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Does that transition to a territorial system apply only to corporations or do individuals count too? American expats are among the few in the world who have to
by KKKKkkkk1 9y ago
Does that transition to a territorial system apply only to corporations or do individuals count too? American expats are among the few in the world who have to pay taxes to the mothership no matter how long they live abroad.
- cjslep 9y agoUS citizens living abroad are still subject to the worldwide tax. The Republican's tax bill only affected corporations.
- jjeaff 9y agoIf you are living abroad, you only have to pay tax on your income in excess of ~$110k
- bnferguson 9y agoBut you still have to file, which is not only a pain, rather expensive. My tax prep bill last year was around 1200 EUR in the Netherlands on top of my Dutch tax prep.
- yodsanklai 9y agowould it be hard to do it by yourself?
- nikdaheratik 9y agoYes and no. You have to do a 1040 no matter what and you have to include a number of special forms that you must get absolutely right or you deal with alot of BS from having to talk to the IRS. And that's just for a simple tax situation. If you have income from multiple sources, some of which may be in the U.S. and some not, even if it's as simple sideline business, then it gets more complicated as you also have to calculate profit/loss for that as if it were in the U.S., then subtract your taxes paid in your country, and demonstrate that it's all below a certain threshold. And there's also payroll tax exemptions, etc.
- jjeaff 9y agoThat is extremely overpriced. It is more labor intensive for working abroad, but not by that much. But if you were paying someone in the Netherlands to do your US tax return, that might explain it. Next year, get a US tax preparer and I can't imagine it being more than $200-$300.