How to Manage International Taxes

Citizens of the United States who live in other countries are required by law to file a U.S. tax return each year. This is true if they meet income, filing status and age requirements. There are some tax credits and other income exclusions available, but it is important to manage international taxes carefully and in a timely manner. Read on to learn how to manage international taxes.

Difficulty: Challenging

Instructions

1. Contact a tax or accounting firm that specializes in managing international taxes. There are a number of websites devoted to international tax specialists.

2. Inquire as to whether or not you will also owe taxes in the country you reside in by contacting the appropriate government agency where you live.

3. Keep detailed records of how long you have lived at your current address, property owned or leased and all records of income earned while a visitor in that country.

4. Provide all documentation to your international tax specialist.

5. Make sure you understand and are aware of all filing deadlines so that penalties for late filing will not be imposed.

6. Do research to find out what tax breaks and credits you are entitled to because you reside in a foreign country. Your tax specialist should be able to provide you with this information.

7. Keep in regular contact with your international tax specialist throughout the tax year to update her on changes in address, employment status, changes in family status or filing status.

Tips & Warnings

• International tax law is a complex system of rules, schedules and credits. Finding a professional to manage and answer your international tax questions is the best way to manage international taxes.

Resources

• International Tax Planning