If you prepare your U. S. taxes while in the country, you may think you don’t have to hire a Tampa international tax accountant. However, U.S expat taxes are more complex than standard U. S. taxes. You will have to navigate all the complicated deductions, tax dates, exclusions, and exchange rates. Here’s why you must hire a CPA to file your expat taxes:
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Filing U. S. Taxes is a Requirement
Regardless of where you live, the currency you were paid in, the taxes paid to other countries, or where you earned your income, you must file US expat taxes if you have earned more than the minimum thresholds. Because the U.S. expat taxes are complicated, you must let a tax expert handle it for you.
Tax Dates Must Be Reconciled
Although some expatriates don’t need to worry about reconciling tax, a lot of jurisdictions have different tax dates. The United States will require that your returns are completed in the U. S tax year. Thus, you must review tax statements from many years, find the correct income, and review payment history. If you are not a financial or tax expert yourself, this is something you might not be able to do. Thus, it is best to bring an international tax accountant on board.
You Must Report your Income in the U.S. Dollars
It is a requirement of the IRS to report your income in U.S dollars. You can calculate your income on the daily, monthly, or annual exchange rate. If the income you were paid fluctuated, you could enjoy big tax savings over the tax year. An international tax preparer can make sure the correct exchange rate is used while saving you the hassle of searching for rates and converting your incomes and deductions.
You Don’t Much about Tax Laws
- S expat taxes laws tend to change every year. If you don’t stay on top of these changes, you could make mistakes that are costly and time-consuming to correct. You could be facing serious fines and hefty penalties. And when the IRS finds your returns incorrect, they will look into past years to make sure they were prepared correctly. If you don’t want to spend time reading laws for U. S. expat taxes, leave this up to people who have made it their area of expertise.
There is No Expat Tax Software You Can Use
Although tax software is available for simple tax returns, you cannot find software for handling exclusions, deductions, schedules, or currency conversions required for U. S. expat taxes. You must calculate tax returns and forms by hand, making it more time-consuming. But, why need a piece of software when you can tap into the expertise of an international tax accountant?
Tax Preparer Charge a Reasonable Rate
Most reputable international tax services charge a flat rate to complete your U. S. Federal tax return. These include all schedules and forms. Their services also include a search for applicable deductions or exclusions for U. S. expats. Providers of these services will prepare your returns quickly and accurately without draining your pocket.
