Do I Have to Pay U.S. Taxes while Living Abroad?
We all know the old saying, “Nothing can be said to be certain except death and taxes.” Without getting too grim, the question of when and where to pay your taxes when you aren’t exactly located in the United States can be a complicated one. U.S. citizens or resident aliens who are stationed overseas or taking a personal sabbatical may not think twice about filing during the calendar year and others believe that you don’t need to file at all. However, the IRS requires that you still file regardless of where you are geographically - the rules for filing your income still apply. If you are living overseas and need to file your taxes, there are a few helpful tips that you should know.
Although you are still required to file with the IRS, those who are living overseas are granted an automatic 2-month extension from the original due date of their tax return. Typically, Tax Day falls on April 15th, but for individuals stationed abroad, their due date extends to June 15th. The extension may seem gracious, but interest is still applied to the tax that hasn’t been paid by the original due date (April 15th). So regardless of whether or not you earn an extension, it’s best to pay your taxes before the Tax Day deadline, if you are able to do so.
If you are unable to file by the 2-month extended deadline, you may request an additional extension that allows your taxes to be due by October 15th, and you can request this extension regardless of whether you qualify for the automatic 2-month extension. To determine whether you qualify for the automatic 2-month extension, contact Gary L. Roberson who can help you create a statement for your tax return that explains your qualifications for an extension.
It is important to note that if you do qualify for the automatic extension as well as an additional extension to October, any penalties associated with your late taxes will be assessed beginning on June 15th. If you do not qualify for the automatic extension, penalties will be assessed starting on the original due date, April 15th. Additionally, you will still owe interest on your taxes that have accumulated up to October 15th.
GL Roberson, CPA, PLLC Can Help
Filing taxes in the United States is hard enough, but filing overseas can be even more of a challenge. If you are concerned about how you will pay your taxes while abroad, Gary L. Roberson can implement a tax planning strategy that takes the burden out of filing. A consultation with Gary Roberson will leave you with an understanding of what you owe and how to give him the necessary tax forms to file. He will file for you so that you don’t have to worry about looking for any missing paperwork while abroad or calculating exchange rates. You will have peace of mind knowing that your taxes are taken care of before they are due so that you can enjoy your time overseas.
If you would like more information about tax planning services, contact GL Roberson, CPA, PLLC today and schedule a consultation! We would be happy to put you at ease before, during and after tax season no matter where you are located! Call us today to learn more.