Affordable Expat Tax Preparation By Certified Tax Professionals

The answer to this is quite simple in most cases it all depends on where you are physically located while performing the work.

Where you are working and living will generally have first taxing rights.

Meaning if you’re working in New Zealand the IRD may have first taxing rights on your income.

But there are always exceptions to the rule and the team at US Tax Pros in Auckland can help.

Although most US expats don’t need to pay any income tax to the U.S. you are still required to file your tax returns each year with the IRS especially if you earn a wage.

You need to report your foreign earnings, foreign bank accounts, Kiwisaver growth and even other foreign assets if you have foreign financial assets above a certain threshold.

If you didn’t know about expat taxes previously, don’t worry, there are programs geared to help you get back on track. The streamlined tax filing procedures are a great way to catch up on your unfilled taxes in a penalty free way.

Expats who are employed by US employers, foreign employers, or are self-employed have to pay a certain percentage of their income as tax to the US government above a certain income threshold.

However, a lot of other factors like income level, types of investment, number of dependents, foreign property, and state tax affect the amount of tax you’ll pay.

See the 15-point guide to tax returns for expats to understand this better.

If you are a U.S. citizen living abroad or a resident alien living outside of the United States you’ll be taxed on your worldwide income based on the U.S. tax system.

This depends upon your income level, employment type, and the number of dependants.

However, you may be eligible for foreign income exclusions or foreign tax credits.

Check out the tax services we offer to know more about expat tax filing, tax returns, foreign income exclusions, and more!

You can get exclusions like foreign earned income exclusion, foreign housing exclusion, and other deductions, etc.

The amount for foreign earned income exclusion is adjusted annually for inflation.

To get these exclusions you must have:

• Foreign earned income.
• Your home tax must be in a foreign country.

You also need to be one of the following:

• A U.S. citizen who is a bonafide resident of a foreign country for the entire tax year.
• A resident alien who is a citizen or national of a foreign country that has an income tax treaty with the U.S. and is a resident of the same country for an entire tax year.
• A U.S. citizen or resident alien who is physically present in a foreign country for 330 days.

Note: Even if you don’t have to pay taxes you’ll have to file your expat tax returns.

Get in touch with us to know more about expat tax exclusion, as the FEIE may not be the most tax efficient way of doing things.

Once you start using FEIE, you may be stuck with using that method for the next five years whilst leaving valuable foreign tax credits unused! Ask a tax professional in the know who can take the guesswork out of the process!

Expats can file their tax returns through the IRS. But in most cases the tax filing and return procedures are complex.

Hence, most US expats file tax returns through tax accountants or paid preparers.

While picking a service it is essential to figure out whether the firm provides all of your required services or not.

US Tax Pros helps New Zealand-based US expats. At US Tax Pros, we specialise in all areas of expat taxes. Moreover, you get to choose a pricing plan based on your requirements.

All US expats get an automatic extension for filing their taxes until June 15th of each year.

However, you can buy yourself even more time by filing Form 4868 to get an extension up until October 15th.

Our team at US Tax Pros can tell you more about tax deadlines and extensions and walk you through the entire procedure without any hassles or unnecessary delays.

US expats can claim a foreign tax credit against income that has been taxed by their host country. You can also claim tax returns if you have dependents.

For these claims, you need to be an official expat and have proof of foreign-earned income.

You’ll also need to file your taxes to claim tax returns on your foreign-earned income.

It is important to take note that foreign earned income exclusion isn’t automatic. You’d need to file Form 2555 or 2555 EZ for it.

Get in touch with our tax advisors at US Tax Pros to know more.

US expats are taxed for an income above $400 if they are self-employed. Self-employment tax stands at the moment at 15.3% of your income.

Everyone, from independent contractors to freelancers and sole proprietors, is included under this bracket.

It is important to know that as a self-employed person you must pay taxes on your net profit, including the amount that comes under foreign earned income exclusion.

See more on the business tax returns page to know more about self-employment taxes.

Expat taxes are often complex and need more forms for FEIE even after filing for taxes to ensure that you aren’t taxed twice.

You might need to report foreign bank accounts to the US treasury as well as the IRS through FBAR and FATCA 8938 respectively.

