For the US citizens living abroad, you should file US tax returns every year so that you do not have to face penalties. Your income is subject to US tax, regardless of the country where you reside. Even if your return is just informational and you have to pay no tax, you have the obligation to file it anyway. You need to have a social security number (SSN) or an individual taxpayer identification number (ITIN) to file your return.Expat Taxes
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When should you file?
If you're residing overseas for any reason on the due date of your return, you'll have an automatic extension of two months to file it (typically to June 15). If you are not able to file your return before this extension, you can get another extension till 15 October by filing relevant forms before the first due date. However, keep in mind that this delay means the payments will be subject to interest charges and penalties.
Where can you send your return?
* You have to mail you U.S. tax return at this address: Department of the Treasury, Internal Revenue Service, Center Austin, TX 73301-0215 USA.
* You have to mail your estimated tax payments with 1040-ES form to: Internal Revenue Service, P.O. Box 1300 Charlotte, NC 28201-1300 USA.
You can use Free File to file your tax return electronically if your Adjusted Gross Income (AFI) is $57,000 or less. In case your AGI is greater than $57,00, you will have to use the Free File Fillable forms or e-file using any commercial tax preparation program available.
What would be the exchange rate?
Regardless of where you reside and the currency in your country, you need to file your tax returns in dollar amounts. Generally, the average of the year is used to convert the local currency into dollars. However, if you made the transaction on a specific day, you may use the exchange rate of that day. To find the yearly average exchange rates, look into this link.
Can your foreign earnings be excluded?
The foreign housing exclusion and the foreign housing deduction can be applied provided that you meet certain requirements. Regarding your foreign income, you may annually exclude a part of it, which is adjusted to inflation every year ($95,100 for 2012). You can exclude the value of meals and lodging if your employer provided them.
What is the minimum requirement of time to apply for the exclusion?
If you want to apply for the foreign income exclusion, then you must have been physically present in your country of residence for at least 330 days in the a 12 month periods. It's not necessary that you've been working the entire time; vacation days are also accounted. If you have to leave the country for any reason (illness, family problems, orders from your employer), you won't be considered physically present in it. The only exceptions are in cases of war or civil unrest, provided you're able to show that you would have spent the minimum required days in the country.expatriate tax return
You can get more information about expatriate tax return at the following link:
For the US citizens living abroad, you should file US tax returns every year so that you do not have to face penalties. Your income is subject to US tax, regardless of the country where you reside. Even if your return is just informational and you have to pay no tax, you have the obligation to file it anyway. You need to have a social security number (SSN) or an individual taxpayer identification number (ITIN) to file your return.Expat Taxes
When should you file?
If you're residing overseas for any reason on the due date of your return, you'll have an automatic extension of two months to file it (typically to June 15). If you are not able to file your return before this extension, you can get another extension till 15 October by filing relevant forms before the first due date. However, keep in mind that this delay means the payments will be subject to interest charges and penalties.
Where can you send your return?
* You have to mail you U.S. tax return at this address: Department of the Treasury, Internal Revenue Service, Center Austin, TX 73301-0215 USA.
* You have to mail your estimated tax payments with 1040-ES form to: Internal Revenue Service, P.O. Box 1300 Charlotte, NC 28201-1300 USA.
You can use Free File to file your tax return electronically if your Adjusted Gross Income (AFI) is $57,000 or less. In case your AGI is greater than $57,00, you will have to use the Free File Fillable forms or e-file using any commercial tax preparation program available.
What would be the exchange rate?
Regardless of where you reside and the currency in your country, you need to file your tax returns in dollar amounts. Generally, the average of the year is used to convert the local currency into dollars. However, if you made the transaction on a specific day, you may use the exchange rate of that day. To find the yearly average exchange rates, look into this link.
Can your foreign earnings be excluded?
The foreign housing exclusion and the foreign housing deduction can be applied provided that you meet certain requirements. Regarding your foreign income, you may annually exclude a part of it, which is adjusted to inflation every year ($95,100 for 2012). You can exclude the value of meals and lodging if your employer provided them.
What is the minimum requirement of time to apply for the exclusion?
If you want to apply for the foreign income exclusion, then you must have been physically present in your country of residence for at least 330 days in the a 12 month periods. It's not necessary that you've been working the entire time; vacation days are also accounted. If you have to leave the country for any reason (illness, family problems, orders from your employer), you won't be considered physically present in it. The only exceptions are in cases of war or civil unrest, provided you're able to show that you would have spent the minimum required days in the country.expatriate tax return
You can get more information about expatriate tax return at the following link: