an annual U.S. tax return is actually MORE important once you live abroad. Here's why: You may be familiar with the Foreign Earned Income Exclusion (the "FEIE")--that's the rule that allows Americans living abroad to make up to about $100,000 from working without paying any U.S. income tax. Some people think that it's not important to file a return if their income is below the FEIE cap.
However, the FEIE can ONLY be claimed on a filed tax return. So, if you were to fail to file a U.S. tax return and the IRS were to audit you, you would lose the ability to claim the FEIE. You couldn't tell the IRS at that point that your income was below the FEIE cap each year. You'd have to pay U.S. tax on amounts that you would have been able to earn tax-free if you'd only filed a return. So, failing to file a return could cause you to lose the golden opportunity provided by the FEIE.
For Americans who are behind on U.S. tax returns, the IRS has several amnesty programs that will allow you to catch up easily without having to pay any penalties. Talk to an experienced tax attorney to determine which amnesty program is right for you.
(Pictured: hotel Bora Bora)
Posted November 16, 2015
John Ohe - Hola Expat Tax Services
All U.S. citizens and permanent residents (Green Card holders) are required to file U.S. income tax returns if they have gross income that exceeds certain minimum thresholds – see below for 2016 tax year:
Single, Under 65: $10,300
Single, 65 or older: $11,850
Married, Filing Jointly, Under 65 (both): $20,600
Married, Filing Jointly, Under 65 (one): $21,850
Married, Filing Jointly, 65 or older (both): $23,100
...
All U.S. citizens and permanent residents (Green Card holders) are required to file U.S. income tax returns if they have gross income that exceeds certain minimum thresholds – see below for 2016 tax year:
Single, Under 65: $10,300
Single, 65 or older: $11,850
Married, Filing Jointly, Under 65 (both): $20,600
Married, Filing Jointly, Under 65 (one): $21,850
Married, Filing Jointly, 65 or older (both): $23,100
Married Filing Separately, Any age: $4,000
Head of Household, Under 65: $13,250
Head of Household, 65 or older: $14,800
Qualifying Widow(er) with dependent child, Under 65: $16,600
Qualifying Widow(er) with dependent child, 65 or older: $17,850
U.S. expats are required to report worldwide income (regardless of location). Unfortunately, many are not aware of this fact, and do not file – only be audited by the IRS, at which point they are subject to penalties and interest.
Posted September 19, 2016
Penny Ripple
The US is the ONLY country on the planet that taxes offshore income of their citizens overseas. If you have offshore holdings (bank accounts, houses, businesses, corporations, foundations, trusts, etc.) in a foreign country, you must comply with FACTA and report the income from those holdings. And, of course, if they require you report, and they tax, offshore income then it follows that they certainly require that you report, and pay tax on, any US...The US is the ONLY country on the planet that taxes offshore income of their citizens overseas. If you have offshore holdings (bank accounts, houses, businesses, corporations, foundations, trusts, etc.) in a foreign country, you must comply with FACTA and report the income from those holdings. And, of course, if they require you report, and they tax, offshore income then it follows that they certainly require that you report, and pay tax on, any US income no matter where on the planet you receive, spend or invest that money. ALL income must be reported and most especially those covered by FACTA. So yes... if you move anywhere outside the US (yes, even Mexico or Panama) you will have to file, report and pay the IRS. It's just one of the many benefits of being an American citizen.... aren't you feeling FREE?
(Cuenca, Equador, pictured. )
Posted September 25, 2017