In addition to that, you’ll have to consult tax treaties to ensure that you pay a minimal amount as expat tax.

Above all, everything needs to be done with great attention to detail, as even the slightest mistakes have penalties.

So, it is ideal to hire a firm that specialises in expat taxes to do your taxes.

In some instances, we may be able to assist with local tax return preparation. Contact US Tax Pros to find out if we can help. We can also coordinate with your local accountant to get the information we need to prepare an accurate US tax return.

You need to complete IRS Form W-7 to apply for an Individual Taxpayer Identification Number (ITIN).

It also requires documentation for alienation status and your identity as an individual.

You can either mail the documentation and Form W-7 to the address shown in the W-7 instructions or do the procedure through an IRS-approved acceptance agent.

At US Tax Pros, we can help you apply for an ITIN without any hassles, get in touch with us today..

While the W-9 is used to report your tax ID number, W-8 is used to show that the filer is not an American citizen or resident.

The W-9 is used for anyone with an SSN or ITIN. Many banks ask for it along with your FATCA reporting documents as they are required to report your assets to the US.

The W-8 forms are used by non-residents with US-sourced incomes.

Get in touch with our team at US Tax Pros to know more about these procedures.

This tax is applied to U.S. citizens and resident aliens. It came into effect on 1 Jan 2013, and applies an additional 3.8% medicare tax on your investment income.

Expats are not exempt from it. You need to pay the tax if your income is above $200,000 as a single filer and above US$250,000 if you are a married filer.

Please contact us at to know more about tax filing thresholds.

You are supposed to keep your IRS records for:

• 3 years after you file your tax returns or 2 years after you pay your taxes, whichever is later if you file for credit or claim a refund on your tax returns.
• 7 years if you file a claim for a loss from worthless securities or bad debt reduction.
• 6 years if you do not report income you should report.
• Indefinitely if you don’t file a tax return or file a fraudulent return.
• Keep employment tax records for 4 years from the date on which the tax is paid or when it is due, whichever is later.

Some states in the U.S. apply state taxes on expats for income earned from the state.

For example, if you rent out a property in a given state you are taxed on that.

However, most of the states free you from taxes if you don’t have property, don’t earn anything while visiting, or have no other ties from the state physically or otherwise.

US citizens or green card holders must file the FBAR also known as Foreign Bank Account Report if they have US$10,000 or more in aggregate in their accounts outside the US during any tax year.

To get free FBAR advice, email us at info@ustaxpros.co.nz or use the contact form on this site.

Under the Foreign Account Tax Compliance Act, US expats are supposed to file Form 8938 if they have investments, savings, or other assets abroad above the threshold of US$200,000.

Contact US Tax Pros for more information on this.

If you receive an IRS notice:

• You shouldn’t ignore it.
• Review it thoroughly.
• Reply only in case of disputed notices and if you are instructed to do so.
• Take timely action according to the instructions given in the document.
• Check if it’s a scam.

Contact US Tax Pros to know more about IRS-related procedures and instructions.

To qualify for IRS streamlined filing procedures you must:

• Prove that the conduct was not intentional.
• If the IRS has initiated a civil examination of the taxpayers’ assets then the person wouldn’t qualify for the streamlined procedure. In such a case, you’ll need to get in touch with your agent.
• The taxpayers need a valid Individual Taxpayer Identification Number.
• Pay previous penalty assessments if you have filed for delinquent or amendment returns.

Visit our streamlined tax filing page to know more about streamlined filing procedure.

The tax filing requirement for Form 5471 relates to persons who have a certain level of control in a foreign corporation, and In some cases you may still be required to file form 5471 even if you are not a shareholder in the foreign corporation. Special circumstances apply, so contact Us Tax Pros for more information.

Is my Kiwisaver a PFIC? Is my KiwiSaver a Trust? These are questions that we are asked daily, and complications can quickly arise when KiwiSaver becomes part of your US Tax Return reporting requirement. So if you have a Kiwisaver account, now is a great time to ensure that the fund is being correctly reported on your US Tax Return. Contact the team at US Tax Pros we’re here to help you.