How to File Taxes from Foreign Country

Are living or working in different country other than USA? Are you aware that you are liable to pay taxes even if you are not working in your country? Being an American citizen, you must file your taxes with IRS. Large number of American citizens working in other countries are not aware of the fact that they have to file their taxes with US tax authorities as well. Few who are aware of this fact never file their taxes in an impression that the process is full of hassle. However, people who file their taxes know that the procedure of filing taxes from overseas is not as complicated as it is in US. Though it is bit different but you need to follow some rules and stick to deadlines.

Since you are not residing in US, it’s obvious that you would be using different forms to file your taxes. There are two forms that you can use to file your taxes. First one is IRS form EZ-2555 else you can use Foreign Earned Income Form 2555. Almost similar rules will be applied, if you are filing taxes from foreign country. If you have been fling taxes in use from a particular state but now filing from a foreign location, it might be possible that some of the state tax rules also applied while you file taxes from overseas. Moreover, there would not be any change in the tax deadlines. You would need to file your taxes by April 15th . In case, you fail to file your taxes by the due date; no need to be worried because you are staying overseas that’s why you get an extension of two months. However, this extension is not rewarded automatically but you would need to submit the official statement stating that you’re not living in United States in order to get the extension.

There are taxpayers who think that you can easily get an extension of two months to file your taxes so IRS would not pick their accounts for the audit. However, it is just a myth. IRS will treat you like any other American tax payer and has authorization to audit any of the accounts. Therefore, tax experts always suggest to hire qualifies tax attorneys and professionals so that your taxes can be prepared without committing any errors and amount can be reduced with the help of correct tax relief options. In many cases, US citizens residing overseas have a spouse of different origin. If this is the case with you, there are two options that can be used to file your taxes. First one is the “Head of Household.” In this case, if your share is more than 50% in supporting the whole family, then you are the only one who would be filing taxes. Other option is “Married Filing Separately.” Drawback of married filing separately is that you would not be getting any kind of tax credits that are related to dependant, children and education.