FAQs

For Expats

A very short answer to the above question is Yes. Indian mutul funds have to be reported on your US tax return. You can check out more details on how to report them in the article here. If you have mutual fund investments in India, we strongly suggest you to get in touch with us and have a consultation appointment. We have helped several clients to become compliant in this area.

Unfortunately this situation applies to a lot of people. People reside outside the US and do not file their US tax returns either due to a genuine lack of knowledge or they are unable to find an expert who can guide them properly regarding the tax laws which will apply in their case. If you fall in this category, we suggest you to get in touch with us at the earliest. The IRS has designed programes such as the SFOP – Streamlined Foreign Offshore Procedures for people who have undisclosed foreign income which is not willful. We can analyze your situation and assist you if are eligible for this program.

The tax filing deadline for a US expat is 15th June. However, he can file an extension upto 15th October. But please note that this extension is only for filing your tax return. You would still need to pay your taxes by 15th April. So if you are not ready with your taxes by the filing deadline, be sure to make your estimated tax payments by April 15th.

The most common common forms which a US expat may be required to file are:

  1. Form 1040
  2. Form 2555 (Foreign Earned Income Exclusion)
  3. Form 1116 (Foreign Tax Credit)
  4. FBAR (Foreign Bank Account Reporting)
  5. Form 8938
  6. Form 8621 (Foreign Mutual Funds)
  7. Form 3520 (Foreign Gifts)
  8. Form 5471 (Information with respect to certain foreign corporations)

Some of the forms mentioned above are required to be filed along with the tax return and some of them are filed separately like the FBAR. Also, some forms are only information returns and do not impact the tax liability.

If you are a US citizen, your global income is taxed in the US regardless of your physical residence if your income exceeds the minimum amount subject to be taxed. Now this does not mean that you will necessarily be taxed twice – once in the US and once in the country of your residence. You can definitely avail the benefits of US tax laws and the Double Taxation Avoidance Agreement (DTAA) in order to avoid double taxation.

Any person whose aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year needs to file FBAR.

FAQs

For NRIs

A very short answer to the above question is Yes. Indian mutul funds have to be reported on your US tax return. You can check out more details on how to report them in the article here. If you have mutual fund investments in India, we strongly suggest you to get in touch with us and have a consultation appointment. We have helped several clients to become compliant in this area.

Unfortunately this situation applies to a lot of people. People reside outside the US and do not file their US tax returns either due to a genuine lack of knowledge or they are unable to find an expert who can guide them properly regarding the tax laws which will apply in their case. If you fall in this category, we suggest you to get in touch with us at the earliest. The IRS has designed programes such as the SFOP – Streamlined Foreign Offshore Procedures for people who have undisclosed foreign income which is not willful. We can analyze your situation and assist you if are eligible for this program.

The tax filing deadline for a US expat is 15th June. However, he can file an extension upto 15th October. But please note that this extension is only for filing your tax return. You would still need to pay your taxes by 15th April. So if you are not ready with your taxes by the filing deadline, be sure to make your estimated tax payments by April 15th.

The most common common forms which a US expat may be required to file are:

  1. Form 1040
  2. Form 2555 (Foreign Earned Income Exclusion)
  3. Form 1116 (Foreign Tax Credit)
  4. FBAR (Foreign Bank Account Reporting)
  5. Form 8938
  6. Form 8621 (Foreign Mutual Funds)
  7. Form 3520 (Foreign Gifts)
  8. Form 5471 (Information with respect to certain foreign corporations)

Some of the forms mentioned above are required to be filed along with the tax return and some of them are filed separately like the FBAR. Also, some forms are only information returns and do not impact the tax liability.

If you are a US citizen, your global income is taxed in the US regardless of your physical residence if your income exceeds the minimum amount subject to be taxed. Now this does not mean that you will necessarily be taxed twice – once in the US and once in the country of your residence. You can definitely avail the benefits of US tax laws and the Double Taxation Avoidance Agreement (DTAA) in order to avoid double taxation.

Frequently Asked Questions (FAQs)

Do my India mutual fund investments have to be reported on my US tax return?

A very short answer to the above question is Yes. Indian mutul funds have to be reported on your US tax return. You can check out more details on how to report them in the article here. If you have mutual fund investments in India, we strongly suggest you to get in touch with us and have a consultation appointment. We have helped several clients to become compliant in this area.

I reside outside the US and have not filed my US tax return for the past several years. Where do I start?

Unfortunately this situation applies to a lot of people. People reside outside the US and do not file their US tax returns either due to a genuine lack of knowledge or they are unable to find an expert who can guide them properly regarding the tax laws which will apply in their case. If you fall in this category, we suggest you to get in touch with us at the earliest. The IRS has designed programes such as the SFOP – Streamlined Foreign Offshore Procedures for people who have undisclosed foreign income which is not willful. We can analyze your situation and assist you if are eligible for this program.

What is the tax filing deadline for a US expat?

The tax filing deadline for a US expat is 15th June. However, he can file an extension upto 15th October. But please note that this extension is only for filing your tax return. You would still need to pay your taxes by 15th April. So if you are not ready with your taxes by the filing deadline, be sure to make your estimated tax payments by April 15th.

What are the most common forms a US Expat is expected to file?

The most common common forms which a US expat may be required to file are:

  1. Form 1040
  2. Form 2555 (Foreign Earned Income Exclusion)
  3. Form 1116 (Foreign Tax Credit)
  4. FBAR (Foreign Bank Account Reporting)
  5. Form 8938
  6. Form 8621 (Foreign Mutual Funds)
  7. Form 3520 (Foreign Gifts)
  8. Form 5471 (Information with respect to certain foreign corporations)

Some of the forms mentioned above are required to be filed along with the tax return and some of them are filed separately like the FBAR. Also, some forms are only information returns and do not impact the tax liability.

As a US expat, am I required to file my US tax returns?

If you are a US citizen, your global income is taxed in the US regardless of your physical residence if your income exceeds the minimum amount subject to be taxed. Now this does not mean that you will necessarily be taxed twice – once in the US and once in the country of your residence. You can definitely avail the benefits of US tax laws and the Double Taxation Avoidance Agreement (DTAA) in order to avoid double taxation.

Who needs to file FBAR?

Any person whose aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year needs to file FBAR.

Anafin Consulting is an international tax advisory and consulting firm, providing personalized tax and financial advice to US Expats & non-resident Indians across the globe.
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