Expat Tax Guide

American International Tax Advisors - American Expat Taxes

The United States reserves the right to tax its citizens on their worldwide incomes regardless of where they are residing at the time the money is earned. However the United States has tax exclusions and credits that may result in a zero US tax liability for taxpayers who have foreign income. It is even possible in limited situations to actually receive a refund with no tax paid, if a U.S. Citizen has earned income abroad and has children, by using the additional child tax credit.

American International Tax – US Tax Changes in the New Year

As 2019 has now arrived and a new tax year begins, it’s time for our annual letter about tax changes affecting American expats and potential new tax pitfalls. However, I’d first like to personally thank everyone for helping us to grow so significantly in 2018, not just within Thailand but across Southeast Asia. Our primary source of this growth was due to the significant number of client referrals, which is the way we want to continue to grow in the future. For the new year we’re still based in our familiar office on Lat Phrao Soi 3.

Do I need to file an FBAR or an 8938?

Generally, any U.S. citizen, resident, or person doing business in the United States who has an ownership interest in, or signatory authority or other authority over, a financial account (or several accounts) in a foreign country with an aggregate value in excess of $10,000 at any time during the calendar year must file a Form FinCEN Report 114, “Report of Foreign
Bank and Financial Accounts” (commonly referred to as an FBAR), reporting certain information with respect to that account by April 15 of the subsequent year or the extension due date of October 15. Failure to file an FBAR is subject to both civil and criminal penalties.

How do I put my Thai wife on my return?

One of the most common questions we get is how do I put my Thai wife on my tax return.   The first thing you have to do is to apply for an ITIN number for her.  However you may not have to.

Many US expatriates inadvertently share the same tax violations as Trump’s recently indicted advisers

Seven of the charges that former Trump advisers Paul Manafort and Richard Gates face are for failing to report their foreign bank accounts, as required by the Financial Crimes Enforcement Network of the US Department of the Treasury. The US government requires both citizens AND Green Card holders to report all their foreign accounts annually when the combined value of any accounts outside of the United States exceeds the equivalent of $10,000 USD. The truth is that while failing to file a US tax return is not a criminal matter, failure to report foreign bank accounts is a criminal matter, with potential fines of fifty percent of the high balance of the unreported account and potential prison time.  Manafort is not the first to be ensnared in this law: Beanies Babies founder Ty Warner was forced to pay $53 million in penalties in 2013, and in 2016 Dan Horsky an, emeritus professor of business administration at the University of Rochester was forced to pay a $100 million dollar fine and serve 15 years in prison after being found guilty of failing to file his FBARs and properly report tax.