The government requires resources to run the state and for many governments, the main source of revenue is the taxes they levy from people and businesses. It is required of you, therefore, as a business or citizen of the US government to ensure that you pay your taxes and file your returns in time and also in the accurate amount. If you are found to be on the wrong side of the law, when it comes to paying taxes, such as tax evasion, resistant to pay, filing the returns late and so on, you are punishable by the law. If you don’t know what is required of you, you fall on the wrong side of the law which is not good and this can be avoided by equipping yourself with the appropriate knowledge about the tax law.If you determine and to learn more about the law, many governments have an online site that is primarily meant to help you in filing your taxes and also help you learn different things about the tax law.
It is important to know that if you move to another country for whatever reason, you are still responsible to your government when it comes to taxes. If you are in US citizen living abroad, the issue of taxes can be complicated. If you are an expat, this article is a guide on taxes for expats.
There are myths and misconceptions about taxes for expats.One of the misconceptions that many people have when they move overseas is that the tax obligation should not be on them. The American tax laws don’t have that opportunity for the citizens because when you’re living abroad, you still expecting to fulfill your tax obligations as a citizen. Many people also believe that because they live abroad they don’t have to file their returns. However, it is to your advantage to file the returns because you will avoid double taxation. Additionally, it is important to note that you can also be taxed on your savings and also the income. Also, if you have more than $10,000 in your foreign financial account, you are expected to file the report with the FBAR which is the sum of the savings, investments, pension plan to name but a few.
With many issues surrounding taxes for people living abroad, it is important to understand all about taxes for expats. One of the important facts to know when you live in a foreign country is that for you to use the foreign earned income exclusions, you have to satisfy the requirements which can be obtained by either the physical presence test or Bona Fida Residence Test. You can fill an online tax return from abroad and you are allowed to make payment using different forms using electronic money such as credit and debit card.