Dealing with Taxes When Living Abroad
Dealing with taxes is already a complicated process, but it can be made even more confusing if you are living and working in a foreign country. Although lots of things are new and different, this is one thing that it’s crucial to understand, particularly if you are earning a wage in that country. Here we will discuss a few points to help you out when doing your taxes away from home.
Need to Knows
Each of the states, and even some individual counties, will have their own tax laws and regulations. It’s essential to check the rules about tax for the specific area relevant to you. It is necessary for you to file taxes, no matter where you’re living.
You will need to translate your currency into U.S. Dollars. No matter which currency you get paid in. If you’re filing taxes within the United States, then you need to be working in USD. You can do this by either using the average currency exchange rates or by looking up the rate for the specific date on which you were paid. This may be more beneficial for you, as the rate can vary dramatically over the course of a year.
Some things to take note of as a foreigner are the foreign earned income exclusion and foreign tax credit. You will need to research to see whether these apply to your particular situation, but these tools are your friends when it comes to reducing your taxes.
If you’re permanently living abroad, then you will automatically get a two-month extension on the due date. No need to rush or stress over filing your taxes. You have extra time to make sure that it’s all done right.
Where to Get Help
This is something that needs to be done right. It can be very confusing, so if you struggle, it may be a good idea to get some professional advice. It’s easy to find a site that can give you more information, or put you in touch with the right professionals. They will help you to understand more about how the process works, and also tell you how much you should be paying, but also how much you should be receiving in tax concessions, deductions, and returns.
In general though, if in doubt, get online. The internet is a fantastic resource to answer any questions you may have or to help you better understand whatever is confusing you. There will be various government sites with official information, but you can also check out the forums or expat sites to find advice from real people who have previous experience of being in your situation.
To Sum Up
There’s no need to panic over your tax returns when you have plenty of places to find help and advice. Make sure you research properly for your area so that you can keep in accordance with the law. Remember that the rules change from place to place. If you’re struggling, get some assistance, it’s okay to be confused. Professionals are there to help you out if you need it.