Note to Payoneer

I, Olivier Wagner, CPA am operating both 1040 Abroad and Tax Samurai. Katarzyna (Kasia) Strzelczyk is my employee and I am using Payoneer to pay her, she does not have any other client. Kasia and I agree to a “no refund” policy. Payments processed thru Payoneer are not to be reversed. Feel free to contact ...

Tax Season Tips for U.S. Immigrants

Immigrants coming to the US would be considered resident alien if spending too much time in the US. With that classification comes 1) the fact that they are taxed on their worldwide income 2) various reporting requirements for foreign bank accounts, foreign corporations, foreign trusts (including banking products which were typical/widespread in their home country). ...

7 Common Myths about U.S. Expat Tax Rules

U.S. citizens living abroad are painfully aware of the thicket of information about expat tax rules, and it can be a struggle sorting the truth from the most common myths about compliance. Olivier Wagner at 1040 Abroad punctures myths and provides guidance below: Myth #1: Individuals living outside of the U.S. and filing tax returns with a ...

FBAR & FATCA Information

New rules on financial reporting from the FACTA will affect U.S. expats. FBAR apply to all U.S. tax payers with a foreign account amounting over $10,000. If you’re an expat who hasn’t been filing returns and FBARs, this could affect you. Find out what the rules are, and how they may impact your taxes. For ...

Foreign Earned Income Exclusion

If you’re an expat, you might be able to exclude foreign earned income from U.S. tax up to $100,800 in 2014. This exclusion is available only for earned income and doesn’t apply to passive income. Passive income includes interest, dividends, and rent. The exclusion usually requires you to have lived abroad for at least a ...

Streamlined Program Will Expire!

Streamlined Program Will Expire!
The updated Streamlined Program that was revised in June 2014 is a simplified method of allowing delinquent U.S. taxpayers to become tax compliant. If certain conditions are met, tax and information return penalties could be waived. Refer to my article on the website and the IRS site for additional information on the program. On December ...

IRS increases de minimis safe harbor

IRS increases de minimis safe harbor
On November 24, 2015, the IRS issued notice 2015-82, increasing from $ 500 to $ 2,500 the amount which can be expensed for tangible property for taxpayers without audited financial statement. According to regulations, a taxpayer can deduct/expense the cost of the tangible personal property, if they meet certain requirements of the project. This notice is effective for fiscal years ...

The IRS announces the beginning of the 2016 tax season

The IRS announces the beginning of the 2016 tax season
The IRS has announced the start date for the 2016 tax season. And surprise! There is no delay. Tax season for both paper and electronic returns will be on Tuesday, January 19th, 2016 which is one day earlier than last year start date (January 20, 2015). Even better? There’s no tiered opening season. All taxpayers can ...

2015 Tax Provisions for Individuals: A Review

From tax credits and educational expenses to the AMT, many of the tax changes affecting individuals for 2015 were related to the signing of the American Taxpayer Relief Act (ATRA) in 2012–tax provisions that were modified, made permanent, or extended. With that in mind, here’s what individuals and families need to know about tax provisions ...

Offshore entity to avoid Social Security Tax (and a US one)

Offshore entity to avoid Social Security Tax (and a US one)
This is a continuation of the following posts: Do US citizens living outside the US have to pay into the US Social Security System? Should a digital nomad, or other self-employed US citizen working abroad, pay social security taxes? So, if despite (partially) losing social security benefits, you still want to avoid paying Social Security Tax ...