How to be Relaxed With Online Tax Filing Services?

The American government expects all citizens to pay their taxes on time, even if they are living and/or working abroad. There are more than 40 countries around the world which have a tax treaty with America, which makes them liable to exchange tax-relevant information on anyone residing in the country who is an American citizen. So it makes sense to do your due diligence and file your taxes on time in order to avoid the heavy penalties that the IRS imposes on those that don’t. Residing in a foreign country doesn’t give you any leeway when it comes to filing taxes, so the best way to ensure that you file your taxes on time is through reliable online tax filing services.

Tax return services help expats not just file their taxes on time, but also give them valuable advice and assistance regarding calculation of tax payments, claiming exclusions, earning thresholds, what exclusions they are eligible for, etc. What must be remembered is that there are different rules and regulations for different situations and these might change without your knowledge. For example, if you are self employed, having your own foreign company, and are paying payroll taxes of that particular country, then you don’t need to pay social security taxes to the U.S. government. If, however, self employed as an independent contractor, then it is mandatory to pay the U.S. determined payroll taxes based on your net earnings.

Not knowing the full picture regarding your tax liabilities can result in either loss of money through unnecessary taxes or through penalties. Whatever income you have in another country, whether it is royalties, a trust, capital gains, dividends, rental income, is subject to be taxed. Earned income of up to a certain threshold (which does not include the categories mentioned previously) is liable for tax-free earnings. This is best advised by a tax attorney or CPA from reliable expat tax services

One of the luxuries that the IRA gives to expats is that they can take 2 month extension on their return, which will be till June 15, without having to request an extension, as this is an automatic extension. However, this will not exclude you from having to pay interest on the tax amount that was not paid by the due date of April 15. However, if you are still unable to pay your taxes by June 15, the date of the automatic extension, you will have to file for an additional extension, which will be given till October 15.

There are a lot of such little details that make a huge difference in your tax filing. Some of these may be known to you and some may not be known. That is why it helps to take the advice of a professional and qualified CPA or tax attorney whose job it is to keep up-to-date with tax laws and regulations of the United States. Filing your taxes online under the guidance of these professionals ensures that you make no mistakes whatsoever.

Randy Park is working as a tax expert at Locus Expat Tax, locustax.com is online tax filling service provider with a focus on understanding your expat tax circumstances world wide.