What's Important To Know Before Moving Abroad???

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What's Important To Know Before Moving Abroad???

• Moving abroad, either for a job, business,
  marriage, or just pure adventure, is an
  opportunity of a lifetime. Living abroad can
  broaden your horizons and the sense of what is
  possible is redefined. For many, the move abroad
  has been one of the best decisions of their life.

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• However, the feeling of being in paradise can get
  a rude jolt when it comes time to pay expat
  taxes! This is something most Americans are
  oblivious to or dont want to face the reality of
  when they move abroad. But, it is not wise to
  avoid tax return services which may even attract
  heavy penalties. Today, filing taxes abroad is
  not as cumbersome as it used to be with the help
  of online tax filing services. You will get all
  the advice and help you need from qualified CPAs
  and tax attorneys from expat tax services.
• So here are the most important things you need to
  know before you move abroad as an expat
• - Even self-employed people have to pay taxes and
  the threshold for this is 400.
• - Taxes are to be filed on income from different
  sources, which would include even rental income,
  dividends, and any interest garnered. So its not
  just your salaried income!
• - Even if you have made a mistake, you can still
  make an amendment and the form for this is 1040X.
• - Most people are aware of the Foreign Earned
  Income Exclusion which can give you substantial
  deduction in taxes, but what they dont know is
  that they have to file for it with a special form
  which is the 2555 or the 2555-EZ, otherwise they
  dont get it!

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• - You will only be eligible for the Foreign
  Earned Income Exclusion if you fulfill certain
  criteria, such as spending 330 days of the year
  in a foreign country. This is called the Physical
  Presence Test and requires careful tracking of
  your time spend traveling out of your foreign
  country.
• - Even if you are moving out of the U.S. later in
  the year, you can still qualify for the Foreign
  Earned Income if you have filed the Form 2350
  previously.
• - If you have dependent children, you could have
  less taxes to pay if you file for Child Tax
  Credit. This requires that your children have a
  Social Security Number from the U.S.
• - Dont think of renouncing your citizenship just
  to avoid taxes as this requires a lot of factors
  to be put in place and you would also have to pay
  exit taxes!
• - Even if you retire abroad, you can still enjoy
  your Social Security benefits from the U.S., so
  make sure you keep track of that as it can come
  in handy in the golden years of your life.
• There are many more factors to take into account
  before you move abroad, so consulting with a
  reliable tax agency that specializes in expat
  taxes would be the best place to start so that
  you know exactly what you are getting into before
  you even get there!

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